Buy Property in Portugal
- 🏆 Buy Property in Portugal Algarve
- 🏆 Buy Property in Portugal and the Algarve for Investment
- 🏆 Invest in North Lisbon Property
- 🏆 Why Stay In Regions within Silver Coast (Costa de Prata)?
- 🏆 What Is the Average Price of Buying a Home in Portugal?
- 🏆 Why Invest in Real Estate in Portugal?
- 🏆 How to Buy Property in Portugal as a Foreigner?
- 🏆 What Documents Do I Need to Buy Property in Portugal?
- 🏆 How Much Money Do I Need to Move to Portugal?
- 🏆 What Is a Portugal Golden Visa?
- 🏆 It's Benefits
- 🏆 Unrestricted Movement
- 🏆 Health and Education
- 🏆 Portugal Residency Requirements Are Minimal
- 🏆 The Road to Citizenship
- 🏆 Ease of Travel
- 🏆 Golden Visa Process
- 🏆 Golden Visa Legal Basis
- 🏆 Legal Services in Portugal
- 🏆 Insure Your Overseas Real Estate Investment
- 🏆 Obtaining a Home Loan in Portugal
- 🏆 Should I Use My UK Property to Raise Funds or Get a Portuguese Mortgage?
- 🏆 Banks in Portugal, Mortgage Brokers, and British Buyers
If you want to buy property in Portugal, the current advantageous exchange rates are a plus. You may also consider buying as a holiday home or an investment for rental revenue and capital growth.
Buy Property in Portugal Algarve
The Algarve is one of the best places to live in Portugal, with the beautiful beaches, holiday resorts, and golf courses attracting many foreign residents. The Algarve is also a great place to buy a property with the local real estate market and living costs compared with the UK and much lower than in Spain.
The real estate market in the Algarve was boosted by several golf course developments, including the Morgado Golf and Country Club, the Quinta do Vale Golf Estate, and Gaia’s Vilamoura golf course complex. The Quinta do Vale Golf Estate contains the Laguna and Pinheiros Altos Golf Courses and the Oceanico Faldo Course.
The Algarve’s golf courses are now home to Portugal’s national golf courses, including the Vilamoura Old Course, where the Portugal Open is held.
Portugal offers many tax incentives to attract foreign buyers of Portuguese real estate, including a non-habitual residents scheme that allows you to pay just 20% income tax for your first ten years in the country.
Buy Property in Portugal and the Algarve for Investment
If you want to buy property in Portugal as an investment, it’s essential to consider certain aspects before purchasing. One of those factors is that you do not have to be resident in Portugal to purchase a property. As a long-term investment, those owning a property can benefit from certain tax benefits, such as non-declaration of the rental income.
In addition, if you’re planning on buying a holiday home or investing in Buy Property Portugal, or buying a property Algarve, there are unique fiscal benefits for owner-occupiers who choose to deduct part of their mortgage payment. Suppose you intend to make a profitable investment throughout your Portuguese properties. In that case, it can be a great idea to become familiar with the tax benefits and special financing available to provide you with Buy Property Portugal.
The Portuguese property market has benefitted from low-interest record rates, which have lenders offering mortgages at an all-time low of 3.5% for both buy to let and primary residential properties. These low-interest rates mean that investors can expect to make an even higher annual return on their investment. However, if you’re considering buying property in Portugal or buying property in Algarve, there are still some things to bear in mind before making your decision:
1. Properties prices are rising (in some areas by 30% – 40%)
2. The property rental market is good
Invest in North Lisbon Property
The North of Lisbon Region is one of the most sought-after areas in Portugal, especially for North European buyers. North West suburb of Lisbon lies within the beautiful cities of Amadora and Loures. Property in Lisbon (North West) has an abundance of new and exciting developments, making North Lisbon a prevalent choice for buyers. North West Lisbon has a lot to offer homeowners a wide range of properties available from North Lisbon apartment for sale, North Lisbon villa, North Lisbon plot of land to North Lisbon new build homes.
North Lisbon is privileged by having access to North West Lisbon beaches and North Lisbon marina. North of Lisbon property for sale makes this area an excellent choice for North European buyers looking to relocate north of Lisbon. North Lisbon is a peaceful area of Portugal.
Why Stay In Regions within Silver Coast (Costa de Prata)?
The Silver Coast is a coastal region in Central Portugal, which extends from the River Tagus estuary in Torres Vedras to the Silver Coast North Algarve area of Portugal, in the district of Faro.
The Coast’s weather makes it an ideal year-round location for holidaymakers and home buyers alike. Typical coastal temperatures range between 12-18 degrees Celsius in the offseason, reaching 28-30 degrees Celsius during July/August.
