Updated: May 14, 2024

 

Real estate in the Azores

Perched in the middle of the Atlantic, the Azores is a stunning contrast of deep blues and vibrant greens. With rolling hills, pristine lakes, and jaw-dropping views from the many miradouros (viewpoints) scattered across the islands, these islands are a place of beauty.

Real estate in the Azores is not as developed as other locations in Portugal. Yet its natural beauty, coupled with an increasing number of luxury amenities, particularly close to the capital, Ponta Delgada, make it a very desirable location for investors. Expect the property market to heat up here in the coming years.

If you are considering buying property in Azores, this complete guide provides everything you need to know. From key locations to property taxes, we cover all the bases.

Why should you buy property in the Azores?

Once very much off the investor’s radar, real estate in the Azores is now on the investor’s map. The luxury market has taken off in recent years, especially on the island of São Miguel in the capital of Ponta Delgada. The city center of Ponta Delgada has fine dining, luxury hotels, and waterfront properties with staggering views of the Atlantic Ocean- indeed, this could be an excellent location to invest in.

Other areas on São Miguel and many of the other islands are perfect for those looking for a quiet escape where they can fully embrace the wonders of nature. If you are looking for a stunning island offering excellent food, hiking trails, and tranquility, there could be no better location.

Key reasons for buying property in Azores

Although farming and fishing are the primary industries within the islands, given the richness of agricultural land and the history of fishing, tourism, and property investment have become increasingly important to the economy.

A place of natural wonder, the quietness of the Azores speaks volumes, where the islands are not overrun with mass tourism. The impeccable management of tourist season helps retain the island’s heart, love of local produce, natural activities, and undiscovered landscapes.

Take the natural hot thermal waters of the geysers, go for long walks across the hills, or settle down with a warm coffee from a viewpoint to soak in the wonders before you. Time seems to stand still on the islands, allowing visitors to encounter grazing cattle blocking the road at some point, which you will need to exercise your patience for. Beautiful sunsets signal another day passing, and with sublime sea views across the island (when the unpredictable island weather is not playing games), you are constantly close to nature’s bountiful beauty.

Can foreigners buy property in the Azores

Buying a property in Portugal is a relatively straightforward process, and this ease extends to the autonomous region of the Azores. There are no restrictions on foreigners buying property here. However, we recommend having an experienced lawyer and a real estate professional assist you throughout the process. Non-EU citizens who plan on living in Portugal will need to secure a residence permit through one of the visa options the Portuguese government offers.

Buying Property in Azores: Exploring the Real Estate Market

The Azores are an archipelago of nine islands, each with its unique landscapes and a total area of 2,346 km². São Miguel Island is the largest and most populated, where about 56 percent of the population lives. The capital, Ponta Delgada, is also the most populated. This is where the majority of Portugal luxury real estate on the islands can be found.

A significant advantage of the Azores real estate market is that Azores property is relatively cheap compared to popular areas on continental Portugal and the autonomous island of Madeira, and even more so when contrasted with their European neighbors.

The average asking price for property on São Miguel Island is €1,670 per square meter. Note that this is the average asking price, and the sales price can be significantly lower than this as the seller aims to sell by a set date. Occasionally, the price can also be higher than the asking price.

As with any property, prices will vary depending on its type, size, location, whether it has a waterfront view, and additional facilities, such as a private pool, security, or a gym. However, a quick scan of the property market price here will undoubtedly be attractive to incoming buyers.

In the Azores, prices will also depend on where you buy. Real estate investment in the various islands and parishes will each have a unique price range. For example, buying land or luxurious villas in Ponta Delgada, the capital city, will come at higher real estate prices due to increased demand, as is Lajes, a beautiful, historic town on Pico Island.

Islands and parishes that are less populated will have a cheaper price tag. Take Corvo Island as an example. As the smallest island—both geographically and population-wise (just 465 inhabitants)—properties here are pretty affordable. However, buyers here may feel relatively isolated, and the luxury perks present in Ponta Delgada and other more populated areas will be lacking.

Where to buy property in the Azores?

The Azores can be divided into three groups of islands. In the east, you have São Miguel and Santa Maria; in the center, you’ll find Terceira, Graciosa, São Jorge, Pico, and Faial Island; and in the west, Corvo and Flores.

Cultures, cuisines, and traditions are very different on each island. However, the islands retain a quaint and unspoiled ambiance. If you are looking for property for sale in the Azores, here is a brief overview of each.

