Buy (Sell) Property in Portugal

Buy (Sell) Property in Portugal

Everything you need to consider for buying, selling and renting property and renovating, refurbishing, remodeling, repairing and maintenance property in Portugal

Are you also interested in buying real estate in Portugal? This guide is advice on everything you should avoid or expect when buying real estate in Portugal. This guide will also give you information about some of the rules and regulations for buying or selling real estate or renting a property, as well as about renovating, repairing, building, etc. in Portugal. When looking for a property in Portugal, you need information about legal processes, required registrations, transaction costs, capital gains tax and other real estate related expenses.

Real Estate in Portugal

About three-quarters of people living in Portugal own their own homes. A subject that has been growing for decades. There are no restrictions on foreign ownership and non-EU citizens can be granted a five-year residence permit, called a Golden Visa, if the investment for the purchase of the property is at least 500,000 euros.

By investing in the designated amount of capital and obtaining a Portuguese Golden Visa, you will be able to study and work in Portugal.

To buy a property in Portugal you need to get your personal tax number from the local tax office. You also need to have an account number in Portugal. However, sometimes the bank itself will give you a financial number when opening a bank account number. This account number will help you a lot in transferring money and making regular payments during the process of buying a house in Portugal.

Should you buy or rent a house in Portugal?

Should I buy or rent a home? This question is one of the most common questions for immigrants entering Portugal. There are several factors to consider when answering this question. For example, how long do you have to stay in a new country or can you apply for a mortgage and installment payments inside or outside Portugal?

Whether or not you need to buy or rent a house in Portugal depends to a great extent on your location and the type of property in Portugal. In some areas homeowners prefer to rent their property on a short-term, high-cost basis, and in some cases the homeowner will be happy to rent long-term, low-cost rentals instead.

Given Portugal’s current low interest rates, in many cases buying property will be much cheaper than renting and paying monthly rent. Property prices are on the rise and the Portuguese economy is getting better every day. For example, prices rose 3.66 percent last year on average to 1.47 euros per square meter this year.

While property prices in Portugal are rising every day, there is still a profit in buying homes in Portugal. The Portuguese housing market is a good market for investment. Of course, nowhere in the world can one speak of the future of property, but what is clear is the improving and growing Portuguese real estate. The results show that people who buy property in Portugal have made a significant profit in the long run. Capital income tax can also account for a significant portion of any profits, especially for foreigners, as a cost. Therefore, those who have less time to invest in Portugal should see if they can improve their investment costs in the short term.

Why do so many investors, retirees and immigrants from all over the world choose Portugal for investment and property buying?

There are many reasons to invest in Portugal or immigrate to Portugal. One of the reasons is the Portuguese Mediterranean climate throughout the year. The spectacular beaches of Portugal that have created stunning scenery with crystal blue waves and many Portuguese tourist attractions can be one of these reasons.
Apart from the spectacular scenery of Portugal and the good weather, delicious seafood and infrastructure and social amenities and high social welfare in Portugal as well as Portugal being in the EU and one of the most strategic regions in the world are other attracting factors.

But in general, there is a three major reason for investors’ interest in buying property in Portugal as follows:

Portugal Golden Visa Application

Portugal was the first country to set up a Golden Visa program with easy conditions to attract foreign investors and property buyers in Europe – a program that was very successful in attracting investors. Since the creation of the Golden Visa in Portugal, since 2012, more than 6,000 Golden Visas have been issued to investors and over 10,000 Portuguese Golden Visas to their families. Portugal’s Golden Visa program was a win-win game. In fact, with this program, those interested in buying real estate in Portugal and Europe and having Portuguese and European residency achieved their goals, and Portugal itself raised over € 3.7 billion in the same period.

What exactly does a Portuguese Golden Visa?

With the Portuguese Golden Visa Program, all foreign investors in Portugal who are third country nationals or are not recognized as citizens of Portugal and the European Union or EFTA can receive Portuguese permanent residency by investing a certain amount.
The Portuguese Golden Visa Program has outlined various ways to attract investors in the country:

  • inter at least 1 million euros to Portugal
  • Starting a business and creating at least 10 people jobs
  • Purchase at least 500,000 euros of real estate in Portugal
  • Purchase at least 350,000 euros of Portuguese real estate for more than 30 years or located in areas where the government intends to expand.
  • A minimum of € 350,000 will be invested in scientific research designated in Portugal
  • Investing at least € 250,000 to support artistic production or to renovate and refurbished Portuguese national heritage

Individuals who obtain a Portuguese Golden Visa by any of the above methods can obtain Portuguese permanent residence after 5 years.
They will also be given Portuguese citizenship after six years if they hold capital in Portugal.

One of the most important advantages of a Portuguese Golden Visa for staying in Portugal is that this type of stay in Portugal does not require a stay or permanent stay in Portugal. You can obtain Portuguese residency without having lived in Portugal for a long time. You only need to stay in Portugal for about 7 days during the first year and only 14 days for each year during the following years.

You can also travel to 26 other European countries without having to obtain a visa by staying in Portugal for a golden stay.

Portugal’s non-habitual residency regime

Another project to attract investors to Portugal and to encourage investors to enter the Portuguese real estate market and buy property in Portugal, is Portugal’s non-habitual residency regime, is a monument to NHR and launched in 2009 in Portugal.
Under this law or the investment regime, non-Portuguese or non-EU foreigners can legally earn qualifying foreign-sourced income in Portugal without having to pay taxes in Portugal.

According to this law, and thanks to country’s 79 double-taxation treaties, and according to the NHR tax law, as long as the capital imported from other countries to Portugal is profitable for Portugal, it will not be taxed on other countries’ eligible income.
In fact, according to NHR law, things like foreigners’ self-employment, investment income, capital gains, rental income, royalties and pensions of foreigners are not taxed in Portugal. It should be noted, however, that profits from the sale of securities are taxable and do not apply to them.

Foreigners who invest in Portugal also benefit from tax exemptions on items such as gifts or inheritance or cash deposits into Portuguese accounts.
To benefit from these subjects and benefit from the Portuguese Golden Residence, you must not have been a taxpayer in Portugal for the past 5 years or must have already obtained Portuguese residency or owning or renting property.

Conditions and Real Estate Market in Portugal

Portugal has been one of the most dynamic real estate markets in Europe in recent years. According to recent policies in Portugal, there is a great demand for the sale and purchase of real estate in Portugal, which has led to a great boom in Portuguese real estate. Portugal’s economic indicators show that since 2014, the Portuguese real estate market has prospered and housing and property prices in Portugal have been increasing every day. In 2019 alone, prices in 23 of the 24 metropolitan areas in Portugal increased by a few percent.

Porto real estate has grown by nearly 15.6 percent in 2018, the highest growth rate in Portugal since last year. In Lisbon also, housing and property prices are up 7.9% in 2018.

Although there has been a steep rise in property prices in previous years, statistics show that still the best way to invest in Portugal is to buy real estate. In particular, Portuguese property prices are currently about 30 percent lower than in other Western European countries.

Given the stability of the euro in previous years as well as forecasts of growth in housing and property prices in Portugal, many experts believe that now is the best time to invest and buy property in Portugal.

The Portuguese real estate market includes a variety of homes, land, townhouses, apartments, beachfront homes, villas, etc. that are sold in each region of Portugal at a competitive price. Buying a house in Portugal for € 500,000 or buying dilapidated old houses for reconstruction, repairing, remodeling, refurbishing, reforming or even maintenance for € 350,000 in Portugal can lead to permanent residency of investors.

Extended infrastructure, excellent health and wellness, high social welfare, over 300 sunny days and great weather, beautiful beaches and free education, low real estate prices, various incentives to invest in Portuguese real estate, day boom The expansion of the Portuguese real estate market and many other factors have made investing in the Portuguese real estate market and obtaining Portuguese residency as a great asset and attractive prospects for a better life and future.

Different Types of Real Estate Portugal

The purpose of real estate in Portugal is not just a decision to buy a house or an apartment. People in Portugal do not necessarily live in one type of property or house and in each region there may be a variety of real estate for home, business Or have a holiday home or accommodation.

Portuguese real estate is generally categorized into 5 different categories:

  • Villa
  • Townhouse
  • Condominium Apartment
  • Resort Property
  • The Rustic Option

Villa

The villa is one of the most popular homes and estates in Portugal, also known as the “sunshine villa”. Most people imagine this type of home when they think of Portugal as buying a home. The villa is built in Portugal on the beaches or in the green and open areas and is usually an independent house that is not attached to walls or other houses. Villas are usually either individually or in a villa complex that combines several villas in one enclosed area.

The villa is usually a modern building with either its own pool and garden or a pool and garden for several villas. The villas are usually private.
Villas are generally found in most Portuguese towns and villages, but mostly villas are built on the outskirts of towns and villages.

