Real estate in Portugal: principles of purchase

In early 2019, Lisbon was included in the Forbes list of cities with good potential in the European real estate market. According to the experts of the publication, the settlements included in the shortlist can become a good alternative in the era of inflated housing prices in the leading cities of Europe. Lisbon became one of the finalists of the list due to the active price growth - over the past year in the Portuguese capital, the cost of real estate has increased by 20%. At the same time, the situation throughout the country echoes Lisbon: the average increase in the cost of housing was 15%.

Portugal is the center of European investment

The increase in the value of real estate in Portugal is also directly related to the launch of the Golden Visa program in the country in 2012 - in this regard, already in 2013, a clear cycle of recovery of the local real estate market began, although in the first two years, an increase in housing prices in the annual was insignificant and amounted to less than 3%. However, in 2016, the increase in the cost of housing intensified, and in 2017 prices rose to the bar in the range of 3.5-9%, thus overcoming the indicators of the pre-crisis period of 2007.

Such impressive figures, first of all, were created by foreign buyers. According to the Portuguese Office for National Statistics, every 12th purchase of real estate in the country is made by a foreigner. On average, foreign buyers spent about 160,000 euros on Portuguese square meters for each transaction, while Portuguese citizens spend 107,000 euros on purchases.

In 2018, 838 million euros were invested in Portugal under the Golden Visa program: last year, Portugal issued 1,409 golden visas to foreigners, and this figure was 4.2% more than in 2017. At the same time, most often housing in Portugal is purchased by the French, British, Brazilians, Chinese and Swiss. Foreigners are clearly attracted by the fact that the country is consistently ranked in the top 20 safest countries in the world, and the level of living expenses in Portugal is one of the lowest in Europe.

A significant point of the Portuguese program for obtaining a "golden visa" is the fact that a foreigner does not need to buy only one property for 500,000 euros. He can purchase several houses or apartments, the cost of which will be 500,000 euros or 350,000 euros, taking into account future renovation. The last point became possible in 2018, when the last amendment was made by the Government of Portugal in the provision of an investment initiative of 350,000 euros for the purchase of certain types of urban facilities and the subsequent program of complete rehabilitation, which must not be younger than 30 years old or located in areas of urban renovation area provided by law.

Prices

Nice apartment with a modern renovation in the center of Lisbon in a renovated historical building or new residential complexes with 1-2 bedrooms with an area of 60-100 sq. m can be purchased for 500,000 euros. For a similar amount, you can become the owner of your own home almost anywhere in Portugal. However, the upper bar is almost infinite - you can even find an 18th century royal castle worth 50 million euros. More modest options regarding the area, finishes and location of housing will allow you to purchase objects worth about 250,000 euros. If desired, it is quite possible to buy an apartment for 100,000 euros in the secondary market near the beach.

Purchase process

The process of buying in Portugal is extremely simple and transparent. Employees of a real estate company specializing in local real estate will provide the buyer with complete and timely information about each stage. Depending on each case, in order to purchase real estate, the future owner of Portuguese real estate will need to make 1-2 visits to the country. Usually, the buying process begins with compiling a list of objects for viewing while still in the buyer's country of residence: properties are selected and all the necessary information about the specifics of the location, technical characteristics and other features of the objects you like.

After determining the dates of the trip (usually from 3 to 10 days), a Russian-speaking agent is assigned to the buyer, who meets in Portugal and conducts all viewings, and also helps to prepare everything that is needed for a future purchase. In highly qualified companies, the organization of viewings is usually free. In the case of a purchase decision, non-EU residents must obtain a tax number and open an account with one of the Portuguese banks. With the timely preparation of the necessary documentation, the process of obtaining a Portuguese TIN takes one day, and opening a bank account takes about one hour with a personal presence.

The purchase process itself usually consists of three stages: reservation, signing an agreement of intent (preliminary sale and purchase agreement) and execution of a purchase and sale transaction. The time for the implementation of all stages takes from 7 days to several months, but the buyer does not have to be in Portugal all this time, it is enough to fly to the sale and purchase transaction, or leave a power of attorney for its implementation. When buying a property, the buyer must pay taxes and notary services - they vary depending on the value of the property based on a progressive scale established by the Portuguese Tax Service. Costs can range from 1 to 7% of the transaction amount. Once the buyer has become the legal owner of the property in Portugal, it is necessary to enter into contracts for utilities to maintain the property.

Portugality Realty&Investment is a company providing services in the field of luxury real estate and investment consulting in Portugal. In addition to accompanying the processes of buying, selling and renting, the company's experts also help in obtaining a residence permit, in construction work and property management. Offices are presented in areas of increased consumer interest: Algarve, Lisbon and Cascais.

We thank Nina Chetverikova, managing partner of Portugality Realty&Investment, for her help in preparing the material.

Company Portugality Realty & Investment - winner of the Grand Prix in the category "Real Estate Agency recommended in Portugal" award Homes Overseas Russian Awards-2018

Homes Overseas Russian Awards - the first and only award in Russia in the field of overseas real estate