The Eastern Islands: São Miguel and Santa Maria

azores island portugalThe island of São Miguel is the most developed, with the capital, Ponta Delgada, the most populous city on the archipelago. If you are looking for luxury properties, here is an excellent place to start your search. Ponta Delgada, the capital, is where you will find fine dining and five-star hotels. This is also where you will find an active nightlife scene. Ponta Delgada lies between the mountains and the sea. In the city, the buildings, streets, and sidewalks are built with volcanic rocks – leading to an element of rustic elegance to the town. As mentioned, you will also find more properties here than on the other islands.

The nearby island of Santa Maria has inviting white-sand beaches, vineyards covering the slopes, and an amphitheater that resembles a giant staircase. The long beach at Praia Formosa is a particular gem. If you’re looking for Azores waterfront property for sale in Portugal, you can find many options on the eastern islands.

The Azores real estate for rent market is as diverse as real estate for sale. A one-bedroom apartment in the city center of Ponta Delgada will set you back €750 per month, while a three-bedroom apartment in the city center will cost you €1,033 per month. If you buy outside the city center, prices will fall considerably. Plus, as Ponta Delgada is the capital, prices in other cities will also be lower.

The Central Islands: Terceira, Graciosa, São Jorge, Pico and Faial

Terceira island is an attractive option if you are looking for a luxury villa. With beautiful sea views of the Atlantic Ocean, perhaps a private pool, and your very own quiet area in the depths of nature, you will be able to find homes to unwind and relax. Terceira is the second-largest island on the peninsula and could prove to be the perfect secluded spot. Most tourists tend to spend their days on São Miguel Island. Terceira could be a quieter option without the steadily increasing tourist flow.

Graciosa translates as “graceful” or “enchanting” in Portuguese, and with only 4,780 inhabitants, it is one of the quietest islands. The long, slender island of São Jorge has a slightly different cuisine. Here, the focus is on the abundant use of spices brought to the island during the Age of Exploration. Local delicacies include fish, pork, and clam dishes.

And then you have Pico Island, which is home to the highest mountain in Portugal. The wine scene here is incredible, and the rugged island has a unique ambiance. Only 300,000 years old, Pico Island is practically a youngster when compared to the other islands—which are millions of years old. Pico Island is also where Lajes do Pico is located. You will find the historic town of Lajes a very beautiful place to visit. Pico is also the most expensive place to buy property in the Azores.

Faial Island is also an option for the more adventurous. As with the other islands in the center of the archipelago (with the exception of Terceira), Faial Island is also remote. However, the beauty of Faial comes in the form of the flowers that grow there. Here, you have beautiful hydrangeas blooming in the summer months.

The Western Islands: Corvo and Flores

Corvo is the smallest island, and its population is tiny. Here, prices are very cheap. It is unique in terms of its ecology, with many protected areas and bird species. The island of Flores has a slightly bigger population size yet is also relatively undiscovered in terms of real estate, with unique bird species. If you are looking for luxury real estate in the Azores, then the central or eastern islands are probably more likely to cater to your needs.

In the western islands of the Azores, you will find some lovely options for Azores real estate for sale. You will likely be pleasantly surprised by both the enchanting beauty that surrounds you and the affordability of the property here.

A Step-by-Step Guide to Buying Property in Azores

In this section, we’ll present a concise, step-by-step guide to purchasing property in the Azores. The process will be the same wherever you buy in Portugal. Later in the article, we’ll elaborate on specific steps, such as securing financing for your property and strategies for finding the perfect property.

Step 1: Financing your property

Before beginning the process of purchasing a property in the Azores, you should evaluate your financial circumstances and, if necessary, explore your lending options. If opting for a mortgage, research various Portuguese banks to find favorable interest rates and terms that align with your requirements. With numerous banks catering to foreign mortgage seekers, you should spend time checking which one offers the best deal for you based on your requirements.

Step 2: Finding the ideal property

When checking for properties in the Azores, define preferred locations and property types and establish a budget. You can conduct research online and make sure you consider factors such as location, amenities, proximity to essential services, and potential rental income for investment properties. Engaging real estate professionals acquainted with the market can make the process of finding your ideal property much more straightforward. Buyer’s agents, for example, will have access to properties that you will not find elsewhere on the market and will be able to assist you throughout the process, from sourcing to acquisition and beyond.

Step 3: Making an offer and negotiation

When you’ve found the perfect property, the next step is to secure the perfect deal. It is important to note the difference between a real estate agent and a buyer’s agent. Real estate agents work on behalf of the seller and secure a higher commission for a higher sale which presents conflict of interest, while a buyer’s agent works solely on behalf of the buyer with your best interests as the focus. Collaborating with a buyer’s agent will aid in the negotiating stage, making sure you get the best deal possible.

