Buying a house in Portugal

Portugal offers diversity, from historic cities to picturesque coastal villages. According to Eurostat, around 77.8% of the country's residents are homeowners, which is above the EU average. Foreigners are also actively investing in Portuguese property, especially thanks to programmes such as the non-resident tax regime.

Best regions to buy in

• Lisbon: The capital city with developed infrastructure and cultural life. The average housing price is around €4,096 per m².

• Algarve: Southern region with a mild climate and beaches. Housing prices are around €3,373 per m².

• Porto: Northern city with a rich history and architecture.

• Braga, Aveiro, Coimbra: Smaller cities with a unique charm and more affordable prices.

Financial aspects

Mortgage

Banks in Portugal usually provide mortgages of up to 90% of the property value for nationals and up to 70% for foreigners. It is important that monthly repayments do not exceed 35% of your income.

Additional costs

When buying a property, there are additional costs to consider, which can amount to up to 10% of the property's value:

• Property Transfer Tax (IMT)

• Stamp Duty (0.8%)

• Registration fees

• Home insurance

• Notary and lawyer's services

Buying process

1. Obtain a tax number (NIF): Required for all financial transactions.

2. Selecting a property: It is recommended to use licensed real estate agents.

3. Preliminary Contract (Contrato-Promessa de Compra e Venda): To be signed once the terms and conditions have been agreed.

4. Payment of deposit: Usually 10% of the price

5. Conclusion of the main contract (Escritura): To be formalised at the notary's office.

6. Registration of the property: At the land registry and tax authorities.

New construction and reconstruction

If you are planning to build a house from scratch or carry out a major renovation, it is necessary to:

- Check the building permit for the selected plot.

- Hire an architect and get the project approved by the municipality.

- Sign a contract with a contractor and supervise the construction process.

The process can take several months, depending on the complexity of the project and local regulations.

Useful resources

- Idealista

- Imovirtual

- Casa Sapo

Buying property in Portugal is a real opportunity for those looking for a comfortable life in Europe. With the right approach and preparation you can find your dream home under the Portuguese sun.

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