Homeownership is a very common practice in Portugal. The main reason for this is that the real estate market provides affordable properties. Besides the local people, foreigners are also attracted to Portugal real estate. They prefer buying property in Portugal because life in Portugal is affordable and safe. In addition, the country has welcoming and friendly locals.
The Golden Visa program in Portugal has affected the real estate sector positively. Overseas applicants can become residents in Portugal through the Golden Visa program. Most of these applicants have preferred buying a house in Portugal to get residency.
If you wish to learn more about the process of buying property in Portugal, take a look at our guide below.
How Can Foreigners Buy Real Estate in Portugal?
Portugal promotes its real estate sector so that foreign investors can buy real estate in Portugal. For this reason, there are not many restrictions for foreigners while buying property in Portugal.
The Golden Visa is one of the easiest and most profitable options when you buy Portugal real estate. As a non-EU/EEA citizen, you can buy property in Portugal at a minimum value of €280,000 under certain conditions. Depending on the condition of the property, the minimum required value increases. In return for your investment and application for Golden Visa, you’ll receive a residence permit.
Golden Visa is a very popular program among expats because of many other advantages. Your family can also get their residence permit like you. Also, you can work and study in Portugal as well.
Find a detailed explanation of the purchase process of real estate in Portugal in the next sections below.
How To Enjoy the Advantages of Buying Property in Portugal
Portugal has great coasts and landscapes to enjoy throughout the year. Buying property in Portugal and living here will provide this opportunity. Furthermore, you’re free to buy property in a rural area or in a big city.
So, let’s move on to the benefits.
You Can Benefit From Potential Tax Breaks
If you become a tax resident in Portugal, you can benefit from the Non-habitual Resident (NHR) program. In this way, you’ll not have to pay taxes on almost all of your foreign income for 10 years. In Portugal, there’s also no wealth or gift tax on inherited properties.
You can still benefit from tax breaks even if you don’t become a tax resident. Portugal has tax treaties with tens of countries. Your home country may have signed such a treaty with Portugal as well. In this case, you’ll not need to pay double tax on the same income.
Life is Affordable in Portugal
The cost of living is quite favorable in Portugal when you compare it to many other countries in Europe. Similarly, buying property in Portugal is also not a big deal. There are affordable and quality properties you can buy in Portugal.
Mild Climate, Gorgeous Nature
Leaving the monetary issues behind, you can enjoy a perfect climate that doesn’t complicate your life. In addition, Portugal has a long-standing past and this results in various historical beauties and buildings to see. You’ll also enjoy the sea and beaches throughout the country.
The Process of Buying a House in Portugal
The very first step of property purchase is to choose the type of property. You’ll need bigger houses if you consider moving with your family. It’s always a good idea to ask for an opinion from a professional at this step.
Then, you can start the documentation process. The first thing is to get a NIF number, which is a Portuguese tax number. You can then settle the purchase price, and complete the down payment.
After completing these steps, you’ll sign a pre-sale-purchase contract called CPCV. As the last step, you’ll sign the property deed and notarize it.
What are the Required Fees and Taxes When You Buy Real Estate in Portugal?
- One of the required taxes is IMT tax. The rate of IMT is decided depending on your property’s value
- Stamp duty (Imposto do Selo) is another required tax while buying property in Portugal. It typically costs 0.8 percent of your property’s value
- Notary fees and land registry fees are other expenses. They typically cost between 0.2 percent to 1.2 percent of the property value.
So, you can have access to many opportunities when you buy property in Portugal. Start your journey today!