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Purchasing a property is a big step, one that takes careful consideration. In this ultimate guide to the Portugal real estate market, we provide the essentials investors need to consider when buying a property in Portugal.

The main reasons to invest in Portugal’s real estate market

Topics covered:

  • Best places to buy property in Portugal
  • Real estate prices in Portugal
  • Taking out a mortgage loan
  • A step-by-step guide to buying property
  • Property tax considerations
  • Document requirements
  • Faqs

portugal real estate for sale

From the privilege to own a home where there is sunshine all year round, to living in a socially and culturally exciting low-cost European country, that is safe and accessible, with a high quality of life, some say that Portugal is the perfect country to invest in.

A classy nation, with historic heritage and high-quality architecture, welcomes hundreds of expats that are investing in Portuguese luxury real estate properties in Portugal each year.

Here’s why buying real estate in Portugal is a good idea:

  • Safe and stable democratic state that is part of the European Union
  • Sunny weather year-round
  • Warm and welcoming local population
  • Diverse landscapes and activities on offer
  • Low cost of living
  • Excellent healthcare system with first-rate modern units and responsive emergency care

Huge range of international schools, offering programs like GCSE and A-levels

portugal real estate for sale 2

Where to buy real estate in Portugal

Determining where to buy real estate in Portugal is an important step toward making a sound property investment. It so happens to be that location is key when buying real estate.

Lisbon, the hip capital

From Lisbon’s parks, gardens, museums, cafes, and restaurants, to its symbolic river and monuments, the capital city offers a blend of historical, traditional, and modern properties for sale. Known as the city of light, Lisbon is a unique, thriving city, with diverse, quality property options for the buyer.

Lisboa real estate for sale

Algarve, the coastal dream

Best known for its heavenly beaches, internationally acclaimed golf courses, and an inspiring combination of mountain and ocean views, Algarve has it all in terms of property types.

Whether you consider buying a property in Algarve’s picturesque fishing villages or near the sophisticated luxury resorts, summer is always present in a beautiful region dedicated to leisure and the art of living well.

Algarve real estate for sale

Portugal’s Algarve also offers one of the most exclusive European markets for luxury real estate. You can find top properties like luxury villas for sale and typically can rent your property out by the coastline to tourists year-round. Regarded as one of the best destinations to own a holiday home, Algarve offers great returns on your investment due to its bustling tourism industry.

Porto, iconic and artistic

Around every street corner in Porto, you’ll find enchanting cobblestone streets, brightly colored buildings, and traditional culinary gems. For nature seekers, you’ll find that the city is conveniently located near the coastline and the Douro river which flows through the middle of Porto.

porto portugal real estate for sale

There are plenty of parks, gardens, and green spaces further inland making Porto an ideal destination to own a luxury property. Fast becoming the ‘it’ destination to own real estate in, Porto’s real estate prices are affordable, with strong market demand.

Central Portugal: Alentejo, the rural escape

The Alentejo region is a place of true beauty, largely untouched by the traps of modern life.

Alentejo real estate for sale

It is an attractive place to invest in and the region enjoys warm weather for a considerable period of the year. Many properties are available for sale or rent, including apartments, small lots, townhouses, villas, country houses, and seaside resorts.

Portugal real estate market history and overview

Portugal has gross domestic product growth, low mortgage rates, and a truly dynamic real estate market with around 70 percent of the building stock dating from before 1991.

These factors make it a good idea to invest in renovation projects or on the rehabilitation of aging residential infrastructures. More and more investors are repurposing used properties and modernizing infrastructures, making properties more energy efficient.

Government-mandated incentives— like investing in property in exchange for legal residency under the Golden Visa scheme and obtaining special tax privileges under the Non-Habitual Resident scheme— make property investment all the more attractive in Portugal.

What are real estate prices like in Portugal?

Thanks in large part to the Portugal Golden Visa Program, international real estate investors are pumping large amounts of liquidity into the Portuguese economy, contributing to the growth in demand for high-quality, newly built properties.

Not only does the Portuguese economy benefit from flourishing tourism, but also the residential property market. While major investors are interested in hotels and offices, private buyers are taking a look at the country’s newly renovated townhouses and condominiums. In addition to the Algarve, cities such as Lisbon, Faro, and Porto beckon.

Real estate in Portugal is among the cheapest in Europe. According to the latest figures from the Portuguese statistical institute, Instituto Nacional de Estatística (INE), the average property price in the country is just 1,187 euros per square meter – €1,243 for apartments and €1,090 for houses. For comparison: in the UK, for example, it is €2,649 and in France €2,300.

