Real Estate in Portugal

Real estate cost by region of Portugal

The cost of 1 m² of residential real estate has been increasing quarterly by an average of 1,9% over the past five years.
The dynamic is confirmed by Eurostat data: in the last 12 years, prices for objects have increased by 70%.  

The average cost of buying real estate in Portugal is €2,450 per 1 m². The regions with the highest residential real estate price per 1m² are Lisbon (€3,500), Algarve (€2,850), and Madeira (€2,250). Portalegre is part of the Alentejo region — the city with the lowest prices: the average cost of housing there is €635 per 1 m².

Real estate buying process in Portugal

Buying a property takes up to six months. The buyer chooses an object from Immigrant Invest’s verified real estate database. Then they receive a tax number (NIF), sign an promise of sale and purchase agreement, and deposit 10—30% of the object’s price.

The next step is paying Property Transfer Tax (IMT) at a rate of up to 8% and signing the Deed of Purchase and Sale in the notary’s presence. The notary certifies the contract copies and sends them to the Land Registry office, the tax office, and the land cadastre. 

After registering the property, the buyer receives a Property Registration Certificate — Certidão de Teor — and a title deed.

Taxes on property purchase in Portugal

Real estate buyers in Portugal pay a one-time transfer tax, stamp duty, and service fees. In total, the expenses amount to 9—11% of the Deed value:

• the transfer tax is 0—8%;
• stamp duty is 0,4—0,8%;
• legal and notarial services for the transaction — 2,5%;
• registration of ownership — €250.

Residence permit in Portugal through real estate purchase

Portugal has a residence by investment program — Golden Residence Permit Program. Two options of the program include real estate purchases:  

• from €350,000 — when purchasing an object older than 30 years for restoration;
• from €500,000 — when purchasing an object that does not require restoration.

If you buy an object in a region with a low population density, investments decrease by 20%. In this case, the object for restoration should cost at least €280,000, the rest — at least €400,000.

An investor can buy one or more properties. You cannot combine options: for example, all objects must be under restoration. There are restrictions on residential real estate purchases.