Investing in property within Portugal comes with its own unique benefits. There are several good reasons to buy in Portugal such as the beautiful landscape and great weather, but some lesser known benefits include low cost of living and tax breaks for retirees especially with private pensions.
Portugal's property market has remained stable over recent years and the country's economy has recently seen a resurgence, so investing in property within the country is undoubtedly a good move financially. Whilst Portugal has long been a favourite with the British, it is now proving to be popular with many other Europeans.
Possibly one of the country's best kept secrets, The Non Habitual Tax Resident Scheme (NHR for short), is a scheme devised by the country's government to attract temporary and permanent residents to the country.
The NHR regime allows for someone with a private pension to be considered eligible to avoid tax, making this scheme ideal for those seeking to retire to Portugal.
This scheme is one of the reasons why Portugal is becoming so popular with not only British citizens but other European countries in particular Sweden, Germany, Belgium, France, Finland and Italy. Click for more information.
Now, non-EU citizens can look forward to fast-track immigration to Portugal, thanks to this new program. This special residence permit, also called Golden Visa, will be offered to investors, who fulfil certain conditions. Click for more information.
The low mortgage rates within Portugal are a huge part of the appeal for foreigners looking to move to the country.
If you wish to purchase your dream home in Portugal and require a mortgage, these are offered by all the major Portuguese lenders to private individuals purchasing a property with a habitation license.
The banks offer loan terms of up to 50 years for residents and 30 years for non-residents. The maximum age upon maturity of the loan is 70 or 80, depending on the lender.
The maximum borrowing for non-residents is 70% of the purchase price/valuation price, again depending on the lender.
The cost of buying a property in Portugal comprises of the purchase price and closing costs. These costs include your lawyer's fees, transfer tax, stamp duty, notary & deed fees. They should not exceed 8 percent of the purchase price. The buyer does not pay any estate agent fees - the seller pays this.
Once you have decided to buy in Portugal you should find a lawyer (advogado) or solicitor (solicitador) to look after your interests in the purchase process. In Portugal there are many that speak English.
There are two stages to the buying process. The first is the Promissory Contract between buyer and seller. This is a legally binding contract, prepared by your lawyer.
The deposit is agreed between seller and buyer but is typically between 10-20 percent of the purchase price.
Once the Promissory Contract has been signed and deposit paid, should the seller pull out of the sale, he/she is required by law to repay twice the deposit amount to the buyer. Should the buyer default they would lose their deposit.
The second part of the transaction is the final deed (Escritura), this is the point at which the property ownership is transferred to the buyer. As with the promissory contract, it is signed in front of the notary. (insert link on buying in Portugal)
For any further information and advice regarding buying in Portugal, contact Buy Portugal today on: 01925 414422
Our team are ready to help and advise you on buying and selling property within Portugal.
This spacious property is set within a good tranquil area of Almancil, surrounded by nature but yet close to all amenities and everything the Golden Triangle has to offer. With heated salt water pool, double garage, hot tub and more. Ref:PV3447
SOLD FURNISHED. Luxury townhouse in a sought after gated development in the village of Salir do Porto, within walking distance of the beach and excellent amenities. A well maintained development with a beautiful swimming pool with far reaching views over the bay. Ref:AV1995
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Spectacular plot with breath taking views to the sea and the Ria de Alvor, located in the prestigious Palmares Beach & Golf Resort development in Lagos. Potential to build a 3 bedroom villa, which would be close to the beach and amenities. Ref:APA42
Two plots of land available in a prestigious area of Foz do Arelho with beautiful lagoon views. They are located on the edge of the beach and have a possibility to build a villa. The plots are located 10 minutes from Caldas da Rainha and less than 1 hour from Lisbon. Ref:AP247
Exclusive brand new 2 bedroom apartments (under construction due to be completed late 2019) in a prime location overlooking the Millennium Golf Course in Vilamoura set in beautiful gardens a luxury condominium with stunning communal swimming pool and off road parking. Ref:MA22102
A magnificent opportunity to purchase a spectacular building plot of land, in the sought after area of Quinta do Lago overlooking the famous San Lorenzo Golf Course. This generous size plot will allow for a splendid property to be built, in fitting with the surrounding properties. Ref:APA35