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Frequently asked questions
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Frequently asked questions
Frequently asked questions
Please see below for answers to many questions we receive on a regular basis. If your question isn't answered below, please scroll to the bottom of the page where you will find a form you can fill in and submit online.
Please see below for answers to many questions we receive on a regular basis. If your question isn't answered below, please scroll to the bottom of the page where you will find a form you can fill in and submit online.
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Why should you buy property in Portugal?
Why should you buy property in Portugal?
- The weather! Portugal averages 2500 - 3200 hours of sunshine per year, with the Algarve averaging over 3000 hours.
- With Non-Habitual residency status you can live tax-free for 10 years
- In 2022 Portugal is ranked 4th in the world in the Global Peace Index and 3rd safest country in the world
- The risk of natural disaster is minimal; although Portugal is in an earthquake zone there hasn't been a major one since 1980
- English is widely spoken in Portugal
- It is easy to travel to many other countries by road, rail or by air
- The holiday rental market is strong, so you can spend cold winters in the temperate climate of Portugal and then rent out your property in the summer season
- Forbes rates Portugal as the top European country to retire to in 2022
- The weather! Portugal averages 2500 - 3200 hours of sunshine per year, with the Algarve averaging over 3000 hours.
- With Non-Habitual residency status you can live tax-free for 10 years
- In 2022 Portugal is ranked 4th in the world in the Global Peace Index and 3rd safest country in the world
- The risk of natural disaster is minimal; although Portugal is in an earthquake zone there hasn't been a major one since 1980
- English is widely spoken in Portugal
- It is easy to travel to many other countries by road, rail or by air
- The holiday rental market is strong, so you can spend cold winters in the temperate climate of Portugal and then rent out your property in the summer season
- Forbes rates Portugal as the top European country to retire to in 2022
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Is buying a property in Portugal a secure investment?
Is buying a property in Portugal a secure investment?
Property prices have been increasing steadily in Portugal since 2014. House prices rose by 4.9% in 2015, 5.7% in 2016, 7% in 2017, 9.7% in 2018, 11.7% in 2019 and 6% in 2020. Also, given the high demand for tourism in Portugal, you can expect high rental yields if placing your property on the holiday rental market.
Property prices have been increasing steadily in Portugal since 2014. House prices rose by 4.9% in 2015, 5.7% in 2016, 7% in 2017, 9.7% in 2018, 11.7% in 2019 and 6% in 2020. Also, given the high demand for tourism in Portugal, you can expect high rental yields if placing your property on the holiday rental market.
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What do I need to be able to purchase a property in Portugal?
What do I need to be able to purchase a property in Portugal?
To purchase a property in Portugal you need to apply for a Portuguese tax number, otherwise known as a número fiscal or NIF. You can request a NIF at any PT tax office (Finanças) or at a Loja de Cidadão - usually located within the town hall.
If you are a non-resident you will need to present the following documents to register for a NIF:
- Passport or other form of Identification (ID card)
- Proof of address from your country of origin (utility bill issued within last 3 months)
- Document from your fiscal representative proving their acceptance to be your fiscal representative
To purchase a property in Portugal you need to apply for a Portuguese tax number, otherwise known as a número fiscal or NIF. You can request a NIF at any PT tax office (Finanças) or at a Loja de Cidadão - usually located within the town hall.
If you are a non-resident you will need to present the following documents to register for a NIF:
- Passport or other form of Identification (ID card)
- Proof of address from your country of origin (utility bill issued within last 3 months)
- Document from your fiscal representative proving their acceptance to be your fiscal representative
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What costs are there when buying a property in Portugal?
What costs are there when buying a property in Portugal?
The following taxes are applicable when purchasing a property in Portugal:
IMT - Property transfer tax. The formula to work out IMT is as follows:
IMT = Purchase value or Rateable value (whichever is highest) x rate as per table – Deductables
To view the table of rates please click here
IS - Stamp duty. There are two occasions where stamp duty is levied, on the sale or purchase of a property or when a loan to purchase is deposited in your bank (mortgage).
