Real Estate Portugal

Real estate in Portugal

Portugal has developed in recent years as an excellent alternative to other European real estate markets. Especially in times like the Corona crisis, investing in real estate pays off thanks to stable returns and cheaper entry opportunities.
We at Pearls of Portugal offer the most important realtor and buyer agent services for the purchase of a property in Portugal and always have current and selected offers on our website. We are the market leader for accompanying international customers in Portugal. We also offer Online Viewings to purchase property from home during the corona crisis. 
If you have any questions, please do not hesitate to contact us!
Please see also the latest changes in the golden visa program in Portugal.


Latest Real Estate Offers

PG20 Great holiday complex

  • 1 main house, 6 bungalows with garden areas
  • 2 older houses to renovate e.g. for personal use
  • Parking areas also for camping areas / caravan areas
  • 3 hectares of land

 

Price: 375.000 EUR 



PG9 Remodeled apartment cose to the beach

  • Completely remodelled large apartment
  • 200m away from the sea
  • 3 bedrooms including 2 suits
  • Kitchen fully equipped

 

Price: 350.000 EUR 



PG17- New town houses in Alcácar do Sal with great poll terrace

  • Magnificent pool terrace with a view over the town
  • 2 bedrooms, 2 bathrooms
  • Ideal as your own holiday home or rental property
  • Net living space of the house 103 sqm

Preis: 398.000 EUR each town house



PG13 New Apartments in Braga

  • Generously renovated apartments with a lot of charm
  • 7 units with 2 or 3 bedrooms
  • High quality finishing

 

Price: 350.000 EUR to 390.000 EUR



PG15: Spectacular property near Santarém

  • Large property from the 15th century with a hotel, private house, restaurant, bar and around 10 ar land
  • Very good reviews on Booking and Tripadvisor
  • Excellent investment opportunity for your own tourism business or health center

Price: 1.390.000 EUR



PG16 Spacious house to rebuild

  • Specious house to renovate into 2 apartments 
  • Floor space 200 sqm
  • High renting returns
  • Excellent location in Porto / Gaia

 

Price: 230.000 EUR plus 130.000 EUR renovation costs (optional)



PG14:Modern villa with unique view

  • Very good and upscale location at the estuary of the Douro river. Close to the center of Porto
  • 312 square meters of living space and a large plot of land (1024 square meters)
  • With pool and roof terrace
  • 3 bedrooms and 4 bathrooms

Preis: 1.380.000 EUR



PG18 - New house in Alcácer do Sal

  • New building in the city center
  • 80sqm living space
  • Very nice view and location
  • 2 bedrooms / 2 bathrooms
  • Ideal for renting out or for self-use

Price: 248.000 EUR



PG07 New modern houses at the Algarve

  • Magnificent view over the river and close to the beach
  • Spacious modern houses with 2 - 4 bedrooms
  • Private parking slots

Price: 475.000 -565.000 EUR



PG11 Renovated suites in Lagos

  • New refurbished 2 bedroom apartments
  • Close to the beach and city center
  • Close to restaurants, bars and shopping

Price: 225.000 -310.000 EUR



PG03- Enchanting suites in the Hotel Riverside

  • Very nice one to two bedroom suites
  • Living space 70-104 sqm
  • Very quiet location with a wonderful view. Private parking space
  • For investments with a fixed return or for personal use

Price: 180.000 -330.000 EUR



PG6: Remodeled apartment Matosinhos

  • Renovated apartment in the historic center of Matosinhos
  • 2 bedrooms 
  • Kitchen fully equipped
  • High quality of equipment

Price: 357.500 EUR



PG10- HISTORIC HOUSE IN MATOSINHOS

  • Located in one of the most wanted areas in Porto - Matosinhos
  • 196 sqm living area and 4 bedrooms
  • Historic charme and excellent infrastructure 

Price:

  • Property 320.000 EUR
  • Renovations 100.000 EUR


The new boomtown Braga

Braga is Portugal’s third-biggest city and  appeals to lovers of history and architecture. Braga is also a must-see destination for gourmets and considered the happiest city in Europe. It is also on the podium of European cities with the best quality of life. Braga is a city of contrasts: it holds an ancient soul in a young body. Braga holds a large amount of buildings that were scarred by time, and for instance, the oldest cathedral of the country – Sé de Braga.

 

Braga was voted the best destination to invest in Europe. The city is also committed to sustainable tourism and is part of the network of cities with zero CO2 emissions. Renowned for its history and gastronomy, this ‘Portuguese Rome’ attracts not only entrepreneurs and families but also those who wish to invest in tourism. It was considered the Second Best Destination in 2019 and is now the fastest - growing city in Portugal in terms of tourism

 

For many years, Braga has hosted start-ups and international events. Its commitment to promoting development based on the transfer of knowledge, technology,and eco-sustainability has been advertising the city of Braga as a “cluster” of technological industries and an increasingly attractive pole for Investment. Two out of the top three entities in the rankings of applications for registration of inventions in Portugal during 2018 were located in Braga.  The University of Minho was in second among the universities in Portugal, being only surpassed by the University of Porto.The city is leading nanotechnology in Portugal and providing the local companies world-class research in several fields.

