The allure of Portugal’s real estate market is hard to resist, thanks to continued growth, a secure environment, and enticing tax incentives tailored for property investments and foreign buyers. At LX, we take pride in leveraging our extensive network to connect clients with leading real estate agencies in Portugal. The country has become a hot market for real estate investors and expatriates, drawn by its strategic geographic location. Along with Spain, it is the closest European country to Costa Rica.
Portugal offers great investment benefits, in a strategic location and with an average of 300 days of sunny weather a year.
Daniel Prospero, INS PortugalIn this article:
Luxury Real Estate in Portugal
Portugal luxury property is still quite inexpensive when compared with European prime locations. Luxury homes in Portugal are typically located in the urban sections of Lisbon and Porto and in key coastal areas near natural highlights.
The Portuguese Riviera (Riviera Portuguesa) is an affluent coastal region to the west of Lisbon, Portugal, centered on the coastal municipalities of Cascais (including Estoril), Oeiras and Sintra that have become a cosmopolitan retreat for the wealthy.
Average home prices depend on the location of the property. A small villa in Cascais can range from $500K to $2M, while an apartment in Lisbon can be priced anywhere from $400K all the way up to $4M or $5M.
The main areas for luxury real estate homes and property in Portugal include:
- Lisbon center
- the Algarve (Golden Triangle)
- Porto (Foz)
- Linha de Cascais (around Avenida Marginal)
- Quinta da Marinha
- Guincho (also in Cascais)
- Sintra
- Tróia
- Comporta
- Melides
Portugal Real Estate Network
LX Costa Rica is proud to provide our clients a gateway to real estate and luxury properties in Portugal. Our exclusive partnership with Leading Real Estate Companies of the World and Luxury Portfolio International ensures clients have unparalleled access to over 500 top-tier agencies spread across more than 50 countries, including Portugal. As part of the LX Network, our partner real estate agencies in Portugal offer local expertise with global reach.
LX Agents can personally connect our clients with a carefully chosen agent in Portugal, aligning buy, sell or invest requirements with local expertise. Or, explore selected properties in Portugal with our partners below:
Types of property in Portugal
Portugal, renowned for its rich culture and picturesque landscapes, is an appealing destination for real estate investments. With a flourishing property market, understanding the various types of properties available in Portugal is essential. Below is a summary guide for those searching for “property in Portugal” to understand key real estate terms:
- Casa or Moradia – Portugal Detached Homes
- What it is: ‘Casa’ or ‘Moradia’ signifies a traditional detached house in Portugal. These homes are often enclosed by a wall with a front gate. Many independent luxury homes and estates fit within the ‘Moradia’ description.
- Amenities: Many of these houses boast amenities like backyards and patios.
- Ideal for: Families looking for space and privacy.
- Casa Geminada – The Semi-Detached Alternative
- What it is: ‘Casa Geminada’ translates to a semi-detached house, which shares one wall with an adjoining property.
- Benefits: These properties generally offer more space than apartments but are more affordable than detached houses.
- Ideal for: Small families or couples.
- Condomínios – Experience Luxury in Portugal Condos
- What it is: ‘Condomínios’ refers to condominiums or apartment units within a building that share common areas.
- Perks: Though these can be pricier, they tend to provide a higher standard of care, security, and often, luxurious amenities.
- Ideal for: Those seeking a high-end lifestyle, often in urban settings like Lisboa.
- Quintas – Embrace Rustic Charm
- What it is: ‘Quintas’ are classic rustic houses or farms typically found inland, though some are located in suburban areas.
- Characteristics: These properties usually feature traditional architecture and expansive land.
- Ideal for: Those looking for a countryside retreat or agricultural ventures.
- Terreno – Building Dreams on Portugal Land
- What it is: ‘Terreno’ means land in Portugal. Some investors opt to purchase land to construct their own homes.
- Legalities: Before buying, it’s crucial to check with the local city hall (Câmara Municipal) to ensure that the land is designated for habitation and not solely for agricultural purposes.
- Ideal for: Those seeking to build a custom property or invest in land development.
By understanding these key terms, you can make an informed decision when exploring property in Portugal. Whether you’re looking for a family home, a luxury condo, or a countryside retreat, Portugal’s diverse real estate market has something to offer everyone.
Requirements for foreigners to buy property in Portugal
If you’re a Costa Rica citizen or other foreign national with dreams of owning property in Portugal, it’s important to be familiar with the legal procedures and requirements involved. Here’s a summary guide of the basic requirements for foreigners to buy property in Portugal:
Buying property in Portugal as a foreigner is quite simple. The country has no particularrestrictions on foreigners looking to buy a house in Portugal.
Before you start… search for a local real estate agency in Portugal. LX Costa Rica works with preferred partners of Leading Real Estate Companies of the World and Luxury Portfolio International. As part of the LX Network, these real estate agencies in Portugal offer local expertise and global connections. You can ask your LX Agent to connect directly with a select agent in Portugal depending on your requirements.
If you need financing to buy a property in Portugal, you can explore local mortgage options. Portuguese lenders are often open to providing mortgages to eligible foreign nationals looking to invest in property. Research and reach out to Portuguese banks or mortgage brokers to discuss your options.
- Obtain a Portuguese Tax Number (NIF)
- What it is: A Portuguese tax number, or Número de Identificação Fiscal (NIF), is essential for any financial transactions, including buying property.
- How to obtain: Visit a local tax office in Portugal to apply for your NIF.
- Prepare Necessary Identification Documents
- What you need: Foreigners are required to present a valid passport for identification. In certain cases, other forms of photo ID may be accepted.
- Engage a Notary for Contract Signing
- Why it’s important: A notary must witness the signing of the actual sales contract to ensure its legality and validity.
- What to do: Engage a notary in Portugal who is familiar with the property buying process for foreign nationals.
- Sign the Preliminary Sales and Purchase Agreement (CPCV)
- What it is: The Contrato-Promessa de Compra e Venda (CPCV) is a preliminary agreement between the buyer and seller that outlines the terms and conditions of the property sale.
- Tip: It’s advisable to have a legal representative review the contract to ensure your interests are protected.
- Obtain the Energy Certificate for the Property
- What it is: The energy certificate provides information on the property’s energy performance and is mandatory for property transactions in Portugal.
- How to obtain: Request this certificate from the property seller or their legal representative.
- Pay the Local Stamp Duty (Imposto de Selo)
- What it is: This is a tax payable on the acquisition of property in Portugal. This is a fixed tax of 0.8% calculated on the value of the purchase, or the tax registration value, when the latter is higher. Once you actually own the property you will have yearly taxes of IMI (Property Municipal Tax) that will range between 0.3 and 0.8% of the tax registration value of the property.
- How to pay: Your legal representative or the notary can guide you on the payment process.
- Complete the Land Registry (Caderneta Predial)
- What it is: The Caderneta Predial is a document that contains details about the property, including its legal history and description.
- How to complete: This process can be facilitated by the notary or your legal representative.
By following these steps, foreign investors can navigate the property buying process in Portugal efficiently. As always, it is also advisable to seek legal advice to ensure a smooth and successful transaction.
Begin your Portugal property search and contact your trusted LX agent today.