Townhouse
A townhouse is a type of house in Portugal that usually has a terrace and a balcony and is either semi-detached or semi-private. Unlike a villa, a townhouse does not have much privacy. Most urban homes are built in a space next to large and small towns and may be located in a building complex. Some townhouses, such as villas, have pools and gardens, but of course most of the pools and gardens are used for several townhouses.

The townhouse does not have much floor space. Unlike villas that may be built in large dimensions. The price of a townhouse is cheap and is considered to be one of the cheapest homes in Portugal, although again the price of a townhouse in Portugal varies depending on the region in which it is located.

The townhouse, is usually for people who are looking to live in a small community, and love living with neighbors, and the fenced-in urban home is usually marked. While townhouses are often built on the outskirts of cities, they are also found in various cities and even large cities.

The apartment

One of the most common types of buildings in Portugal are apartments that are constantly evolving, each being built on different models and structures, and may sometimes have pools or other amenities such as gardens and clubs.
Most apartments in Portugal are built in urban areas, but if you buy an apartment in an area like Algarve, which is a tourist area, you may be surprised when the city is less touristy but at times the increase in tourists is usually extraordinary in these crowded areas.

In many Portuguese cities, apartments are available in different sizes and depending on which city and region they are located in may have different prices and factors such as the facilities of the apartment itself and the urban facilities also have a direct impact on the final price of the apartment.

A Resort Property

Resort is another well-known property in Portugal, especially for many foreign investors. The resort is especially abundant in tourist areas and is usually available and offers many services, which is why they are so different from apartments. That is, apart from the pool, they may also have a playground, garden, gym, and more.
If you are looking to buy a holiday home, it is probably the last thing you will want to buy from Portuguese real estate. In some regions of Portugal, the resort is known as a golf villa.

Rustic or traditional house

Traditional or rural homes or even rustic house may be located in the middle of town or in coastal areas or Portuguese villages. Many immigrants prefer to use rustic homes as a holiday homes or renting houses to travelers by maintenance rural homes, renovating, refurbishing or remodeling them.

If you are looking to invest in Portuguese real estate, having a place to enjoy nice, good weather in this country seems like buying a house in one of the Portuguese villages and investing in this place in Portugal is a good option.

How to find the property you want to buy in Portugal?

The easiest way to find the property you want to invest in Portugal is to contact Portuguese real estate experts or reputable agents in your country. With strong connections, these companies have a list of the best and latest property for buy and sale in Portugal and can advise you on buying and selling property in Portugal.
Another way to buy and sell a property in Portugal is to contact sites and real estate dealers in Portugal themselves, which you must either master in Portuguese or English languages. You also need to have the confidence and confidence of your trader, which is almost a problem.

If you choose Portuguese traders, make sure their real estate name is registered with the government, and check their license number. You can check the Real Estate Agent’s license number through the Instituto da Construcao e do Imobiliario site.
Keep in mind that real estate agents in Portugal work on behalf of the buyer or seller of property so you should not pay brokerage fees when buying property in Portugal.

Another way is to review property buying and selling portals in Portugal, which must also be valid and up-to-date. The good thing about using portals is that you can often view the property conditions and location of the property online. Some of the most

prestigious portals for reviewing your property include:

  • 21st century (21st century)
  • IMO
  • Once
  • ERA
  • ReMax
  • Rightmove
  • Expatica’s listing of real estate agents and housing services in Portugal

Another way to find property to buy in Portugal is to check out reputable newspapers and magazines about investing and buying property in Portugal. The most reputable of these newspapers and magazines are:

  • Diário de Notícias
  • Jornal de Notícias
  • Correio da Manhã

Construction in Portugal

You can build your own home in Portugal when you buy land with the permission of the Portuguese municipality and urban planner, which is licensed to build. To make sure that your chosen land is licensed for construction, you can check out the site (licenca de utilizacao) and its location.

You should then find an architect or builder in Portugal, and sign with him to complete the contract. To do this, it is best to find at least three people who can fully insure your work, and have good previous portfolio. In this case you should not contract with people who pay too low a price, as their portfolio may not be appropriate, or the selected person may not have the necessary experience and authorization. However, low-priced contracts are important as they can bring you the best value in the long run. It is advisable to study and consult professional consultants for the construction, renovation, refurbishment, remodeling, maintenance or repair of homes in Portugal.

Homebuilders in Portugal must be held responsible for any defects and structural defects in their homes. This will continue for up to 5 years after the home is completed as a guarantee of construction. For this matter, it is best to check the house carefully before using the house and make a list of breakdowns and problems if needed.

Help to buy a house in Portugal

The Portuguese government, unlike some other European governments, has its own policies for investing in Portugal, and financial aid is not included. The Portuguese government has been trying to persuade foreign buyers through the Golden Visa scheme since 2012 to provide them with a golden visa and ease of stay, given the excellent living conditions in Portugal. Applicants applying for a Portuguese Golden Visa must meet the requirements of the Portuguese Government.

To do this, you must live and stay in Portugal for at least 7 days in the first year and at least 14 days in the second following. In late April 2016, the Portuguese government issued 3,247 golden visas and 3,950 family residences.

Investing to buy a property involves getting a Golden Visa in Portugal, at least to a certain degree. To buy a house in Portugal, it is best to buy at least 500,000 euros in one of the cities or regions of Portugal. But you can still get Portuguese residency by investing around € 350,000 to get Portuguese residency.

Even a sum of € 250,000 for the purchase of some property in Portugal on condition that it can be renovated or remodeling can lead to the issuance of the Portuguese Golden Visa and the Portuguese residence permit. While Portuguese property investment does not necessarily need to be in one property, the total investment in the Portuguese real estate is taken into account.

How much can you borrow in Portugal to buy property in Portugal?

In general, non-EU residents have no restrictions on the purchase of property and ownership of property in the country, and all the Portuguese government efforts is to encourage foreign investors to invest in its property in every way possible.
According to Portuguese investment laws, all Portuguese banks lend up to 65-75% of the real value of the property to the buyer.

This loan is for everyone in Portugal, whether they are citizens or not, to buy housing or property in Portugal. But many people who are Portuguese residents or citizens of Portugal who are taxing in the country can often borrow up to 85 or even 90 percent of the actual sale price of the property.

The lender requires the borrower to have the necessary financial conditions. For this reason, before your loan application is accepted, most bank inspectors check the applicant’s financial status. Keep in mind that most banks or financial institutions will not allow your debt to pay more than 35% of your monthly income. So you have to have good income to use all the amount of mortgage in Portugal.

How to calculate a mortgage payment in Portugal

Many Portuguese banks and financial institutions use online loan calculators or Mortgage calculators in their system to pay off loans. With this type of loan calculator, all applicants can check their loan conditions and find out how much they can get in Portugal or how much they can repay.

Most of these loan calculators focus on issues such as the amount of the loan, the mortgage insurance, your property tax, the value of the property sold and the amount of your repayment power.

The cost of getting a property mortgage in Portugal

According to statistics released by Statista, banks’ mortgage rates in Portugal have been steadily decreasing by 3.37 percent since 2014. The latest estimates for 2018 show that banks’ mortgage rates in Portugal in 2018 reached an average of 1.33%.
Taxes and house purchase costs have also been on the rise in recent years.

Notwithstanding the costs of notaries, other costs of buying or selling property in Portugal are estimated at the price of the property. Notary offices are under the control of the Portuguese Government and for this reason there is almost no difficulty in registering real estate documents, real estate transactions and legal requirements and their associated costs.

Prior to these rules, notary fees also depended on the price of housing or property. In general, in 2019, notary costs in Portugal are estimated at around € 153 per transaction, and some other costs, such as a document amendment, are added.
Buying a home in order to rebuild, renovate, repair, remodel or raise any other price, and ultimately sell this property, requires the payment of a transfer tax based on the value and purpose of the property. 8% of the profits will be from the person making the purchase and then selling the property.

Taxes on the construction of new housing such as apartment, residential, commercial, and rural or villa property in Portugal are subject to a VAT of around 23%.


Other Mortgage Costs in Portugal:

  • Mortgage registration fee: 1%
  • Cost of Mortgage Regulation in Portugal 1k 1%
  • Mortgage management fee: 1%
  • Non-refundable commitment fee: On average around € 600
  • Mortgage review and evaluation fee in Portugal: between 500 and 800 euros
  • Costs related to mortgage legal issues in Portugal: At least 1000 euros

Tax issues to consider when buying property in Portugal

With the exception of property tax in Portugal, many people who buy property in Portugal may have to pay income tax on rent or capital gains tax on profits when selling property.

In general, rental income tax is calculated at 28% for foreign property owners. It should also be borne in mind that the annual costs of home repairs, home maintenance, home insurance, city taxes and development taxes should not be subtracted from the total cost of property tax in Portugal. However, interest expense on mortgage or mortgage insurance cannot be deducted from this tax.