 

Investing in real estate is worthwhile Braga not only for their own needs, but is also a very good option for financial investments. The increase in value is excellent with 10.3% in 2020. Due to the high demand for rental apartments and tourist accommodation, very good returns can be generated.

 

Why invest in Braga?


Real estate trends Portugal 2021

Real Estate Trends 2021

When buying real estate there are always a number of criteria that should be considered. Personal preferences are particularly important when investing in a property for your own use. Choosing a preferred region in Portugal is particularly important. The logic “region before object” always applies in order to make a good selection.

 

If you are not quite sure about the region or see the purchase as a financial investment, you should consider trends and developments on the market for 2021 in your selection. We have summarized the most important experiences from our work in a small overview for you. We look forward to your comments and suggestions!

 

Rural retreats wanted

Many tourists and buyers are no longer looking for the classic “all-inclusive / all-entertainment” stay, but prefer regions and accommodations with a strong  tranquil character. Terms such as “life deceleration” or “digital detoxing” give this development additional names. Due to the stressful everyday life and constant digital availability, people are increasingly looking for an opportunity to switch off in remote places. This trend was significantly reinforced by Corona, as protection of one's own health can be better guaranteed in the more rural remote places.

 

The north is in fashion

Due to the mild weather in winter and hot summers, the south of Portugal and the Algarve have long been the top destinations for buyers from abroad. But you don't have to leave Northern Europe anymore to enjoy a hot summer. The south of Portugal has become even hotter and drier at the same time. The trend is clearly moving away from hot regions towards more balanced climate zones like Northern Portugal. Therefore, more and more buyers are looking for properties in the north, especially the region between Porto and the Spanish border. The climate there is also very mild. However, there is significantly more water, precipitation and varied vegetation. Property prices are also lower in the north than in the south. Here you pay approx. 100-200 thousand EUR less than for comparable properties in the south. Clients that want to emigrate to Portugal recently buy more in the North because of the good infrastructure. 

 

Don’t follow the herd

If you look at the holiday resorts along the Mediterranean coast of Portugal, you quickly notice that the respective nations have gathered here in small communities over the past decades. In Silves you can find e.g. many German property owners while Albufeira has welcomed many British buyers. In the past, people sought to be close to their own compatriots and made purchases accordingly. The development on the market is clearly moving away from this and for many investors it is a purchase argument if the property is located in an authentic Portuguese community. With the new communication and information options, buyers no longer need to rely on “swarm intelligence”. In addition, there has also been a noticeable increase in the willingness to integrate into Portuguese society.

 

Renovated beats new

In Portugal, especially in rural regions, there are very often older properties or ruins that need to be renovated. Many buyer are finde the style and charm of old buildings more attractive compared to e.g. new energy-saving houses. In the past, the need for renovation was always an exclusion criterion, since costs and especially processes were scary in a foreign country. What was more of a shortcoming in the past is increasingly becoming the preferred option for man buyers. With better access to craftsmen and international construction companies, many more investors are confident enough to take the step towards renovations. Corresponding properties are significantly cheaper than directly habitable properties. Portuguese banks do not grant loans for renovation work, which causes properties in need of renovation to lose value. In addition, the costs for craftsmen are considerably cheaper than in other countries. The step to renovation therefore not only saves costs but also gives the opportunity to "redesign" the property according to its own ideas.

 

Medium-sized cities are booming

Lisbon in particular has seen very rapid demand and corresponding price increases over the past four years. The real estate market must therefore be treated with great caution due to additional political decisions. Porto has not yet reached this point, but the prices have also increased significantly. Medium-sized cities such as Braga offer very good development opportunities in terms of appreciation and income. The prices are still a long way from being as high as the two big cities. Demand for rental apartments is very high in medium-sized cities, as these, in addition to the general lack of living space, are also experiencing a very large influx of Brazilian immigrants and students. In addition, the medium-sized cities also offer very good living conditions and infrastructures. Many foreign citizens that retire in Portugal choose the medium-sized cities.


The buying process

buying process Portugal

When buying real estate in Portugal, it is advisable to have a lawyer accompany the purchase process in case of any ambiguity. We cooperate with a number of trustworthy lawyers. The costs for the most important lawyer services are included in the fixed price when working with us.

 

Our lawyers examine the legal situation of the real estate. The focus is on the legitimacy of the seller, the existence of encumbrances and the completeness of the documents. In addition, it is checked whether the property even officially exists in the form visited. It can also be checked in advance whether the basic requirements for a later tourist rental are met. When buying property in Portugal, it is always advisable to have a survey carried out before the purchase. This can be included as a separate clause in the preliminary contract.

 

The Portuguese land register (registo predial) contains the legal registration of the property and provides information on how the property is constructed. However, you can also obtain information about the legitimacy of the seller and about the financial encumbrances of the property. The caderneta predial is the extract from the tax register with information about the tax situation and tax obligations associated with the property in Portugal. 