Property prices in Portugal 2020 (euros per square meter):

RegionPrice (€)
Algarve2.316
Lisbon Metropolitan Area2.931
Madeira1.559
North1.768
Central1.068
Alentejo1.031
Azores1.005

Which are the most expensive areas to buy real estate in Portugal?

At present, the Algarve is the most expensive area for property purchases and is in great demand with foreign buyers, especially in the ‘Golden Triangle’ of the Algarve between Vale do Lobo, Quinta do Lago, and Almancil. This area is considered the upper end of the market, with a high volume of foreign buyers investing in the €500,000 property option under the Golden Visa scheme.

The usual square meter price here is €2,316, but keep in mind that by the coastline you will pay significantly more, while a few kilometers more inland you will pay less.

Cascais, Lisbon, and the Algarve are the most expensive areas to buy a property, with prices in Portugal continuing to rise. The most expensive and exclusive location to own property in Portugal is in Aldeamento Vilar do Golf, in Quinta do Lago, Algarve. Property owners in this area charge an average of €2,897,585 for a luxury property, according to a study by the real estate portal Idealista.

Real estate in Lisbon

Greater Lisbon is also an expensive area to buy property in, which is hardly surprising when you consider Lisbon’s status as a capital city, financial hub, and tourism magnet. Strictly speaking, Lisbon is the most expensive place to buy larger apartments — the price per square meter for three-bedroomed apartments is more than €2,000.

Of course, the prices quoted above are average values for large areas. The metropolitan areas have much higher prices — in the center of Lisbon you can expect to spend €2,500 or more per square meter for larger apartments that are generally more expensive than the smaller cities in the north.

Top of the list, with an average price of €2,788,462 is Rua Buenos Aires in Estrela, followed by Rua das Palmeiras in Quinta da Marinha, Cascais, with an average of €2,562,174. This is followed by Avenida Marginal in the municipality of Cascais and Estoril (€2,317,682).

Lisboa real estate

Real estate in Porto

When it comes to real estate and tourism, Lisbon and the Algarve usually serve as attractive figureheads for the country. Nevertheless, smart investors looking for future-proof investment properties in Portugal have been focusing on the historic city Porto for some time.

There is no doubt that Porto has exciting opportunities in property investment. While the location offers the same historical charm as Lisbon, it offers a more relaxing lifestyle. Porto has a wide selection of properties to rent out or buy and includes exclusive apartments in beautiful old buildings with some stunning views of the river or the Ocean. Some properties have easy access to the parks or the city center. This makes them particularly suitable for renting out to vacationers.

After Lisbon, Porto is the second-largest city in Portugal. This is why there are numerous exciting career opportunities in the evolving tourism industry as well as in other areas like the fashion, textile, and footwear industries. Greater Porto has a GDP of €37 billion. The local economy is supported by an extensive public transport network consisting of trams, trains, and metro lines.

porto real estate for sale

What the real estate market in Porto is still missing, however, are commercial properties that meet the requirements of today’s companies in terms of design and size. This gap in the market will widen more as the local tourism industry grows.

Having said that, Porto still offers real estate at comparably moderate prices. But since the location is rapidly developing into a tourist magnet as part of its ongoing regeneration, the city could soon become a hotspot for luxury living.

Real estate in the Algarve

In the Algarve, home buyers have to pay an average of €2,064 per square meter, reports the real estate giant Idealista, which published its findings in late 2018.

After that, housing prices by the coastline in southern Portugal rose by 1.6 percent in the fourth quarter of 2018. That is less than the growth rate in the rest of the country. This was 6.6 percent and recently drove the average price to €2,101 per square meter, according to Idealista.

Faro did not follow this trend in the region. The city in the Algarve recorded a drop in house prices of 1.8 percent to an average of €1,715per square meter. The highest price increase in the region was in Olhão (8.4 percent), followed by Silves (6.6 percent) and Portimão (6.4percent).

Algarve luxury real estate

According to the portal, the most expensive Algarve municipality — measured by the development of house prices — is Lagos. At €2,581 per square meter, it’s just ahead of Loulé (€2,534). Among the best value places were in the fourth quarter of 2018, and included São Brás de Alportel (€1,230), Olhão (€1,464), and Silves (€1,621).

Real Estate in the center and the Alentejo

In Portugal, real estate prices differ significantly from region to region.

