Real estate in Portugal: prices and costs of getting a residence permit in Europe

Real estate agencies offer fully furnished and equipped houses and apartments with a fine turnkey finish. It is not always new property, but not older than the 1993—1995 year of construction. At the same time, there are options for purchasing real estate under construction. Most options qualify for the Portugal Golden Visa Program.

Houses. One can buy a cosy house in the countryside of Albufeira, Algarve, Lagos or Vilamoura for €500,000 or €600,000. These will be comfortable suburban villas up to 400 sq. m, with three or four bedrooms and a landscaped plot of area up to 2.5 thousand sq.m. The house will probably have a terrace with a private pool and a parking lot. The properties are usually equipped with solar panels and heating and air conditioning systems.

Luxury villas. If you want to buy property in Portugal at a higher level and at a cost far beyond the Golden Visa Program, you will be offered a vast selection of luxury villas and apartments.

Apartments. For the same €500,000, one can purchase modern apartments in the centre of Lisbon, Porto, Braga, Sintra or Coimbra. Such apartments have three to five bedrooms, an area of up to 150—160 sq. m. in an elite building, and large panoramic windows. A parking lot will have 3 to 5 available spaces. The apartments are usually located in a closed condominium with a garden, swimming pool and gym.

Commercial real estate. In large cities like Lisbon and Porto, an investor can buy premises for offices, restaurants and shops with a tenant and a guaranteed rental yield.

Investors buy shares and apartments in large resort complexes in tourist areas such as Cascais.

Property in Portugal: available types and purchase prices

Portugal, Sagres

€400,000 — €800,000

Villa in a resort managed by a hotel group

97 m² — 138 m²

2—3

2—3

Portugal, Funchal

€500,000 — €590,000

Apartments in a residential complex with swimming pools

154 m² — 180 m²

3

3

Portugal, Albufeira

€1,400,000 — €4,500,000

Apartments and villas in a luxury resort managed by Marriott International

194 m² — 386 m²

3

3

Buyers of real estate in Portugal can participate in the Portugal Golden Visa Program. In this case, housing acquisition is not regarded as a private purchase but as an investment in the national economy.

In Portugal, much real estate is being built; this allows the country to create jobs and bring income to the state treasury in the form of taxes. It is beneficial for the government to develop this investment area since only wealthy people can participate in the program.

To get a residence permit in Portugal, an investor buys:

1. Luxury property worth at least €500,000.

2. Properties located worth at least €400,000 in regions with low population density.

3. Properties worth at least €350,000: for restoration, built more than 30 years ago and in cultural and historical heritage areas.

4. 30-year-old real estate worth at least €280,000: for restoration, located not only in areas of cultural and historical heritage but also in regions with low population density.

From 2022, it is not possible to get a Portugal Golden Visa for the purchase of 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 regions of Madeira and the Azores.

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

Purchase. When you buy a property, you pay 0,8% of its value in the form of stamp duty and 0—7.5% as the transfer tax.

Annual tax. Portugal has a relatively low property tax compared to other European countries. Depending on the region and city, its rate is 0.3—0.8%. The highest tax is in Lisbon and resort towns. It is lower in the countryside. Learn more about property taxes in Portugal.

Sale. Under the terms of the investment program, the owner can sell a property after 5 years of mandatory ownership. If the investor is not a tax resident of Portugal, they do not live in the country for more than 183 days a year; then they pay 28% of the capital gains tax on the difference between the purchase price and the sale price.

Gifting. The gift tax in Portugal is 10%.

Renting out. The rental tax in Portugal is relatively high and is levied at 28% of rental income. However, tax non-residents who reside in a country that has signed an agreement on avoiding double taxation with Portugal can receive a preferential rate.

Individual cost calculation of the residence permit in Portugal

Get the cost calculation

• Getting Portugal Golden Visas for an entire family in 8 to 10 months.

• It is unnecessary to live in the purchased property; it can be used as a "safe haven" or rented out.

• The investor can apply for citizenship 5 years after obtaining a residence permit.

• Investor’s children will be able to study in Portuguese universities without a student visa.

• The Portugal residence permit is a personal travel document as its holder no longer needs a visa to travel around the Schengen countries.

• A residence permit provides access to services of European banks.

If you have already decided on the country where you want to buy real estate and get a residence permit, but you don’t know how to choose a property for purchase, how to make a deal, or how to take part in the investment program, don’t hesitate to get in touch with our company. We are always happy to help you and provide professional support at all stages of moving to Portugal and adapting to a new place.