Step 4: Reservation Agreement

Once the offer is accepted and negotiations successfully concluded, a preliminary step often involves signing a Reservation Agreement. This agreement demonstrates your intent to purchase the property and ensures it is taken off the market while you make your final decision. Typically, a reservation fee of €6,000 to €10,000 is required upon signing, which can be fully refunded if you choose not to proceed with the purchase. However, the terms for repaying the reservation fee must be clearly stated in the Reservation Agreement.

Step 5: Promissory Contract (CPCV)

Following the Reservation Agreement is the Promissory Contract (Contrato Promessa de Compra e Venda or CPCV). This contract formalizes the transaction and usually involves paying a deposit, typically around 10 percent of the property’s purchase price. The CPCV is signed in the presence of a Notary. It’s essential to thoroughly understand the terms and conditions outlined in the contract before signing, as the CPCV legally binds both parties to proceed with the sale according to the agreed-upon terms.

Step 6: Final Deed Signing

The final step entails signing the Escritura, or Final Deed, transferring ownership from seller to buyer in the presence of a Notary. Thoroughly review the document with your legal representative, clarifying any uncertainties before signing. Payment of the remaining property balance, along with associated fees and taxes, is required at this stage. With the Escritura signed, ownership is officially transferred, marking the completion of the process.

Requirements for a Successful Property Purchase

When purchasing property in Portugal, you will need to have a Portuguese tax number, and it’s recommended that you open a Portuguese bank account.

Portuguese tax number

To buy property in Portugal, you will need a Portuguese NIF number. This will be your tax identification number, and it is required to make any significant financial transactions in the country. If you are a non-EU national, you will also need a fiscal representative. Our partner, Global Citizen Solutions, offers a comprehensive guide about how to get tax identification number (NIF) in Portugal.

Portuguese bank account

While not a requirement, we highly recommend that you set up a Portuguese bank account to avoid foreign transaction fees. There are a range of banks in Portugal to choose from.

Required Documents for Buying Property in the Azores

documents signingBesides your NIF number, you’ll require the following paperwork to buy property in the Azores:

  • Photo ID: A valid ID confirming your identity.
  • Contrato Promessa de Compra e Venda (CPCV): The purchase agreement or property deed outlining transaction terms.
  • Energy Certificate: Details the property’s energy efficiency, which the seller will provide.
  • Imposto de Selo: Stamp duty payment mandated by the Tax Authority for property transactions.
  • Caderneta Predial: Land register document containing property specifics like location, boundaries, and owner details.

We recommend engaging an independent lawyer to assist you with the paperwork required. They will also conduct due diligence on both the seller and the property.

How to Find Property in Portugal

Finding the ideal property in the Azores can take time and effort. Each buyer will be looking for something slightly different, so you’ll first want to determine what you are looking for and then work forward from there.

Define your requirements

The best advice when buying property is to clearly decide on what you want from your purchase. Consider more than just the type of property; consider your budget and the key features that you would like to have. Below, we’ve provided you with three key aspects to consider.

  • Clarify your needs: Compile a detailed list of your specific preferences and requirements. Consider aspects such as location, size, budget, amenities, proximity to essential services like schools and healthcare facilities, transportation options, and other vital factors.
  • Set your budget: Determine a realistic budget for your property purchase and assess whether you’ll require financing through a mortgage. Having a clear budget in mind will help you narrow down your search and focus on properties that fit within your financial constraints.
  • Explore different neighborhoods: Conduct thorough research on various neighborhoods to identify areas that match your lifestyle and preferences. Look into factors such as nearby schools if you have children, as well as the potential for future growth and rental opportunities in the area.

Work with property specialists

Real estate websites can only get you so far. The Portuguese real estate market is fragmented, meaning that there is no one location where you can see all the properties on the market. Working with real estate professionals is your best bet to get access to a range of properties that meet your unique requirements.

Note that in Portugal, as we’ve mentioned, real estate agents work on behalf of the seller and, therefore, secure a higher commission for a higher sale. A buyer’s agent, on the other hand, works solely on behalf of the buyer, so you can rest assured that your interests will be protected.

Property viewings

Once you’ve narrowed down your choices, schedule appointments to inspect the properties personally, and note the condition, layout, and any potential renovation requirements. Real estate professionals can assist in coordinating these viewings, which is another excellent reason to consider working with experts in the field.

