Buying A House In Portugal [2022 English Guide]
If you have been thinking about moving to Portugal and living your best life with your family, then the first thing you will need is a home. You will have to purchase a house if you don’t want to live on rent, and this is the most peaceful way to spend your life with your family without any trouble. If it has been your dream for a long time to live over there, then it is the right time to get things done and start collecting all the information you need to know beforehand.
Portugal is known for being home to many ex-pats and is a trendy place to live because of the excellent climate and weather. The quality of life is also pretty good, and you can enjoy the culture. If you are looking for an affluent cultured society to live in, this is the best European country you can choose. Around 70% of the population in this country have their own home, and you can also become one of them after finding out all the information you need to know.
It is always the best choice to have your own home rather than depending on renting a property. When you buy your own home in Portugal, it is not only giving you a permanent place to live in, but it is also going to be a long-term investment that will be very beneficial for you in the long run. The country’s real estate market is pretty good, and it keeps on growing depending on the economic situation of Portugal at the moment.
Once you buy your property in the country. It will be much easier for you to get a permanent residency or citizenship and then become a permanent resident. It will also open Windows of opportunity for you to get the golden visa of Portugal, and then you will be good to go for your entire life with your family!
In this post, we will discuss all you need to know about buying a house in Portugal and provide a complete guide containing all the information you need to know. So without any further wait, keep reading to find more details below.
Is It Easy To Buy Property In Portugal If You Are A Foreigner?
The good news for you is that yes. It is easy for you to purchase your own home in Portugal if you are a foreigner and not a permanent resident of Portugal. The government is not very strict regarding this and will provide you with convenience and purchasing your own home in the country. The good thing is that there is not an abundant amount of paperwork or strict criteria you must meet before purchasing your first property in the country.
However, you need a VAT identification number in Portugal to buy property there. Sometimes this identification number is also known as a NIF number in Portugal and is a must-have for you to purchase property in the country legally. To obtain this identification number, you need to open a bank account in Portugal, which can also be done through a tax office. The process is pretty simple, you will not have to suffer a lot, and there is not much paperwork.
What Is The Property Market Situation In Portugal?
Portugal’s real estate property market is increasing but had to suffer like every other market during the covid-19 pandemic. The real estate prices increased by up to 6% and were around 1144 euros per square meter. It was a significant price increase but decreased later on, and more than 11% growth was seen in this industry.
Advantages Of Buying Your Own House In Portugal
You will get several benefits when you buy your own house in Portugal. Let’s have a look at them below.
1. If you buy your own house in Portugal, it is an excellent long-term investment because you can also give it on went to earn passive income later on.
2. Buying your own house in Portugal will allow you to get a Golden Portuguese visa, which will give you permanent residency to live in the country and can benefit you in the long run. However, you have to wait for six years to get citizenship in the country.
3. You will not have to live on rent, and the cost of living is going to reduce to a great extent because you don’t have to pay rent to live.
4. The country’s climate is warm and well most of the year, and it can be a great retirement plan for you to spend the rest of your life in this country with your family.
5. Portugal is among the safest countries in the world, according to a magazine in 2019.
6. The quality of life and country is excellent, along with good facilities for Healthcare and education.
7. Another advantage of living in Portugal is that you don’t necessarily need to learn Portuguese because many people speak English there. However, learning the language can benefit you in the long run.
Cons Of Buying A House In Portugal
1. There is a bureaucratic system in the country, and the process can be slow sometimes when you are purchasing a property. However, it is going to be worth the wait for sure.
2. Central heating system is not available in most of the houses in the country. However, it shall not be a big problem if you are willing to compromise.
Best City To Buy A House In Portugal
Cascais
Cascais is the best place to buy a house in Portugal, but you also need to remember that you should have the budget to do so because it is an expensive area to buy a home. But it is costly because it has a 30 km seacoast and the best beaches you can view in the entire country. If you want to live by beaches and it has always been your dream, then there can be another better place to buy a house. Another great thing is that you can easily access good quality restaurants and shops nearby.
The weather is also great all your long, and it is not too called or not too hot. If you want to move to the country with your family, it is the best place because you can get excellent quality Healthcare and education for your children. Nature is also available, and there are great parks where you can enjoy your evening with your family, and the first structure is well-funded. It is a fantastic place to live with your family. The transportation system is also great. If you want to visit Lisbon, then it is only going to take you 30 minutes on a train, which means it is extensively interconnected with the big cities of Portugal.
Algarve
Algarve is a popular place among tourists in Portugal, and you can enjoy the warm weather of this place. There is a lot of sunshine and many spots where you can get a perfect tan. The great thing about this area is that it has an excellent education system.
Private and public both types of schools are both available. Even International Schools are available for your children, so your children will not have to learn Portuguese if they want to live in this place. Most people speak English in the country, and affordable homes are available in this area. So if you are looking forward to investing in real estate property in the long run, then you can do so in Algarve.
Lisbon
Lisbon is a dream place to live for most people who are moving to Portugal anytime soon. Many people and companies consider it a dream place to invest in real estate property because the market is increasing here. However, you need to remember that it might be the most expensive place where you can buy a house, and it is not an affordable option.
