How to Buy Property in Portugal?

Find a Property

The first step in buying a property in Portugal is finding the right one. You can search for properties online, through real estate agents, or visit Portugal in person. It’s important to research different areas before you start looking for a property to find the right location that suits your needs.

Hire a Lawyer

You must hire a lawyer once you have found a property you like. A lawyer will help you with the legal process of buying a property in Portugal. They will check the property’s legal status and ensure all the paperwork is in order.

Obtain a Fiscal Number

Before signing the promissory contract, you need to obtain a fiscal number. You will need This tax identification number for all financial transactions in Portugal. You can get a budgetary number from a tax office in Portugal.

Sign the Promissory Contract

Once you have obtained a fiscal number and your lawyer has checked all the legal paperwork, you can sign the promissory contract. This contract outlines the purchase terms, including the price, payment schedule, and any conditions of the sale.

Make the Down Payment

After signing the promissory contract, you must pay down the property. This is usually around 10% of the purchase price.

Obtain a Mortgage

If you need a mortgage to buy the property, you can apply for one at a Portuguese bank. You must provide the bank with proof of income and undergo a credit check. The bank will also require a valuation of the property.

Sign the Final Deed

You can sign the final deed once all the paperwork and payments are in order. This is the legal document that transfers ownership of the property to you.

Expenses and Taxes

Purchase Costs

The purchase costs of a property in Portugal include the purchase price, stamp duty, notary fees, and legal fees. These costs can vary depending on the value of the property and the services provided by your lawyer.

Annual Property Taxes

As a property owner in Portugal, you must pay annual property taxes. The amount you pay depends on the value of the property.

Rental Income Tax

If you rent out your property in Portugal, you must pay tax on the rental income. The amount of tax you pay depends on your income and expenses.

Read More: How to Buy Multifamily Property?

How much money do you need to buy a house in Portugal?

The amount of money you need to buy a house in Portugal will depend on various factors, such as the location, size, and condition of the property, as well as your financial situation. Generally, you can expect to pay anywhere from €100,000 to €500,000 for a house in Portugal.

How much does a house cost in Portugal?

The cost of a house in Portugal can vary widely depending on location, size, and condition. According to recent statistics, the average house price in Portugal is around €250,000. However, prices for luxury properties can range from as low as €100,000 to as high as several million euros.

Is it a good idea to buy property in Portugal?

Buying property in Portugal can be a good investment, as the country’s real estate market has shown steady growth in recent years. Portugal also offers a high quality of life, with a mild climate, beautiful scenery, and a rich cultural heritage. However, it is essential to do your research and seek professional advice before making any investment decisions, as there are risks involved, and the process of buying property in Portugal can be more complex than in your home country.

Can I buy property in Portugal and get citizenship?

Yes, buying property in Portugal and qualifying for citizenship through the Golden Visa program is possible. This program allows non-EU citizens to obtain residency in Portugal by investing in the country, such as by purchasing property or investing in a business. If you meet the program’s requirements, you may be eligible for citizenship after a certain period. It is essential to consult with a local lawyer or immigration specialist to understand the needs and process for obtaining citizenship through the Golden Visa program.

FAQs

Do I need a visa to buy a property in Portugal?

No, you don’t need a visa to buy a property in Portugal. However, if you plan to stay in Portugal for over 90 days, you must apply for a visa.

Can I get a mortgage in Portugal if I am a non-resident?

You can get a mortgage in Portugal if you are a non-resident. However, you must provide proof of income and undergo a credit check.

How much deposit do I need to pay when buying a property in Portugal?

The deposit you must pay when buying a property in Portugal is usually around 10% of the purchase price.

How long does it take to complete a property purchase in Portugal?

The time it takes to complete a property purchase in Portugal can vary. It usually takes three to six months to complete all the paperwork and payments.