Investing in overseas property can be scary daunting and traumatic as well as an amazing experience when you find your piece of paradise. Living and working abroad has never been easier as the world today is becoming smaller and more within reach for those with cash in their pocket to invest in overseas property.
Property investors with cash in their pocket are enjoying second and third holiday homes. Many of these individuals have very busy and hectic lifestyles so what better way to escape the hustle and bustle of life than to buy a property in Portugal which is only 2 or 3 hours flying time from all major cities in the UK, Europe and Russia.
The Golden coast of the Algarve is very popular with buyers from both the high and low end of the market. The high end buyers are buying into Europe with the Golden Visa scheme when they invest between 300,000 to 500,000 on a single purchase or 500,000 on a number of purchases. This means that the overseas property investor gets a residency permit to live in Portugal which is then reviewed every 5 years. The Golden Visa attracts cash rich buyers from Russia and China mainly as the scheme is aimed at non EU residents.
At the low end of the market you get many UK and European buyers looking to snap up a cheap apartment close to the beach.
Regardless of price buying a Portuguese property is simple if you follow these key steps.
Put in a offer close to the asking price - do not insult the vendor with low offers.
If your offer is accepted then a promissory contract is signed and the deposit is also require straight away. Be sure you want this property as the deposit is non refundable in most cases. The balance is then paid as the deeds are signed over to you the new owner at the notary office.
Normally deposits are around 10% of the advertised price but in our experience as Portugal property experts we always advise making a 15% or 20% deposit as this lets the buyer know you are serious and that you have a full intention to complete the purchase as soon as possible.
The deposit is non refundable but on the flip side if the vendor pulls out you get the deposit back plus the same amount on top. So if you pay 10% deposit you get 20% back or if you pay 20% deposit you get 40% back from the vendor. The contract and deposit purchase process is reached when both parties are committed to the sale. And to secure your interest by paying 20% the vendor is less likely to pull out of selling you their Portuguese property.
Now we come to the dreaded taxes - these are many and include property transfer tax , municipal property tax, land registry and stamp duty. An expert estate agent such as the Euro Property Network and our partners will work with you and guide you throughout the entire process which will also include helping you obtain a Portuguese fiscal number, which has to be obtained before buying any property in Portugal
We can help with every aspect of your inspection trip from the travel with many flights from all over the world to Portugal now.
Our partners will meet you on the ground and take you to the property. They will show you round the area so you can take in the culture and sights. They will take you out to sample the local cuisine and make your stay as pleasant as possible as it is in our interest you buy from us after all.
Contact us today to start the process of buying your dream holiday home or apartment in Portugal.