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Are you planning to buy overseas property in Portugal? Is this the right time to be buying overseas property in Portugal? Let’s find out!
State of the Overseas Property Market in Portugal in 2019
Portugal has always been a popular overseas property destination. Not as much as Spain, but more as a less expensive alternative to Spain.
In fact, there are many foreign investors who prefer to buy a second home in the Algarve in Portugal, rather than in Costa del Sol, Spain. The Algarve is less crowded, arguably more beautiful, offers a more relaxed lifestyle and has a lower cost of living.
Home prices have been on the rise in Portugal, going up by over 3 percent in the first quarter of 2019. Real estate in Lisbon, the capital of Portugal costs EUR 1,047 per square metre, which is pretty reasonable.
A second home in Portugal is always a good investment as it can fetch you a very decent rental income whenever you’re not in the country. With apps such as Airbnb, it is very easy to find people to rent your property to on a short-term basis.
Are There Any Restrictions on Foreign Buyers in Portugal?
No, absolutely not! Portugal is one of the friendliest destinations for foreign investors. There are no restrictions of any sort on foreign ownership of property in Portugal.
As a matter of fact, the government goes out of the way to get foreign investors to buy property in the country. One of the measures they have taken is the so-called Golden Visa – a five year residency permit granted to any high net worth no-EU national who buys properties worth EUR 500,000 or more in Portugal. At the end of the 5 years, permanent residency is granted.
Overseas Property Buying Process in Portugal
Anyone can buy property in Portugal no matter where they are from. However, they will first need to get a Personal Fiscal Number (called as “Numero fiscal de contribuinte” in Portuguese). You can get this number from any local tax office. You will be given this number automatically if you open a bank account in Portugal.
Next, talk to an overseas property specialist and ask them about the best deals available in Portugal. The overseas property agent will have contacts with people who want to sell their overseas property in Portugal in a hurry. So they are able to get you the best possible price.
Also, you may look for ads on various property portals, newspapers and magazines. Participate in online forums and talk to other expats in Portugal. They will give you a very good idea of where to look for a home in that country and what to expect.
Once you find a proper house for sale, make a good offer for it – not too low, not too high. If he buyer agrees, he will ask you to sign a contract. Hire an independent solicitor to go through the contract and watch out for red flags, if any.
Then, you will need to take the contract to a notary, who oversees the transaction and examines the paperwork in detail. Once the offer is accepted and payment is made, the house will be registered in your name in the Land Registry. That is how the property buying process in Portugal works.