Now, the area is being marketed as an affordable alternative to the Algarve for expatriates looking to relocate or retire. As a result of its tranquility, this location is popular with tourists. Though it is only a short distance to Lisbon, Costa de Prata draws significantly fewer visitors than the Algarve’s beaches. Aside from the prime tourist months of July and August, these beaches are rarely crowded; the rest of the year is quiet.
The many hump-backed bridges, canals, .and pastel-colored Art Nouveau homes in Aveiro give the city calm, relaxing atmosphere. Moliceiros, the brightly colored boats found in the canals, are a common sight.
Barra and Costa Nova, two of Portugal’s most popular beaches, are short driving or car rides away. The Atlantic coast here is a world away from the Algarve’s dunes and blue waters. Surfers and windsurfers go to the rolling dunes of the coast here rather than the sparkling seas and strange cliffs of southern Portugal.
What Is the Average Price of Buying a Home in Portugal?
It isn’t easy to give an exact figure as many factors influence buying a home in Portugal. However, the average price for buying a house in Lisbon can vary from €150,000 to €350,000. The price may also depend on the area where you choose to buy your dream home.
Property in Portugal is not cheap. There are regions where property prices are lower, but you should research before starting with your property hunt. In most areas of the Algarve, the property prices have been increasing over the last years, so any property purchase will probably be a profitable investment for those who buy now.
Buy property in Portugal and enjoy the sunshine all year long. The property market has been established for many years, and the property sells quickly, so it is crucial to act fast when you find a property that suits your needs.
Why Invest in Real Estate in Portugal?
The main advantage of investing in Portugal real estate is that buying a house or an apartment is less expensive than purchasing property in other countries. The pleasant weather and sandy beaches, which are ideal spots to unwind on your vacations, are also factors to consider when deciding whether or not to invest in real estate in Portugal.
How to Buy Property in Portugal as a Foreigner?
To buy property in Portugal as a foreigner, you must have a valid passport or identity card and proof of address abroad. You also need to prove that you have enough money to support yourself and your family throughout your stay in Portugal, which is one year with the possibility of extension.
What Documents Do I Need to Buy Property in Portugal?
You will first require an RNE (Foreigner’s Registry Number), which can be requested at any local police station. The other necessary documentation includes:
• Your criminal record certificate obtained from the national police headquarters.
• Any country where you’ve lived for more than three months during the last five years.
• Proof of address abroad for the previous year.
• Information about any outstanding debts or financial commitments.
The following steps are to request an extract from the Tax Authority showing your income tax, value-added tax (VAT), and any other taxes due in Portugal. You also need a certificate from your bank proving adequate funds to purchase the property you have chosen. Once all these documents have been compiled, you can go ahead and finalize your buying process.
How Much Money Do I Need to Move to Portugal?
To buy property in Portugal, you will require a down payment, usually around 10% of the property’s value. Depending on which area you choose to buy your home in, this payment varies Algarve: around €10,000 for rural areas and €20,000 for urban areas; Lisbon: between 5% and 20%; Greater Lisbon Area: €5,500; Porto Region: €5,500; Northern Portugal (Bragança): between 7% and 15%, along with inheritance tax if applicable.
You must prove you have the following amount of money available: – €5,500 for Northern Portugal (Bragança); Lisbon and Greater Lisbon Area: €10,000; Algarve: €20,000; Porto Region: €14,500.
It is important to note that moving to Portugal requires a lot of preparation. It will not be an easy task moving your entire family abroad – especially if you don’t speak Portuguese – but compared to other European countries moving abroad can be reasonably inexpensive.
As for property hunting in Portugal, here are our suggestions: Talk to friends or relatives who already live there and ask them where they bought their houses. Search the internet for information about real estate companies that are offering houses for sale at reasonable prices.
Get in touch with real estate agencies, ask them about properties you find interesting on their websites, and go to see them.
What Is a Portugal Golden Visa?
In October 2012, the Portuguese government enacted legislation to establish the residence permit by investment scheme, popularly known as a golden visa.
You must be 18 or older, in excellent health, but without a previous criminal to enroll in this program. Because this is a resident program, you are obligated to spend seven days each year in Portugal throughout the first five years.
Additionally, it would help if you acquired natural land, made a money transfer, or generated work opportunities in Portugal.
As a naturalized citizen of Portuguese, you are considered a member of the Euro Zone, and as such, you have the right to free movement across the Schengen area.
Health and Education
You and your children will be allowed to study in any of Portugal’s schools or universities and benefit from world-class healthcare.
Portugal Residency Requirements Are Minimal
There are no physical residency requirements; however, you must visit Portugal at least seven days per year.
