Let's just say this off the bat: buying
property in Portugal is no easy feat. It's not necessarily impossible seeing as many other people have done it (and are doing it now!), but it's still no walk in the park. You'll be dealing with huge amounts of money, Portugal's real estate laws, and possibly even more. One wrong move can change everything in an instant. And before you know it, you spend so much money but earned nothing. Fortunately, you can avoid all that by following a few helpful tips. They include setting a timeline for yourself and viewing the property in person, among many others.
Set A Timeline
First things first, you need to set a timeline for yourself. Figure out how much time you can spare for this process before you start doing it. You ought to know now that buying real estate in Portugal is no walk in the park. Not only do you have to accomplish many steps, but there's no telling how long it'd take too. And if you're too busy with other stuff, then it will only stress you out. If you set a timeline for yourself, establishing deadlines on when you should accomplish each step, then it'll be easier for you to take on this endeavor.
Set Up A Local Bank Account
Opening your own
local bank account in Portugal isn't required when buying property in Portugal. In fact, even if you relocate to this country, you can still get by, albeit a little, without a local bank account. With that said, doing so will really help. The process of purchasing real estate in Portugal required many costs, some of which aren't included in the final property price. In order to pay them without any problem at all, a local bank account will surely help. You'll also find it easier to handle all your finances moving forward if you have one.
Consider Getting The Golden Visa
Generally speaking, non-residents are allowed to buy property in Portugal. Foreigners face no restrictions when it comes to owning real estate here. But what if you want to be a resident? Let's say you want to buy a property and
move to Lisbon. Is there an easier way to do that? Yes, and it’s through the Golden Visa Program. This program allows any foreigner the chance to become a legal resident of Portugal when they buy a property here. And it's good for five whole years! After which, you will then be eligible for permanent residency. Not a bad deal, right? The only condition is that you'll need to invest not less than €500,000.00 for the property.
Check and Survey The Property First
In the process of purchasing any real estate in Portugal for sale, there's something called '
due diligence' that you have to do. In a nutshell, it's a series of surveys, including valuations and property inspections, that will help you determine whether the place really is worth buying. Or if it's even legal to buy in the first place. Technically, due diligence isn't exactly a requirement, but more so an obligation. While you have the choice not to do it, you're better off doing it anyway. This will let you know if the property you're eyeing truly is worth your time, effort, and money.
View The Property Yourself
Of course, there's nothing like seeing the property yourself. If you have the time and money, you'd do well to travel to Portugal to see the place in person. Results from the survey and high-quality images online are all well and good, but they're not the same as seeing the property in real life. Only then can you really determine if the real estate is worth it or not. Don't worry! As long as you have a
Schengen Visa—or if you're eligible for the
ETIAS Visa Waiver Program—it'll be easy to travel to Portugal as many times as you want/need.
Hire a Lawyer You Can Rely On
When you want to buy a property in Portugal, especially if you're a foreigner who doesn't understand Portuguese, then you need to hire a trustworthy lawyer. More than just assisting you in this endeavor, their legal advice will help you more than you probably realize. They can also help with your due diligence, specifically when it comes to checking the current legal status of the property in the Conservatory for Real Estate Registry (
Conservatória do Registo Predial in Portuguese), more commonly referred to as the Land Registry. And finally, if you need to, you can authorize your lawyer to serve as your legal representative in the process. This gives them the right to sign documents and the like on your behalf.
Gather All The Important Documents Early
As previously mentioned, there's no telling long it will take you to buy a property in Portugal. This is dependent on various factors, one of which is how prepared you are at the start of the process. If you already have the required documents you need for the purchase, then things can go as quickly as you want. More often than not, it's acquiring these documents that prolong the process, especially since you have to get some of them from various government and financial institutions. They include proof of identification (your valid passport will do), your Portuguese Tax Number (NIF), and proof of your income.
Set Up a Contrato de Promessa de Compra e Venda
Arguably among the most important parts of the process is signing the
Contrato de Promessa de Compra e Venda, or the promissory contract. Though it's not a requirement, it's become a common and necessary part of the process since it legally binds both parties, seller & buyer, to the sale. You'd want to draw up and sign this too since it will essentially reserve the property for you while you deal with your finances in preparation for the purchase. You'll also have to pay a 20% to 30% deposit upon signing. It's a lot of money, sure, but it will guarantee that you and only you will buy the property in Portugal.
Purchasing a property in Portugal requires a lot of attention and effort. If one thing goes wrong, there's a good chance that everything will fall apart. So make sure that doesn't happen by following these helpful tips!
