Portugal’s national borders service (SEF) regularly publishes the number of investors obtaining residency through buying property. Its website indicates that more than 9,200 foreign investors became Portuguese residents through buying qualifying real estate in Portugal.
In Portugal, around 75 percent of the population owns a home. The rate in Portugal is even higher than it is in the US and the UK.
Other data from CBRE’s Market Outlook 2021 support this interest in Portugal. “In 2020, CBRE registered a total of €2.9 billion inflow to commercial real estate in Portugal”. So, the country kept attracting investors even in the pandemic as well.
Buying real estate in Portugal has certain benefits for investors. The quality of life, steady economy, and affordable house prices are among them.
You can find more details about buying property in Portugal below.
Why Portugal?
While it has a high quality of life, Portugal offers a low cost of living at the same time. Furthermore, it ranks fourth in the 2021 Global Peace Index in overall safety in the country.
The mild climate and a stable environment in the economy and politics are other attractions.
In addition to the factors above, the Portugal real estate market is quite affordable. It’s especially inexpensive when compared to other Western European countries.
In Portugal, you have access to both lively cities and quiet rural areas. Foreigners also have an interest in coastal regions like the Algarve or the Silver Coast.
Various apartment types are available in Portugal. They range from studio apartments to four or five-bedroom apartments, or even bigger. Based on your preferences, you can choose the best one in the best location.
Buying Property in Portugal as a Foreigner
Portugal also allows foreigners to buy real estate in the country. In fact, the government incentivizes foreign investment through certain schedules. The Golden Visa program is a popular scheme that grants residency in return for an investment.
It requires a simple process. As a non-EU citizen, you invest in a property and get qualified for a Golden Visa. The minimum investment amounts change depending on the location and type of property.
Holders of Portugal Golden Visa get other rights as well. Living, working, and studying in Portugal are some of them. You also get a right to visa-free travel across the Schengen area. Permanent residence or citizenship may also be available at the end of five years.
What To Consider When Buying a House in Portugal
It’s advisable to ask for an expert opinion while buying property in Portugal. You can consult a professional real estate agent during this process. These agents are known as inmobiliaria. It’s advisable to check if they are a property registered agency. They also need to have a license number obtained by the Portuguese Association of Real Estate agents.
In this way, you can save both time and money.
Another point to look out for is the recent amendments in the Portugal Golden Visa program. Until now, investors could buy residential property in Lisbon or Porto. As of 2022, you’ll not be able to do this to be eligible for the Golden Visa. However, you still have time to buy residential property there before changes take effect.
You Have More Than One Option in Buying Property in Portugal
If you plan to apply for the Golden Visa, you have four different options. They mainly differ in terms of their location and situation. One option is to buy a property worth at least €500,000. As noted above, this option will not be available for residential properties in Lisbon and Porto as of 2022. Another option is to buy a property at a minimum amount of €400,000. The property needs to be in a low-density region.
The other two options include minimum investments of €350,000 and €280,000. The first one applies if the property is at least 30 years or in an urban rehabilitation area. If the property is also in a low-density area, the second option applies.
Steps of Buying Property in Portugal
- Get a Portuguese tax number (NIF) at any government finance office
- Decide on the property you’ll buy
- Upon agreeing on the price, make a down payment
- Sign a CPCV (a pre-sale-purchase contract)
- Sign and notarize the property deed.
Typically, negotiation is possible in buying real estate in Portugal. You may want to try this before you agree on the ultimate price.
Signing a Contrato-Promessa De Compra e Venda (CPCV) is highly advisable. It’s not mandatory, however, it provides a guarantee to both parties before signing the deed.
