Good reasons to buy a property in Portugal

Buying a property in Portugal is a solid investment. Every area has a great rental potential and Portugal stays in high demand, all through the year. If you buy as a foreigner the process is quite simple. There are no restrictions
for foreigner people to buy a house in Portugal. All you need is a VAT identification number, known as a ‘número de identificação fiscal’ (NIF) or número de contribuinte in Portugal. Anyone can get this by opening a Portuguese bank account or through a tax office. But you better use our full service in real estate because Portugal has amazing bureaucratic systems. Warning;-) To get things done, you must have lots of patience. Be prepared that once your decision to buy a house in Portugal is made, you activate the ‘Portuguese turtle process’; Steady going but slow.

Advantages to buy in Portugal

The weather

The climate is warm and the people are happy. At least, they look happy! Maybe that’s because in 2019, Portugal was ranked #4 of safest country in the world. That’s a big plus.

Affordable

Many from around the world’s want to get the Portugal Golden Visa and obtain residence as well as citizenship after six years. If you are OK with your current residency and just want to enjoy Portugal, you can spend more: the cost of living is lower than in other Western countries.

English language

Although English is not an official language in Portugal, Portugal ranks in 7th position in the 2021 Education First English Proficiency Index.

Portugal ranks higher than South Africa, a country where English is an official language. Yes, people in Portugal speak English very well indeed, and you will not face any language barrier unless you are in the backlands and speaking with older generations.

International

Due to the country’s cultural and historical significance, Americans are becoming more accepting of Portugal. Its beautiful coastline, up-and-coming tech scene, and summer sun are drawing comparisons with California.

Digital generation

In 2016, the biggest tech festival in the world, Websummit, relocated to Lisbon. There are also plenty of tech companies and startups in the country. Many young professionals and digital nomads are starting to consider Portugal as their next destination.

Sports

In Portugal, there’s plenty of sports to choose from, such as golf, tennis, and water sports. The country’s residents are also passionate about being outside, and there are numerous clubs that are dedicated to providing their members with the best possible experience.

Outdoors

The mild winters are a major advantage to Portugal, as temperatures rarely drop below freezing in most areas. The only place where there is snow are the Estrela mountains. During the summer season, the country’s weather is warm and dry, and it’s filled with beautiful beaches and natural beauty. There are also numerous national parks that are perfect for hiking and experiencing the wonders of nature.

If you’re looking for a place where you can try water sports, then Portugal is the ideal choice. The country is known for its beautiful coastline and is also a top surfing destination. There are numerous international competitions held in the country, where some of the world’s best surfers compete.

Healthcare

Portugal’s healthcare system is very robust, and anyone who lives there can access the necessary medical care. Healthcare costs in the country are lower than those in the US, making it very affordable even if you don’t have a lot of money.

Although the public healthcare system is very good, you’ll still have to pay an additional fee for certain procedures. However, if you’re looking for a more affordable option, then private healthcare can be a better choice. In addition to being able to make appointments faster, private healthcare can also help decrease the wait times.

Contact us for a new property in Portugal

We are present with our local partners In Lisbon, Porto and the Algarve to find your second or residential home. Invest in the best life in Portugal and buy an apartment or a villa with a pool. Email  [email protected] or WhatsApp +33770186203 for a personal selection and full-service guidance.

The best areas to buy a house in Portugal

Cascais

The city of Cascais is known for its high real estate prices. This municipality in Portugal’s Riviera has a coastline that’s well-known for its numerous beaches. The area is also full of shops and restaurants.

This old summer home of Portugal’s Royal Family is known for its clean parks and excellent public schools. It’s also a great place to raise a family due to its high IMI. The city has plenty of infrastructure, which can be seen in its public transportation system.

Photo by Jeroen van den Otter (Unsplash)

Algarve

The beautiful region of the Algarve is known for its warm weather and best seawater. It’s also a great place to retire due to its 300 days of sunshine a year. There are plenty of private and public schools in the area, as well as international schools. The region has a wide range of real estate options.

Photo by Paula Sotomayor (Unsplash)

Lisbon

Individuals and companies from all around the world have been investing in the real estate market of Lisbon. Due to its high prices and quality of life, it’s not a cheap place to buy. However, you can still find affordable homes in other areas. Lisbon is also a great place to raise a family due to its excellent public schools and reasonable transportation.

