Real Estate in Portugal
More and more foreign citizens are buying real estate in Portugal. Moreover, many do not even move into the country, but either live in two states, or make a purchase by simply investing, investing money. Why Portugal? Most of the clients of Movetocascais note the following advantages
- level of life;
- favorable location in relation to Europe;
- ocean;
- successful conditions for business.
But, purchasing an apartment, a house or just a plot of land for building implies compliance and some caution. This applies not only to Portugal. Anywhere in the world, a serious investment requires a serious approach. There are just subtleties, which are recommended to pay special attention to in this country.
Self-built
Benefits include:
- the possibility of choosing a suitable location;
- participation in the architectural planning and budget allocation;
- guarantee for 5 years from the contractor.
economically, this option is more advantageous compared to the purchase of a finished building.
but there are also disadvantages. First of all, it is bureaucracy. You need to collect certificates and permits, to apply to the authorities, to spend time, to order materials that are not always available not only in the place of the planned construction, but even in the country …… If you are ready for such complications, of course, build from scratch. But if there is no goal to build a building, and you just want to move and live “to the fullest”, you should choose an already ready-made structure.
Buying to renovate or overhaul
More financially advantageous purchase would be a building or apartment that requires a major overhaul or restoration. More loyal and issuing the necessary permits representatives of government agencies and services. All necessary certificates are obtained more quickly. Repair can be done “on your own.
If we talk about restoration, the first place among the disadvantages is the risk of exceeding the planned budget. And to exceed quite substantially, sometimes even several times the originally planned amount. Because of ignorance and inexperience. The main focus is on the specified cost. You can see the savings compared to the option suitable for life, but when the work begins, the bills may exceed all expectations at times.
But the “plus” of a successfully chosen building for restoration can “cross out” all the disadvantages in an instant. In Portugal, there are many ancient castles and mansions, which, in fact, are the monuments of history (although officially unrecognized). For those who have dreamed of living in a real castle, which option would be more profitable – to build your own from scratch, or buy a 17-18 century building, which once housed the royal family, put it in order, and then live, creating a new history? Of course, the second option is more interesting.
Real Estate in Portugal turnkey
What kind of ad for sale are we used to seeing? “4-bedroom apartment for sale in the center” or “Nice 2-story house for sale in the suburbs,” right? It’s not like that in Portugal. Only the number of bedrooms is listed there. Living room, kitchen and bathrooms are not counted. Keep a little “cheat sheet” and share it with those who, like you, are planning to move to a dream country.
So, Portugal listings include the following designations:
- T0. This is a “studio” house or apartment. That is, a living space in which the space is not divided into rooms, but is unified. Only the bathroom is separate;
- T1. This is a one-bedroom apartment or a one-bedroom house;
- T2. Two-bedroom apartment/home;
- T3. Three-bedroom apartment/home;
- T4. A four-bedroom apartment/home;
- T5. A five-bedroom apartment/home.
If the house or apartment has another room without a window, it will be marked as “+1”. Most often, such a room is used as a closet or storage room.
</span style=”font-weight: 400;”>By the way, in Portugal, there is a surprising “habit” of developers. They sell the property already furnished with bath and kitchen.
The most expensive real estate, as expected, is in Lisbon. In second place is Cascais, the third is Porto.
The purchase of any real estate involves a serious investment, if you are not familiar with the matter, we recommend you to consult our experts who know the prices, laws, and conditions of the deals
Purchase and Sale Agreement
As in any country, there is an approved form of contract. The document should specify
- identificação do vendedor e do comprador (buyer and seller identification data)
- identificação do imóvel (data on the subject of the contract);
- preço da compra e venda (cost);
- descrição dos termos e condições de pagamento (description of payment terms);
- prazo para a realização da escritura pública (date of notarization).
After the notarial deed of purchase and sale is signed and executed, it must be registered with Conservatória do Registo Predial (land register).
You must pay 1-8% Imposto Municipal sobre Transmissões Onerosas de Imóveis, IMT (onerous transfer of ownership tax), at 0.8% of the purchase amount (rate fixed), and Imposto Municipal sobre Imóveis, IMI (property tax) at 0.3-0.45% of the amount taxed.
Please note. If the value of the property to be purchased exceeds €600,000, you will need to pay additional tax on the difference between €600,000 and the final amount (this is a wealth tax).
Investments in hotel real estate are increasingly popular. You can buy individual apartments and profit from renting them out, or you can buy a share in the hotel itself and earn a percentage of the income of that business.
Residence in Portugal for the purchase of real estate
Many wealthy people chose Portugal because of the opportunity to quickly obtain a European residence permit, which has a lot of advantages for the whole family.
Formalization takes 2 m
onths.
Financially independent is recommended to apply for a D7. It is a visa for “cosmopolitans” who have a stable income outside of Portugal. To do this you need to buy or rent any real estate to live in the country and to confirm his income in an official document, which will indicate that the applicant receives a monthly income of at least 705 euros. Five years after receiving the D7, you can apply for citizenship. To do this, you do not have to give up the first one. Portugal – one of the few countries that recognize the second citizenship.
Often our customers ask: Can I buy real estate in Portugal on mortgage?
Certainly you can. But only if you are not interested in the residence permit for investment. The country has very favorable credit conditions, but the citizenship through a mortgage is not possible.
The residence permit for investment is also called the “golden visa. This category of investors has a lot of advantages.
You can enter children and other family members in the application for the “Golden visa” at once. So, the processing of documents will be much faster.
It is not necessary to buy real estate in the country in order to obtain the residence permit. You can invest in research, business, culture/science, or venture capital funds.
Facing for the first time with the move, the purchase of real estate, registration of residence permit or citizenship, everything can seem complicated and confusing. In fact, the procedure is simple. The more so that we are always ready to help you. Guide you through all the complex stages, advice and counseling. Do not put it off for later. The future is being made today! Rocaestate