 

The checks are included in the pre-contract of sale (contrato de promessa de compra e venda - CPCV) that is customary for the purchase of a property in Portugal. The preliminary contract is legally valid even without notarial involvement. It is also possible to register the preliminary contract at the land registry office in Portugal, but this is not common.  If one decides to do so, the real estate transfer tax IMT of the regular purchase must be paid already to the preliminary contract. If the purchase does not take place, the tax is refunded within 30 days.

 

It is customary to pay a deposit of around 10% of the total amount. In the preliminary contract, the seller must already provide the necessary energy certificate of the property. The same applies to an extract of the land register entry. The preliminary contract must include the corresponding registration numbers of both documents, which should always be checked. In addition, houses built after 1951 should have an official license of use (licença de utilização) that corresponds to the actual structural conditions. The same applies to additions, outbuildings or garages. It often happens that not all documents are complete. This is per se not a serious matter and will be dealt with accordingly by your lawyer. 

 

The CPCV usually contains a time clause that obligates the buyer to complete the notarized purchase contract. Normally there is a period of 2-3 months for scheduling the notary appointment. However, this period is negotiable and does not have to be completely exhausted. Important clauses or conditions for the purchase are also included in the preliminary contract. Otherwise, claims for damages are usually formulated in case the actual contract does not materialize. The buyer is liable with his down payment of approx. 10% of the purchase price if he withdraws from the purchase without justification. Sellers are required by law to pay back to the prospective buyer twice the down payment (i.e. the down payment plus the same amount as a penalty) in the event of non-compliance with the preliminary contract. In the preliminary contract, the seller must also disclose or list existing tenants.

 

The subsequent purchase contract requires a notarial form.  The contract is formulated by a traditional notary or solicitador and does not contain essential clauses agreed between the buyer and the seller. These are part of the preliminary contract. In contrast to other countries, the usual registration of the buyer in the land register is not required for the actual change of ownership, so that the buyer becomes the owner of the property in Portugal upon conclusion of the notarial purchase contract. However, the registration has to be done by a lawyer or the notary at the latest two months after the purchase. The registration costs about 250 EUR.

 

The real estate is always paid for with a Portuguese bank check (cheque bancário). One must open an account in Portugal for this check. A prerequisite is the possession of a Portuguese tax number (NIF), which can be applied for in Portugal at the tax office or at the Portuguese embassy for a small fee. The tax number is issued on the same day of application. For further information please contact us!


The costs of buying

As in other countries buying real estate brings along other cost besides the actual  price. Some of these costs are obligatory, other costs are optional. We are happy to help.

 

Obligatory costs (continental Portugal):

  • Notary fees: They are between two and three percent of the purchase price and are incurred during the actual purchase
  • Real Estate Transfer Tax (IMT): The tax is staggered and a maximum of eight percent is due. For real estate under 92.407 Euro, there is no transfer tax. You can find a tax simulator on our site. 
  • Property tax: This tax differentiates depending on the region and must be paid annually. The rate is between 0.3 and 0.8% of the property value according to the land register entry. One should therefore not be surprised if the registered information on the value and size of the real estate usually deviate strongly from the reality
  • Application for a tax number (NIF) approx. 12 EUR
  • Land registry entry (about 250 EUR)
  • VAT on new real estate
  • Stamp duty: This is paid at the tax office and must be presented to the notary when signing the purchase contract. This is 0.8% of the purchase price

Optional costs:

  • Legal fees: If you hire a lawyer, the costs are between 2-3% percent of the purchase price. These costs are included in our services.
  • Brokerage commission: . If you hire a  Portuguese broker, you pay up to 5% of the purchase price

Financing real estate

Even as a non-Portuguese citizen or when you are not a tax resident in Portugal, you can have your property financed by a bank in Portugal. As in the rest of Europe, interest rates are currently quite cheap. The financing can be linked to a fixed or variable interest rate. The variable interest rate is based on the Euribor. The Euribor is an interest rate set daily by a group of European banks. You can see the current rates here.

 

The interest rate on a Portuguese variable rate loan is linked to either the 3 or 6 month Euribor rate. The banks, in turn, increase this rate by their current margins. At the end of each period, the bank adjusts the interest rate to the average of the previous months. As a rule, non-resident buyers in Portugal can have up to 60-80% of the property value financed. The terms are up to 30 years with an age limit of 70 years. As in other European countries, bank offers differ not only in interest rates, but there are also many differences in repayment options and ancillary costs. The commissions for early repayment are fixed at fixed interest rates (2%) and variable interest rates (0.5%). You should therefore get information either from an independent financial advisor or from the individual banks.

 

We recommend that you do not only deal with one bank when it comes to financing. Within 2-3 months after the preliminary contract for the purchase of property in Portugal has been signed, the buyer must attend the notary appointment. Banks need about six weeks to make the final decision on a loan. In the course of the process, it is not uncommon for the bank to worsen the conditions that it initially guaranteed. In order not to depend on just one bank, buyers should speak to 2-3 banks at the same time.

 

 

 

Despite the great care, we take over no responsibility for the topicality, correctness, completeness of the information on this site.