Portugal Life & Buying Property Basics
"The purpose of life, after all, is to live it, to taste experience to the utmost, to reach out eagerly and without fear for newer and richer experience." – Eleanor Roosevelt
Portugal is on the map! Well, technically, it’s been on the map for a very long time. Did you know that Lisbon is one of the oldest cities in Europe, predating Rome by 400 years? Only Athens is older.
Why Portugal?
There are myriad reasons life in Portugal is great. We moved here with the intent to give it a year and see how it went and never left!
The reasons one place appeals to a person are, of course, varied, but below are a few of the basics about Portugal and my impressions garnered from the past eight years.
The Allure of Portugal
Along with a rich history, there are multiple reasons that Portugal has become a top destination for foreigners. Portugal boasts a mild climate, a sense of security, good schools, quality services, and welcoming people. English is widely spoken, and the country consists of magnificent landscapes and a rich culture. And Portugal’s cost of living is lower compared to other European countries. These qualities make property acquisition in Portugal highly appealing.
Housing:
Costs vary by region, with lower prices mainly in the north and interior. More information on housing to follow.?
Health:
The healthcare system incorporates both public and private medical care, and the healthcare is top quality with an emphasis on preventative treatment. My own doctor is fluent in English and gave me her direct contact information should the need arise! Also, when visiting the doctor's office, you always see the actual doctor. And the cost? In our case, we pay 17 euros for a doctor visit. We decided to buy private insurance, in part because we travel a lot and we wanted to be covered while visiting the U.S. We have found that if you purchase a plan that covers you in the U.S., the price goes up a lot. However, that being said, we pay approximately 300 euros for a top-tier plan for a family of three. This doesn’t include dental, but the cost of a cleaning and exam here runs us around 80 euros and you can find dentists for less. Foreigners with Portuguese residence permits can get a social number and use public medical services for free.
Language:
It is easy to get by speaking only English, especially in the larger cities. But making an effort to learn Portuguese is appreciated and fun! Speaking Portuguese at a level A2 is only a prerequisite for those seeking full citizenship. There has been talk of changing this over the years, but as of now, it remains. When we first arrived, I didn’t speak a word of Portuguese and yet after several years of living here and taking classes on-line, I managed to pass the language test. If I can do it, I’m betting you can too! I don’t want to brag, but I earned a “sufficient” grade.
Safety:
The Global Peace Index rated Portugal as the seventh safest country in the world. For those of you who are curious, here are the top rankings: Iceland, Denmark, Ireland, New Zealand, Austria, Singapore, Portugal, Slovenia, Japan, and Switzerland.
LGBTQ+ Friendly:
Portugal is welcoming and supportive of LGBTQ+ individuals. Portugal has made significant advances concerning sexual orientation and gender identity and has become one of the most welcoming countries in the world. This doesn’t mean that LGBTQ+ bullying doesn’t happen, but overall the Portuguese are increasingly open toward sexual preference and gender identity, and there are many policies supporting rights. In the larger cities, there are numerous LGBTQ+-friendly venues and events. Different attitudes may be encountered in more rural areas, but in general, the vibe is one of acceptance.
Food:
Portugal has excellent and diverse gastronomy with regional specialties. From Cataplana stew in the South to Porco Preto Alentejano (raised on a diet of acorns, and the meat is used for roasted and grilled pork dishes) to grilled sardines that are one of the most quintessential Portuguese things you can eat, particularly during the month of June when festivals take place in Lisbon and Porto. There is also a cheese, Queijo da Serra da Estrela, that is so soft that you can actually scoop it out with a spoon! And of course, there is Piri Piri Chicken, a dish that has its roots in the Portuguese colonies in Africa, and Arroz de Marisco, a rich seafood stew that’s made up of fish and rice. There are, of course, different options depending on where in Portugal you are, but the fresh grilled fish is always a perfect 10!
And finally, let’s not forget dessert! The most famous being the Pastel de Nata, a Portuguese egg custard tart pastry, optionally dusted with cinnamon. It has become basically a requirement to try one while here!
