If you are enamored by the prospect of living in Portugal, first there are some aspects you must consider before getting in the process of buying a property in Portugal, especially if you are a foreigner, and make this journey as easy and smooth possible.
The good news is that there are no restrictions on foreigners and expats buying properties in Portugal. But, before heading ahead of things, the first things you should take care to initiate the property buying process in Portugal is a valid passport of your country and, a fiscal number issued by the Portuguese Government.
Where to look?
Then, the second thing it follows is which places to look according to what better suits you and your lifestyle. There is a wide range of opportunities to choose from when you look at the landscape of Portugal:
If you want to enjoy life in a big city, you have Lisbon, the capital of Portugal - it is not too chaotic as other major capitals in Europe and boasts a population of only half a million people. Lisbon also has a lot to offer. A mix of multiple neighborhoods with their own characteristics. Each one has different things to do, places to eat, different lifestyle and atmospheres.
On the other hand, if you are more into a quiet and peaceful lifestyle, the Algarve is a perfect choice. It is a beautiful region in the southern part of Portugal, famous for its beautiful beaches, world known resorts, golf courses and amazing gastronomy.
You also have the amazing city of Porto, the second-largest city in the country, as a great option. Located in the north of Portugal, this is a thrilling city, very well known for its historic buildings and exciting environment.
Get to know the cost of living in Portugal
Another important information to know before initiating the process of buying a property in Portugal is the cost of living. It might help you compare the cost of living in other European and American cities to give you a good idea of the cost of living in a specific country.
If you are a European or an American, you will find the cost of living in Portugal lower than any other European country. For example, you must expect an average net-disposable income per household to be of about 18,000€ a year in Portugal. Also, a couple can expect monthly living expenses to be around $2000, or more if you have kids or other dependent family members.
Like any other capital city, the cost of living is higher in Lisbon compared to smaller cities like Porto and Faro as well as coastal villages. Boosted by the increasing demand fueled by the resurging tourism along with improved economic conditions, Portugal´s housing prices also started to rise. For example, you must expect an average cost per square meter in Lisbon to be around 1.308€ for a two-bedroom property or in the center of Cascais, a famous coastal resort town just 20 minutes away from Lisbon city center, much sought after by high income expats and foreigners, to be the double of Lisbon’s value.
The cost per sqm in Lisbon tend to grow once your closer to the city center, which according to the Global Property Guide can be around 2.500€ per square meter for 120 sq.m. In Algarve, despite being a famous beach destination and an ideal place for retired people and foreigners to settle down, the prices for a 120 sq. m. apartment in the Algarve is of 1.800€ per sq.m.
Taxes and fees involved in Buying a Property in Portugal
Once you have identified the property of your dreams and decided to buy it, you must think about taking care of the amount necessary required as a down payment as well as for other costs associated with the purchase of your home.
There are some taxes and fees you must pay when buying a property in Portugal and their total cost comes to around 10% of the value of the property.
So you should consider:
Adding up to this taxes don´t forget to include mortgage fees and, if you decide to contact a lawyer to help you buy a property in Portugal, the lawyer’s fees.
Assistance in buying a property in Portugal
Another minor task but still important one is that if you are not familiarized with the Portuguese Real Estate market, it is important to hire the services of a good quality, reliable lawyer to assist you while starting the process of buying a property in Portugal. Also, to make sure that all legal formalities are completed and all taxes are paid you must have a notary check.
Investing in a property is an exciting task but you should assure that you conduct a complete research while buying a property in a new country:
It can become a challenge, but buying a property in Portugal is straightforward. Just make sure you research about it at first and choose the appropriate partners to work with.