The Best Locations to Snap Up a Second Home in Portugal Right Now

Lisbon or the Algarve? If you’re looking to snap up your dream property in Portugal, a second home that you can relocate to in the summer months or use as an investment property to earn passive rental income, then these are top locations to consider. However, should you choose to look past these hotspot locations, you’ll find that there are certain other hidden gems that deserve your attention.  

Here, we’re going to delve into three hot spots for snapping up property in Portugal – Comporta, a stunning town on the southwest coast, known as the “Hamptons of Europe,” the Silver Coast, the stunning stretch of coastline northwest of Lisbon that boasts fabulous views of the Atlantic Ocean, and Porto, the second-largest city in Portugal that continues to wrestle the crown from Lisbon as being the most captivating city in Portugal.  

Comporta: Portugal's Coolest Holiday Spot

If you are on the hunt for the trendiest holiday spot in Portugal, perhaps even in Europe, then Comporta may very well top the list. Comporta is located about 90 minutes to the south of Lisbon, the Portuguese capital, in the Alentejo region. Its strategic location makes it easy to enjoy cosmopolitan city life while being tucked away in the heart of nature on the southwestern coastline. You are also not too far from the highly sought-after Algarve region.  

Comporta is home to golden beaches, rice paddies, olive groves, and sand dunes, with the natural landscapes providing inspiration for the architecture in this part of Portugal, where architects have focused on working with the natural elements to create the most unique and picturesque properties in Portugal, blending contemporary design with local Alentejan architecture. Many international designers and celebrities have taken note of this stunning spot, such as Christian Louboutin and Monica Bellucci, who have come to appreciate Comporta as one of the finest locations in Europe.  

As this picturesque village gains recognition as one of Europe’s hidden gems, you’ll discover Comporta real estate offers numerous investment opportunities. You can rent out your property at a lucrative rate, ensuring a solid return on your investment. 

The Silver Coast: Unrivaled Tranquility

What are the best coastlines in the world? The Algarve certainly comes to mind, but for those who know Portugal well, perhaps the Silver Coast will also feature. Located about an hour to the north of Lisbon, this 240km stretch of coastline reaching out to Porto remains one of the most affordable destinations in the European Union (EU), boasting all the amenities that you could want.  

Individuals who appreciate local customs and an authentic Portuguese lifestyle will find this part of Portugal to have an irresistible charm. Towns such as Peniche and Nazaré are well known amongst the surfing community, boasting incredible waves that allow surfers to test their mettle throughout the year. Caldas da Rainha is known for its healing natural waters, while Óbidos, with its majestic castle, is the perfect spot for history lovers.  

The dramatic landforms, pristine beaches, and quaint towns in this part of Portugal are guaranteed to make anyone who visit fall in love with the rustic beauty of this coastline. And, for those looking for a hidden gem where you’ll find fantastic properties at affordable rates, the Silver Coast can deliver.  

Silver Coast real estate also looks set to thrive in the coming years as interest in the region increases. From luxury villas with ocean views to spacious country homes that come with private pools, there are many locations on the Silver Coast that could be the perfect place where you can find your dream second home.  

Second Home Portugal: Your Step-by-Step Guide

Should you be looking to snap up your dream second home in Portugal, you’ll want to have a clear understanding of the buying process, which can be neatly shown in five stages.  

You’ll be pleased to know that there are no restrictions on buying property in Portugal as a foreigner, but you will need to secure a Portuguese NIF number (tax identification number) and we highly recommend that you open a Portuguese bank account to save on transaction fees.  

Step 1: Assess your financing options

The first step is to evaluate your financial situation and determine if you need to take out a mortgage. There are more than fifteen banks in Portugal that provide financing options for foreigners, but make sure you find the best deal for your personal situation. Consider all associated property costs, including property tax, legal fees, and registration fees.  

Step 2: Find the perfect property

With a clear budget in mind, begin researching the Portuguese real estate market to get an idea of the locations and types of properties on the market. After this, get in touch with a real estate agent to assist you with the purchase. Consider factors like location, amenities, proximity to services, and rental income potential.  

A note on seeking professional help: Bear in mind that while real estate agents in Portugal work on behalf of the seller and will get a higher commission for a higher sale, buyer’s agents work solely on behalf of the buyer, protecting your interests, getting the best deal for you, and ensuring that there is no conflict of interest. Alongside a real estate professional, it is important to have a good lawyer by your side to assist with legal checks, assistance with ensuring you have all the correct documentation, and with due diligence.  

Step 3: Make an offer and negotiate the best price 

Once you find a suitable property, make an offer. A real estate professional can assist in securing the best price and will assist with the negotiation phase.  

Step 4: Reservation Agreement and Promissory Contract 

After your offer is accepted, you may sign a Reservation Agreement, paying a refundable fee (€5,000-€15,000) to take the property off the market. Next, sign the Promissory Contract (CPCV), typically paying a 10-20 deposit of the property’s purchase price. Ensure you understand all terms before signing, as this legally binds both parties to the sale. 

Step 5: Signing the Final Deed (Escritura)

The final step is signing the Escritura, the formal contract transferring property ownership. Review the document thoroughly with your legal representative. Pay the remaining balance, required property tax (Property Transfer Tax and Stamp Duty, the two tax obligations needed at the time of purchase), and associated fees. Once signed in front of a Notary, you are the official owner of the property!