Education:
Portugal offers top-notch education and children can study at a private or international school, a free state school, or join a vocational course that is adapted to a specific career. There are a lot of options, some areas with more than others. For example, in our area just outside of Lisbon (Cascais/Sintra), there are multiple options and our friends with school-age children sometimes have their kids in different schools based on the child’s needs or ages. There are some great resources available and specialists to help you decide what school is best for your family. If you are planning a move, feel free to reach out and I can connect you with someone in the area you are considering.
Weather:
For the most part, the climate is amazing! Of course, it varies depending on the area, but the country as a whole experiences mild winters and incredible summers. For those who like very hot summers, the interior (for example, the lovely medieval town of Tomar, down through the Alentejo) and the Algarve with its golden cliffs and sandy beaches are your best bet. For those who, like us, prefer a bit milder summer, the Sintra area up through the Silver Coast is fantastic! These areas are, temperature-wise, my favorite. As a redhead with fair skin, I was not built for extreme heat. And not only does the Silver Coast region boast about 300 days of sunshine each year, but the temperature is also around 90°F (30°C) in summer. And, even the winters are mild, around 50°F (10°C). In Porto, Portugal’s second-largest city, the months of June, July, and August temperatures range between 68oF and 95oF (20°C and 35°C).
Transport:
Efficient and economical public transport, competitive fuel, and vehicle maintenance prices.
Introduction to the Real Estate Market in Portugal
Can a Foreigner Buy Property in Portugal?
Yes! There are no restrictions on foreign property ownership.
Recent Trends in the Real Estate Market:
We have lived in Portugal for eight years and over that period, the Portuguese real estate market has experienced substantial growth. We watched as more people have discovered this incredible country and house prices have increased, driven by a solid tourism industry and foreign demand. We have seen urban rehabilitation projects grow rapidly, and there is a large effort to upgrade old buildings, particularly in the historic districts of Lisbon and Porto.
We are seeing new luxury real estate projects popping up in multiple areas. And, there is growing interest in properties located outside of the main cities of Lisbon and Porto. People are seeking out places located in the Algarve, Comporta, and the Silver Coast.
Popular Areas With Expats:
Lisbon and Porto are top choices for their charm, history, and culture. On the outskirts of Lisbon, Estoril and Cascais are popular, while in Porto, Matosinhos and Gaia are favored. The Silver Coast has some amazing golf course resorts that run alongside the sea. And the Algarve, known for its beaches as well as golf courses, is ideal for a serene lifestyle, with Tavira, Faro, and Vilamoura on the rise.
Available Property Types:
The market offers a diverse range of options, from modern city apartments to luxurious villas with stunning views, and farms and estates in Portugal's interior. New developments focus on modernity, comfort, and sustainability, often featuring amenities like swimming pools, gyms, and concierge services. In addition, we are seeing new concepts arrive in the investment sphere and the active lifestyle arena. It’s a very exciting period of growth in Portugal! With its excellent quality of life, Portugal is a solid option for those seeking a new residence or solid investment in Europe.
What You Need to Buy A Property:
????????? A Portuguese tax identification number (NIF)
????????? A Portuguese bank account
????????? Photo identification, like your passport
????????? Proof of address
????????? Contract of sale
????????? Power of Attorney (If you cannot be present during the process, this will allow a representative to act on your behalf)
????????? Visa: If you are planning on using the property to live in or for vacations, you will need to obtain a visa if you are a non-EU citizen. There are multiple options, including:
There are multiple companies that offer this service and I am happy to recommend a great one!
Tax Regime for Non-Habitual Residents (NHR):
Portugal offers a favorable tax regime for non-habitual residents, providing a flat IRS rate of 20% and exemption from double taxation on pensions for ten years. However, recent changes in the 2024 State Budget may affect this.
Taxes Associated with Property Purchases:
Municipal Tax(IMT): A municipal tax paid before the deed, varying by property type and value.
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Stamp Duty: Applies to the purchase price and loan amount, with rates of 0.8% and 0.6%, respectively.