Keep in mind that the cost of a home income tax in Portugal varies for Portuguese residents. Residents of Portugal are therefore required to check property income by renting property or capital value with other incomes and collectively calculate the tax expense of each person and the property is part of the Portuguese resident’s real estate. It may be just one of the people’s assets.

Foreign tax on capital growth of foreigners, which may be due to property value growth or property development, is calculated at a flat rate of 28% and must be paid at the time of sell property in Portugal. But Portuguese residents are adding their capital gains to their other income to pay at the standard tax rate each year.
If the proceeds of property income or property value growth in Portugal are used to buy one or more other properties in Portugal, only 20% of the net income per annum should be taxed.

If the home is the primary residence, 50% of the sales tax will be added to the income tax for the year, unless the income from the original residence is used to purchase another residence in Portugal, where tax deductible profits will be deducted.

Planning Property Taxes in Portugal

A very important issue with respect to property tax in Portugal is that foreigners only pay taxes on their Portuguese income as a result of capital growth. But Portuguese residents must tax their global income.

Because you can apply for a stay in Portugal either by staying in Portugal for more than 183 days in a calendar year or by purchasing real estate in Portugal in the shortest possible time, many foreigners who invest capital conveniently, they may choose the second way of buying a house in Portugal to stay in Portugal.

 In this way, although the residence is granted faster by the Portuguese Golden Visa, their income tax rate of 28 per cent is largely calculated precisely because it is the most important reason for attracting foreign capital into the property buying and selling system.

Required documents for applying for a mortgage in Portugal

To obtain a mortgage from banks or financial institutions in Portugal, whether you are resident or not in Portugal, you must provide the following documents in original or certified copies form to banks:

  • New passport photo
  • Proof of your residence in Portugal, while you reside in Portugal
  • Proof of your income in Portugal or any other country: To do this, you need to provide documents such as monthly bank statements, income taxes and accounting statements about your financial status and so on.
  • Documentation showing your execution, mortgage and debt obligations
  • A bank statement of your own that shows your account status in the past 60 days.
  • Financial Deposits Invoice: This invoice must have been for the past 60 days and be owned by the applicant and should actually indicate the source of the individual’s budget
  • Details of the property or property being purchased. Such as a property purchase contract or a property purchase agreement in Portugal

Keep in mind that you must provide a financial number in Portugal before purchasing any property to pay property taxes in Portugal, as well as to sign property documents. You also need to open a valid bank account at one of the Portuguese banks. You must also apply for a tax number at your local tax office or property in Portugal.

The details of the property that should be provided should also include issues such as property tax filings, real estate plans, etc. that reflect the current property tax. It must also have land registration documents indicating current ownership of the property and any deprivation, residency, residence permits detailing residential properties, or any assessment, inspection and certification of energy ratings, etc.

How to apply for a mortgage in Portugal?

To get a mortgage in Portugal you must first prepare your financial documents. Portuguese banks and financial institutions usually pay a maximum of 600 euros in non-refundable commitment fee for loans up to 750,000 euros, and the higher the amount of the loan, the greater the amount of debt.

The first way to get a mortgage in Portugal is to choose a property in Portugal. You will then have to enter into a contract with the property seller in Portugal to buy your home in Portugal. You will then need to provide the bank this contract with the documentation mentioned above to conduct the necessary inspections and to determine the loan amount and proportion of your real estate value, and the amount of your financial strength.

Keep in mind that the process of paying a mortgage in Portugal is the same as in many other EU countries.

Types of property mortgages in Portugal

Virtually all mortgages in Portugal are interest-bearing loans. In Portugal, however, other types of flexible loans are offered in addition to fixed-term loans related to the purchase of housing in Portugal. In Portugal, different types of loans can be repaid at the same monthly rate or with an overdraft from banks and financial institutions and repayable over a variety of time periods.

In Portugal, interest-free mortgages are also provided by banks, which are only specific to new construction and are only granted to the buyer for a two-year period.
But most mortgages in Portugal are 25-year repayment loans that can be extended up to 30 years. To get this type of long-term loan in Portugal, you must meet the age requirements. Banks usually define and choose new age conditions each year.

People applying for housing in Portugal at a young age usually have no problem getting a loan, but people over the age of 70 often fail to get a mortgage in Portugal or need a short-term mortgage. However, these conditions are not the same in all Portuguese banks and financial institutions and some banks consider the maximum age of 80 years to be non-repayable.

Drafting and contracting for the purchase of property in Portugal

The best way to buy and contract for a property and even find the property you want in Portugal is to use the services of a reputable law firm that is a contractor with real estate companies in Portugal.

 However, for some reason, such as having an interface in Portugal, or using online services or in-person search in Portugal, you may have chosen a property to buy, which has the conditions of sale to suit your circumstances.

 If this is the case, it is best not to take the risk and consult with a qualified lawyer to ensure the correctness of the case and to perform legal and clerical matters.
This is especially important when you do not have a Portuguese interface, and do not speak Portuguese.

Remember, there are people all over the world trying to abuse.
But another way is to visit Portugal and visit the offices and real estate offices in Portugal, which requires a great deal of knowledge and expertise. There are also many sites and software, some of which sell their properties for sale on these sites at an estimated or unrated price.

The first step after selecting the property and home you are considering is the initial condition of the home. You need to make sure that the home has no legal or documentation problems. For this purpose, you must apply to reputable offices and authorities. Notary offices can do this for you. I emphasize that notary services should not be confused with lawyer services. Notaries are law firms in Portugal that are responsible for encrypting and legalizing transactions.

To find reputable notary offices in Portugal, you can get help from various websites or consult your country’s legal counsel. Also, these offices are usually located in every region and countries of Portugal and have their legal number on them. There are guides in this area such as Notaries Europe or European notaries as well as directories for European notaries in the region that you can refer to.

After submitting a bid and agreeing on the principle of price and land conditions, the notary will review the transaction details, and the Portuguese Conservatoria de Registo Predia and the Portuguese Internal Revenue Agency (Repartição de Finanças). ) Will inform the state of the land and its associated details, in order to provide additional information in the event of a conflict or specific circumstances, as well as to record new land buyer information and new land ownership in these centers.

If all that satisfies you and the property seller in Portugal, you will sign a draft contract for sale of the property at the notaries and then you will be required to continue the legal terms of the transaction until the end and finalize the contract.

At this point, you will be required to pay the IMT or land transfer tax as described below and receive and file the deposit before paying the final costs.

 After this stage, the legal requirements for the transfer of land or house are completed and final signatures must be made and the property will be in your name without restriction.

In some circumstances, and especially for foreign investors who are planning to buy property in certain areas of Portugal, there are also loans to buy property that help finance the cost of buying property in Portugal and investing more in This field. We have already discussed property mortgage and its types in Portugal.

Conventional Costs of Buying a Home in Portugal

Apart from the cost you have to pay for your own house, apartment, holiday home, villa or any other property in Portugal, there are also other common costs in Portugal for moving the property.

The most important of these is the property transfer tax, known as IMT. If the property is in your original place of residence you do not need to pay property transfer tax for the first purchase of your property in Portugal up to EUR 92.407. The higher costs will be lower by using a specific scale. But if you are looking to buy a property for your holiday you will have to pay an extra 1% tax on the first property purchase in Portugal up to € 92.407.

IMT costs for Portuguese residents or foreigners who have obtained Portuguese residency include:

  • Purchase 0% tax up to € 92.407
  • 2% tax from 92407 euros to 126403 euros
  • 5% tax from 126403 euros to 172348 euros
  • 7% tax from 172348 euros to 287213 euros
  • 8% tax from 287213 euros to 574323 euros
  • More than EUR 574323 6% tax

Apart from the tax on property transfer tax in Portugal, other costs of property purchase include:

  • Stamp costs 0.8% of total home purchase price
  • Notary and land registration costs
  • Attorney fees
  • If applicable, it will include the assessment fee and the registration fee for the loan. This is the case with no interest on the loan.

