Welcome to our Portugal Property Guide

• Lifestyle & Climate: Mild weather, beautiful coastline, golf resorts, gastronomy, and relaxed lifestyle.
• Safety & Stability: One of Europe’s safest countries with political and economic stability.
• Value for Money: Still more affordable than France, Italy, or Spain (though Lisbon, Porto, and the Algarve are rising).
• Residency Options: Non-EU buyers can benefit from visas like the D7 Visa (for passive income earners) or Digital Nomad Visa.
• Tax Incentives: The Non-Habitual Resident (NHR) regime can reduce tax burdens for 10 years (note: conditions are tightening, so seek professional advice).

Define Purpose: Holiday home, permanent move, or rental investment.

• Location Choices:
  • Lisbon & Cascais: Vibrant city life, cultural scene, strong rental demand.
  • Porto & Douro Valley: Wine culture, charming historic city, growing expat scene.
  • Algarve: Sunny coastline, golf resorts, family-friendly.
  • Silver Coast: Affordable seaside towns (Nazaré, Peniche, Óbidos).
  • Interior Portugal: Rural charm, cheaper properties, EU incentives for revitalization.

Tip: Always visit in different seasons before committing. A quiet summer town may feel deserted in winter.

Step-by-Step:

• Reservation Agreement (Contrato de Reserva)
  1. Buyer puts down a small deposit (usually €5,000–€10,000).
  2. Property is taken off the market temporarily.
• Promissory Contract (Contrato de Promessa de Compra e Venda – CPCV)
  1. Binding contract between buyer and seller.
  2. Buyer typically pays 10–30% deposit.
  3. If buyer withdraws, deposit is lost. If seller withdraws, they must return double the deposit.
• Final Deed (Escritura de Compra e Venda)
  1. Signed at the notary.
  2. Buyer pays remaining balance.

Ownership is officially transferred.

• IMT (Property Transfer Tax): Progressive rates up to 7.5%, depending on price, location, and type of property (urban/rural, main residence vs. secondary).
• Stamp Duty (Imposto do Selo): 0.8% of purchase price.
• Notary, Registration & Legal Fees: Around €1,000–€2,500.
• Lawyer’s Fees: Typically 0.5–1% of purchase price.
• Annual IMI (Municipal Property Tax): 0.3%–0.45% of taxable value.
• Wealth Tax (AIMI): Applies to high-value properties over €600,000.

Tip: Always budget an extra 8–10% on top of the purchase price for taxes and fees.

• • Cash Buyers: Fast and flexible.
  • Mortgages: Portuguese banks lend up to 70% for non-residents, 80–90% for residents.
  • Documents Required: Passport, proof of income, tax returns, Portuguese NIF (tax number).

  Tip: Shop around – banks differ significantly in rates and conditions.

Hire a Local Lawyer, essential to avoid pitfalls

• Check Land Registry (Registo Predial): Confirms ownership and debts.
• Check Tax Records (Caderneta Predial): Confirms property description and size.
• Licensing & Permits: Ensure construction was legal and extensions are registered.
• Energy Certificate (Certificado Energético): Mandatory before sale.

Things to Avoid:

• Buying without legal checks.
• Relying only on the seller’s or agent’s information.
• Rushing – Portugal’s bureaucracy can take time.
• •  

• • EU Citizens: Free to buy and live.
  • Non-EU Citizens: Need a visa/residency permit (not to buy).

– D7 Visa: For retirees or those with passive income.
– Digital Nomad Visa: For remote workers.
– Golden Visa: Still available but restrictions apply (urban property excluded).

• • NIF Number: Mandatory for any transaction.
  • Portuguese Bank Account: Needed for property purchase and taxes.

• • • Short-Term Rentals (Alojamento Local – AL): Requires a license, heavily regulated in Lisbon, Porto, and Algarve.
    • Long-Term Rentals: Strong demand in cities.
    • Maintenance Costs: Condos charge monthly fees for shared spaces.
    • Insurance: Buildings insurance is often mandatory with a mortgage.

    Tip: If buying as an investment, check rental yields and restrictions before purchasing.

Even though Portugal is a fantastic market, buyers can sometimes face unexpected challenges. That’s where a qualified local agent like us becomes essential:

• • • • Overpaying for a property → A professional agent knows local market values and helps you negotiate fairly.
      • Overlooking hidden costs → An agent highlights taxes, condo fees, or renovation needs from the start.
      • Choosing the wrong location → Agents understand neighborhood dynamics (year-round life vs. seasonal use, transport, schools, etc.) and match you with the right area.
      • Underestimating bureaucracy → With guidance, paperwork and legal steps are smoother and less stressful.
      • Expectations on rental income → An agent can provide realistic projections and explain rental regulations clearly.

As a local real estate professional, here’s how we guide buyers to make confident decisions:

✅ Visit at different times of day – Morning, afternoon, and evening give you the full picture.
✅ Always negotiate – A good agent will negotiate on your behalf and often secure better terms.
✅ Check developer or seller credibility – Especially with new builds or renovations, we ensure you buy from trusted sources.
✅ Explore incentives and financing options – Agents often know about bank offers, government programs, or local tax advantages.
✅ Think long term – Whether lifestyle or investment, we help clients plan for future resale value and area growth.

• • • Portugal is one of Europe’s most attractive property markets, but success depends on careful planning, legal due diligence, and understanding the local context. Surround yourself with a reliable lawyer, a tax advisor, and a trustworthy agent – and you’ll avoid the common pitfalls while enjoying all the benefits of owning property in Portugal.