Municipal Property Tax (IMI): An annual tax based on the property’s asset value, with rates between 0.3% and 0.8%.
Buying Process
Buying property in Portugal is straightforward, and even enjoyable, when done correctly. If you are considering a move to Portugal, you are embarking on an exciting new chapter in your life—it doesn’t have to be stressful! Find the right people to help you navigate the waters, so you can focus on preparing for the move.
Agent Selection:
In Portugal, it is very important that you choose your agent wisely. If you are buying a home and they ask you to pay a commission, go elsewhere. The normal modus operandi in Portugal is for the seller to pay the commission. It is split between the listing/selling agent and the buyer's agent. You should not be paying the commission, except in rare cases.
Historically, Portugal has not been the easiest nor most transparent when it comes to real estate. It lacks basic tools that you may be used to, such as the MLS and other public sites where you can get accurate information on selling prices (not asking prices). Here in Portugal, one has to rely more heavily on their agent. You want an agent who works with an agency, such as the Brightman Group, that is based on transparency, trust, and professionalism. An agent/agency that you can be assured will show you everything out there that fits your needs and desires, not one who will only show properties in their own portfolio.
When working with an agent such as myself or my colleagues at the Brightman Group, you can be sure we are competent professionals and will only recommend fully vetted professionals to help you along the way. We have a wide range of people to help, including lawyers, tax consultants, builders, designers, etc. Thus, we can ensure all legal steps are followed for a successful transaction.
Property Views:
Your agent should talk to you first to get a solid idea of what you are looking for and to offer tips and advice regarding what areas would best suit your lifestyle, budget, etc. Then, your agent will schedule viewings of the property. And, (if you are working with me) offer video walkthroughs if you are not located in Portugal or if you cannot make a viewing.
Offer and Negotiation:
You’ve found your dream home! This is the time to make an offer and negotiate the price with your agent’s help.
Reservation:
A deposit may be required to secure the property.
Purchase and Sale Promise Contract (CPCV):
This is the legal agreement detailing the sale terms, and usually involves a 10%-20% payment.
Legal Checks and Due Diligence:
We then work with our lawyers (or your chosen lawyer) to ensure there are no liens or encumbrances and that there is compliance with money laundering laws.
Public Deed of Purchase and Sale:
Formalizes the sale, signed in the presence of a notary/attorney.
Property Registration:
Register the property in the new owner’s name.
Financing For Property in Portugal:
Foreigners can access several financing options for property purchases in Portugal.
Mortgage Loans:
Offered by Portuguese and international banks with various conditions and interest rates.
Housing Credit:
For purchasing a primary residence.
Private Investors or Real Estate Credit Companies:
Alternatives to traditional bank financing.
Finance Process
Property Assessment:
To determine market value and financing amount.
Credit Analysis:
To assess repayment capacity, including financial situation, credit history, and income.
Required Documentation:
Proof of income, identification, and property details.
Approval and Disbursement:
Funds disbursed upon financing approval.
Insurance:
Mandatory life and home insurance for mortgage loans.
In Conclusion:
Portugal offers a compelling mix of history, culture, and modern amenities, making it a fantastic place to live and invest in real estate!
About Me:
Successfully navigating the international real estate market requires attention to detail & working with someone with a keen knowledge of the local culture is a huge asset. I pride myself in customer service. And I am here to make your home buying experience a good one! After living in Portugal for over eight years I have built an extensive network and, together, with the Brightman Group we strive daily to provide the best service in Portugal.
I came to Portugal with a background in the U.S. real estate industry, but the process is different here & can be a bit daunting for new comers. My aim is to provide clients with the utmost care while being both friendly and professional. Real estate is about making connections and trusting that the people you choose to work with will listen to your desires above all else and do their best to make them reality.
If I can be of any assistance, please don't hesitate to reach out.
Come Home to Portugal!
#brightmangroup #portugalrealestate #propertyinportugal #movetoportugal #expatsinportugal #expatlife #liveabroad #moveabroad
Team Leader@Brightman Group
5 个月Great post Hollin!