Tips on investing and buying property in Portugal

  • Mortgage interest rates in Portugal in January 2016 reached their lowest level of 1.2%. Previously the rate was about 2.72%. The overwhelming majority of property buyers in Portugal use these loans but try not to extend their return or repaid period For example, they use one-year or even two-year loans to avoid raising interest rates and not having to change interest rates because the rules may change.
  • Be sure to consult with European financial experts in your country to get a mortgage in Portugal. The conditions for getting a mortgage for people other than the European Union have changed a lot with EU residents, so you need to be very confident about the terms of the loan that will be granted to foreigners.
  • Most financial institutions and domestic and European banks in Portugal provide mortgages every year, and this has become a form of competition between these banks over the past five years. Mortgages are down 3.8 percent year-on-year in January 2016 due to foreign investor attraction policies.
  • As with most other loans, you need a deposit to get a mortgage, as it often requires a deposit. This deposit can be your capital or property deed, etc., and is therefore determined by your circumstances. However, after the financial crisis in Europe, lending has become a little more difficult and the terms of the loan need more documentation and credit. Depending on your needs and the amount of the loan, these documentation and terms may vary. You can apply for at least 20% of your deposit for a loan up to a much higher rate of about 90% of the value of your deposit.
  • Most Portuguese banks and financial institutions consider both interest and loans for your deposits. Another advantage of the Portuguese banks’ loans is the long-term repayment of these banks. You can repay the loan between 10 and 30 years. Of course, one must also consider the age requirement. The maximum age that can apply for a loan is 80 years, which should be relatively lower for long-term repayment periods. Keep in mind that the use of loans and facilities by banks and financial institutions in Portugal is different for European and non-European residents, but it’s still the banks that set their own mortgage policies.
  • Find a translator to buy a house, apartment, villa, holiday home, country house or even for renovation, refurbishment, repair, remodeling, restoration and any other property related operations in Portugal. Many deals and purchases in Portugal are also possible in English, though fluency in Portuguese will give you more peace of mind in transactions. For this purpose, most Portuguese embassies provide a list of trusted translators and their approved lawyers to investment applicants in Portugal.
  • Interpreters of your choice should be fluent in Portuguese and English, fluent in legal terms as well as common terminology in Portuguese and have a good knowledge of the geographical areas in Portugal and have the best offers for you.

Sale of real estate in Portugal

If you are one of the people who have previously invested in Portugal and bought a property, and for various reasons now want to sell your property and your home in Portugal you should calculate your investment income and tax it Pay the Portuguese Government.

If you qualify for immigration to Portugal, you only need to deduct and pay your income tax on a percentage of your profits. To do this, you can calculate and deduct the costs you incurred during the last year before selling your property for sale.

If you have invested as an immigrant in Portugal and bought a home and are now planning to sell your property in Portugal, you will only need to calculate and pay your income tax in percentage of profit.

Of course, people who have received Portuguese residency must pay their income tax along with their other income.

  Keep in mind that when calculating your investment income tax, you will deduct the expenses you incurred during the last year before selling your property for sale.

The tax rate you have to pay depends entirely on your circumstances and your property. There may also be different tax laws for the area in which you invested. Because capital income tax differs from general income tax in Portugal, this should be well considered in taxation. In general, the income tax on investment in real estate for non-Portuguese foreigners is about 28% of the net investment income. But if this profit is used to reinvest in Portuguese real estate, the tax on the net profit of the investment is estimated at about 20%.

 Mastering legal matters will help you a lot in this regard. For example, if you are not an official Portuguese citizen, you will have to pay a fixed percentage tax on all of your capital gains.

When selling your home or real estate in Portugal, you should choose a reputable real estate agent or legal entity, paying only a small amount of your income as a wage. Portuguese real estate agents and law firms can legally receive 3 to 5% of your investment return as a wage. However, you should also consider the value added tax costs of 23% of the property value.

Tips for International and Foreign Investors in Portuguese Real Estate

Real estate has a profit-and-loss cycle like any other asset, so you need to make sure that the local property market and local rates will run out of interest for international loans used in Portugal, and capital Make investing in Portugal profitable for you.

To make sure you are investing in Portugal and how to invest in Portugal, you can ask your local investment adviser that’s call Sam Milner, who is a fully-fledged legal aid consultant. In the meantime, it is best to read enough about the common mistakes made in investing in Portugal.

Some investors are buying property and want to build their own home, some are buying old houses and are looking to rebuild.

In fact, buying land and building real estate in Portugal is done as a living house, either as a vacation home or for renting a house and can build as a rural home or as a townhome. But many are buying old home in Portugal in order to rebuilding, reforming, refurbishment, or remodeling or even maintenance these homes and rural homes, and have different goals for them.

 Generally, renovations, refurbishment, rebuilding, reforming, repairs and maintenance of old houses in Portugal are one of the most profitable investments in Portugal for foreigners and can use as a rental house, holiday rental or holiday home. But care must be taken in buying these types of homes and choosing the best places to buy an old house in Portugal.

Advantages and disadvantages of buying property in Portugal

According to Expatica’s specialist survey of Portuguese real estate investing, immigrants across Europe believed that the benefits of buying a home as a long-term investment, creating capital and freelance conditions for renovating and obtaining a golden residence in Portugal were very appropriate and It is economical.

A survey of immigrants found that these immigrants to obtain mortgages and buy houses in Portugal had not complex psychological and administrative problems such as taxes and legal fees and common legal and real estate agents in many countries. Europeans have no more, and there are very few real estate lawsuits in Portugal and there are very few legal cases in Portugal for real estate.

Benefits of buying a property and house in Portugal

In general, the main benefits of buying a property and home in Portugal are as follows:

  • You do not need a visa to travel to Europe (Schengen area)
  • Short stay process(about 6 months)
  • Permission to live and work in Portugal
  • Obtaining residence for family members and all dependents
  • Minimum compulsory residency period
  • Low taxes
  • Permanent residence after 5 years
  • Receiving citizenship and passports after 6 years

But one of the disadvantages of investing in Portugal is that Portugal, in comparison to some other European countries, still does not have the infrastructure developed in all its rural areas. While the unemployment rate in Portugal is still slightly high, there are also differences between the payment of loans to EU citizens and non-EU citizens.
But in general, the benefits of investing and buying property in Portugal are so great that this type of investment seems to have a bright future for investors. While Portugal is growing more and more year by year, it is unclear how long these conditions and facilities will continue to be invested in Portuguese real estate.

How to sell your property in the Portuguese market

Buying and selling property in Portugal has become a lucrative and profitable business among many investors. In particular, in recent years Portugal has been the focus of many tourists and immigrants and many are choosing Portugal to stay in Europe. Accordingly, selling property in Portugal is not a difficult task and there are always many customers in each area for your land and property. But selling property in Portugal should not be considered a momentary decision. Because after deciding to sell a property in Portugal, the best way to sell a property must be selected so that it can be sold at a reasonable price to the real buyers.

The following is a general overview of the measures needed to sell a property in Portugal

Take legal action on your land first

One of the most important things to sell property in Portugal is to do all the legal actions related to the land first. Keep in mind that many buyers, and even most real estate agents and consultants, are the first to ask you for legal land related documents. In fact, by examining these legal documents it becomes clear that you are allowed to sell land and have no problem selling land or property in Portugal. It has happened so much that just because of the lack of a single document or legal action, the whole sale is lost and the customer is lost.

In order to avoid legal or documentary problems with the sale of property in Portugal, it is best to consult legal advisers and real estate experts in Portugal before you put the property up for sale. For example Among the most important legal measures for the sale of property in Portugal are the payment of taxes on land, the payment of duties or the proper registration of land in the Portuguese Register Office.

Find a reputable real estate agent or consultant

It is important to choose a reputable agency or real estate consultant. Of course there is no limit to choosing a real estate agent in Portugal, so if you are in a hurry to sell your property you can assign more than a few real estate agents to sell your property in Portugal. Real estate consultants usually consider a percentage of property sales as the cost of selling property in Portugal.

It is important that the real estate you choose has legal and official permission to buy and sell property in Portugal. In addition, you can also consult with international law firms and reputable law firms that have good relationships with real estate agencies in Portugal to sell your property in Portugal.

A representative or real estate agent in Portugal must have obtained their permission from the Instituto da Construcão e do Imobiliario (INCI). Also, real estate consultants should show their AMI number or license in all marketing materials. To do this, you can search for a valid AMI number on INCI website to make sure your chosen real estate consultant has the necessary credibility.

Find out how to sell your property in Portugal with these realtors. Some real estate professionals will take pictures of your property, make videos, make slides, and show your property online or offline on your site and a variety of other marketing sites. Increase your chances of selling the highest value property in Portugal.
This also allows you to sell your property in Portugal, in addition to having the opportunity to sell your property in the same area in Portugal, and you can sell your property in other parts of Portugal, as well as in other parts of Europe and the world.

Cost of property sales in Portugal

As mentioned, real estate consultants generally set their wages as a percentage of the sale of the property in an agreed manner. Mostly this percentage is 5% of the sale price of the property. Always keep in mind that this is a considerable amount to sell in Portugal, so you can always negotiate for a lower rate and it is usually best to do so. In Portugal, the transaction costs are usually borne by the seller of the property in Portugal, but usually buyers and resellers agree to divide the amount of this commission or transaction as a sum of the total price of the property.

Selling a property in Portugal does not necessarily require a lawyer, but if you are not present in Portugal or do not have enough time to sell your property in Portugal, you should choose a lawyer. The cost of a lawyer may also be a percentage of the sale of property in Portugal or in agreement with the seller and his lawyer. Apart from this, property tax or value added tax will also have to be paid on the proceeds of the property. These costs are mainly borne by the seller and especially tax and housing costs if not given, it is not possible to sell the property in Portugal.

