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Guide to Buying Property in Portugal as a Foreigner

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Portugal's allure as a top destination for expats seeking a new home is undeniable. With its inviting climate, stunning coastline, and welcoming communities, it's no wonder that many foreigners are drawn to Portugal for both residential and investment purposes. If you're considering making Portugal your new home, whether for work or retirement, navigating the process of buying property as a foreigner can seem daunting. However, armed with the right knowledge and guidance, it's entirely feasible. Here's everything you need to know about buying property in Portugal as a foreigner, from market insights to legal requirements and financial considerations. Contact our Trusted Team.

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Understanding the Property Market in Portugal:

Life Is Short

Portugal's housing market, like many others globally, has experienced fluctuations, particularly in response to the COVID-19 pandemic. Before the pandemic, property prices were on an upward trajectory, with significant increases observed in key areas such as Madeira, Lisbon, Porto, and the Algarve. Despite a slight decline in prices in the wake of the pandemic, demand from foreign buyers has caused prices to steadily rise. Contact Our Trusted Team.

Buying Property as a Foreigner:

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The process of buying property in Portugal as a foreigner is relatively straightforward, with no special requirements or restrictions. However, obtaining a fiscal number (Numero de Contribuinte) as well as a Portuguese bank account is necessary for property acquisition, if you are an EU citizen a NIF can be obtained through the local tax office however or by opening a local bank account. As a Non EU citizen you will need a fiscal representative in order to obtain the NIF. We recommend using Bordr they can help you with both the NIF and the Bank account set up. Other ways to easily obtain a NIF and bank account is through an immigration attorney or our agent. Just ask.

Cost of Buying Property:

The cost of purchasing property in Portugal varies depending on location, with popular areas like Lisbon and the Algarve commanding higher prices. Just for fun in 2023 average prices per square meter for foreign buyers were 2.415 in our favorite Madeira, 4,454 in Lisbon, 4.320 in Porto and a whopping 5.835 in Cascais. To provide perspective, average property prices per square meter for non foreign buyer came in at 1.916 for Madeira, 2.306 Lisbon, 1.802 Porto, and 1.812 Coimbra. While urban centers often have higher price tags, areas like Santa Cruz offer more affordable options without compromising quality of life.

Navigating the Buying Process:

Navigating the property buying process in Portugal involves several steps, from securing financing to signing contracts and completing the purchase. Buyers should engage independent solicitors and notaries to ensure legal compliance and thorough due diligence. Mortgage options are available through Portuguese mortgage brokers, typically covering 65% to 75% of the property's purchase price for non-residents.

Understanding Taxes and Fees:

Various taxes and fees accompany property purchases in Portugal, including stamp duty, property transfer tax (IMT), and notary and land registry fees. These costs are scaled according to the property's value and may differ based on residency status and property use. Expats can mitigate transfer costs by using secure and cost-effective money transfer services like our favorite for large transactions Spartan Fx or Wise for smaller. It reall depends on if you would perfer to speak directly with your representative all along the way then contact spartan FX while some would perfer to work online and only speal to someone if it is an absolute must then Wise is the go to choice. we use them for smaller transactions.

In conclusion, buying property in Portugal as a foreigner offers a myriad of opportunities for both residential and investment purposes. With a robust real estate market, favorable legal framework, and welcoming environment, Portugal continues to attract individuals seeking a vibrant lifestyle and lucrative investment prospects. By understanding the market dynamics, legal requirements, and financial implications, expats can navigate the property buying process in Portugal with confidence and ease.

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