Discover everything there is to know if your wish is to invest in Portugal. The cities of Lisbon, Porto, Braga, Funchal, Coimbra or even Coimbra await you.
The climate is one of the best in the European Union with an excellent percentage of sunshine, pleasant winters and summers (even if the heat is there). The major advantages of the country are its cultural proximity to France, the relaxed rhythm of life, the richness of the landscapes, a low cost of living for Europe and optimal security.
Before thinking about settling and investing in Portugal, take into account that citizens of an EU member state do not need a visa or a residence permit. You will need documents such as a valid passport or identity card. If the stay lasts more than three months, you will need a registration certificate, which you will obtain from the town hall of your place of residence in order to regularize the stay.
As a European citizen, the residence card in the country is called “Certificado de registo de cidadão da união europeia”. In order to apply for this document, you will have to show an identity card or your passport to your town hall. It is strongly recommended to have a birth certificate extract, the translation of which is carried out in Portuguese. You will have to go there yourself in order to obtain this document. Know that it is paid.
Your vehicle registration is required for such a procedure. After five consecutive years of expatriation in the country, you can apply for a permanent residence permit. For this, you will have to go to the Foreigners and Borders Service. Several pieces are to be revealed. Here they are: letter from the employer, identity card or passport, two recent passport photos, proof of health insurance and finally a criminal background check document.
Two types of permit are given: a permit valid for three months (90 days or three months if you prefer) to one year and another valid for five years renewable for a maximum of ten years.
In Portugal, each resident has a tax number called “NIF”. You must obtain a tax number for multiple and varied administrative procedures such as creating a bank account or taking out mobile subscriptions. In order to obtain a NIF, the request is made at the tax office located in the place where you reside.
Real estate in the country is among the most interesting on the European continent in terms of prices. The National Institute of Statistics reveals that the average price of real estate in Portugal is only 1,187 euros per square meter – 1,243 euros for apartments, and 1,090 euros for houses. In France, the latter is 2,300 euros in France.
Nevertheless, the prices of goods vary greatly depending on the Portuguese regions. The two least expensive areas, Centro and Alentejo, offer prices about half of those in the Algarve. Indeed, in these two regions, it is possible to acquire a property for less than a thousand euros per square meter. We recommend that you start by looking for accommodation in the following areas (the most financially accessible): Evora, Elvas, Coimbra or Aveiro. The Algarve is the most expensive region with a substantial demand from foreigners. Take into account that the highest rent prices are in the Portuguese capital, Lisbon.
Portuguese banking institutions offer mortgages to non-residents. In order to obtain one, we recommend that you go through one of the following groups: Santander, Novo Banco, BBVA, EuroBic or Bankinter. Local agencies have substantial autonomy. Do not hesitate to contact several of them in order to find the right deal. Language, like most of the time, can also be an obstacle. The specialized vocabulary of the world of finance can lead to complicated communication. One of the solutions is to turn to real estate loan brokers, who have experience in handling this type of operation. Indeed, they know which banks and agencies you should turn to in order to get the best possible rates.
Some types of real estate are not easy to finance with a loan. Rustic habitats, especially when major renovations have to be carried out, are complicated to finance – as well as properties that require substantial renovation, even in large agglomerations. Here, a mortgage on your current home is undoubtedly the best way to go.
When looking at your budget for investing in Portugal, consider including property transfer taxes and all legal costs. In Portugal, be aware that these can be up to 10% of the price of the property. Remember to check that your cash reserves can cover these various expenditure items as well as the necessary contribution to the loan.
There are several significant monthly expense items. Here are the ones you should think about before investing in Portugal (the numbers shown are averages):
Take into account that the country is almost 25% cheaper than France, which will offer the possibility of finding your way there during your installation. For a successful expatriation, planning is essential. Determine a monthly budget so you can find your way around. Feel free to use a simulator. Now you have all the weapons in hand to invest in Portugal!