Price determination for sale of property in Portugal

One reason some real estate seller wait a long time to sell their property in Portugal is that they set a high price for their property. Always keep in mind that you must reasonably estimate the price of the property. Regardless of how much you have spent on building, renovating, reforming, maintaining or remodeling or refurbishing your home and how much tax and value added you have, you should set the house price according to environmental conditions and market rates.

 Usually, buyers of property in the area of ​​Portugal, before buying property in any area, usually obtain the average price of housing in this area of ​​Portugal and are not easily persuaded to buy it if the property is above their expected price. Usually real estate consultants in each area are good at estimating the price of a property, house, villa, townhouse or country house and apartments and are the best choice for pricing your property. Especially if that real estate agent in Portugal was selected and you promised him a percentage of the property to sell.

Of course this is also true, sometimes some home or property sellers, without knowing the real value of the property, assign little value to their property. Although sometimes you determine the price for your property in Portugal depending on the area in which your property is located in Portugal, you should keep in mind that your property may have features that other properties in this area They don’t have those features. These features increase the price of property in Portugal, and even if you don’t believe it, sometimes it can make a big difference. One of the reasons for the devaluation of property in Portugal is the rush to sell property.

Although a real estate agent can always set a reasonable price for your property in Portugal, it is best to get enough information yourself. It is also advisable to always consider 3 to 5% of your land price in Portugal more than your real estate advisor recommends. Consider this percentage as a discount for the client when selling a property in Portugal. This makes the customer get a discount and sweet deal with you if you offer a discount.

Property Marketing Tips in Portugal

To sell property in Portugal, make sure your real estate agent has followed these standard tips to make your property marketing better:

  • Before taking photos or videos of your home, it is best to make sure your home or property is in good condition.
  • Be sure to use quality photos and videos to market your property. Beautiful views from outside the property, around the property, inside the property and the strengths of the property have a great impact on attracting customers
  • Use the best terms to fully describe your property. Also be sure to mention the best property amenities like educational facilities, transportation facilities, parks and tourism and recreation centers, etc.

Considering these three factors is very important for property marketing in Portugal, especially for online marketing and increases your chances of selling a property in Portugal in a timely and affordable way.

Renting a house in Portugal

Many people who purchase, renovate, refurbished, remodel or reforming homes in Portugal aim to provide holiday homes for themselves and rent homes at different times of the year as vacation rentals. For this you have to keep in mind that the law on renting a house in Portugal is very much in favor of the tenant and is strongly pro-tenant. Although the law on rent on June 28, 2006 has undergone many changes, it is still largely in favor of tenants. Although it has received a lot of controversy, it is strictly enforced and must be observed.

In general, the urban rental regime in Portugal has been revised several times. It was last unveiled in 2006 by a new city lease law called Novo Regime de Arrendamento Urbano – “NRAU”, replacing the previous one in Portugal. These rules, which must necessarily apply to all municipal permit contracts, are generally considered differently.

Can tenants and landlords freely agree to rent conditions?

The legal way to rent a house in Portugal is by mutual agreement. Accordingly, landlords and tenants agree to pay monthly pay as rent. The terms of the rental agreement can also be agreed between the two parties and do not require formal formats. For example, it may be agreed that the increase in the cost of living will also increase the allowance.

But if the parties disagree, Portuguese law defines the conditions for determining the rent and conditions for renting property in Portugal. Typically, the official property rental formats in Portugal change annually and are defined as appropriate each year.

Deposit for rent house in Portugal

When renting a property in Portugal, they may agree to pay either as a down payment or as a deposit. The parties may agree that the rent will be paid three months later. It is more common in Portugal to pay for a month or three earlier, but security deposits may also be agreed. Remember that any agreement between the parties must be in writing.

Landlord and tenant rights in Portugal (during contract and for eviction of tenant)

Since the change in housing rental laws and regulations in Portugal, there has been a great deal of uncertainty about some of the laws applicable to tenants and landlords. Especially these differences between the current situation or the current laws of Portugal (RAU) and the laws that will soon replace the existing ones(NRAU). This has exacerbated the complexity of landlord-tenant relationships.

Accordingly, the following rules may be used to permit or rent a home and the rights of the parties:

RAU Rules

Duration of rental property

Under these rules, an Open-ended lease between a tenant and a landlord is considered as a general regime. The lease can only be entered into as a fixed term lease if the agreed period is for a term of 5 years or more and up to a maximum of 30 years. For open-term leases, this contract is automatically renewable for up to three years.

Tenant eviction conditions

According to this law, the landlord can only evict the tenant for a limited number of reasons, including:

  • Non-payment of rent
  • Use of the property for purposes not specified in the contract and contrary to the terms of the contract
  • Use of property for matters that are not legal and may or may not be specified in contract
  • Use of property for immoral and unlawful or dishonest purposes
  • Performing activities on the property that are not lawful but satisfying the landlord.

If, for any of the above reasons, the landlord wishes to evict someone, he cannot do so directly or act on his own. The eviction of the tenant under any circumstances must be done through the eviction claim in the court.

The landlord can also request the eviction of the tenant on the basis of some conditions and exceptions:

  • The landlord or his or her direct descendants may wish to stay at home or use it for business and perform works purposes. In this case, for open term leases, the landlord can ask the court not to renew the contract.
  • In the case of long-term leases, if the landlord or his direct descendants wish to reside in the home or start a business or intend to sell the property, they may, by judicial notice one year before the date of the lease, declare their opposition to the extension of this lease.

On the other hand, the tenant may request termination of the lease for the following reasons:

  • In the case of open leases, the tenant must, for any reason, declare that he intends to leave the house and does not intend to extend the contract, depending on the term of the contract from a few days to six months earlier.
  • Also for long-term contracts, the tenant must announce at least three months before the contract renewal date that it does not intend to renew the lease. The termination of a long-term lease can be done at any time with three months’ notice.

The tenant may also be able to terminate the lease at any time due to a breach of some of the provisions of the lease by the homeowner or the property.

NRAU rules

Duration of the contract under these rules

Landlords and tenants are subject to these newer laws and regulations in Portuguese real estate to set a fixed term for leases that are at least 5 years. According to the contract, this type of contract can be extended for up to three years. After this period, the contract will be terminated and the lease will actually open-ended and expire.

Eviction tenant

Residential rental under the following conditions can be terminated in accordance with the new rules:

  • Long-term landlord contracts must notify the tenant at least one year in advance of non-renewal. Tenants must also notify at least 4 months in advance to terminate long-term rental contracts.
  • Both the landlord and the tenant can demand termination of the lease if they find the breach of the terms and conditions set out in the lease, and this will not create any restrictions for them. In fact, according to the new rules, the contract termination system is in this state of agreement and open.

However, evictions still need to be reported to the judiciary and may be pursued as required by the enforcement process.

How effective is the Portuguese legal system for renting land in Portugal?

In general, in accordance with government statements, a full process of Eviction of tenants in Portugal under previous rules may take up to 31 months. But it is expected that under the new rules NRAU the expulsion process will follow faster.
Currently, due to the tenant’s non-payment of rent, if the landlord wants to evict the tenant for about 20 days, he or she will have to complete the filing process, then the Duration of trial process will continue for about 6 months and the Duration of enforcement will last 30 days. So it can be estimated that a tenant’s eviction due to non-payment of rent is approximately 330 days from the date of the petition.

Summary of recent changes in landlord and tenant law in Portugal

Urban leasing in Portugal has a long history and its laws go back several centuries. But over the past 140 years, there have been many changes to Portugal’s urban rental laws, largely due to Portuguese political upheavals. The most recent changes to these laws were introduced and approved by the 1966 Civil Rental Law.

Some of these city lease laws, which saw a lot of changes, were the increased lease laws in the two cities of Porto and Lisbon, Portugal, which were related to the 1948 laws.

The left-wing revolution of 1974 and the turmoil of the 1980s led to the creation of a fully-fledged tenant regime in Portugal. Under these laws, many restrictions were placed on landlords to evict tenants, and rent increases were banned or severely restricted.
After 1990, there were other changes to the city’s rental laws, one of which was fixed leases. But in recent years, the debate over widespread changes in enforcement laws has been raised again.

According to the NRAU laws it is expected that there will be a balance between tenants ‘and landlords’ rights, which will lead to a better balance in the real estate market and in renting property in Portugal. If the NRAU laws are well implemented in Portugal it can be considered as a starting point for the property rental market in Portugal and can turn into the growth of long-term or short-term rental housing.