During the viewing, don’t hesitate to ask about the property itself, its surroundings, or any ongoing or planned developments. It’s helpful to prepare a list of questions in advance to ensure you cover all necessary information. Additionally, speaking with neighbors can provide insights into the neighborhood. Visiting the property both during the day and at night is advisable, as the atmosphere can vary significantly depending on the time of day.

Evaluating property prices and investment potential

Even if you are buying property in the Azores without the intention of renting it out in the future, it is worth understanding the potential for capital appreciation. Consider this when taking steps to secure property in the country.

Navigating the Portuguese legal system

Although optional, It is highly advisable to enlist the assistance of a Portuguese real estate lawyer when dealing with the intricacies of the country’s legal system, especially for those who need to be better versed in its procedures and who do not speak Portuguese.

Due diligence

Performing due diligence is essential in real estate dealings, as it allows you to identify and resolve any legal concerns or possible hurdles. Your lawyer will conduct thorough due diligence assessments on your behalf, encompassing both property-related matters and those concerning the seller. Additionally, they will inform you of any outstanding debts associated with the property.

Buying Property in the Azores Pitfalls

Some of the critical pitfalls of buying property include the following: As such, it’s highly recommended that you have a real estate professional and a lawyer well-versed in real estate assist you with your property purchase.

  • Legal intricacies: Verify the seller’s rights and uncover any outstanding debts tied to the property, alongside due diligence of the property and the seller.
  • Tax considerations: Familiarize yourself with property taxes that you will need to pay at the time of purchase and those that you’ll need to pay on an annual basis, alongside other related fees and costs.
  • Property location: Make sure that you are pleased with the property’s location and that it meets your needs, such as proximity to schools or healthcare facilities.

Financing Your Property in the Azores

Purchasing a new property, particularly overseas, can take time, especially regarding financing options. In this section, we provide insights into mortgages in Portugal and highlight the importance of setting out your budget as early as possible.

Get your budget straight

Set out your budget from the start. What finances do you have open to you, and how much do you want to invest in your Portuguese property? This will help you with your property search as you can narrow down properties based on your price bracket.

If you require a mortgage, research your options as early as possible. Many different banks offer mortgages in Portugal, so ensure you take the time to find the best choice for you.

Financing your property: Main mortgage options

In Portugal, there are two main types of mortgages:

  • Fixed-rate mortgages: This type of mortgage offers stability to the lender. They have a constant rate over a set period, typically 3 to 30 years, with a penalty for early repayment.
  • Variable-rate mortgages: Variable-rate mortgages fluctuate based on an index, usually Euribor, where monthly payments are adjusted every 6 to 12 months. Early repayments incur a standard penalty of 0.5 percent.

For a complete rundown on mortgages in Portugal, our article, How to Get a Mortgage in 2024.

View our definitive guide to buying property in Portugal

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Property Taxes in the Azores

As with buying property anywhere in the world, you can’t escape property taxes. In this section, we delve into the property taxes you’ll need to pay, both at the time of purchase and annually.

Municipal Property Tax (IMI)

The Municipal Property Tax (IMI) is an annual levy calculated by the local municipality where the property is. The tax rates vary from 0.3 percent to 0.8 percent depending on the type and location of the property.

Property Purchase Tax (IMT)

Determined by the property’s assessed value or the declared amount in the deed, the IMT (Municipal Tax on Onerous Transmissions of Real Estate) is a tax on property transfers that the buyer must pay before completing the purchase. This tax rate fluctuates between 0 and 8 percent based on factors such as property type, location, purchase price, and intended use. You can use our property tax calculator to calculate this tax.

Stamp Duty

Stamp Duty (Imposto do Selo) is an additional tax levied by the Portuguese government on property transactions. It is 0.8 percent of the total value stated in the deed and must be paid at the time of purchase.

AIMI (Wealth Tax)

The Portuguese Wealth Tax, known as AIMI, is levied on properties valued above €600,000 after purchase. It is structured into three tiers of taxation based on property value:

  • Properties valued between €600,000 and €1 million are taxed at a rate of 0.7 percent.
  • Properties valued between €1 million and €2 million are subject to a 1 percent tax.
  • Properties worth more than €2 million face a 1.5 percent tax rate.

Capital Gains Tax

Capital gains are the profit generated from the sale of a property, which could be liable to taxation. Upon selling your property in Portugal, you will need to declare the purchase details to the Portuguese tax authorities. Should you reinvest the entire selling amount into a new home, you might qualify for exemption from capital gains tax, which usually stands at 28 percent.