IS = Purchase price or Rateable Value (whichever is highest) x 0,8%
IMI - Property rates. These are paid in arrears and whoever owns the property on the 31st December of the previous year is liable to pay for the whole year's IMI. If you purchase a property in November, the following year you will be liable to pay for the whole year even though you have only owned the property for one month out of that year.d
Aside from taxes there are also the following costs:
- Deed costs
- Documentation costs
- Property insurance costs - mandatory if requesting a mortgage
We advise to allow around 10% of the purchase price to cover all costs
The following taxes are applicable when purchasing a property in Portugal:
IMT - Property transfer tax. The formula to work out IMT is as follows:
IMT = Purchase value or Rateable value (whichever is highest) x rate as per table – Deductables
To view the table of rates please click here
IS - Stamp duty. There are two occasions where stamp duty is levied, on the sale or purchase of a property or when a loan to purchase is deposited in your bank (mortgage).
IS = Purchase price or Rateable Value (whichever is highest) x 0,8%
IMI - Property rates. These are paid in arrears and whoever owns the property on the 31st December of the previous year is liable to pay for the whole year's IMI. If you purchase a property in November, the following year you will be liable to pay for the whole year even though you have only owned the property for one month out of that year.
Aside from taxes there are also the following costs:
- Deed costs
- Documentation costs
- Property insurance costs - mandatory if requesting a mortgage
We advise to allow around 10% of the purchase price to cover all costs
The following taxes are applicable when purchasing a property in Portugal:
IMT - Property transfer tax. The formula to work out IMT is as follows:
To view the table of rates please click here
IS - Stamp duty. There are two occasions where stamp duty is levied, on the sale or purchase of a property or when a loan to purchase is deposited in your bank (mortgage).
IMI - Property rates. These are paid in arrears and whoever owns the property on the 31st December of the previous year is liable to pay for the whole year's IMI. If you purchase a property in November, the following year you will be liable to pay for the whole year even though you have only owned the property for one month out of that year.d
Aside from taxes there are also the following costs:
- Deed costs
- Documentation costs
- Property insurance costs - mandatory if requesting a mortgage
We advise to allow around 10% of the purchase price to cover all costs
The following taxes are applicable when purchasing a property in Portugal:
IMT - Property transfer tax. The formula to work out IMT is as follows:
To view the table of rates please click here
IS - Stamp duty. There are two occasions where stamp duty is levied, on the sale or purchase of a property or when a loan to purchase is deposited in your bank (mortgage).
IMI - Property rates. These are paid in arrears and whoever owns the property on the 31st December of the previous year is liable to pay for the whole year's IMI. If you purchase a property in November, the following year you will be liable to pay for the whole year even though you have only owned the property for one month out of that year.
Aside from taxes there are also the following costs:
- Deed costs
- Documentation costs
- Property insurance costs - mandatory if requesting a mortgage
We advise to allow around 10% of the purchase price to cover all costs
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What costs are there when selling a property in Portugal?
What costs are there when selling a property in Portugal?
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When selling your property in Portugal you will need to pay the following costs:
- Commission fee to an estate agency: Generally between 3-5% + VAT
- If you have a mortgage there will be a cancellation fee levied by the land registry (Conservatória) and also there may be a prepayment penalty levied by your bank (if not re-investing)
- Cost of documents
Documents Required
- Energy Certificate (Certificado Energético) - If you don't already have this (they last 10 years) it will range between 2-600€
- Property Tax Document (Caderneta Predial) - costs around €5-€10
- Land Registry (Certidão Permanente or Certidão de Teor) - costs around €15
- Deeds (Escritura) OR Habitation license (Liçensa de Habitação) OR Building License (Liçensa de Utilização ou Construção) - usually around €10 each
- Plans (Plantas) - Final approved version stamped by the Town Hall. Costs range from as little as €1,30 up to €24
When selling your property in Portugal you will need to pay the following costs:
- Commission fee to an estate agency: Generally between 3-5% + VAT
- If you have a mortgage there will be a cancellation fee levied by the land registry (Conservatória) and also there may be a prepayment penalty levied by your bank (if not re-investing)
- Cost of documents
Documents Required
- Energy Certificate (Certificado Energético) - If you don't already have this (they last 10 years) it will range between 2-600€
- Property Tax Document (Caderneta Predial) - costs around €5-€10
- Land Registry (Certidão Permanente or Certidão de Teor) - costs around €15
- Deeds (Escritura) OR Habitation license (Liçensa de Habitação) OR Building License (Liçensa de Utilização ou Construção) - usually around €10 each
- Plans (Plantas) - Final approved version stamped by the Town Hall. Costs range from as little as €1,30 up to €24