In the two cheapest areas, Centro and Alentejo, you could buy houses for half the price you would pay in the Algarve. However, In both regions, you can get real estate for less than €1,000 per square meter. For bargain hunters, Évora, Elvas, Coimbra, and Aveiro are good starting points.

Where to look for Portuguese real estate?

People from different backgrounds tend to have different preferences when it comes to real estate. Many Brits buy in the Algarve, but not an insignificant minority also opt to purchase old country houses.

The French and Brazilians tend to invest in Porto, while German buyers are well represented in Faro and Lisbon.

Chinese buyers are particularly interested in the Golden Visa scheme option, which gives them access to the European Union. In fact, Portugal is the fifth largest destination for Chinese property buyers. They make up 80 percent of the buyers who use this program and they usually buy property in Lisbon as pure investments.

Russian buyers, on the other hand, tend to focus more on Cascais and Estoril.

Since Portugal is so diverse, it is recommended that you do some research first to find out where exactly you want to buy — in one of the cities, by the coast or inland? In the sun-drenched south or the green (but sometimes also rainy) north?

It’s not just a question of geography, but also of a lifestyle preference, which can vary greatly depending on whether you opt for the bustling Lisbon, the beaches and resorts of the Algarve, or the leisurely life in a mountain village.

Do some homework first, even if that means renting an apartment on-site for a few months just to get a feel for the life and the climate there.

You should also think about public transportation accessibility. If you are looking for a holiday home, you will probably want to be near an airport: Lisbon and Porto are the main hubs, but Faro also has an international airport.

real estate in portugal

Portugal real estate specialists

As a local buyer’s agent situated in Portugal, Goldcrest provides insightful real estate expertise and strategic advice. From sourcing to property acquisition, we help clients identify outstanding investment opportunities in some of Portugal’s finest locations.

Have a question about buying a property in Portugal? Contact us today for more information on how best we can assist you.

Financing real estate in Portugal

Most buyers choose to take out a home loan to pay for their property in question. Portuguese banks are particularly known for being considerate, with a high mortgage approval chance.

Mortgage loan

If you are buying a property in Portugal, you may be lucky enough to finance the property entirely from your own pocket.  Most buyers, however, want to use a mortgage loan to finance part of the purchasing price, and the mortgage loan options should be carefully considered.

If the Euro is not your official currency in your home country, the exchange rate may be an issue. If you borrow in a currency other than the Euro, you are exposed to exchange rate fluctuations, which means that if the value of your currency changes, the value of the mortgage may no longer match the value of the property.

On the other hand, if you get a mortgage in euros, but pay off the installments from your income in your currency, you may have to pay different amounts each month and get into payment difficulties should your currency lose value.

If you are one of those buyers who does not have assets in euros, you should take the time to think carefully before making a decision. Perhaps you should give yourself a 20% buffer to avoid getting into trouble.

Step by step guide: how to buy real estate in Portugal

When buying real estate in Portugal, it’s easier to go through the buying process in smaller, more manageable steps.

A major pitfall that could ambush international buyers is subrogation. Portuguese law ties debt to the property, not the borrower, so if you’re not careful, you could end up with ten years of unpaid taxes, utility bills for the past three years, and a huge mortgage or personal debt tied to the property in question.

Requirements

If you are looking to buy a holiday home or second home in Portugal, your first concern is likely to be your rights as a foreigner to buy and own property.

Don’t worry,  Portugal doesn’t have any restrictions. You are allowed to buy properties across the country. However, you will have to navigate your way through a bureaucratic maze.

Portuguese tax file number

First, you will need a Portuguese tax file number (Número de Contribuinte or NIF, Número de Identificação Fiscal) to complete the property purchase. You have to apply for this at the local tax authority or financial administration and pay a small fee.

You can use the address of your lawyer or consultant as the correspondence address if you do not yet have your address in Portugal.

If you are not an EU citizen, you will also need to appoint a tax representative in Portugal. Again, your lawyer will be your first point of contact.

Lisboa modern real estate

Bank account

As a foreigner, your biggest hurdle in purchasing will likely be the language. It can be worthwhile to hire a consultant or a lawyer who speaks English as well as fluent Portuguese.

If you plan to rent out the property and will not be there most of the time, you should also consider looking into a bilingual property management company. Portuguese banks have no problem lending to foreigners, but non-residents only get 70 percent of the property loan, while Portuguese residents get up to 80 percent. You can easily apply for a loan from a local bank. However, the language can be a hurdle here too; it is best to use a mortgage broker. Not only will they speak your language, but they will also be able to secure a better deal than you.