Renovate, Refurbish, rebuild, reforming or remodeling the property in Portugal

One of the main incentives for foreigners to invest in Portugal, and to buy old real estate in Portugal, is the change in building construction. These changes can be restructuring, remodeling, renovation, refurbishing, restoration, reforming and so on. The main reason for this impetus is the tempting prospects and profits that come from renovating and rebuilding old buildings in Portugal.

In addition to a brief look and simple search on Portuguese real estate, you can find a huge selection of potential real estate types and projects for sale with excellent conditions. Homes that are mainly owned by the distant past but beautifully landscaped or in exquisite places for tourism and can be renovated and refurbished to make this a great holiday home, Rented a home or even as a place for short and long term rentals to achieve a great income.

Whereas buying up old property in Portugal can become a permanent residence of Portuguese investors in many areas worth up to 250,000 euros. The following is a general overview of the terms and conditions of real estate renovation in Portugal.

Maybe if you are looking to invest in Europe or obtain European residency through investing, the first question that will come to your mind is why you should buy and renovate property in Portugal and fundamentally rebuild your property. In Portugal what advantages can it have over other European countries?

In general, the most important reasons that give you enough incentive to buy a property in Portugal and then renovate this property in Portugal are as follows:

  • Purchase different projects and homes that you can rebuild based on your dreams and interests and use it as a townhouse, country house or vacation home.
  • Stunning climate and stunning scenery in most of Portugal’s coastal and rural areas
  • Very high potential for high profits due to high property price growth as well as real estate value in Portugal
  • Possibility of owning a 100% home without limit
  • Free Investment Terms in Portugal
  • Possibility of using various loans and banking facilities in Portugal to rebuild or repair homes
  • Available in all types of homes, villas, apartments, townhouses, rural homes, etc. in most regions of Portugal and having the choice of different options
  • Granting permanent residence to investors in property buying and renovating real estate in Portugal
  • Possibility of obtaining residence for other family members
  • Possibility to stay in Portugal without the need for permanent or long-term residence
  • There are millions of tourists a year in Portugal and the opportunity to rent property to tourists at a great rate
  • Simple rules for buying and renovating property in Portugal
  • And

However, keep in mind that spending and buying any type of house, villa, townhouse or country house or any other property in Portugal for rebuilding, remodeling, refurbishing, etc. may not be beneficial and accurate.

You have to be smart about buying old property in Portugal. While renovating and repairing your home or any other effort to improve and rebuild your home requires a lot of expenses, but as a result the benefits of these renovations will be high enough to reward you with these costs and patience.

Is it always possible to repair, refurbished or renovate a property in Portugal?

Portugal has a wide range of homes in its very kind areas and tourism locations that need to be rebuilt and brought back to life. But not all of these homes are ultimately suitable for repair or renovate, and sometimes the house needs to be demolished and rebuilt, and in fact, these buildings can be rebuilt by renovating, rebuilding, changing the model or building type.

The Portuguese real estate market in general has been very kind in recent years and has always been a friend of investors. Especially when investors have chosen the best places to buy ancient Greek property. The good thing about buying an old house in Portugal and renovating or repairing it in Portugal is that there are many options to buy in Portugal and these cover all types of budgets.

You can buy any type of budget with the help of some banking facilities, any kind of country house, town house, apartment, bolt hole in a vibrant city center and many other types of buildings to suit your budget. You don’t even have to buy or renovate old houses always. Because many of these homes still have living conditions, they may not have to be repaired or rebuilt for years to come.

What things to consider when buying a home and renovating a property in Portugal?

If you are looking to buy and renovate a property in Portugal ask yourself the following three basic questions and think about it:

  • Looking for a full-time or part-time project?

Whether you are planning to buy a house and renovate a house in Portugal, stay in Portugal full-time and monitor the construction and renovation process of your home, or are you planning to remotely manage this and another person or team Make the property responsible for renovation and refurbishment?

Then you should complete this question further. For example, if you are looking for a full-time home remodeling project, ask yourself if you intend to live in the same house and pursue remodeling or do you need to rent another place to do the remodeling? Try to be realistic about this. The cost of renting another home to renovate another property can be heavy.

Also, if you want to outsource renovation and repair work, do you have to ask yourself if you plan to use this home for your living or do you intend to use it as a holiday home.

Do you really plan to travel to Portugal on any vacation or just to buy and renovate your house just for the sake of investing and having a place to go?
Setting these conditions will make you the best choice for your budget as well as your needs. For example, if you are planning a vacation home, you will be buying an old house in Portugal, located in the tourist and coastal areas of Portugal.

2- How much do you want to work at home in Portugal?

Do not doubt that rebuilding and renovating your home and property is a daunting task. So it’s up to you to decide how much you are willing to do structural work at home. Do you want to rebuild the house as a whole and remodel the entire structure? Or do you just want to summarize the renovation work in Portugal into painting, decorating, and carpentry and so on?

No matter, you can do home renovating in Portugal as much as you like and change or remodel at any level you like, this is no limit to you. Even when buying a home in Portugal, you can choose a home that only needs a simple renovation or a home that needs demolition and renovation.

3- How much can you do on your own?

Some people who buy old homes and properties in Portugal are skilled in one or more areas of home remodeling. In fact, these people are seeking to reduce the cost of rebuilding and repairing the old house, relying on their skills. Even in your own country, home remodeling may be your job.

However, you do not seem to be able to do all the renovating work on your own and you will eventually need different professionals. In particular, the selection of some activities in Portugal necessarily requires its own professional, such as plumbing or electrical engineering.

If you can manage and repair your home as much as you can, don’t hesitate to reduce your costs.

What makes Portugal suitable for home remodeling and home renovation?

Everyone may have their own distinct reasons for choosing and buying an old house in Portugal and renovating old houses and projects in Portugal. However, there are many reasons why many investors are trapped in Portuguese reconstruction projects.
But the main reasons for this are issues such as cheap labor, the presence of highly skilled businessmen and professionals, excellent weather, especially in the south with less humidity and rain and less work stopping, excellent legal support, It can be called a 5-year statutory and compulsory work guarantee and the possibility of getting Portuguese residency and so on.

However, in every country besides the benefits of buying a home and rebuilding old homes, there may be disadvantages as well, and Portugal is no different. So a good and smart choice for buying an old house in Portugal, for home remodeling a renovating, is very important to make investing in Portuguese real estate a great experience for you.

Keep in mind, though, that you can buy an old house in Portugal at a lower cost, use banking facilities and government support to rebuild a house in Portugal, or buy a Portuguese residence by paying less, Get expert and inexpensive work, but in the end when buying a home and remodeling, renovating, repairing, maintaining, remodeling and refurbishing, or any other plan you have, you should consider the following:

  • Make sure you can do what you plan

When choosing and buying an old home in Portugal and even in other European countries, you need to make sure that you buy the home or property that suits your needs first, and secondly, that you are able to run the program.

Many of the old houses in Portugal are not allowed to remodeled, some are in municipal planning and cannot be rebuilt, some are not permitted to be built, and some are registered for a specific subject, and other activities are not permitted on these lands. There are a lot of these, so you have to make sure that the old land you buy in Portugal is exactly what you want and you will be allowed to do what you have planned for it.

The best way is to inquire with the local municipality (camara). Usually the municipalities in each area are well aware of the plans and projects in the area and will even tell you whether or not you have permission to renovate, reform or remodel. Using reputable real estate information will also help you in this regard.

  • You will also need to obtain a construction license to renovate or refurbished your home

Construction permits or license are usually required for any type of construction in Portugal and only for some small renovation projects that only deal with the renovation and restoration of the internal factors of the home do not need. For other projects, construction permits must be obtained.

Manufacturing licenses are different and are defined according to the type of project. It’s not difficult to get a building permit, and it’s a simple process, but you need to hire an architect to make a plan for your reconstruction program.

Keep in mind that sometimes when buying a property in Portugal, you will be offered some property with a construction license. Be careful about these types of permits. The important thing about these construction licenses is that they are time-limited and are usually issued for one year and renewed if needed. The license you receive must be consistent with your plan. Many of these licenses may be made to the seller’s requirement, so if the seller only wants to sell his land more easily, he may have received the cheapest type of construction license that does not fit your requirements.

  • Some work and process are slow in Portugal

Portugal is a developed country but not yet well developed in all places and regions. You should not expect the pace of your activities and needs in Portugal to be as fast as in countries such as England or Germany. Issues such as regulating electricity and telecommunications in Portugal, and especially in some areas, may be time-consuming and require more patience.

Getting planning satisfaction is also a time-consuming and lengthy process. However, the process has been faster than ever before, and in particular faster than some other countries.

Useful Tips for Renovating a Property in Portugal

It makes no difference whether you are a professional in buying and renovating old real estate or an ordinary person. What matters is that each country has its own set of conditions. So it is important to know where you are going to spend your money and buy old property in Portugal and renovate this property, as in any other country or elsewhere, and whether it is affordable and profitable and will make a big difference to you.

