
Achieving your dream home – tips for home buyers in Portugal
Purchasing property in another country can be a bit intimidating. It is important to know and understand the process. One of the biggest things you should be aware of when buying property in Portugal is that the bureaucracy can be overwhelming, and it also helps if you know some Portuguese or have access to someone that can help you in this department.
We all get excited and go to google right away, but before you fall in love with your dream home in Portugal, the one thing that you should focus on is getting your financials together. If you are paying cash, google away! If you plan to ask for a loan from a Portuguese bank, start the process by making appointments at various banks and getting all your administrative documents in order. This way, you can search for a place with a very clear idea of what you can afford, and when you find the right one, you’ll be able to move on it right away. You will also need to apply for a NIF (Portuguese Tax ID) and this can easily be done online or an attorney can assist. You will need a NIF number to open a bank account and also to write an offer on a property.
Once you have a pre-approved mortgage or at least a clear understanding of how much money you have to spend, this is when you can start looking for your dream property.
When searching online, remember that prices can be incredibly inflated in Portugal, especially in major cities like Lisbon or Porto. Be mindful that real estate agencies sometimes list properties where the values do not match the price they are asking. Many places are overpriced for what you are getting, so do your own research, speak to the locals, and be patient. Do not rush the process.
It can be very helpful to find a good real estate agent that you trust. Create a team of advisors in additional to your real estate agent, a lawyer, and possibly a financial advisor who are familiar with the Portuguese market and regulations. Another option is to work with a reputable developer, they often have a team of advisors already in place and can assist you every step of the way. They also offer many options as far as the type of investment that you are looking for from second homes, to tourist homes that offer a return, to primary homes. Most of these are new builds and are energy efficient and have the amenities and conveniences that Americans are used to.
Define your lifestyle preferences. Do you prefer living in the city, on the coast or a country side location. Portugal offers so many beautiful places to live and a visit to these areas can help you determine what resonates with you. Lisbon and Porto are bustling cities with lots of energy while Cascais and the Algarve will offer a more laid back coastal lifestyle. The beautiful thing about living in Portugal is the proximity to all of these areas are just a train ride away! The climate is quite different in the North than in the South so consider this as well.
Another important aspect is to determine what style of living that you prefer. Do you want a villa, apartment, farmhouse, or a plot of land to build on. Do you want amenities or do you prefer more privacy. Do you want to be close to public transportation and do you want walkability to the local restaurants, shopping and markets.
You Have Found Your Dream Home … Now What?
Once you have a pre-approved mortgage or at least a clear understanding of how much money you have to spend, this is when you can start looking for your dream property.
When searching online, remember that prices can be incredibly inflated in Portugal, especially in major cities like Lisbon or Porto. Be mindful that real estate agencies sometimes list properties where the values do not match the price they are asking. Many places are overpriced for what you are getting, so do your own research, speak to the locals, and be patient. Do not rush the process.
It can be very helpful to find a good real estate agent that you trust. Create a team of advisors in additional to your real estate agent, a lawyer, and possibly a financial advisor who are familiar with the Portuguese market and regulations. Another option is to work with a reputable developer, they often have a team of advisors already in place and can assist you every step of the way. They also offer many options as far as the type of investment that you are looking for from second homes, to tourist homes that offer a return, to primary homes. Most of these are new builds and are energy efficient and have the amenities and conveniences that Americans are used to.
Define your lifestyle preferences. Do you prefer living in the city, on the coast or a country side location. Portugal offers so many beautiful places to live and a visit to these areas can help you determine what resonates with you. Lisbon and Porto are bustling cities with lots of energy while Cascais and the Algarve will offer a more laid back coastal lifestyle. The beautiful thing about living in Portugal is the proximity to all of these areas are just a train ride away! The climate is quite different in the North than in the South so consider this as well.
Another important aspect is to determine what style of living that you prefer. Do you want a villa, apartment, farmhouse, or a plot of land to build on. Do you want amenities or do you prefer more privacy. Do you want to be close to public transportation and do you want walkability to the local restaurants, shopping and markets.
Some Things To Consider
Even though you are buying in a foreign country, don’t forget your due diligence. Conduct thorough inspections of the property to check for any issues or necessary repairs. Ensure the property has clear ownership and is free of debts or liens. Familiarize yourself with local zoning and building regulations, especially if you plan to renovate or build. Set up necessary utilities like water, electricity, internet, and waste collection.
Once you have received the new keys to your dream home in Portugal, plan for any renovations or furnishing needs. Consider using local trades people and suppliers. It is also important to understand your residency status and tax obligations in Portugal. Consider how the property fits into your long-term financial and estate planning.
By following these steps and doing thorough research, you can make the process of buying your dream home in Portugal smooth and successful.