For more information on taxes in Portugal, you can check out our article, Property Taxes in Portugal in 2024: An Overview.

Maintaining and Managing the Property

If you are looking to buy property to rent out, more tourists have been heading to the beautiful Azores islands than ever before.

Property maintenance

Alongside working with a lawyer to conduct due diligence checks and engaging a property surveyor in Portugal to verify the condition of both the interior and exterior, you should consider how you are going to maintain the property on a regular basis, especially if you intend to rent it out or the property in the future.

Finding property management services

If you are looking to rent your property out, you should certainly consider working with a property management company. When choosing the right property management services company, ensure you ask them about their experience working with expats.

Property Purchase Costs

Alongside taxes and fees, ensure you also consider additional costs, such as a lawyer, real estate agent, and Notary fees. If the property you intend to buy also requires work, factor in costs for construction, interior design, and so on.

Practical Information

The Azores are a wonder of the natural world, a relatively unspoiled picture of a life that has not been overwhelmed with urbanization. This may sound ideal, but what are the practical implications of living on these islands of paradise? Here, we provide you with some helpful information on living in the Azores.

Expats in the Azores

There are many expats living in the Azores, which can be a welcoming sight. Many expats moving to the Azores create a new business – often related to tourism – and most are successful. As there are many activities to do outside, it should not be too difficult to get to know new people. For example, golf, watersports, and hiking are each popular activities here – and a great way to stay healthy. There is also a great diving scene in the Azores, and the islands prove a great location to view whales and dolphins from the coast.

Costs of living in the Azores

The Azores are very affordable, and you should be able to live comfortably on a small budget. However, those looking to live the luxury life – with fine dining, five-star hotels, and luxury resorts – can expect to pay higher prices.

Note that imported products can be a little more expensive as the Azores are a remote island. The islands, in general, are very affordable. The quality of the local produce is also outstanding.

Healthcare in the Azores

The National Health Service (SNS) in Portugal is very good, and there are also many private options available. However, if you are located on one of the smaller islands, services can be lacking.

Non-EU citizens who are looking to retire in Portugal should have private health insurance, at least until they secure their residence permit. Healthcare under the National Health System is free for children under 18 and persons over 65 years old. Others will simply need to pay a small fee to see the doctor. If you need to have more specialist procedures, such as X-rays, you will need to pay a little more.

Lifestyle and culture

The primary attractions of the Azores are their stunning views and their tranquility. However, each island has its own customs and traditions. You can expect to find welcoming locals and a range of festivals – such as the Festa das Vindimas (Wine Harvest festival) or the Festival da Maré de Agosto (August seafood festival).

The luxury market has also rapidly expanded in recent years, alongside the rise in tourism. There are now several fine dining options, particularly in Ponta Delgada. Here, you have five-star hotels and beautiful modern villas with simply stunning views.

Because of the fewer extremes in weather, compared to continental Portugal, for the active types, the island is a paradise. There is hiking, biking, plus a wide range of watersport and diving activities where you can get your nature fix.

The islands have a very relaxed way of life – so make sure you adjust to this slower pace of life. With fresh seafood, tea and pineapple plantations, and local queijo (cheese) – try the cheese from São Miguel island, and you will not be disappointed – the Azores boasts impressive and varied produce. The focus on incredible cheeses should come as no surprise to those who have visited the islands. You will not have to look far to see cattle grazing on the vibrant green grass – perhaps one of the most fitting images for the islands.

Transport in the Azores

With many frequent flights from Europe and the USA, flying is the best way to get to the islands. There are three main airports on the islands that fly internationally. However, each island has its own airport that offers internal flights between the islands.

It takes about five hours to fly from the UK to the Azores, about six hours from the USA, and two and a half hours from mainland Portugal.

The airports that provide international flights are:

  • João Paulo II Airport, located on São Miguel;
  • Horta Airport, located in Faial, and
  • Lages, located on Terceira

When you are in the Azores, it is probably best to get around by car. Alongside this, public transport is not one of the strong points of the islands. All islands except Covo have bus and taxi transportation. However, if you want to get around quickly on your own schedule, we recommend renting a car.

To get from island to island, there is a ferry network alongside domestic flights. Be aware that the ferries have to operate in the middle of the Atlantic Ocean. As such, currents and waves can sometimes rock the boat a little.

Is it worth buying property in the Azores?

The Azores is a magical location, and many expats have fallen in love with the gentle rolling hills, the relaxed pace of life, and the sublime landscapes that can be found here. While these islands may be slightly remote for some, for many looking for a quiet corner to enjoy the very best things in life, there could be no finer place.

