Portugal ranks consistently as one of the best countries in the world to live for expats and entrepreneurs. Buying property in Portugal is in high demand. It appears in the top spots due to its friendliness, great weather, safety, and low cost of living. In addition, the local government actively supports and facilitates foreign investment as well as innovation, namely through different visa programs.
Such demand and popularity caused a surge in the real estate market, with many entrepreneurs and investors looking to buy properties in Portugal — houses or villas. However, when buying a house in Portugal, many found the process difficult but rewarding in equal measures.
There are so many things to consider when buying a home abroad. However, taking simple steps ensures you buy a good property. This informative guide helps you find the right property in Portugal, regardless of where you want to buy it.
Reasons for Buying Property in Portugal
Portugal is one of the hottest destinations worldwide right now for expats and investors. The country has many advantages, including the fact that it shows up as one of Europe’s most stable countries, politically and economically speaking. It also presents a great quality of life and offers great opportunities for those looking to invest. If you want to invest in real estate, then this southern European country is worth looking into.
There are other reasons why buying a house Portugal is beneficial. First, you are possibly eligible for Portuguese residency and/or citizenship, if you purchase a property and keep ownership for at least 5 years. In addition, Portugal offers great tax incentives through the Non-Habitual Residents (NHR) scheme. Besides these investment benefits, the country offers several other reasons for foreigners to buy a property in Portugal:
1. Low Cost of Living
In Portugal, you live well on a low income. The cost of living is much lower than in the United States, and it is one of the lowest in Europe.
2. High Quality of Life
When you purchase property in Portugal, you invest in a high-quality life. There are plenty of things to do in Portugal, such as hiking, biking, swimming, and fishing. There are also lots of cultural events and festivals.
3. Beautiful Landscapes
Portugal is home to some of the world’s most breathtaking landscapes. From the rugged cliffs of Cabo Espichel to the rolling hills of the Alentejo region, there is something for everyone.
4. Safe Country
Portugal is one of the safest countries in the world. It ranked as one of the safest countries in the European Union for the last decades.
5. Easy Access to International Markets
Portugal is located near Spain and France. These neighboring countries offer access to international markets. Portugal also boasts busy shipping ports covering the Atlantic Ocean route, which makes shipping goods easier. It is also easily accessible from Africa and the United States.
Therefore, if you want to take advantage of these benefits, then consider buying real estate in Portugal.
How Difficult Is the Property Purchase Process in Portugal?
Buying a property in Portugal is easier than you think. With the right guidance, you avoid common pitfalls and make sure you get the best deal possible. The Portuguese property market saw a boom in recent years, but buying a property is still tricky. It is important to know what you want from a property before you start looking. If you do not know exactly what you want, then you may not be able to find the perfect property.
The Portuguese property market is very different from the one in the United States or the UK, for example. Here are some tips to help you navigate the system.
1. Get Prequalified
Before you start looking at properties, speak to a mortgage broker who gives you an idea of what type of loan you can afford. You may possibly borrow up to 80% of the cost of the property, depending on your income and credit score.
2. Find a Real Estate Agent
A real estate agent shows you all the available properties in your price range. He/she also advises you on how much you can expect to spend on repairs and maintenance.
3. Look at Properties Online
It is important to look at properties in person before making any decisions. However, if you are short on time, do a quick search online.
4. Don’t Rush into Anything
Considering that it might be a long-term investment, do your research. Take the necessary advice from someone or an agency that knows the market well.
Portugal’s Property Market
The Portuguese property market has seen strong growth since 2008, but prices remain relatively high. While the average price per square meter (m2) of residential property in Lisbon was €1,947 in 2016, this figure rose to 3,225€ in 2020.
Types of Property in Portugal
There are many different types of property available to invest in Portugal, but the three most common are:
– Houses (“casas” in Portuguese);
– Condominiums; and
– Rustic houses (“quintas”).
Where to Buy Property in Portugal
First, identify what kind of property you want to buy. As seen just before, there are different types of properties available, from apartments to villas to townhouses. In addition, that influences where to buy a property in Portugal.
However, the regions with the most demand are:
– Lisbon
– Porto
– Algarve
In addition, other locations are gaining popularity with foreign investment. These include Coimbra, Cascais, Braga, Setúbal, the islands of Madeira, and the Azores.
Decide whether you want to rent out the property once you move in, or if you want to live in it yourself. Finally, consider how much money you can afford to spend on buying a property.
Property Prices in Portugal
The price per square meter varies greatly by region: from 3.225€ and 2,402€ in Lisbon and Porto respectively to a little more than 1,000€ in the center or the interior north regions.
Types of Property to Buy in Lisbon and Porto
The most common types of properties available in such regions include condominiums, houses, some villas, and land. There are also many different types of apartment buildings including duplexes, triplexes, or penthouses.
Why Buying Property in Portugal Is so Popular These Days
The Portuguese economy recovered from its financial crisis. It continues to grow — fueled by the tourist sector. As a result, people want to invest in the country. Furthermore, buying house in Portugal is one of the most sought-after investments due to the country’s high quality of life, low crime rates, and relatively stable political environment.