If you have the budget to purchase a home in this country, it will be an excellent choice for you in the long run. The quality of life is high quality and unique. You will get to enjoy infrastructure as well as beautiful places. The parks and the sports to enjoy nature are amazing, and it is also the safest place to live in Europe. The education and health care system is also great; you can get private and public schools for your children in Lisbon.
Porto
Porto is also an excellent place for long-term investment in real estate property. The best part of the city is that it is just at a distance of 280 km north of Lisbon. It is a beautiful place to live in the country, and you will get more than 200 days of sunshine yearly in this city. The cost of living is quite affordable in this city compared to Lisbon because Lisbon is a major city where you have to spend a lot of money on the cost of living annually.
Porto is quite famous among the international and ex-pat community and can be an excellent place for you if you want to live among other ex-pats and the country to relate with them and feel at ease. Porto is a safe place to live, and the crime rate is also meager. So if you want to enjoy a massive first structure and transportation facility in the country, then it is a great place to purchase your home and start living with your family in the long run.
Alentejo
Alentejo is a great place to live if you want to live in a place like Lisbon, but you cannot afford that. Some people might not consider it an alternative, but in this city, you can enjoy almost everything you want in a big city like Lisbon in Portugal. Tourism is excellent in this city, and you can enjoy a comfortable life there.
What Is The Cheapest Option And Place For Buying Your Own House In Portugal?
Braga is the best place to buy your own house in the country if you are looking to buy a home in the cheapest place in Portugal. If you don’t have a lot of budget, you can purchase a house in the City Centre here, which will cost you around 1481 euros per square meter.
There is a vast difference in the amount of money, and it is affordable compared to a big city in the country, such as Lisbon. If you want to buy a house in Lisbon, it will cost more than 4500 euros per square meter. The most expensive place to live in Portugal is Lisbon, which is not where you can buy a house if you don’t have a lot of budget.
Buying Your Own House For Portuguese Residency
The good news is that you can get a Portuguese Residency if you buy your own house in the country. However, it is also going to depend on your financial situation at the moment and your current nationality.
There are some other requirements and considerations, so it is essential to keep them in your mind. However, if you only want to buy a house in the country to get residency, you should apply for a Golden Portuguese visa, as it will be the best choice for you in the long run.
Portugal Golden Visa
Many people dream of getting a golden visa in Portugal as it will set them up for life and make their dreams come true. It is a way in which non-European citizens can get a residency permit in Portugal and get citizenship later on. But the first requirement for you to get a Portugal Golden visa is to invest in the country, and you can do that by buying your own house.
It will be a win-win situation for you because you will have a permanent place to reside and fulfill the main requirement of getting a Portugal Golden visa. This visa was created back in 2012 when it was done to enhance foreign investment in the country and make Portugal an attractive place for other people in the world, and it worked out.
If you get this Golden visa, you can start living in the country and travel to most European countries without problems. The good news is that you don’t need to live only in Portugal if you want to be eligible for this visa, as there is no restriction on you for this by the government. You first need to stay in Portugal for at least seven days during the first year; then, you can stay in the country for 14 days per year.
Benefits of Portugal Golden visa
Take a look at your benefits after obtaining a Portugal Golden visa.
Visa Exemption
Once you obtain a golden visa in Portugal, you can enter the country and 26 other European countries. You can travel freely and will not have visa requirements as it will be exempted. It is a privilege that only you will get and no one else.
Stay in Portugal
After obtaining the golden visa in Portugal, you can get the right to live in the country, and there will not be any restrictions on your study and work. You can start living in the country as a European citizen.
Reuniting With The Family
Another great benefit you will get after obtaining the golden visa in Portugal is that you can get reunification with the family. It means that your spouse and children over 18 years old and your parents will also have similar rights. They can start living with you in the country and get a job. They will be able to travel freely and enjoy all the visa advantages.
Permanent Residency In The Country
When you obtain a golden visa in Portugal, you are also an investor because you purchased a property. Once this process is done, you can apply for permanent residency in the country and then complete the first five years, a requirement.
Citizenship
Once you have six years of your life in Portugal, you can easily apply for citizenship in the country and get a passport.
How Much Tax Do You Have To Pay To Buy Your Own House In Portugal?
There are three types of taxes that you have to pay in Portugal as a property owner. Let’s take a look at them below.
Municipal Property Tax
This tax differs in every municipality; the rate is between 0.3% and 0.4%. If you want to calculate how much Municipal property tax you will have to pay, you can multiply the tax asset by the IMI rate.
Property Purchase Tax
You must pay this when you buy a house in Portugal, and it will be a one-time payment you must make upon purchasing the home.
Tax On Stamps
This is a text that you must pay on property in Portugal and will depend upon the task and the property.
Can You Use Cryptocurrency To Purchase A House In Portugal?
This is not done much in Portugal, but some people have done it in the past. Some people have used different types of cryptocurrency to purchase a house in Portugal, such as Bitcoin. Overall,
Portugal is a cryptocurrency-friendly country, and you don’t have to worry about if you like to make payments in this method. However, if you look forward to providing any service in the country related to crypto, you will be heavily taxed on your profit and the money you make through this procedure.