Photo by Aayush Gupta (Unsplash)

Porto

Situated 280 kilometers away from Lisbon, the city of Porto is a great place to invest. It’s known for its beautiful weather and low cost of living. It’s also a great place to raise a family due to its low crime rate and efficient transportation system. Over the years, Porto has attracted a large international community.
Photo by Nick Karvounis (Unsplash)

Alentejo

On the run for high prices in the other areas of Portugal, such as Porto, Lisbon, and the Algarve, we have good news. Alentejo is still a great alternative. It’s not as oversaturated with tourists as these other regions. The region features beautiful coastlines and dry areas that are ideal for farming.
Photo by Antonio Mendes (Unsplash)

Can you buy a house for Portuguese residency?

Does buying a house in Portugal give you residency? It could! It depends on your financial situation, nationality, time spent in the country, and other requirements. EU citizens can do this without a problem. But if you live outside the EU, you can buy a house in Portugal to obtain residency using the Portugal Golden Visa.

How to get a mortgage as a foreigner in Portugal

Although being a foreigner usually does not influence buying a house in Portugal, it does when it comes to getting a mortgage. If you are not a resident, this impacts how much you can borrow. Non-residents will only be offered loans up to 65-75% of the home’s value or the sale price (whichever is lower), while fiscal residents can borrow up to 90% of the sale price (whichever is higher).

Most banks will also not allow your existing debts and your new mortgage payments to go over 35% of your monthly income. Portuguese banks usually give you a mortgage for 25 years, sometimes up to 30.

So, how much does a mortgage cost you in the long run? The average mortgage rate in Portugal is now less than 1%, which is extremely low. In 2013, the mortgage interest was more than 3%. There are also mortgage-related fees that you might need to pay:
• Deed registration: 1%
• Mortgage arrangement: 1%
• Mortgage administration: 1%
• Non-refundable commitment fee: around €600
• Survey and appraisal: €500–€800
• Legal fees (optional): at least €1,000

You’ll also need to gather the following documents to apply for a Portuguese mortgage:
• ID
• Current proof of residency
• Proof of income
• Documentation of existing rent, mortgage and debt obligations
• Bank statements (last 60 days)
• Proof of deposit (last 60 days)
• Property details (Contract, property plan, or more)

Opening a Portuguese bank account

You will need your NIF number to open a bank account in Portugal. To open a bank account, you must also have a valid ID (passport), proof of address (utility bill in your name), and proof of employment. Some of the top banks in Portugal are Millennium BCP, Novo Banco, Banco BPI, and Banco Santander Totta. You will also need to present a deposit in many cases, and, for some banks, you will need to have a Portuguese phone number.

How much tax do you pay to buy a house in Portugal?

Beyond admin costs and legal fees, property owners must pay the government certain property taxes. You’ll need to calculate each of them, which a Portugal property tax calculator is helpful with. Property owners have to pay three types of taxes:
1. Municipal Property Tax (IMI)
The IMI translates to Imposto Municipal Sobre Imóveis and will be different in each municipality. This money is used to maintain public infrastructures in municipalities. The IMI rates usually range from 0.3% to 0.45%. To calculate the IMI, you multiply the value of the tax asset by the IMI rate. You must pay the IMI every year. For example, if your property is valued at €500,000 and you live in the municipality of Cascais with a rate of 0.34%, your yearly IMI is €1,700. You can be exempted from the IMI if your annual taxable income of the whole household does not surpass €15,295.
2. Property Purchase Tax (IMT)
The IMT is also the Imposto Municipal Sobre as Transmissões Onerosas de Imóveis. This tax is paid when a house is bought in Portugal, so it is a one-time payment for purchasing a house. The rate of the IMT will depend on the type and value of the property, as well as whether this property is a principal or secondary residence. You must pay for this before you buy a house. This is how you calculate the IMT = value of the deed or net worth tax (the more significant amount) x rate – tax reduction. You won’t have to pay IMT if you buy a house in mainland Portugal and the price doesn’t exceed €92,407. IMT usually will range between 2% to 8%, depending on the case. However, properties acquired by companies in a “blacklisted jurisdiction” pay 10% for IMT.

3. Tax on Stamps (IS)
You’ll also need to pay an Imposto de Selo, a stamp tax, contracts, loans, documents, and more. The rate also changes depending on the property and task, but it is usually between 0.4% and 0.8%. For example, for a mortgage of five years, the stamp duty tax is 0.6%.

Can you purchase a house in Portugal with crypto?

