Are you interested in acquiring a Portuguese property? There are several requirements that you need to understand before you begin the buying process. Stick around! We will discuss everything you need to know about the Portuguese real estate market and how you buy property.
Portuguese Real Estate Market
Nearly three-quarters of the adult population of Portugal live in their own houses. This figure has been steady for the past ten years.
So, can foreigners buy a Portuguese property? Yes! Foreign nationals are not restricted from purchasing houses in Portugal. Note that if you are not from any European Union country, you will be given a residency permit valid for five years if you purchase property worth at least €500,000. The permit is called a golden visa. If you secure it, you can file a permanent residency application after the five years come to an end.
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To acquire a Portuguese property, you need a Personal Fiscal Number, which you can obtain from a local tax office. Also, you can get it by opening a bank account, which you can use later to make payments to the property seller.
Should You Buy or Rent Property in Portugal?
Most people ask themselves this question whenever they relocate to another country. Your answer depends on a number of factors, such as the duration of your stay in the new country, prices of properties, and access to mortgages.
That said, if you plan to stay in Portugal for a long time, then buying property is a viable option. Also, considering that the real estate market in this country is in a recovery phase, you are likely to get houses at relatively low prices.
It is worth mentioning that if you plan to buy property for rent in Portugal, it may take some time to realize a reasonable yield. In addition, the capital gain taxes levied by the Portuguese government may eat up most of your profits.
How Do You Find Property for Sale in Portugal?
One of the easiest ways of finding a house in Portugal is by contacting a local estate agent. Make sure that they hold licenses from relevant government authorities. Visit impic.pt/impic/ to check if the real estate agent is genuine.
Portugal estate agents usually work under the instructions of a property seller and are paid a commission after closing a sale. In this case, you may not pay any estate agent fee. However, if you hire an agent to help you navigate the Portuguese real estate market, you will have to pay them a fee. The good thing about working with such agents is that they will help you choose the ideal places to live, inform you of the requirements needed to complete a property purchase, and negotiate with the house seller on your behalf.
Besides real estate agents, you can find property for sale on websites such as Century 21, ReMax, RightMove, Sapo, IMO, and ERA.
Purchasing a Portuguese Property
After identifying a property available for sale and you happen to like it, you can make your first offer through the real estate agent. If it gets accepted, plan for a property visit to survey the house, and in case you find areas that need repair, you can renegotiate the house price with the seller.
When it comes to exchanging contracts, it is advisable to get a lawyer who will interpret the legal terms for you before signing any document. Moreover, the lawyer will check the property details with the Portuguese Land Registry to ensure it is not involved in any legal battles.
If everything is okay, the lawyer will give you the green light to sign the agreement. After that, you will be required to pay the seller and cover the property transfer tax. Once this is done, the lawyer will submit the sale agreement to the Land Registry, where a Deed with your name on it will be produced. You can now move into your new Portuguese house.