The Ultimate Guide to Buying Real Estate Property in Portugal

The Ultimate Guide to Buying Real Estate Property in Portugal

The Ultimate Guide to Buying Real Estate Property in Portugal

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Looking to invest in a property in Europe with lots of sunshine, high standards of living, and scenic views? Portugal can most definitely be the right choice for you. But buying a property in Portugal as a foreigner can be a complex process. What you need is professional help and a lot of information before you go ahead and invest.

We have collated the information you will need for Portugal real estate investment into this guide. Do give it a read and understand the details in a simplified way.

What are the Reasons to Buy a Property in Portugal?

Portugal is a scenic country with beautiful geography. Its coasts in the Algarve region are a highly preferred destination by ex-pats. But in addition to that, there are other reasons why Portugal real estate investment can be a great decision, such as:

  • Portugal receives sunshine throughout the year.
  • Both the city and rural regions of the country are developed and great to live in.
  • As per the 2020 Global Peace Index, Portugal is the third safest country to live in.
  • Holding property in Portugal for five years makes you eligible for Portugal citizenship.
  • People naturalised in Portugal have the right to study, work, and travel anywhere in the EU.

What are Some Great Places to Buy a Property in Portugal?

Lisbon, Porto, Algarve, and the Silver Coastare well-known regions and top choices for ex-pats.

  1. Lisbon: It is one of the cheapest European capitals and also a lively economic hub. While regions like Avenida da Liberdade, BaixaChiado and Lapa pose higher prices and greater demand, areas like Cascais and Estoril are cost-effective and increasingly popular.
  2. Porto: Looking over the Atlantic and offering mystifying beach-front properties, Porto is both a commercial and tourist hub. It is an excellent Portugal real estate investment option with a mix of history, scenic views, and urbanism.
  3. The Algarve: If you’re buying property in Portugal as a foreigner, you must consider the Algarve. With villas and luxury condos with ocean views, it is always a good idea to invest in a property in this region.
  4. The Silver Coast: Situated between Lisbon and Porto, the Silver Coast boasts a magical coastline and pristine beaches. If you want a sea-facing apartment or condo but without the high price tags of the Algarve, the Silver Coast is your answer.
Autonomous regions, such as Madeira and Azores islands, are becoming increasingly popular among investors considering buying a property in Portugal.

What are the Types of Properties in Portugal?

When buying a property in Portugal, these are the terms you must be familiar with:

  1. Casa or Moradia: Detached homes with usually a backyard or a patio
  2. Casa Geminada: Semi-detached homes
  3. Condomínios or Condos: Individual apartment units with a common area and a high standard of care and safety
  4. Quintas: Classic farm homes or rustic houses found in the inland of the country
  5. Terreno: Land registered for habitation

What are the Property Prices in Portugal?

Property prices in Portugal vary depending on the region you choose to invest in. Here are some sample prices per metre square for the most preferred real estate investment locations in Portugal:
District City Average Price per metre square
Baixa and Chiado Lisbon $7,785
Lapa and Santos Lisbon $5,937
Campo de Ourique Lisbon $5,201
Ribeira, Miragaia and Baixa Porto $4,541
Alfama Lisbon $5,937
Portimão Algarve $2,557
Cascais and Estoril Cascais $4,718
Carcavelos and Parede Cascais $3,803

What is Required to Buy a Property in Portugal?

You must have a notary witness for signing the sales contract. You must also have a Portuguese tax number from a local tax office. Additionally, here’s the list of documents that you will need when buying a property in Portugal:

  • Photo ID
  • Contrato-PromessaDe Compra e Venda (CPCV)
  • The property’s energy certificate
  • Imposto de Selo (Payment of the Stamp)
  • Caderneta Predial (Land Register)

How to Find a Property in Portugal?

You can get in touch with Portugal real estate agents known as imobiliaria to help make the right property decisions. Ensure that the agent you seek help from has a registered agency acquired by Associacao de MediadoresImobiliarios, the Portuguese Association of Real Estate agents.

It is important to note that the real estate agent’s fee is usually between 3% and 5% of the property price and is compensated by the seller.

Step-by-Step Process for Buying a Property in Portugal as a Foreigner

Here are the steps for buying a property in Portugal:

Step 1: Acquire a Portuguese Tax Number (NIF) from a government finance office.

Step 2: Look for properties and find a place that suits you. If you’re planning on taking a mortgage, figure out which plan works for you and start by negotiating its price with the seller.

Step 3: Once the mortgage is decided upon, make a down payment, usually around $6,600 or 20% of the property price. You can also choose whether you want a variable or a fixed-rate mortgage. Moreover, to be eligible for a mortgage, you must show the bank proof of your income.

Step 4: Sign a Contrato-Promessa De Compra e Venda (CPCV) required to offer a guarantee to both the buyer and the seller.

Step 5: Sign and notarise the property deed or sales contract. To sign it, you will need a witness and a list of documents, as explained above.

Buying a property in Portugal as a foreigner can be a confusing process. That’s why it is essential to consult an expert to save time and money.

At Nysa Global, we simplify Portugal real estate investment and immigration so that you can decide of a lifetime conveniently. Our migration experts and customised solutions help you through the Portugal Golden Visa program so that you can be equipped with all the right tools and ready for the transition.

Ready to move Portugal? Explore your options and make a life-changing decision.

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