Real estate purchasing process, documents, and costs in Portugal

Purchasing process

  1. Advice on the legal situation of the property: status quo
  2. If applicable, tax review of real estate acquisition
  3. If necessary, tax registration of the buyer
  4. Drafting the preliminary purchase contract
  5. Drafting of the sales contract
  6. Execution of the purchase contract and certification
  7. Land Registry
  8. Conclusion of any utility and insurance contracts
  9. Applying for any permits
  10. Taxation of the property

The legal situation of the property: status quo

The following steps are decisive for assessing the legal situation of the property:

  • Ownership of the seller
  • Freedom from encumbrances on the property
  • Statutory right of first refusal of a third party
  • Existing rental or lease agreements
  • Debt freedom of the seller
  • Content of the certificate of use
  • Determining whether the property is well-built or needs reconstruction
  • The structural condition of the property

Documents needed to buy real estate in Portugal

The following documents are usually presented by the seller:

  1. Property Registration Certificate / Certidão do Registo Predial
  2. Property Tax Document / Caderneta Predial
  3. License of Use / Licença de Utilização
  4. Technical Document of the House / Ficha Ténica de Habitação
  5. Energy Performance Certificate / Certificado Energético
  6. Further permits

Purchasing process

Tax audit and registration of acquisition

In some cases, the acquisition of the property by a company must be examined. In particular, when foreign companies acquire property, the company must be registered for tax purposes.

Design of the pre-contract

In Portugal, it is common to conclude a so-called preliminary purchase agreement (Contrato de Promessa de Compra e Venda) as soon as the parties have agreed on the purchase. Once this preliminary contract is concluded a deposit of 10-30 percent of the purchase price must be made.

The contracting parties thereby secure themselves in the event of default and the non-execution of the purchase contract.

Execution of the purchase agreement and notification

The purchase contract is either notarized by a notary, or as a privately written document certified by a notary, lawyer, or registrar. The contract document is read out in Portuguese and if necessary, with the assistance of an interpreter. The acquisition of the property takes place with the conclusion of the purchase agreement.

Payment is usually made by a bank check (check bancário) or a bank-confirmed check (visado).

Land register and the conclusion of supply and insurance contracts

With the certified copy of the purchase contract, the property is registered in favor of the buyer and the ownership status is rewritten at the tax office.

The new owner can conclude the necessary utility and insurance contracts. It should be noted that the owners adjacent to the property also have access to the development (only under unreasonable conditions do they have a right of way).

Finally, it’s important to recognize that the owner of the property has the absolute right to apply for any permits as needed.

Taxation of real estate

Stamp Duty/Imposto do SeloThe stamp duty is payable when transferring a property against payment or when transferring it by gift. It amounts to 0.8 percent of the purchase price or the unit value registered with the tax office, whichever is higher. The stamp duty must be paid to the tax office before the contract is notarized. Proof of payment of the tax from the tax office must be presented to the notary or lawyer.
The taxpayer is the buyer of the property.
Property Transfer Tax/
IMT (Imposto Municipal
sobre a Transmissão Onerosa de Imóveis)
On the one hand, the real estate transfer tax depends on whether the property is acquired as the main residence or a second residence. On the other hand, it depends on whether the property is located in a rural or urban area. It is based on the purchase price and is therefore staggered. When transferring a property against payment, the tax authorities must provide evidence that the property transfer tax has been paid or that the sale is exempt from the property transfer tax.
Property Tax / IMI Property Tax / IMI
(Imposto Municipal sobre Imóveis)
The property tax is payable by the respective owner of the property. The key date for tax liability is the owner’s status on December 31 of the respective year. The tax rate varies between 0.3 and 0.5 percent of the unit value

Purchase costs

Unfortunately, it is not enough to just pay your purchase price. There are a lot of additional costs to factor in after purchasing your apartment, house, or property. It is best to assume that the purchase price will increase by around 10-15 percent (this is more than in some other countries in the European Union).