With no restrictions on foreign buyers and affordable Azores properties, plus increasing interest from tourists looking to explore these islands, buying property in the Azores is worth considering.

Goldcrest: How We Can Help You

Goldcrest is a buyer’s agent based in Lisbon, Porto, and Algarve. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process.

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, help you with the property search, and offer insightful expertise and strategic advice.

Frequently Asked Questions about Real Estate in the Azores

The capital, Ponta Delgada on São Miguel island, has the most developed luxury real estate market and is a good starting point to find properties for sale in Azores.

Buying property in the Azores is a very safe investment opportunity – with increased demand, cheap properties, and changes to the Golden Visa scheme creating increased investment interest from foreign residents and investors in the islands. You will find numerous properties for sale on the Azores real estate market and other central islands at very reasonable real estate prices with the help of a buyer’s or real estate agent.

As in mainland Portugal, foreigners will need to pay the same tax rates as Portuguese citizens when buying land and properties from the Portuguese tax authorities.

Yes, the Azores are a good place to retire. They offer beautiful scenery and plenty of outdoor activities, such as golfing.

Ensure that you are close to healthcare facilities; however, as on the smaller islands, this can be lacking.

The Azores provide an excellent quality of life and are very affordable compared with other parts of Europe. However, the Azores have a lot more to offer than just a low cost of living. The climate is pleasant most of the year, and the islands are very safe, with low crime rates. If you are a nature lover looking for a relaxed pace of life, the Azores could be the ultimate destination to secure your dream home.

You will find numerous properties for sale in Azores at affordable prices, particularly when compared to house prices in America.

Yes. If you’re an American, you must get a residency permit visa to live in the Azores. Two great options are the Portugal Golden Visa Program and the Portugal D7 Visa (Passive Income Visa).

The Azores are home to a significant number of Americans. Due to the American airfield, many expats live in Terceira (Lajes Field). There are also quite a few US nationals in Pico and Sao Miguel.

Yes, foreign buyers interested in Azores property will face no restrictions when it comes to buying property in the Azores. They will, however, need to secure Portuguese residency should they wish to live in the country.

The process for purchasing a home in the Azores is the same as it is across Portugal, so there are no legal barriers that prevent foreigners from purchasing a home in the Azores. Whether you are looking to buy in the capital, Ponta Delgada, or on one of the more remote islands, you will face no restrictions on buying property.

Foreign face no restrictions when it comes to buying property in the Azores or any restrictions on the property types they can invest in.

Foreigners who buy properties in the Azores central islands must acquire a Portuguese tax number (NIF) and the following paperwork:

  • Photo ID: A valid ID confirming your identity.
  • Contrato Promessa de Compra e Venda (CPCV): The purchase agreement or property deed outlining transaction terms.
  • Energy Certificate: Details the property’s energy efficiency, which the seller will provide.
  • Imposto de Selo: Stamp duty payment mandated by the Tax Authority for property transactions.
  • Caderneta Predial: Land register document containing property specifics like location, boundaries, and owner details.

In addition to the property price, there are other costs associated with buying properties in the Azores and central islands that include fees for notaries, real estate companies and legal fees as well as property tax before and after the purchase.

Nicknamed the “Hawaii of Europe,” São Miguel is a stunning island and the biggest. Terceira, Pico, and Faial Island are also attractive options to secure your dream home. Each of the Azores islands are breathtaking in its unique way, from the more populated islands in the east to the less inhabited, more remote islands of the west. More properties can be found in São Miguel, which has the largest expat community and the capital, Ponta Delgada.

As a US citizen, you can buy property in the Azores without restrictions. The Azores welcome international investors and have a straightforward property acquisition process. Whether you’re looking for a vacation home, rental property, or a long-term investment, the Azores offers a diverse range of options to suit your preferences.

Yes, investing in the Azores can be a smart move for several reasons:

  1. The Azores has seen a steady increase in tourism in recent years, making it an attractive destination for property investment.
  2. The cost of living in the Azores is relatively low compared to other European destinations, making it an affordable option for both investors and potential residents.
  3. The natural beauty and unique culture of the Azores make it a desirable location for those seeking a tranquil yet vibrant lifestyle.

Compared to many other countries in Western Europe and the Portuguese capital of Lisbon, property prices in the Azores are relatively affordable. While prices can vary depending on factors such as location, size, and amenities, overall, the Azores offer great value for money in real estate.