Portugal treats cryptocurrency as a currency, making it exempt from VAT and capital gains. That’s consistent with its policy on other currencies: Portugal does not tax the gain on the value or sale of any currency. The Portuguese Tax & Customs Authority (PTA) has announced that buying or selling cryptocurrency in Portugal is tax-free. So, Portugal is becoming one of the most crypto-friendly countries in the world.
To pay with crypto is still uncommon, but people purchasing properties with Bitcoin, Dogecoin, Ethereum, and Cardano in Portugal is possible.

The tax agency cited Article 135 (1)(e) of Council Directive 2006/112/EC, which exempts “transactions, including negotiation, concerning currency, bank notes and coins used as legal tender, except collectors’ items, that is to say, gold, silver or L 347/28 EN Official Journal of the European Union 11.12.2006 other metal coins or bank notes which are not normally used as legal tender or coins of numismatic interest” from VAT. You will not be charged VAT or Personal Income Tax (IRS) as an individual. However, businesses that provide services related to cryptocurrency are taxed on their gains.

Unique tax benefits for French pensionados

In Portugal, the tax climate is particularly advantageous in terms of property, low-income and wealth tax, and the absence of inheritance tax. For retired expatriates from France, the Portuguese government offers a tax exemption for ten years from the first installation, with the primary condition of residing on Portuguese soil for at least six months of the year. However, you will have to pay taxes on your pension income after ten years.
For expatriates who have the non-habitual resident status, they benefit from a low-income tax cost, a cost generally lower than that they have on French soil. The Portuguese tax administration appeals to many ex-pats: they greatly appreciate their new tax status. Warning, do not move to Portugal solely for the advantages of this tax system and to have the sole ambition of being a tax resident with economic interests.

Portugal Golden Visa, still valid?

Since January 2022, you cannot purchase real estate in Lisbon, Porto, and coastal towns. Only properties in Azores and Madeira, as well as interior territories, are now eligible for the Portuguese Golden Visa, as these are low-density areas. Although Porto and Lisboa are the most common places to purchase property, other areas like Braga are also great investments.

Keep in mind that if you want to qualify for a Portugal Golden Visa, you cannot get a mortgage from a Portuguese bank to invest in property. The Portugal Golden Visa allows non-EU citizens to qualify for a residency permit (and eventually citizenship) if they invest in the country, such as buying a house. Created in 2012 to boost foreign investment, the Portugal Golden Visa is one of the most attractive in the world. With a Portugal Golden Visa, you can live in Portugal and travel within most European countries without an issue. However, you do not need to live in Portugal to be eligible for this visa. All you need to do is to stay in the country for at least seven days in the first year and 14 days in the subsequent years.

Top Benefits of the Portugal Golden Visa

• Visa exemption: The Portugal Golden Visa allows you to enter Portugal and the Schengen area (26 EU Countries). You can travel freely without requiring a visa, essentially granting you the travel privileges of European Union citizens.
• Stay in Portugal: The visa grants you the right to live, study and work in Portugal as if you were an EU citizen.
• Family reunification: The program includes family reunification, meaning that a spouse, minor children, children over 18, children over 18 who are studying, and parents who are financially dependent on the investor are all granted the same rights. They can all live and work in Portugal, travel freely within the Schengen area, and enjoy all the visa benefits.
• Permanent residence: The investor can apply for permanent residence if they follow all the requirements and complete the five years.
• Citizenship: After legally residing in Portugal for at least six years, the investor can apply for Portuguese citizenship and potentially obtain a passport.
• Tax incentives: You will not be faced with any tax responsibility unless you become a tax resident, meaning you spend more than 183 days of the year in Portugal. If so, under the Portugal Gold Visa, you can follow the Non-Habitual Resident (NHR) tax regime, where you transfer your tax residency to Portugal. One benefit of this tax regime is a 10% flat rate tax for pensions, which can only be taxed on your worldwide income after the first ten years of residence.

Contact us for an existing property in Portugal

We are present with our local partners in Lisbon, Porto and the Algarve to show you stunning properties. Contact us via mail [email protected] or WhatsApp +33770186203 for a personal selection and full-service guidance.

More elegant, safer, greener, and better lit, and with a renovation of the underground networks, the Croisette in Cannes gets a significant makeover. The large-scale renovation started with the major urban architecture competition launched in April 2021. The assignment was to give the Croisette, the most famous boulevard in the south of France, a new look.