  1. New properties: the value-added tax in Portugal (IVA) is currently 23 percent. This tax is normally included in the agreed price and should not be added to the purchase price afterward.
  2. Notarial fees: no longer dependent on the purchase price. Usually, you have to pay about €150, for each change or clause in the purchase document an additional €1.25. There may also be smaller additional costs.
  3. Legal fees: typically around 1-2 percent of the purchase price. Should be put in writing, so that you as a buyer are usually better off than if you just hire a lawyer to examine the sales contract.
  4. Formal registration fees: at the land registry (Conservatória do Registo Predial) there are registration fees – they are around 0.75-1 percent of the property’s value.
  5. Fees for an expert: the costs for hiring an expert to assist you in inspecting the property you’d like to buy depends on the examination.
  6. Brokerage fee: between 5-10 percent of the purchase price. Usually, they are paid for by the seller.
  7. Mortgage costs: usually around 1 percent of the loan amount.
  8. Utility fees: if this is not included in the purchase price, make sure that the client gives you a complete overview of all connection costs.

Is it worth buying real estate in Portugal for rent?

Buying and then leasing can be a great investment option. Portugal’s real estate market is still booming with rising selling prices, very low credit interest rates, and probably the most expensive rents in Portuguese history (mainly tourist areas such as Lisbon, Porto, and the Algarve).

Portugal Golden Visa Program

The best part about buying a property in Portugal as a non-EU citizen is that you can benefit from the Golden Visa Program.

When considering investing in real estate overseas, you should weigh all the risks with benefits that will come your way. There are annual property taxes and property management costs, but also the opportunity to stay in the country with legal residence. Portugal is one of the best countries to buy property for a multitude of reasons.

The property prices are reasonable, so you can buy an apartment in Lisbon for  €120,000. The price per square meter is around €1,111.

When buying a property, property taxes amount to approximately €2,500 for a property price of €120,000 (IMT real estate transfer tax is €1,445.94, stamp tax is €948, IMI is €50,94).

If you register with your main residence in Portugal, you will be exempt from IMI tax for the first three years. If the property price is less than €92,407, you do not pay an IMT.

The capital gains tax on the sale of your property is only 28% for non-residents in Portugal (whereas in France it is a whopping 40.5 percent- with some exceptions).

Non-EU citizens who invest €500,000 in real estate (or €350,000 in the rehabilitation of a second-hand property in inner-city established zones) get the Golden Visa and thus the residence permit.

Other ways of getting into the program are to start a business that employs more than ten people or to invest in small Portuguese companies. However, the real estate method is the most common investment option. Many buyers who get a Golden Visa invest in Cascais or Lisbon, but Porto and the Algarve are also good places to explore.

The program gives you a one-year residence permit and is renewable twice for two years. After reaching the five-year period, you can apply for the permanent residence permit. After another year, you can apply for naturalization as a Portuguese citizen as Portugal allows dual citizenship.

You can apply yourself, but most applicants use a lawyer or specialist to help them through the application process. If bureaucracy isn’t exactly your hobby, this is probably the best way to go.

The majority of applicants so far come from China, Brazil, and South Africa, but there are also a few Russians and the program could also be considered for the British after Brexit.

The NHR program

The NHR program allows foreign residents to obtain a special tax status that allows them to move to Portugal and pay little to no tax for up to ten years.

Any income that you receive in Portugal from abroad and that

Can US citizens buy real estate in Portugal?

Yes, US citizens can buy real estate in Portugal. You will need a Portuguese tax file number (Número de Contribuinte or NIF, Número de Identificação Fiscal) to complete the property purchase. You have to apply for it at the local tax authority or financial administration and pay a small fee. You can use the address of your lawyer as the correspondence address if you do not have your address in Portugal. You will also need to appoint a tax representative in Portugal. Portuguese banks have no problem lending to foreigners, but non-residents only get 70 percent of the property's price, while Portuguese residents get up to 80 percent. You can easily apply for a loan from a local bank. However, the language can be a hurdle here too; it is best to use a mortgage broker. Not only will they speak your language, but they will also be able to secure a much better deal than you.

Can British buy real estate in Portugal?

Yes, British people have no problems buying real estate in Portugal. Around 50,000 Brits live and invest in Portugal.

Do I need a lawyer when buying real estate?

It is recommended to hire a lawyer when buying real estate or to seek advice from a company that specializes in property legislation. A locally based lawyer commissioned by you will represent you in all legal matters and will also be an important partner for you after the real estate purchase. Portuguese law and the associated bureaucracy are sometimes very complex, so this is one of the bases for a successful purchase or sale. The attorney's fee is usually around 1 percent of the purchase price, so it should be viewed as a necessary component of the cost of your property purchase. In your interest, you should not save under any circumstances, since you could find yourself through many h

What are the additional fees when buying real estate in Portugal?

