A seaside oasis with mild temperatures, remarkable scenery, unique historical monuments, luscious cuisine, safety, and property market opportunities are what makes the country of Portugal such an attractive investment destination for foreigners. As a matter of fact, the country of Portugal provides an ideal setting for a full and happy life that many of us can only dream of.
From international investors who are looking for a good business opportunity to non-resident individuals who are looking for a home for sale in the country of Portugal, here is what everyone needs to know before undertaking this journey. This guide includes the following subjects –
– The reasons that make investing in the Portuguese property market a good option;
– How to purchase a property in the country of Portugal;
– The challenges one may face when purchasing a property in Portugal;
– The frequently asked questions.
The Reasons that Make Investing in The Portuguese Property Market a Good Option
– Purchasing a property in the country of Portugal can make one eligible for Portuguese citizenship – one may learn more about this subject on our Portuguese Golden Visa program website page.
– The costs of living in the country of Portugal are among the lowest in Europe;
– Property investment in the country of Portugal provides high yielding returns;
– Purchasing a property in the country of Portugal can make one eligible for great tax benefits through the Non Habitual Resident tax program;
– Public infrastructure such as healthcare and transportation are widely accessible in the country of Portugal;
– The country of Portugal is a safe place to live, with a very high quality of life, as well as pristine nature and golden, sandy beaches. – One may see them on our website.
How to Purchase a Property in The Country of Portugal
Step I – Choose a Premium Area
Choosing where to live in a country one is not familiar with or knows little to nothing about can be quite overwhelming, which is why those who are interested may refer to our Portugal guide which has been designed to help our prospective clients start off their research.
The country of Portugal has something for anyone who is looking to start a new life – ranging from its vibrant cities to scenic small towns.
When looking to purchase a property to live in in the country of Portugal one should leave no stone unturned and learn how living in each of the premium areas of the country of Portugal is like.
Step II – Talk to an Expert
One may find a Portuguese property to invest in through an online portal or through a property investment agency. Our team at PropertyLisbon can provide the prospective investors with a personalised consultation for purchasing a property in the country of Portugal, as well as with accurate and timely relevant market reports, for the purposes of helping our clients make the best possible decision. One may get in touch with us through our website.
Step III – Get a Mortgage Loan
If one is not exactly ‘rolling in it’, they may need to look for a mortgage broker. Alternatively, if they so wish, PropertyLisbon liaises with three of the best banks in the country of Portugal, and we can help prospective investors open an account and handle the respective process, so that they do not have to make the travel efforts to the establishments.
In most cases, mortgages in the country of Portugal run for twenty-five years. However, if one is a legal resident of the country, one may get up to thirty years.
For more information about mortgages in Portugal, one may contact our financial advisors through our website or our email address.
Step IV – Find The Right Property
Even though there are more apartments available in the already built-up areas and cities across the country, one still has a wide choice of flats, houses, and commercial properties to build their ideal investment asset in the country of Portugal themselves. PropertyLisbon can help our clients find the best property according to their personal requirements.
Step V – Sign The Promissory Contract / The Contrato de Promessa de Compra e Venda
Once one has decided what property they wish to buy, they will sign a contract to close the purchase – the Promissory Contract / the Contrato de Promessa de Compra e Venda.
The investor will also be required to pay a deposit at this stage – usually between ten and thirty per cent of the agreed total purchase price -. This value is refundable if one cannot obtain a mortgage, or complete the transaction within the time period which has been specified in the contract.
Step VI – Sign The Final Deed / Escritura
This is the final stage of purchasing a property in the country of Portugal. Here, the notary will read the contract aloud and the Financial Deed – which is most usually issued in Portuguese – is finally signed. At this stage, one must pay the remaining required funds and have the utility contracts changed to their name.
The Challenges One may Face when Purchasing a Property in Portugal
The Rising Prices
After the economic downturn, the prices of property in the country of Portugal had risen by nine point two per cent over the first quarter of this year, according to the SCMP.com
The solution – At PropertyLisbon, we employ in-house data analysts who provide in-depth market reports on each of the investment properties, thereby allowing our clients to make the correct informed decision on their new investment, and ensuring that they will get a significant percentage of their return on investment – the ROI -.
The Hidden Costs
If one is dreaming of glamour, they may want to take a step back. The country of Portugal is coated in traditional developments and historical buildings. Older buildings are prone to an array of foundational and structural issues that can cost one plenty.
The solution – Before making any kind of purchase, one should address our After Sales program department to assist them with this matter, as the team will make sure to inspect the property in question before, during, and after the purchase has been made for the purposes of reporting the potential snags and solve them before our client moves in.
The High Ownership
Portugal is one of the countries with the highest rate of property ownership in the world, as seventy-four per cent of the population owns the home they live in, according to the worldatlas.com.
The opportunity – When the higher classes of the Portuguese population moved near the sea – the Cascais area, the Estoril area, and the Sintra area -, the heart of Lisbon has been left to the lower classes, especially to poor retirees living on frozen rents. Many buildings have begun to rot, but over the past twenty years there has been an intense effort to renovate the old historical centre of the city.
As more and more of the elderly population dies, the younger investors begin to renovate the houses and discover the charm and privilege of living in the city centre of Lisbon.
The Frequently Asked Questions
What Kind of Taxes Does One Need to Pay?
– Even though one is liable to fees as a buyer, these may vary depending on the individual circumstances. Fees and taxes that may accompany purchasing a property in the country of Portugal include –
– The Stamp Duty Tax – Levied at a flat rate.
– The property transfer tax / The Imposto Municipal sobre Transmissões / the IMT – Calculated on a sliding scale depending on the cost of the property.
– The notary and land registry fees.
If one is purchasing a property in the country of Portugal through the Portuguese Golden Visa program, they may use the calculator that we have provided on our website to estimate the property purchasing costs, the legal fees, and the government fees.
What Are The Requirements to Purchasing a Property in The Country of Portugal?
– The property purchasing process in the country of Portugal is not that complex, and it requires the following documents:
– The passport / the citizen’s card – For all legal and bank transactions such as signing the contract or applying for a mortgage.
– The Portuguese tax number – To make any transactions and pay applicable taxes. It is also necessary for the purposes of opening a bank account, applying for a mortgage, or even for installing the water an electric facilities in the property.
– The bank account – To help with the transfers, paying bills, and avoiding dealing with frequent changes in the exchange rates.