Buying property in Portugal is a popular investment option among many foreign applicants today. Around 75 percent of the population in Portugal owns a home there. Applicants from all around the world choose to buy Portuguese real estate thanks to many benefits. Low taxes, affordable lifestyle, safety, and a good climate are among these advantages.
Property buyers prefer to live in Portugal, too. The country offers them stability in politics and a developed economy. Also, they can even live, work or study in Portugal following their investment through programs like Golden Visa.
Let’s dive more into the details of buying home in Portugal.
Foreign investors can buy property in Portugal, and they are even encouraged to do that! One of the incentives for buying Portuguese property is applying to the Golden Visa Program. Non-EU citizens can apply for the program, buy a property in Portugal, and then receive a residence permit. You can find more details about the program in the next sections, yet now let’s look at how you can buy Portugal real estate.
The process of buying a house in Portugal is as follows:
- First, you get a Portuguese tax number called “NIF”. You can receive this number from local tax offices
- Then, look around for properties that meet your needs
- Agree on the final price of the property with the seller
- Then, make a down payment
- At this step, you’ll sign a pre-sale-purchase contract that is “CPCV” (Contrato-Promessa de Compra e Venda)
- Finally, notarize the Portugal property deed, “Escritura Publica de Compra e Venda”.
There are a few taxes and fees that you’ll pay while buying real estate in Portugal. IMT, stamp duty, land registry, and notary are among those fees.
Let’s check them one by one:
- IMT (Imposto Municipal Sobre Transmissões) tax: It’s also known as the property transfer tax. Its rate varies depending on the cost of your house. It’s always advisable to consult a professional before paying the required rate.
- Land registry and notary fees: These fees are paid together. Their rate range between 0.2 and 1.2 percent of the value of your property.
- Stamp duty: Stamp duty is 0.8 percent of your property’s value.
Buying real estate in Portugal means you get many advantages in return. One of these advantages is benefitting from low taxes. If you start to stay in Portugal, you can have access to lower taxes. For this, Portugal offers the NHR (Non-Habitual Resident) Program. It provides both tax reductions and some tax exemptions on your foreign income. Furthermore, your income in Portugal is taxed at 20 percent for a duration of 10 years. Besides all, no gift or wealth tax applies to inherited properties in Portugal.
Another benefit of buying property in Portugal is that you have the opportunity to enjoy the landscape, coasts, and nature. There are many cultural and historical places to see in Portugal. In addition, the nightlife is also very lively in Portugal. You also don’t feel like a foreigner among the friendly Portuguese community.
Alternatively, you can apply for the Golden Visa program and buy Portugal real estate. In this case, you have the right to live and work in Portugal along with your family. This can even further lead to permanent residency or citizenship in Portugal.
In general, life in Portugal is affordable in many fields like grocery or real estate.
You can find Portugal real estate of various types including villas, houses, farmhouses, and apartments. You first need to clarify where and what type of property you want to live in. Both city centers and rural areas are available for buying property in Portugal.
If you want to buy property in Lisbon, you’ll see that it’s the capital city and it’s a hub for many businesses. Because of this status, property prices in Lisbon are higher than in other cities in Portugal.
Porto is more or less similar to Lisbon. Both the prices and the lifestyle are similar to that of Lisbon. There are many beautiful properties located along the beaches and Atlantic in Porto as well.
For sure, consulting a professional like a real estate agent is always encouraged.
Select your property and start a new life today!