Buy in Portugal

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

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.

Portugal's Non Habitual Tax Resident Scheme

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.

Did you know about the Portuguese Golden Residence Permit Program?

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.

Mortgages in Portugal

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.

Buying Costs in Portugal

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.

The Purchase Process

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)