Portugal is becoming a popular destination for expats looking to invest in property. With its mild climate, beautiful beaches, rich culture, and affordable cost of living, it’s easy to see why. However, buying a property in a foreign country can be daunting, especially when you’re unfamiliar with the local market and regulations. That’s where we come in. As a real estate agency, Travels to Europe, we’re here to guide you through the process of buying land in Portugal.
In this article, we’ll cover everything you need to know about buying land in Portugal, including where to go, what to look for, and how much it will cost. We’ll also provide useful tips on the buying process, legal requirements, and expected payback on your investment. So, let’s get started!
Where to Buy Land in Portugal
Portugal has a diverse range of landscapes and regions, each with its own unique charm and attractions. Some of the most popular places to buy land in Portugal include Lisbon, Porto, Algarve, and Madeira. However, there are many other areas worth considering, depending on your preferences and budget.
Lisbon: Lisbon is the capital city of Portugal, located on the west coast of the country. It’s a vibrant city with a rich history, beautiful architecture, and a cosmopolitan atmosphere. If you’re looking to invest in a city apartment, Lisbon has plenty of options. The average price per square meter for apartments in Lisbon is around €3,000, but prices can vary depending on the location and condition of the property.
Porto: Porto is another popular city for property investment, located in the north of Portugal. It’s known for its historic center, stunning riverfront, and famous Port wine. The average price per square meter for apartments in Porto is around €2,500, making it slightly more affordable than Lisbon.
Algarve: The Algarve is a popular region for expats, located in the south of Portugal. It’s known for its sunny weather, beautiful beaches, and relaxed lifestyle. If you’re looking for a beachside property, the Algarve has plenty of options. The average price per square meter for apartments in the Algarve is around €2,000.
Madeira: Madeira is a Portuguese archipelago located off the northwest coast of Africa. It’s known for its lush greenery, stunning coastline, and subtropical climate. Madeira has a variety of properties available, from traditional stone cottages to modern villas. The average price per square meter for apartments in Madeira is around €1,500.
Cheap Property in Portugal
If you’re on a tight budget, there are still opportunities to buy cheap property in Portugal. Here are some areas to consider:
Cheap Property in Portugal Under 20k: Believe it or not, there are properties in Portugal that cost less than €20,000. These are usually old small apartments or old houses in rural areas that require renovation. However, they can be a good investment opportunity if you’re willing to put in the work.
Cheap Houses for Sale in Portugal Near Beach: If you’re looking for a property near the beach, the Algarve and Costa de Prata are good places to start. There are still some affordable options available, with prices ranging from €50,000 to €100,000 for a small apartment or house.
Portugal House Prices and Real Estate Prices
According to data from the Portuguese National Institute of Statistics, the average price per square meter for property in Portugal is around €1,200. However, prices can vary widely depending on the location, type of property, and condition of the building.
In general, house prices in Portugal have been rising steadily in recent.
Here’s a table summarizing some of the key information you’ll want to know when considering buying property in Portugal:
| Area | Average Property Prices (EUR/sqm) | Average Monthly Rent (EUR) | Rental Yield (%) |
| Lisbon | €3,838/m² | 1,500 | 3.8% |
| Porto | €2,650/m² | 800 | 3.8% |
| Algarve | €2,000/m² | 1,000 | 5% |
| Central Portugal | €1,500/m² | 600 | 4.8% |
| North Coast | €1,400/m² | 550 | 4.7% |
As you can see, Lisbon and Porto have higher property prices, but also offer higher rental yields. The Algarve is a popular vacation spot, so it may offer potential for rental income, but the lower property prices mean a lower yield. Central Portugal and the North Coast offer the lowest property prices, but still offer good rental yields. Ultimately, the right choice depends on your budget and investment goals.
The Buying Process for Property in Portugal
Now that we’ve talked about the different regions in Portugal where you might want to buy property, let’s dive into the buying process. If you’ve never bought property in Portugal before, you may find the process different than what you’re used to in your home country.
First, it’s important to know that a real estate agent or lawyer can help guide you through the process. Many expats choose to work with a local real estate agent who speaks their language and can help them navigate the Portuguese regulations and paperwork.
Once you’ve found a property you want to buy, you’ll need to make an offer to the seller. If the seller accepts your offer, you’ll need to sign a promissory contract, which is a legally binding agreement that outlines the terms of the sale. This contract typically requires a deposit of around 10% of the purchase price.
Next, you’ll need to hire a lawyer to conduct a title search and ensure that the property has a clear title. Your lawyer will also help you obtain a fiscal number, which is necessary for purchasing property in Portugal.
Once all of the legal requirements have been met, you’ll sign the final purchase agreement and pay the remaining balance of the purchase price. At this point, you’ll also need to pay the transfer tax, which is typically around 6% to 8% of the purchase price.
It’s worth noting that the buying process in Portugal can take longer than in some other countries. It’s not uncommon for the process to take several months from start to finish.
Overall, buying property in Portugal can be a complex process, but working with a real estate agent and lawyer can help make it more manageable. It’s important to do your research, understand the regulations and costs involved, and work with professionals who can guide you through the process.
Is it possible to invest in Real Estate in Portugal and get good payback?
Investing in real estate in Portugal can be a profitable opportunity, but it’s important to proceed with caution and evaluate the economy before investing [see it in full].Factors such as the real estate market, costs involved, and potential return on investment, among others, should be carefully considered.
One option for investing in real estate in Portugal is through real estate funds, which can bring average annual returns of 7-10%. These funds have access to significant capital and can invest in real estate at a lower cost, managing it efficiently, which increases the return for the final investor [see it in full].
Therefore, to invest in real estate in Portugal and get a good return, it’s important to carefully evaluate the available options, considering factors such as the real estate market, costs, potential return, and efficiency in managing the properties. Investing in real estate funds can be an interesting alternative for those seeking good profitability and professional management of their investment.
