How to buy property in Portugal and get a Golden Visa

Buying property is a profitable investment and an opportunity to get a residence permit in Portugal. The investor chooses from different options: from modern luxury apartments to old villas.

Buying a residential property is one of the investment options of the Portugal Golden Visa Program. An investor can also choose another option:

• purchase shares in investment funds for €500,000;

• open a business and create 10 jobs;

• transfer €1,500,000 of capital to a Portuguese bank;

• invest €500,000 in scientific research;

• finance cultural projects with €250,000.

Premium apartments are easiest to find in the Portuguese capital of Lisbon and its suburbs, Cascais and Estoril. Elite housing is usually located near a transport interchange, within walking distance from parks, squares, or in the city’s historical centre. The house territory is fenced and guarded. Often this is housing in houses after reconstruction.

Elite villas are usually bought in resort towns in the Algarve region, in the south of Portugal: Albufeira, Tavira, Lagos and others. Analysts predict that the cost of these properties will grow by 3—5% per year in the next five years.

Restrictions on the buying property in Portugal. From 2022, it is impossible to get a Portugal golden visa by purchasing residential property in large and coastal cities like Lisbon, Cascais, Porto and others.

It is allowed to buy property in the interior regions of the country and the autonomous areas like Madeira and the Azores.

Restrictions do not apply to commercial real estate; it can be bought in any region of Portugal.

The minimum investment when buying a property is €280,000. The object can be rented out and sold after five years of ownership.

It is enough for an investor to spend seven days a year in the country to get a residence permit.

According to the National Institute of Statistics, the increase in residential property prices in Portugal for the first quarter of 2021 was 0,5%. Given the global restrictions due to the COVID‑19 pandemic, it is a good indicator.

The cost of one square meter of housing depends on the location.

Lisbon became the most sought-after city in the European housing market before the pandemic in 2019. As a result, real estate value increased by 4,5% per year. The market itself has grown by a third compared to 2017. The average annual increase in value in 2019 was 7%.

17,000 people have already taken part in the residence permit by investment program. They can live in Portugal without restrictions, work, study, do business and travel around Europe without visas.

What attracts investors to the program:

1. The spouse, children under 26 and parents over 65, can also obtain a residence permit.

2. One or more apartments or villas can be purchased.

3. Investments are returnable: you can sell the property, return the investment and make a profit after 5 years of ownership.

4. There is no requirement to pass Portuguese language proficiency tests or history exams.

5. The investor needs to spend only 7 days a year in Portugal.

6. The investor can relax at any time in popular European resorts.

7. The investor can apply for Portugal citizenship five years after obtaining a residence permit. They will need to confirm their Portuguese language proficiency at the international A2 level.

8. If the investor becomes a tax resident in Portugal, they can enjoy a special tax regime with reduced rates for 10 years.

On average, it takes between 8 and 10 months for an investor to get a residence permit in Portugal.

In five years, the cosmopolitan and his family will be able to apply for second citizenship. After that, you can live in any EU country with a country passport, hold positions in government agencies, and participate in elections.

Decide on the region. From 2022, you can choose residential property in the interior areas of the country, the Azores and Madeira, or commercial property in any Portuguese city.

Select property class. An investor can purchase an apartment or a villa of an economy class or a premium segment and real estate on the coast of the Atlantic Ocean.

If the housing requires reconstruction, it will be necessary to deposit €350,000, and from €500,000 for modern accommodation.

When purchasing real estate in regions with low population density, the investment amount reduces by 20%. You need to invest €280,000 in real estate for reconstruction and €400,000 in a modern property.

Assess your chances. Immigrant Invest specialists help investors assess the chances of obtaining a residence permit in the country and prepare documents.

First, Immigrant Invest’s experts select individual solutions based on the client’s goals. Next, lawyers conduct a preliminary Due Diligence: they analyse the sources of the investor’s income, the presence of negative information in the media, and involvement in criminal organisations.

Individual cost calculation for residence by investment in Portugal

Get the cost calculation

Buying villas, apartments, and shares in a hotel are the most popular options for participating in the investment program.

The minimum value of the object depends on its characteristics:

• €280,000 for commercial property in low-density areas requiring renovation;

• €350,000 for buildings under renovation built more than 30 years ago. Commercial real estate can be bought in any city, residential — only in the interior regions of Portugal or in the autonomous regions of the Azores and Madeira;

• €400,000 for modern commercial real estate in low-density areas;

• €500,000 for housing in the interior of Portugal, the Azores or Madeira.

From 2022, it is impossible to obtain a residence permit in Portugal to purchase residential property in large and coastal cities popular with tourists like Lisbon, Cascais, Porto and others.

