English
Portugal is in vogue and is excellent for foreign investors to buy real estate, as it has a wide offer for different interests: permanent housing, holiday home or investment. The two regions of greatest interest are the Algarve and the Greater Lisbon region.
500000
€
Lisboa, Lisbon, alhandra
465000
€
Lisboa, Oeiras, queijas
455000
€
Lisboa, Oeiras, queijas
400000
€
Lisboa, Oeiras, queijas
465000
€
Lisboa, Oeiras, queijas
The word “real estate” refers to something that belongs or has to do with real estate. A property, in turn, is a home that is linked to a land inseparably, both physically and legally. The buildings and parcels are property estate.
The Portuguese real estate market has a wide range of property types. In Portugal we find different types of houses, from a small studio to a large property with hundreds of hectares. There are more and more projects to renovate and rehabilitate traditional houses such as farmhouses or manor houses, as well as old houses in the historic centers of cities.
There are several types, sizes and categories of apartments in Portugal. You can go from a small studio to a modern luxury beachfront apartment overlooking a golf course within a luxury resort.
Prices range from 70 000 Euros for studios to over one million for luxury apartments.
The villas are usually built on small plots of 350 to 500 square meters and can leave room to enjoy a garden or build a swimming pool. The quality of construction has improved with anti-seismic structures, thermally insulated double walls and double glazing.
Prices range from 150 000 Euros, the value of a small 2 bedroom house located outside the city, to a few million Euros for a mansion in the most sought after regions like Lisbon or Algarve.
There is little information on the internet on how to start investing in real estate in Portugal. However, there are plenty of people interested in learning how to invest in real estate. Getting started is often the trickiest part as you need to take into account some terms and knowledge regarding contractors, spreads, contract records or legality, among other things.
Investing is something that requires time and money and should be part of a balanced life and should be aware of your financial reality. Investing in real estate requires more time compared to investing in other businesses, because you will need to manage the property, rent, etc. You can always delegate this task to a company, but the profit margins will be very narrow. Therefore, it is necessary to think carefully about real estate investments. If you have financial stability and if you invest in a property of value, it is an investment that guarantees return in time.
The price of luxury real estate in the Algarve is among the highest in the country, ranging from 3400 to 4000 Euros per square meter. In the Lisbon region, they vary between 2500 and 3100 Euros per square meter.
The value of housing in Portugal is expected to maintain growth over the coming times. The average price per square meter tends to approach that of the Spanish market also due to increased demand from Spanish investors.
When deciding to buy a home it is important to evaluate all the associated costs. In addition to the notaries records and costs, you should have particular attention to taxes on real estate. Compulsory payment of taxes to the State is threefold: the Municipal Tax on Onerous Transmissions of Property (IMT), the Municipal Tax on Real Estate (IMI) and Stamp Duty (IS).
IMT is a tax paid to the state on the day the house is signed. The IMT is levied on the Tax Asset Value (VPT) or the value stated in the property deed, and the higher of these two is chosen. In addition, a portion corresponding to the rate to be applied should be subtracted. In the Finance Portal you can find the IMT table with this information, and the rate to apply can be up to 8%.
For the calculation of this tax three characteristics of housing are considered: the type - whether it is urban or rustic; location - whether it is on the Continent or in the Autonomous Regions; and the purpose - whether it is a Permanent or Secondary Own Housing.
Annually, property or land owners, designated as “buildings” by Finance, have to pay IMI. IMI falls on VPT of urban and rustic buildings located in Portugal.
Examples of urban buildings are real estate intended for housing, commerce, industry or services and land for construction, according to the IMI Code. Rustic buildings may be land outside of urban centers other than construction and intended for agricultural activity and buildings for the production of agricultural income.
All loans have consumer charges, including commissions and taxes, with Stamp Duty being one of them. In mortgage loans the IS is paid at two different times: when the deed of the house is realized and when the loan amount is made available in the current account.
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