🌍 Embrace Borderless Opportunities with Lexidy’s New Global Mobility Department. Learn More!

How Foreigners Can Buy Portuguese Property: Part I of III

Portuguese sun breaking behind clouds

Not every person buying Portuguese property is super-rich. But don’t let that put you off! Portugal is attracting foreigners at a record pace!

There are many financial products available to buy Portuguese property, be it a new build, second-hand, or investment opportunity.

With an abundance of property of sale in Portugal, this could your ticket to a residence permit in a friendly EU nation.

There are several tax incentives for non-EU nationals buying property in Portugal, plus grants and low-interest loans from government agencies if you qualify.

So whether you’re looking to purchase a city apartment or villa, there are various ways to acquire your dream home in the Algarve or another part of this beautiful country.

This article explores:

  • Why buying a property in Portugal is becoming increasingly popular with foreigners and digital nomads.
  • It outlines what you need to know if you’re considering investing in property in Portugal.

Whether you just want to live in Portugal, there are all types of properties on offer. From city apartments in Lisbon and Porto to picture-perfect villas on the silver coast

If you are planning to move to Portugal or make an investment in real estate, you have probably thought about applying for a mortgage.

The climate, the good food, the hospitality, the low cost of living, and the tax benefits, make the country the choice for foreigners and influencers. Portugal is not only as a great holiday destination but also as a good place to live. And in fact, more and more foreigners are choosing to buy a house in Portugal.

If you are thinking of doing so but are afraid to go ahead because it looks like a complicated process, don’t worry, as we will explain here the most important.

How to Buy Portuguese Property 

Understandably, everyone has doubts when considering buying a home outside their country of origin. The desire to buy a house for vacation or even to live more permanently often clashes with uncertainty.

When buying, it is crucial to define your investment limits in Portugal.

  • Will it be necessary to arrange a mortgage?
  • If so, will you get this in the country of origin or credit institutions in Portugal?
  • How does mortgage credit work for foreigners and influencers in Portugal?

It is also essential to consider the costs involved in buying a house in Portugal. They can account for approximately 10% of the property’s purchase price.

Let’s start with the steps:

A fundamental piece of advice to take seriously is that it is always advisable to use professionals and experts to support you.

Talking to real estate agents, consulting financial advisors, and getting information from credit institutions is an excellent way to better understand the process of buying Portuguese property.

However, all non-residents thinking of buying a house should use legal support. Especially at the beginning of the house-buying process to help ensure a positive experience.

This advice will help deal with the tax and legal issues of buying a house, avoid situations of doubt when making an offer, and make it easier to carry out some tasks and acts when you are away, for example, through a power of attorney.

A professional in this area with skills in property law is vital. Besides being able to help you execute the process of buying a house and understand the details of the transaction, they can also support those who are not fluent in Portuguese. Also, a local legal professional will help you understand the contracts you will sign and all the documentation involved.

When buying Portuguese property, there are three crucial moments involving legal paperwork:

  1. Signing a Reservation Agreement 

After choosing the property, the buyer might be asked to sign this agreement that will take the property off the market.

This allows two processes to be completed:

  • Getting a taxpayer number, or NIF
  • and opening a bank account.
  1. Signing a Promissory Contract of Purchase and Sale (CPCV)

The next step is signing a Promissory Contract of Sale and Purchase, known as a CPCV in Portugal. Often, this contract sets the conditions of the deal. Once the down payment is made, the first payment made to the owner or real estate agency.

Having legal support is crucial right from this stage. Not only does this contract make it simpler to understand but it also allows all of the legal implications to be explained.

Examples of conditions when buying Portuguese Property:

  • the conditions for returning the deposit if the deal does not happen
  • Meeting deadlines
  • the identification of the parties
  • the verification of the legal and land registry status of the property
  1. Final Deed of Purchase and Sale

This means you must complete the final registration and change the ownership of the property.

This moment requires the presence of all parties involved. This includes the buyers, sellers, and a legal representative. It can also involve the bank’s representatives if there is a mortgage and even the estate agent or realtor. The meeting concludes by making payment of the agreed amount.

The final part of this step involves transferring the ownership of the dead. This means you must complete the final registration and change the property’s ownership.

In parts two and three, we cover taxes and mortgages in greater detail.

How Can We help you?

Share with friends

More To Explore

Subscribe to our newsletter

Stay ahead of the changes that matter to you

Do not hesitate to contact us

Our experts will be happy to give you a hand