The total additional purchase costs vary depending on the purchase price of the property and depending on whether the property is privately owned or held in a company. Normally, the property is purchased privately, and the additional purchase costs are a maximum of 9 percent for a purchase price of over €500,000. Properties under €80,000 are tax-exempt. The ancillary purchase costs when acquiring a company are significantly lower.

How much do I need for a deposit payment?

As a rule, around 10 percent of the total purchase price is agreed upon, which must be paid when the preliminary contract is signed. This can vary if a property is, for example, under construction and if other agreements have been made between the buyer and the seller or their legal representatives.

can be taxed in the country from which it comes from will then not be taxed in Portugal. So if you retire in Portugal, you will not pay tax on pensions and savings from abroad for ten years.

If you choose to work in Portugal, you may also enjoy tax advantages depending on your job. Singers and musicians, dentists, IT experts, and archaeologists are among the professional groups who are taxed at a flat rate of 20% on their income as part of the NHR program.

If you want to become an NHR resident, you must not have an unlimited tax liability in Portugal for five years before filing your application. You should therefore submit your application as soon as possible after the move so as not to fall into the Portuguese tax system.

All in all, buying a property in Portugal can be relatively quick and painless for foreigners and the added benefits make it very rewarding if you are planning to move to Portugal for the long term.

Is there a real estate bubble in Portugal?

According to the executive chairman of the Portuguese bank BCP, Miguel Maya, the supply in Portugal is still not excessive, so there is no prospect of a structural downward adjustment to the price level.

“Prices have risen in recent years, but it was mainly the effect of the recovery from the previous crisis. I do not subscribe to the thesis of the existence of a transversal bubble in real estate in Portugal”, Maya said.

Very low-interest rates, for a longer time period, encourage investors to save some money from their investment, with an emphasis on real estate investment.

Rehabilitation projects that favor environmental sustainability have an increased opportunity and are eligible for more favorable financing conditions.

In Maya’s opinion, “major disturbances, such as pandemics, have historically had long-term implications for behavior. The important thing is to understand the new dynamic. And the real estate investment industry is sure to have multiple opportunities in the years to come”.

Get in touch

If you have found your dream property in Portugal, seek help from a specialized property investment firm such as Goldcrest. As an independent local’s buyers agent, Goldcrest helps international families acquire sound property investments in their desired locations in Portugal.

Contact the team to access exclusive information on the property market in Portugal and find out just how much you can save you on your international investment.

FAQs

Can US citizens buy real estate in Portugal?

Yes, US citizens can buy real estate in Portugal. You will need a Portuguese tax file number (Número de Contribuinte or NIF, Número de Identificação Fiscal) to complete the property purchase. You have to apply for it at the local tax authority or financial administration and pay a small fee. You can use the address of your lawyer as the correspondence address if you do not have your address in Portugal. You will also need to appoint a tax representative in Portugal. Portuguese banks have no problem lending to foreigners, but non-residents only get 70 percent of the property's price, while Portuguese residents get up to 80 percent. You can easily apply for a loan from a local bank. However, the language can be a hurdle here too; it is best to use a mortgage broker. Not only will they speak your language, but they will also be able to secure a much better deal than you.

Can British buy real estate in Portugal?

Yes, British people have no problems buying real estate in Portugal. Around 50,000 Brits live and invest in Portugal.

Do I need a lawyer when buying real estate?

It is recommended to hire a lawyer when buying real estate or to seek advice from a company that specializes in property legislation. A locally based lawyer commissioned by you will represent you in all legal matters and will also be an important partner for you after the real estate purchase. Portuguese law and the associated bureaucracy are sometimes very complex, so this is one of the bases for a successful purchase or sale. The attorney's fee is usually around 1 percent of the purchase price, so it should be viewed as a necessary component of the cost of your property purchase. In your interest, you should not save under any circumstances, since you could find yourself through many hurdles later down the line.

What are the additional fees when buying real estate in Portugal?

The total additional purchase costs vary depending on the purchase price of the property and depending on whether the property is privately owned or held in a company. Normally, the property is purchased privately, and the additional purchase costs are a maximum of 9 percent for a purchase price of over €500,000. Properties under €80,000 are tax-exempt. The ancillary purchase costs when acquiring a company are significantly lower.

How much do I need for a deposit payment?

As a rule, around 10 percent of the total purchase price is agreed upon, which must be paid when the preliminary contract is signed. This can vary if a property is, for example, under construction and if other agreements have been made between the buyer and the seller or their legal representatives.

 

 

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