The buying process in Portugal with insight from a real estate expert

The charm of Portugal

For those who intend to buy a property in Portugal and enjoy all that Portugal has to offer, the process is simple. What may be difficult is choosing just one dream home to buy. Portugal amazes and enchants with beautiful landscapes and almost endless hours of sunshine. 
 

Property types

The property types for sale in Portugal is vast, from rustic to urban, inside or outside the city network. The most interesting ones are undoubtedly the land, small farms and farms, preferably isolated and with ruins, the treasure of our region of Cova da Beira.
 

The buying process

After the first contact with a real estate consultant, the journey starts with property viewings. Once you’ve found the property you’ve dreamed of for so long, you can make a written proposal, and the negotiation process begins. Agreeing to the selling price is fundamental. Once the deal is closed by both parties (seller and buyer), a Promissory Purchase and Sale Contract is initially signed, a document containing:

• the names of the parties involved, 
• the value of the deal, 
• the description of the property, 
• the down payment and 
• the designated term, usually 30 days.

If, during the process, it is necessary to resort to bank credit or request a tax identification number (NIF), a real estate agency will usually have a Procedural Department at their disposal, which will assist in the bureaucratic part, in all the difficulties that foreign clients face, and will streamline all the documentation up to the date of the deed.
 

Buying with a mortgage

Foreigners and non-residents to Portugal can buy a house in Portugal with mortgage credit, the conditions may differ in some aspects from whats offered to residents. But as long as the property and customer meet all the necessary conditions mortgage credit will be offered.

As a foreigner, you can buy a house through credit, either as your own permanent home, holiday property or investment property, anywhere in the country.
Some conditions may differ for residents: foreigners and nationals. 
 

Tax 

You don't need to be working in Portugal to buy a property. However, you always need to obtain a Portuguese tax number (Número de Identificação Fiscal – NIF), even if you only buy a house in Portugal as an investor.

Número de Identificação Fiscal – NIF number

To apply for a NIF number, you need to register with your local tax office and appoint a fiscal representative in the country while not residing in Portugal. And even if you don't come to live in Portugal, you still need a legal tax representative in the country to buy the property (friend, solicitor, lawyer).

The purchase of a property, is, for many, the investment of a lifetime, and you want to minimise the risks. That is why, in most cases, buyers choose to rely on the support of a real estate consultant. These professionals are specialists in a particular location and facilitate the search for a property. They also have a vast network of contacts with other professionals such as credit intermediaries, lawyers or notaries.

Costs to expect as a buyer

In short, these are the associated costs: 

• Public Deed of Purchase and Sale, 
• Land Registry, Stamp Tax (IS) and 
• Municipal Property Tax (IMI). 
   

These costs depend on the acquisition value and the area you purchase in.
The real estate agency commission is the responsibility of the seller.

Top tips for buying property in Portugal
 

Catarina has drawn on her years of experience in real estate to give you her top tips for buying property in Portugal. Bringing your dreams a step closer with her practical and insightful top tips. 

The expat community in Portugal

The number of foreigners in Portugal has grown exponentially in recent years. Many foreigners see security in Portugal as an indisputable advantage; Portugal is a top option for those looking for a peaceful country to work and live in. 

Another of Portugal's strengths is the benefit of a lovely climate, with mild temperatures in most months. We understand that leaving your country of origin is always challenging, weighing up the pros and cons. One of the main reasons to move is the possibility of improving quality of life, the lower cost of living in Portugal plays a fundamental role in the final decision, in addition, Portugal has a public health system, as well as free quality education. 

We are a country where tradition and modernity go hand in hand.
 

Consider the interior region of Portugal

As much trumps as coastal destinations have up their sleeves, there is a certain charm they will never be able to display: that of rurality: the interior features a pure and simple environment and another way of living. 

In our region of the country's interior, we already have communities of people coming mainly from the United Kingdom. They look for this area, for nature in its purest state, for the possibility of dedicating themselves to organic agricultural activities, they have at their disposal the opportunity to buy local products daily, and the climate is truly extraordinary. They also have at their disposal a true open-air museum, as it is a region rich in history, natural beauty and rural mystique.

Portugal amazes and enchants!