With all the festivals and the daily flow of tourists, it is often a matter of slaloming between the fences when another event is being built. The new layout should make it easy to optimize the multifunctionality of the area so that everyone can enjoy going there. Transformable is the magic word.

The image and dynamics of the famous boulevard had to be conceived and executed by a renowned architectural firm. A design competition was launched in 2021, and the winner was announced in September 2022; Atelier d’Urbanité Roland Castro and the international architectural firm Snøhetta. Their reference list included Times Square in New York, the coast of Thessaloniki in Greece and the National Opera of Oslo in Norway.

David Lisnard, Mayor of Cannes:

“La Croisette is a strong symbol of Cannes and one of its economic engines. However, there has been no structuring development there for 60 years. It is essential to upgrade this legendary promenade, which hosts the most important and prestigious trade fairs, congresses and cultural events worldwide.

For this, the city of Cannes has chosen to call on the expertise and know-how of the architects of the Atelier d’Urbanité Roland Castro and Snøhetta. Their project was the best and most beautiful. It is qualitative, visionary and high-end at the same time. It considers all the complexity of the entrusted space shared by pedestrians, bicycles, cars, and buses. It was essential to be able to reconcile all this. Today, La Croisette has to respond to a quality of life, energy, and dynamism.

This location will reflect the identity of Cannes: a city on a human scale, proud of its French and Provençal roots and open to the world. Today we take a historic step for the future of Cannes. La Croisette must enter the era of the 21st century!”

Red Granite Flooring

To enhance the elegance, the promenade will be covered with red granite, echoing the old district of Le Suquet, the tapestry of the Cannes festival, but also the intense terracotta colour of the Massif de l’Estérel. Various Art Deco-inspired patterns will adorn the floor. In the form of golden details, these decorations inlaid on the ground indicate the main attractions for walkers, such as the grand hotels, the access to the beaches or the Palais des Festivals et des Congrès de Cannes. They also mark the bike path.

A line of custom furniture designed specifically for the Croisette will also be installed. Benches with a round and curved design will be installed along the boulevard. They allow you to take advantage of privileged viewpoints on the enlarged boulevard and the bay up to the Massif de l’Estérel. Fully integrated into the landscape, they will also serve as vehicular protective barriers to secure the promenade.

Strolling like you never did before on the Cannes, Croisette

After strolling in your best hat, you will be extra happy with the new shadow corners with Art Deco accents for shade and freshness. To take advantage of all this, Cannes residents and holidaymakers will have to wait until the end of the planned work in the spring of 2026.

What do you think of the dark red sidewalk? Is it fresh or cumbersome? And it is not yet known where the famous Blue Chairs will be placed. Maybe they will disappear. Knowing the French, a ‘Preserve our culture and the Blue Chairs’ action group will be set up by then.

Do you want to buy an apartment or villa in Cannes? Then take a look at our selection of almost 800 properties in Cannes. Or contact us for a personal selection of exclusive off-market penthouses.

Between all the activities, we sometimes find a moment to catch up on current events. Such as the empty gas stations in France can undoubtedly provide a ‘flame in the pan’ even without gasoline. Employees’ salaries are simply too low, the same with baggage workers and security staff at several European airports. The strikers occupy the oil refineries, and tankers themselves stand empty and uselessly waiting for a full tank. For the time being, there will not be a refill; the government sees the strikers as terrorists holding the entire country hostage, so there is not much room for a solution.

It is much quieter on the road; for many French people, having no fuel is also an excellent excuse to the chef for ‘tele-travail’, working from home. Or they are all late for work because they have to queue for another two hours to refuel to get to work.

The Macron government, which is already not particularly popular, now wants to deploy the army and place willing employees so that the country can be resupplied with fossil fuels. ‘Then it will be war’, shouts the union members belligerently. That will be something.

If you are driving on the French Riviera with an almost empty gas tank, it is best to go to Italy with your last 3 litres. Ventimiglia has nothing to offer thirsty motorists, but Bordighera gas stations are open, also for jerry cans. You’re welcome.

The French Riviera has been regarded as an iconic location. It is located in south of France and has a beautiful Mediterranean sea and plenty of days with sun. The city of Menton borders with Italy and Barcelona can be reached within six hours by car from Nice. Due to its position and history, the French Riviera has attracted many tourists. These include the first aristocrats from Russia, France, and Great Britain. The Cote d’Azur features some of the world’s most well-known and recognized cities, such as Saint-Tropez, Cannes, and Nice. These areas are known for attracting the rich and famous. They choose this region because they want the best of the best. And so can you.

