If you’re looking to invest in property in Europe, Portugal is an excellent choice. The country offers a low cost of living, a pleasant climate, and a thriving economy. However, buying a house in Portugal requires careful consideration to avoid potential pitfalls. In this article, we’ll explore the main precautions you should take when buying a house in Portugal.
Why Invest in Portugal?
Portugal is a country that is rapidly becoming a favorite for investors from around the world. It’s known for its friendly locals, beautiful scenery, and delicious food. Additionally, Portugal offers a range of benefits to those who choose to invest in property. Some of the advantages of investing in Portugal include:
- A low cost of living
- A high quality of life
- A pleasant climate
- A thriving economy
- A range of affordable properties
- A favorable tax system for non-residents
What to Take Care of When Buying a House in Portugal?
Be cautious of scams: Unfortunately, there are dishonest individuals who prey on unsuspecting buyers. Be wary of deals that seem too good to be true, and never transfer money without verifying the property’s ownership and legitimacy.
Hire a reputable real estate agent: A good real estate agent can help guide you through the buying process and ensure that all necessary legal requirements are met. Choose an agent who is licensed, experienced, and has a good reputation in the industry.
Understand the local housing regulations: Portugal has specific regulations regarding property ownership, such as residency requirements and taxes. Make sure you fully understand these regulations before making a purchase.
Research the area thoroughly: Before making an offer on a property, take the time to research the area thoroughly. Consider factors such as accessibility, safety, and amenities, as well as any potential environmental or urban planning issues that could affect the property’s value.
Get a professional inspection: A professional inspection can help uncover any hidden issues with the property, such as structural damage or pest infestations. This can save you thousands of euros in repair costs down the line.
Now that we’ve covered some main precautions to take, let’s explore some specific areas in Portugal that are worth considering when looking to buy a house.
The Algarve region in southern Portugal is a popular destination for those looking to buy property. With its stunning beaches, mild climate, and abundance of amenities, it’s no surprise that it’s a hot spot for both local and international buyers. Lagos, a historic coastal town in the Algarve, is a particular favorite, with its picturesque old town, beautiful beaches, and charming marina. Homes for sale in Lagos Portugal range from small apartments to luxurious villas, with prices ranging from €100,000 to €5 million, depending on the property’s location, size, and amenities.
Another area worth considering is Madeira, an archipelago located off the northwest coast of Africa. Madeira is known for its lush vegetation, stunning landscapes, and laid-back lifestyle. Homes for sale in Madeira Portugal range from traditional stone cottages to modern villas, with prices ranging from €100,000 to €10 million, depending on the property’s location, size, and amenities.
When it comes to price, Portugal offers a range of options, from cheap houses for sale in Portugal to luxury properties. According to data from the National Institute of Statistics, the average price per square meter for a property in Portugal is 2.475 €/m2, with prices varying depending on the location and property type. For example, the average price per square meter in Lisbon is 3.586 €/m2, while the average price in Porto is 2.614 €/m2, according to Idealista. It is interesting to mention the price evolution since 2022 to 2023 is 6%.
If you’re a foreigner looking to buy property in Portugal, it’s important to understand the legal requirements. Non-residents are free to buy property in Portugal, but they must obtain a tax identification number and hire a fiscal representative. Additionally, non-residents may face higher taxes than Portuguese residents.
What to Take Care When Buying a House in Portugal
There are several things that you need to consider when buying a house in Portugal. Here are some of the most important ones:
Do your research – Before buying a house in Portugal, you should do some research. Check the prices of properties in the area where you want to buy. This will give you an idea of how much you should pay for a house.
Check the location – Location is important when buying a house in Portugal. Consider factors like proximity to the beach, public transportation, shopping centers, schools, and hospitals.
Portuguese Housing Regulations – Make sure that you understand Portuguese housing regulations. This will help you avoid legal problems later on.
Calculate the costs – Calculate all the costs involved in buying a house in Portugal. These costs include legal fees, taxes, notary fees, and real estate agent commissions.
Get a mortgage – If you need to get a mortgage, make sure that you choose the right one. Compare different options to find the one that suits your needs.
Why to Be Careful When Buying a House in Portugal
While Portugal is a great place to invest in real estate, there are some risks involved. Here are some of the most important ones:
High Property Taxes – Portugal has high property taxes, which can eat into your profits. Make sure that you calculate these taxes before you buy a house.
Legal Problems – Portuguese housing regulations can be complex. Make sure that you understand them before you buy a house.
Slow Legal Process – The legal process for buying a house in Portugal can be slow. Make sure that you have all the necessary documents in order to speed up the process.
Places to Buy a House in Portugal in 2023
While Lisbon and Porto are popular places to buy a house in Portugal, there are other places that are worth considering. Here are some of the most interesting ones:
Porto – Porto is a beautiful city in the north of Portugal. It offers a great quality of life, and is a great place to invest in real estate. The average price per square meter in Porto is 2.396 €/m2.
Madeira – Madeira is an island in the Atlantic Ocean. It offers a warm climate and stunning landscapes, and is a great place to buy a house if you’re looking for a relaxed lifestyle. The average price per square meter in Madeira Island is 2.424 €/m2.
Algarve – The Algarve is a region in the south of Portugal. It offers beautiful beaches and a warm climate, and is a popular destination for tourists. The average price per square meter in Algarve is 3.088 €/m2.