Immigrant Invest cooperates with 15 leading real estate agencies in Portugal and owns the complete database of residential and commercial properties suitable for investment. Specialists select a portfolio with real estate that meets the client’s wishes and goals.

Examples of properties in Portugal

Portugal, Albufeira

€1,400,000 — €4,500,000

Apartments and villas in a luxury resort managed by Marriott International

194 m² — 386 m²

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Portugal, Lisbon

€860,000 — €2,500,000

Apartments in a hotel managed by Hyatt

88 m² — 251 m²

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Portugal, Lisbon

€1,900,000 — €3,400,000

Apartments in a luxury residential complex

137 m² — 245 m²

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1. Preparation of documents and Due Diligence. The Immigrant Invest lawyer helps collect a complete package of documents, prepare a translation into Portuguese and certify with an apostille.

The investor passes a preliminary Due Diligence check providing information about his personality, business and sources of income. It allows you to prepare for the primary inspection, minimising the risk of failure.

2. Submission of documents and choosing a property. The investor goes to Portugal to see the objects. A real estate expert of Immigrant Invest accompanies clients at every stage and helps submit documents. You can get acquainted with the country’s life, culture, and traditions during the trip.

3. Getting a tax number and a bank account. To carry out a real estate transaction, you will need to obtain a NIF (Número de Identificação Fiscal) — a taxpayer number. The lawyer will do this on behalf of the investor in the tax authority of the area where the property is located.

You will need to open a bank account, which will receive money for investment and from which all government fees will be paid. The purchase of real estate is possible only through bank transfer.

4. Preliminary agreement. After choosing a property for purchase, you need to pay a 10% reservation fee of the property’s value. The seller then removes the property from sale. At the same time, the parties conclude a preliminary agreement, which describes the details of the object, the rights and obligations of the parties, the final cost, and the terms of payment.

5. Deal preparation. A lawyer in Portugal conducts the necessary examinations and checks the documentation set for the object, the absence of encumbrances, utility and tax debts. If defects are found, the seller is obliged to eliminate them within the period specified in the preliminary contract.

Before the transaction, the investor receives the following documents:

• Passport of the object (Ficha Técnica de Habitação). Asserts ownership. It contains a housing certificate (Licença de Habitação) which certifies that the property complies with building codes. If you purchase a newly built object, all the contractors who carried out the construction will be indicated in the passport. If you find any damage or malfunctions, you can apply with a claim so that they eliminate the shortcomings.

• Notice from the Land Registry (Centidão de Teor). It contains a plan of the site, object, type and location.

• Energy Saving Certificate (Certificado Energetico). It determines the compliance of the object with the Portuguese electricity consumption standards.

• Notice from the tax office (Caderneta Urbana/Rustica Predial). All real estate is registered with the tax authorities. For the authorities to calculate the amount of tax, this document will be required. It indicates the area of housing, land, and the presence of additional buildings on it. The same information is contained in the household register (Caderneta Predial).

• Conclusion of the Portuguese Institute for the Protection of Historical Monuments (IPPAR). If the building is a historical monument, the local municipality issues a document that confirms that it can be sold.

6. Final deal. Three days before signing the final contract of sale, the stamp duty (Imposto de Selo) and the property transfer tax (Imposto Municipal Sobre as Transaccoes, IMT) must be paid. Do this in the tax authority at the location of the object.

The amount of the stamp duty is 0,8% of the property’s value, which is specified in the contract of sale, and the amount of the IMT tax depends on the property’s value.

The rate is 6,5% for commercial properties, and for residential properties, it is determined on a progressive scale.

The client is accompanied by an Immigrant Invest lawyer to the final transaction. The signing of the contract takes place in Portugal, in the office of a licensed notary. Finally, the money is transferred to a particular escrow account, from which it will go to the buyer.

The account is opened with a bank that acts as a trustee. Then, cash is credited to the account and debited from it at the right time as a payment for the property’s value.

A personal bank receipt for the purchase in the future must be submitted to the migration service as confirmation of the investment.

7. Registration of the property owner. The new owner is registered with the tax office and the land registry (Conservatoria do Registo Predial). In addition, the owner receives a new registration certificate (Certidão de Teor) and the household register.

You will need to re-conclude all contracts for the provision of utilities. You can leave the old suppliers or choose others.

Immigrant Invest’s lawyers accompany the investor at all stages of getting a Portugal Golden Visa. After receiving a residence permit card, Immigrant Invest experts continue to take care of clients and help socialise in a new country: they select schools, kindergartens, language courses, help open an account in a Portuguese bank and apply for citizenship in the country.