The Road to Citizenship
After five years of presence in Portugal, you may be qualified for Portuguese citizenship if you meet the conditions if you meet the bare minimum standards.
Ease of Travel
The United States, the European Union, Singapore, and Hong Kong are among the nations and territories where citizens of Portuguese can travel visa-free or with a visa on arrival in over 180 countries and territories.
Golden Visa Process
The application procedure is projected to take six months, according to the schedule. In the first step of the document collecting process, the length of time can vary based on the applicant’s capacity to collect the necessary documents. Our team assisted you through this process by providing samples and recommended practice recommendations.
As authorized agents, we cannot influence or control the reviewable stage, which depends on the respective government’s timeline and can be affected by variables outside of our control. Savory and Partners work in close cooperation with the department throughout the overall process, and we strive to give the applicant the shortest and most seamless experience possible.
Golden Visa Legal Basis
Executive order n. 1661-A/2013, promulgated under Ordinance n. 29/2012 of August 9, 2012, amending Treat n. 23/2007 of July 4, 2007, which establishes the legislative structure for the entry, permanence, and exit of foreign nationals from national territory, provides for the creation of a new specific legal resident status to allow foreigners to conduct investment activity in the country.
Following the passage of this amendment, the applicant and their family will only be required to dwell for seven days per year for five years, after which they will be eligible to apply for citizenship.
Legal Services in Portugal
When purchasing property outside of the United Kingdom, it is critical to retain the services of an experienced legal practitioner, just like you would when you buy a home in the United Kingdom. To ensure a secure and speedy transaction, your attorney will protect your rights and assist you through the purchasing process.
While your real estate agent is an essential source of knowledge and information, keep in mind that they work on behalf of a customer. Your lawyer represents you and is an essential consideration in any real estate transaction.
It would help if you had a professional who knows the legal procedure and language of the nation where you are purchasing foreign property, whether you are searching for a real estate lawyer in Spanish or anywhere in the world.
It’s possible that in addition to assistance with a Spain will or inheritance. You’ll require assistance with the application for an NIE Spanish identification number or residency in the country. Get real estate Portugal lawyers any time.
Insure Your Overseas Real Estate Investment
Whether you are in the market to buy your dream home abroad or have recently become the lucky recipient of one, it is critical to obtain the appropriate level of insurance defense, just like you’d for your primary residence.
Despite your most significant measures to keep the house safe and protected, homes are vulnerable to various risks, including accidental damage and theft. So, when a problem arises, you want to know that it is in good hands and is being handled correctly.
Aplaceinthesun.com is happy to collaborate with intasure, one of several Uk’s largest Holiday Home insurers, which has been specializing in assets in both the UK and abroad for nearly 15 years. Coverage is available in over 40 countries worldwide, including Spain, France, Italy, and Portugal.
Obtaining a Home Loan in Portugal
Non-EU residents have no restrictions when it comes to purchasing property in Portugal. The government does everything in its power to motivate foreign property investment.
Amidst this, most Portugal banks only lend up to 65–75 percent of the property’s value or sale price (whichever one is lower) to quasi. In some cases, fiscal dwellers in Portugal could borrow as high as 85–90% of the purchase price.
Should I Use My UK Property to Raise Funds or Get a Portuguese Mortgage?
If you have enough equity in your UK home, you can take out a second or new mortgage to purchase your overseas property. Keep in mind that when there is no Portugal creditor in place to compel specific procedures, you should still request legal counsel and ensure that independent checks are performed on the property.
One advantage of a Portuguese mortgage is that the lender will carry out its checks on the property and arrange a valuation.
Portuguese mortgage rates are beautiful (see example terms above) and give buyers an excellent option to raise finance locally.
Rates now start at 0.873% for a variable rate of up to 80% loan-to-value (based on the purchase price) and 1.2% for a fixed rate of up to 80% loan-to-value.
Because interest-only deals are uncommon, most mortgages are repayment-based, with a maximum term of 40 years. If you are 80 or older, you should speak with a mortgage specialist because there are options for you to acquire a mortgage.
It is important to remember that mortgage repayments will be in Euros. The British pound rate will fluctuate, so it is a great idea to get a monetary plan to help alleviate any fluctuation when you plan to pay your monthly payments from the UK.
Banks in Portugal, Mortgage Brokers, and British Buyers
Mortgage rates in Portugal are meager, and lending conditions are improving. Portuguese lenders are eager to help foreigners in purchasing a property.
You can reach the various banks in Portugal directly, but consider that each has different standards, and you will not always determine the best offers available. The language barrier could also be a problem.
Another option is to work with an authorized mortgage broker who knows the industry and has relationships with various lenders, and can discover the perfect product to meet your needs.