The best way is to make a list of yourself and get help from real estate agents, local agencies and legal advisers in your own country.

Even if you are resident in Portugal, it is best to ask the locals in each area questions before buying a property in Portugal.

As explained before, renovation, refurbishing, or even remodeling a home in Portugal is accompanied by good legal protection, but it is certainly dependent on how your contract is set up when you buy a home. It is better to define deductibles in your contract and if you do not comply with these deductions, consider a penalty.

Portugal has a thriving and developed economy, but you should not consider investing in any region of Portugal in the hope of finding a suitable investment. You also need to be careful when purchasing projects that are under the radar and heavily inspected, as these types of deals can cost you a lot in the long run.

If you find yourself in trouble with any transaction or purchase of housing or renovation of your home and feel you have been scammed you can use the Portuguese “Complaints Book”.

You can buy this book everywhere. This book lists all the legal points and issues you can sue. The points listed in these books should be reviewed by local authorities. However, it is advisable, however, to use all of your property transactions in Portugal or in any other country, whether for residing in Portugal, for construction or renovation, using a lawyer.

The costs of renovating property in Portugal

Estimating the cost of renovating and rebuilding any construction project in Portugal is a difficult task, as in other areas. Especially since the subject of reconstruction differs greatly and depends on the will and plan of reconstruction. However, the cost of reconstruction and renovation is the same in all regions of Portugal. For example, if you are looking to rebuild a building plumbing, the cost of plumbing is almost the same in all parts of Portugal. Unless the real estate project is in an area you have to pay more for transportation to bring in a plumber.

What is clear is that the costs of rebuilding, renovating, remodeling and refurbishing and even home maintenance in Portugal are lower than many other EU countries and European standards. In total, it can be estimated at between € 200 and € 400 per square meter for home remodeling or renovating in Portugal.

But the cost may vary by up to 700 euros per meter, depending on the location of the project and the materials used for construction. There also seems to be additional costs involved in rebuilding a home that are tailored to a project. According to Portuguese construction cost standards, an average project can cost around € 2,000 for a complete renovation.

To get the most profit of renovating and refurbishment or reforming an old house in Portugal and making a lucrative investment, it is best to look for property in Portuguese villages and countries or less developed coastal areas in the country, which Stay on the path of development.

These types of land and property are abundant in Portugal and can be purchased at low cost in Portugal, and the cost of renovating or remodeling these homes is largely proportional to areas such as Porto, Lisbon or Allegro. It is also easier to obtain reconstruction permits for these areas.

Keep in mind that housing and land prices in Portugal have been steadily rising, with the most profits always waiting for areas to grow. Implementing reconstruction projects in tourism areas can also be your top priority, as more profit is expected.

Important Tips for Renovating and refurbishing Old and Rural Homes in Portugal for Startups

If you are planning to invest in Portugal for the first time and are planning to renovate, reform, repair, maintain, refurbish or remodel by purchasing old and rural Portuguese homes, you may need more detailed guidance. The following is an attempt to highlight golden tips for people who are new and the first to invest in Portugal’s old and rural real estate.

As explained above, you realize well that Portugal has become an attractive place to invest due to its excellent weather conditions, friendly people, and friendly, low-cost rural real estate. Especially if you plan to rebuild old and rural homes. However, a successful investment in any type of real estate purchase requires some expertise and compliance.

Define your reasons for this project

More than one-third of Portuguese families live in rural areas of the country, but many of these rural areas, such as suburbs and houses, are small-scale, agricultural buildings dating back to the 1970s and they return from it. These buildings have either been completely destroyed or have been heavily damaged and destroyed.

 Although some areas are more famous and higher prices have been set for their properties, some Areas are still less well-known and priced low. In general, Portugal’s northern coast real estate is priced higher than southern coast real estate.
But what’s important is that you have to determine what exactly is your reason or reasons for buying and renovating a property in Portugal.

For example, if you are looking for a quiet place with a good climate for your retirement, buying a beachfront home at age 65 that is out of reach for urban amenities may not be wise, as access to health and Therapeutics will become even more important. So buying a property that needs better fitness and DON’T access to better facilities may not be suitable.

But if the goal of buying an old house in Portugal, and rebuilding a house in Portugal, is to create a holiday home in Portugal, it may not make much difference to your distance from the main cities. So buying a home about 3 hours from major cities like Lisbon is also a good option.

If you are a businessman or producer and want to own a cheap house in Portugal, you should buy a house in Portugal that can be reached within an hour to a major international airport in Portugal or train and freight stations and the other quotation is important.

So the first and most important pillar of buying an old house and rebuilding it in Portugal is to figure out your goal to buy it. This house can be located in the city center as an urban home or in the farthest and most remote rural area of ​​Portugal.

Before making your final home purchase in Portugal, make sure you review all possible offers

Sitting at home and buying a home with beautiful pictures and landscapes and having good facilities near the house is easy. Especially as you can see the price offered for buying a house in Portugal is very cheap and affordable.

You may even call different real estate agents or choose a lawyer to do the job of buying an old house in Portugal. But keep in mind this is a big mistake.

Keep in mind, this is the one you intend to use as a holiday home, a home for rent, a home to rent or even a home for your business. If you do not look closely at the property believe that you will make the wrong decision. Pictures and even videos will never tell you the reality of home. To buy a house in Portugal you have to see the house yourself.

The house may not be as good as photos and videos, far from what you might expect, not as good as it is, lack of proper access to the road, and dozens of other reasons to buy your old home in Portugal. This becomes even more important when your goal of buying an old house in Portugal and renovating, refurbishing or maintaining a home is actually to use it for specific purposes such as a vacation home, a retirement home, a rental home. And so on.

So you should look closely at your home or your own preferences, and if your home is ideal, buy a house in Portugal later.

Check home or property documents thoroughly and get the right documents.
If a case of buying and selling any kind of property in Portugal can be a big problem, do not doubt that it is the documents of the land. Especially if you are looking to buy an old property and renovate it or if you are looking to build it in Portugal, you need to get all the land documents in good order and properly inspect the documents to protect your investment.

Especially use the legal adviser of Duncan. If you are not careful in moving the documents and do not follow the requirements of the documents in the legal authorities and do not take the necessary legal action, you may have problems in being unable to prove the ownership of the land.

This is important because in the past many homes and estates in Portugal were moved from one family to the older son. Older boys were less likely to do land swaps and land deeds, and legal procedures were not followed well. Some lands have tax problems that go back many years. Some properties may even seem to be privately owned, but they are in fact owned by the state.

We suggest that you review the land documents before making any agreement, and if the documents may not be submitted, you may be hesitant to purchase them because the land documents may be inaccurate. But if you choose to buy a home in Portugal, do so with a legal counsel and refer any problems to the seller.

However, if a home or property legal action is not well done, it may take months or years for the seller to do so. Some sellers may even do illegal things that will still cause problems for you. Therefore, purchasing from reputable and reputable authorities or reputable dealers and with the presence of a lawyer is crucial.

Important Tips for Renovating and refurbishing Old and Rural Homes in Portugal for Startups

If you are planning to invest in Portugal for the first time and are planning to renovate, reform, repair, maintain, refurbish or remodel by purchasing old and rural Portuguese homes, you may need more detailed guidance. The following is an attempt to highlight golden tips for people who are new and the first to invest in Portugal’s old and rural real estate.

As explained above, you realize well that Portugal has become an attractive place to invest due to its excellent weather conditions, friendly people, and friendly, low-cost rural real estate. Especially if you plan to rebuild old and rural homes. However, a successful investment in any type of real estate purchase requires some expertise and compliance.

Define your reasons for this project

More than one-third of Portuguese families live in rural areas of the country, but many of these rural areas, such as suburbs and houses, are small-scale, agricultural buildings dating back to the 1970s and they return from it. These buildings have either been completely destroyed or have been heavily damaged and destroyed.

 Although some areas are more famous and higher prices have been set for their properties, some Areas are still less well-known and priced low. In general, Portugal’s northern coast real estate is priced higher than southern coast real estate.
But what’s important is that you have to determine what exactly is your reason or reasons for buying and renovating a property in Portugal.

For example, if you are looking for a quiet place with a good climate for your retirement, buying a beachfront home at age 65 that is out of reach for urban amenities may not be wise, as access to health and Therapeutics will become even more important. So buying a property that needs better fitness and DON’T access to better facilities may not be suitable.

But if the goal of buying an old house in Portugal, and rebuilding a house in Portugal, is to create a holiday home in Portugal, it may not make much difference to your distance from the main cities. So buying a home about 3 hours from major cities like Lisbon is also a good option.

If you are a businessman or producer and want to own a cheap house in Portugal, you should buy a house in Portugal that can be reached within an hour to a major international airport in Portugal or train and freight stations and the other quotation is important.