The South of France offers some of the world’s most exclusive and expensive real estate. Although there are many luxury properties on the French Riviera, it also has more affordable properties. The most desirable areas in the French Riviera for buying real estate are those along the coast, such as Cap Ferrat and Nice. However, it is a choice if you want to purchase a property that doesn’t have a sea view. This property allows you to access the city and its various amenities easily. The price will also be more interesting, as having a sea view adds to the price.

Thinking about buying real estate in the French Riviera

There are plenty of beautiful French villas for sale on the French Riviera. However, there are also plenty of smaller and larger apartments. Regardless of your preferences, the French Riviera has plenty of properties for sale that are ideal for everyone. This is because this area has a wide variety of real estate. The general rule is that the closer you get to the seafront, the more expensive the property is.

Another fact is that being close to the sea means you will be close to either a road or a train. Does the ideal second home in the South of France exist? This article tells you the yes or no.

The French Riviera has a rich history. Many of this area’s prominent buildings and landmarks were constructed by wealthy aristocrats who used to stay there. Both older and newer houses characterize the real estate market on the French Riviera. Some are completely renovated, while others are built from the ground up.

No bargains on the Cote d’Azur

Finding a bargain while buying real estate in this area is very unlikely, as it differs from rural France. The Cote d’Azur is known for its fast-moving real estate market. If you want to make a great deal, you need to act quickly. Making an offer 25% or more below the asking price will insult. Property owners are generally never so desperate that they will sell for a lower price. It’s always more interesting to rent a property than to sell it for a meager price. This is also why there is never an actual recession in the Cote d’Azur. There is enough money to survive any crisis.

Retiring or working from home

If you’re planning on living on the French Riviera but don’t want to spend a lot of time in the tourist areas, several small villages have properties for a great price. Some of these include le Cannet, Biot, and La Colle-sur-Loup. These areas are also significant if you are thinking about working from home or retiring in the South of France.

The warm climate and land availability are reasons people retire to the French Riviera and buy their property. This also includes other French nationals who live in the inland areas. Generally speaking, the less you’ll pay if you live inland, but this doesn’t mean you won’t be able to enjoy the fantastic views and scenery the area offers. It’s impossible to determine the exact price of real estate in the French Riviera due to the varying prices that it can offer.

The average price of buying real estate on the French Riviera varies widely. For instance, it can range from around 150,000 for a studio to several million for an estate. Despite its varying prices, most people planning on purchasing real estate in the French Riviera usually spend around 300,000 euros for a one-bed apartment and a million for a villa with a pool.

Although you can find some real estate on the French Riviera that’s very affordable, most properties on the island are priced higher than in other areas in France. The high demand and limited real estate supply in the French Riviera can cause the prices of properties to rise. In 2022, pricing increased by 16% in the VAR and 12% in the Alpes Maritimes. Cannes itself had one of the highest price increases for second homes: 26%. Source the connexion. Living near a beach is always a favourite choice and comes with a price.

Demand and supply

History has shown that the demand for real estate has always been greater than the supply. This can lead to higher prices on the French Riviera due to the seller’s leverage. Many people in the French Riviera use the summer as a time to rent out their properties to cover the cost of local taxes. This can be around 3% to 6% of the property’s value.

The French Riviera has plenty of rental potentials, especially in areas such as La Croisette and the town of Cannes. Studio apartments in these areas are some of the most popular investment properties in the region. Also, the land that you can build on in the area is very limited. The Cote d’Azur real estate market is currently experiencing high appreciation, with claims of around 10% annually. The French Riviera is also very different from other regions’ cities as it doesn’t become a ghost town during the off-season. This is because most tourists visit the area outside of the summer season.

Buying real estate on the Cote d’Azur

Regarding real estate transactions, the legal process in France for buying real estate is incredibly safe. The process of buying in France is to protect the buyer from signing a contract spontaneously. This makes France one of the safest places in the world to buy property. A transfer tax is charged on the sale of real estate. This varies depending on the type of property you’re looking for and the property’s location. For new constructions, the sales tax is 2,5%, but the developer can sometimes offer it as a promotion. You will be paying 7,8% of the buying price for existing properties.

If you’re planning on taking out a loan or mortgage to purchase property in the French Riviera, contact us or read first these six steps to obtain a mortgage loan for your second home in France.

There are yearly taxes to pay when you buy a property in France. In this article, all taxes like tax fonciere and tax habitation are explained.