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10 Things to Know Before Purchasing Property in Portugal

10 Things to Know Before Purchasing Property in Portugal

Are you planning to purchase property in Portugal? This article will give you a rundown of the top 10 things you need to know before you make your purchase.

1. D7 Visa Program

If you’re a non-EU resident, you can obtain a residency permit in Portugal through the D7 visa program. This program is designed for retirees, investors, and individuals with sufficient passive income. You can get a residency permit for yourself and your family by demonstrating sufficient income. This program has been popular for investors seeking a home in Europe.

When applying for the D7 visa, you will need to provide proof of income, such as pension statements or rental income. The application process can take several months, so planning and seeking professional advice is essential to ensure you have all the necessary documentation.

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2. Real Estate Buyers Agent

Before you start looking for properties, it’s essential to find a reputable real estate buyers agent like PortugalBuyers. A buyer’s agent can help you find the right property that meets your needs and budget and guide you through purchasing.

A buyer’s agent works exclusively for the buyer, not the seller. They can provide access to off-market properties, negotiate on your behalf, and ensure that all documentation is in order. With a buyer’s agent, you can have peace of mind knowing that you have a professional on your side throughout the purchasing process.

3. Property Inspection

Having a professional property inspection before purchasing a property in Portugal is crucial. This inspection will help you identify any issues or damages that may not be visible during the initial viewing. It’s better to be aware of any potential problems beforehand rather than discover them after you’ve purchased them.

A property inspection can reveal structural damage, water damage, or pest infestations. By identifying these issues, you can negotiate with the seller or decide not to proceed with the purchase. It’s worth investing in a proper property inspection to ensure your investment is sound.

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It’s recommended to seek legal assistance from a Portuguese lawyer or solicitor when purchasing property in Portugal. They can help you navigate the legal complexities of the process and ensure that all documentation is in order.

A Portuguese lawyer can review the property’s title, draft, and review contracts, and ensure that all legal requirements are met. They can also provide advice on tax implications and assist with obtaining the necessary permits and licenses. With legal assistance, you can have peace of mind knowing that your investment is legally sound.

5. Property Taxes

When purchasing property in Portugal, there are several taxes to consider, such as the Property Transfer Tax (IMT) and the Annual Property Tax (IMI). It’s important to understand these taxes and factor them into your budget.

The Property Transfer Tax (IMT) is a one-time tax based on the property’s value, ranging from 1% to 8%. The Annual Property Tax (IMI) is an ongoing tax based on the property’s value, ranging from 0.3% to 0.5%. It’s important to consult with a tax advisor to understand the tax implications of your investment.

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6. Property Location

Portugal has diverse regions and cities to choose from when purchasing a property. It’s important to consider factors such as accessibility, proximity to amenities, and local property market trends.

The Algarve region is a popular choice for investors due to its warm climate, beautiful beaches, and vibrant expat community. Lisbon and Porto are also popular choices for those seeking a city lifestyle. It’s important to do your research and visit the areas before making a decision.

7. Property Type

Portugal offers a range of property types, from apartments to villas and townhouses. Choosing a property type that suits your lifestyle and budget is important.

Apartments are popular for those seeking a low-maintenance lifestyle, while villas and townhouses offer more space and privacy. It’s important to consider factors such as maintenance costs and property management when choosing a property type.

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8. Negotiation

When purchasing property in Portugal, negotiation is a common practice. It’s important to clearly understand the property’s market value and negotiate with the seller accordingly.

A buyer’s agent can provide you with access to market data and help you negotiate on your behalf. It’s important to be respectful and reasonable during negotiations to ensure a successful outcome.

9. Currency Exchange

If you’re purchasing property in Portugal with a different currency, it’s important to consider the exchange rates and any fees associated with currency conversion.

A currency exchange specialist can help you save money on currency conversion fees and ensure you get the best exchange rate. It’s important to shop around and compare rates before making a decision.

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10. Property Management

If you’re not planning to reside in the property full-time, it’s important to consider hiring a property management company like Portugal Property Management. They can take care of the property’s maintenance, rental, and other management tasks, ensuring your investment is well-maintained.

A property management company can provide cleaning, repairs, and rental management services. Choosing a reputable company with experience managing properties in Portugal is important. With property management, you can have peace of mind knowing that your investment is being taken care of.


In conclusion, purchasing property in Portugal can be a lucrative investment, but it’s essential to be aware of the above factors before making your purchase. With the help of a reputable real estate buyers agent, legal assistance, and proper due diligence, you can make an informed decision and enjoy your investment for years.

Portugal offers diverse regions and property types, making it an attractive destination for investors seeking a second home or rental property. You can make a smart investment decision by understanding the local property market trends, taxes, and legal requirements.

It’s important to seek professional advice throughout the purchasing process, from finding the right property to managing it after the purchase. A buyer’s agent, lawyer, and property management company can provide you with the necessary guidance and support to ensure a successful investment.

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