So the first and most important pillar of buying an old house and rebuilding it in Portugal is to figure out your goal to buy it. This house can be located in the city center as an urban home or in the farthest and most remote rural area of ​​Portugal.

Before making your final home purchase in Portugal, make sure you review all possible offers

Sitting at home and buying a home with beautiful pictures and landscapes and having good facilities near the house is easy. Especially as you can see the price offered for buying a house in Portugal is very cheap and affordable.

You may even call different real estate agents or choose a lawyer to do the job of buying an old house in Portugal. But keep in mind this is a big mistake.

Keep in mind, this is the one you intend to use as a holiday home, a home for rent, a home to rent or even a home for your business. If you do not look closely at the property believe that you will make the wrong decision. Pictures and even videos will never tell you the reality of home. To buy a house in Portugal you have to see the house yourself.

The house may not be as good as photos and videos, far from what you might expect, not as good as it is, lack of proper access to the road, and dozens of other reasons to buy your old home in Portugal. This becomes even more important when your goal of buying an old house in Portugal and renovating, refurbishing or maintaining a home is actually to use it for specific purposes such as a vacation home, a retirement home, a rental home. And so on.

So you should look closely at your home or your own preferences, and if your home is ideal, buy a house in Portugal later.

Check home or property documents thoroughly and get the right documents.
If a case of buying and selling any kind of property in Portugal can be a big problem, do not doubt that it is the documents of the land. Especially if you are looking to buy an old property and renovate it or if you are looking to build it in Portugal, you need to get all the land documents in good order and properly inspect the documents to protect your investment.

Especially use the legal adviser of Duncan. If you are not careful in moving the documents and do not follow the requirements of the documents in the legal authorities and do not take the necessary legal action, you may have problems in being unable to prove the ownership of the land.

This is important because in the past many homes and estates in Portugal were moved from one family to the older son. Older boys were less likely to do land swaps and land deeds, and legal procedures were not followed well. Some lands have tax problems that go back many years. Some properties may even seem to be privately owned, but they are in fact owned by the state.

We suggest that you review the land documents before making any agreement, and if the documents may not be submitted, you may be hesitant to purchase them because the land documents may be inaccurate. But if you choose to buy a home in Portugal, do so with a legal counsel and refer any problems to the seller.

However, if a home or property legal action is not well done, it may take months or years for the seller to do so. Some sellers may even do illegal things that will still cause problems for you. Therefore, purchasing from reputable and reputable authorities or reputable dealers and with the presence of a lawyer is crucial.

Make sure the property has the necessary Utilities and facilities and programs

Urban wastewater, plumbing, landline telephony, electronic resources, etc. are the requirements for any type of property without which we cannot claim to have a comfortable life. All the aforementioned Utilities programs are available in all parts of Portugal today with internet access and most properties are equipped with these facilities.
But there is no doubt that not all properties are equipped with these communication facilities. Some of Portugal’s old estates, in particular, may have been abandoned for years and may not have many of them now. If you are planning to buy this type of property in Portugal, you should bet the seller himself Equip the property with these items, and condition the purchase. Even if you were assigned this for any reason, the price of each of the features not available in the property should be subtracted from the actual property price.

Budget well for home remodeling or renovating in Portugal

Budgeting is one of the most important factors in any type of business activity. You should always budget for any construction, repairs, renovations, refurbishment, remodeling or home reforming before any action. Budgeting for construction or renovation measures in any country may be in accordance with principles, which can specify a certain amount of funding for each project.

Always keep this in mind for Portugal, although renovating and repairing your home in Portugal is a profitable job, but you may lose it if you do not budget well. In Portugal, destruction processes will always take longer than you planned.
You will always have to pay for expenses that you have not included in your budget. Working risks are not always included in budgeting for construction projects in Portugal. It is therefore advisable to double the budget that you are considering when planning construction projects in Portugal.

Another problem or issue to consider when renovating old houses in Portugal is that there is no competitive retail sector in Portugal in some building materials. So, unlike many European countries, you may have to pay twice as much as you would like to spend on bathroom, kitchen or other home purchases.

What is important is that if you underestimate or do not properly estimate the cost of your renovation project, you are likely to have a shortage of funds before the project is completed. In this situation, if you cannot afford to complete the project, you may face the problem of keeping your property unused or selling it at a cost below market value.

Another strong recommendation for real estate development in Portugal is to seek the help of local and legal consultants to evaluate and budget your projects.

Find Recommended Professionals

Due to the growing demand for buying and renovating homes in Portugal, in recent years excellent consultants and specialists have begun to work in the fields of buy and renovate rural and townhomes in Portugal that can be used for any type of construction project and you can get help from these people. Portuguese real estate agents, local council staff, utility services staff, surveyors, building builders, retailers, institutions and legal consultants and many more are recognized as experts who can assist you in this area.

If you do not have enough fluency in Portuguese you can hire a person who is fluent in Portuguese to help you with everything. But another option is to seek help from reputable law firms in your own country that have a good knowledge of Portuguese real estate or legal advisers in your own country who have good relationships with individuals and professionals in Portugal.

Keep in mind that finding and trusting professionals who are sufficiently skilled in their work and delivering the best quality in their work is not easy in Portugal. Using social networks, the Internet and various sites, etc. will help you to some extent. But legal advice in your own country or using the experience of other people who have purchased and renovated property in Portugal and preferably from your own country is the best choice.

Read and know about Portugal’s bylaws and construction laws

Before buying any property in any region of Portugal, and before demolishing, rebuilding or repairing real estate in Portugal, it is best to read about the laws and regulations related to the construction and renovation of buildings in Portugal. The best way is to get help from your local council.

Local councils in each region of Portugal are responsible for planning and implementing laws in each region. In most of these local councils, there are people who advise property buyers in Portugal on any type of property and their details. Even many of these consultants can refer you to professionals who are trusted and can assist you in the field of construction or renovation.

Ask your local councilor about the types of problems, contingency plans, the price of each property and area, the measures needed for each property and anything else you need to know. One of the great benefits of these local councils in recent years has been that they have, along with numerous local experts, also employed English-speaking experts.


Regularly review your renovated property

Buying an old rural property in Portugal and handing it over to one or more professionals to rebuild doesn’t seem to make much sense. Keep in mind that renovating a property always has many complications, especially if it is done in another country and does not have your direct supervision. In many cases, the professionals you hire may overlook or forget some of your wishes.

 They may even have poor planning regarding the budget and expense they have agreed with you. If you do not regularly insist on a property restoration project in Portugal, you may miss some of your reforms and needs in a timely manner and miss the opportunity.

It has even been found that contractors in projects where the property owner does not have a good visit, usually do not do well or raise their income elsewhere and make your job easier. Even if you finalize a price for each job, this does not guarantee the quality of work and you will need someone to oversee the work.
Always keep in mind that even the simplest property remodeling job in Portugal requires your frequent presence and supervision.

 What if you do not like the bathroom if the bathroom remodeling is done and you are not present? Even if you do not have enough time to attend and oversee your project, you need to persuade someone to regularly review your project and keep you informed of the results.


Learn Portuguese

If you are looking to buy a property in Portugal and want to stay in Portugal by building a house in Portugal or buying an old house and renovating it to have a holiday home in Portugal, and you are likely to stay in Portugal its best time to learn Portugal language too. By staying in Portugal you will be living in a new local community and need to interact with the neighbors and the people of the area. Even attending Portugal once a year will not eliminate your need to apply. Now that you have the opportunity to earn Portuguese residency for yourself by investing in Portuguese real estate, take this opportunity and use your own country or an English language institute in Portugal to learn Portuguese.

 English teachers who teach Portuguese are present in many areas in Portugal. These institutions will teach Portuguese at the highest levels and will have the best suggestions for you to learn Portuguese.

There are, of course, many ways to learn Portuguese. You can even use online resources. But using local Portuguese language schools is the best choice. By learning Portuguese, you can increase your chances of finding a job in Portugal, studying in Portugal, or any business, economic or even social activity in Portugal as your new place of residence.


Emergency Plans

By purchasing a property in Portugal you can easily obtain a golden Portuguese residence. But if you still do not intend to stay in Portugal, and your sole purpose is to buy a property in Portugal, own a holiday home or rental home, you should consider everything possible when building a home and whether it happens during renovation, refurbishment or home repairs. There may be a heart attack, a building accident, or other unexpected problems and accidents that you are not aware of. In such cases, you should always know where to call or which health center to call.

For example, in year 2017, during a disaster, more than 100 people died in Portugal during a fatal fire. So not only for the home, but also for yourself Get insurance policy. Put your home documentation in a safe and secure location and buy complete insurance covering all natural and abnormal events.

Keep in mind that there are many natural environments in Portugal and rural or coastal homes in Portugal may experience any of these unwanted conditions at any time. So if you don’t want to lose your money easily and without a guarantee, you should consider the best type of insurance for your home and even yourself.