There are many reasons why many investors get properties in Portugal. The most common attractions are the low cost of living and a quality lifestyle. In addition, buyers can really find affordable properties compared to many other countries.
Most buyers of Portugal property choose to move to Portugal as well. The country offers them a politically and economically stable environment. In this way, they can live in the country either alone or with family safely.
How Can You Buy Property in Portugal?
It is easy for foreigners to buy property in Portugal because the government encourages them. One of the easiest ways to do so is through the Golden Visa Program. This provides access to a faster residency after buying property in Portugal. It also provides you with the right to live and work in Portugal.
There are certain steps to follow after you decide to get properties in Portugal. These are:
- Getting a Portuguese tax number (NIF number). Local tax offices provide you with this number
- Going and checking properties that suit you the most
- Bargaining before you and the seller decide on the final price
- Making a down payment
- Signing a pre-sale-purchase contract called CPCV (Contrato-Promessa de Compra e Venda)
- Notarizing the property deed or Escritura Publica de Compra e Venda.
Fees and Taxes
Buying property in Portugal comes with some taxes and fees. These fees include:
- IMT (Imposto Municipal Sobre Transmissões) transfer tax: It is determined depending on your property’s cost
- Notary and land registry fees: The rate is usually 0.2 percent to 1.2 percent of the value of the property
- Stamp duty: This one is about 0.8 percent of the property value.
Perks of Buying a House in Portugal
Buying a house in Portugal means benefitting from lower taxes, an affordable lifestyle, and a great location. Let’s check them one by one.
It’s possible to enjoy lower taxes when you begin to stay in Portugal. The Non-Habitual Resident (NHR) program paves the way for this. Besides tax reductions, NHR allows the exemption of taxes on your foreign income. Your personal income in Portugal is also taxed at only 20 percent for 10 years.
Also, there is no gift or wealth tax on inherited properties in Portugal.
Comfortable To Live With Affordable Prices
Portugal is relatively a more affordable country when you compare it with many European countries. You can see this affordability in many areas from real estate to grocery shopping.
Favorable Location, Welcoming Locals
Portugal harbors great coasts and deep-rooted history. This long history has left behind several gorgeous buildings like libraries and museums. Cap it all, the mild Mediterranean climate appeals to people from all around the world.
The friendly and easygoing locals make Portugal a haven for foreign visitors.
An Alternative Way When Buying Portugal Property: Golden Visa
Portugal Golden Visa Program is an investment program that provides Portuguese residency for the applicant and their family. It offers several investment options including buying home in Portugal. After the property purchase, you apply for the Golden Visa. This requires the submission of certain documents to the related authorities in Portugal.
Once approved, you’re entitled to live, work and study in Portugal with your family members. In addition, you’ll have access to visa-free travel to the Schengen zone. Furthermore, Portuguese citizenship may be available once you’ve completed following criteria like residence.
Where Can You Buy Property in Portugal?
Types of properties are various when you decide on buying property in Portugal. You can find apartments, houses, villas, farmhouses, or rustic houses in Portugal. You may choose to live in a house near the beach or in the city center. Portugal meets all these needs with this variety of properties.
Lisbon is the center for many businesses, and it’s the capital city of Portugal. The property prices here are higher compared to other cities in Portugal. Still, you may find cheaper properties in towns like Benfica or Amadora.
Porto is almost as popular as Lisbon in terms of properties and liveliness. You can find several properties overlooking the beaches and the Atlantic.
In short, once you decide to get properties, you have several options in Portugal. The country is waiting for its new residents!
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