Investing in Portugal : Lisbon & surroundings

Investing in Real Estate

the Portuguese Eldorado : Lisbon & surroundings  

Unique identity, relaxed lifestyle, why Portugal is one of Europe's hottest housing markets. 

 

 

Since the last decade, the country's thriving real estate sector and development policy offer attractive returns and the high purchase level for foreign buyers makes it a prime destination. 

 

 

A flourishing Real Estate Market

Lisbon is now one of the leading property markets in Europe. Its continued growth, affordable prices, its technological competitiveness, as well as economic policies make it an El Dorado for investments.

Despite the coronavirus pandemic related concerns, house prices in Portugal increased in 2020 and 2021. In just a year, the price increase was 8.1 percent but, according to the forecast, house price growth is expected to slow down until 2024 before a new fresh upsurge.

Indeed, While the Portuguese economy may have had its ups and downs, instability has given way to an economy that is now on the rise. As well as being a city where you would like to buy a house for its relaxed lifestyle, Lisbon is particularly competitive with other European cities as it attracts more and more multinational firms. For example, Volkswagen, Mercedes-Benz or even Google have opened technology centers in the city. But also, for those who prefer innovation and a human-sized company, one may bear in mind that the city is the largest start-up hub in the world.

How to invest ?

Before you even begin your search in Portugal, you must have a Tax Identification Number (TIN). You can obtain the TIN by applying to the local tax office. This number is mandatory for all financial and tax purposes. Finding the ideal property is sometimes a real headache. Therefore, John Taylor Lisbon is obviously here to guide you in this important choice, both on its website and in its own agency where we would be delighted to welcome you!

Thus, once this step is completed, you can reserve your property, for an amount of about 5000 euros, until the moment of the signature. However, most of the time it is impossible to reserve a property because the owners do not want to "block" their property.

After that, we highly recommend you to consult a lawyer, as he will be able to check that the purchase is constrained the restrictive clauses, before the compromise of sale will help you to pay the IMI (imposto municipal sobre imoveis), which is usually between 0 and 0,5% of the value of the property. As an additional cost, expect to pay the IMT (Imposto Municipal sobre a Transmissão Onerosa de Imóveis): This is the municipal tax on the transfer of property. The amount of the IMT varies between 5 and 8% of the purchase amount and the stamp duty (imposto de selo) on the transaction: 0,8% of the sale value of the property, which is included in the deed.

Finally, the sales agreement will be signed usually a few days after the reservation (if there is one). Once the purchase price has been agreed upon, and the documents and the promise to purchase/sell contract have been approved. The buyer pays a deposit of 10% to 30% to the seller. The remaining part of the purchase price will be paid at the time of transfer of ownership.

Encouraging investment in real estate is one of the watchwords of Portuguese policy. Thus, the Portugal Golden Visa program allows investors to kill two birds with one stone, investing in real estate while being able to claim their rights to Portuguese citizenship after five years (remembering that the Portuguese passport is one of the most powerful in the world).

Home Grandola in Comporta, 2 100 000 € (RÉF. V0028LI)

Where to invest ?