Buying property in Portugal? Things to know.

Here are a few things to consider when buying property in Portugal:

1. Location: Portugal is a country with a diverse range of regions, each with its own unique character and attractions. Consider what type of location you want and what is most important to you (e.g. proximity to the beach, access to amenities, etc.).

2. Budget: Determine how much you can afford to spend on a property, taking into account any additional costs such as taxes and fees.

3. Property type: Decide what type of property you want to buy, such as a house, apartment, or land.

4. Legal considerations: It is important to have a clear understanding of the legal process of buying property in Portugal, including any taxes and fees that may be involved. It is recommended to hire a lawyer to assist with the process.

5. Financing: Consider how you will finance the purchase of the property, such as with a mortgage or cash.

6. Residency: If you are planning on living in Portugal, you should research the requirements for obtaining residency and any potential restrictions on foreign ownership of property.

7. Taxes: Be aware of the tax implications of owning property in Portugal, including property taxes and any taxes on rental income if you are planning on renting out the property.

There are no restrictions on foreign ownership of property in Portugal. However, it is important to be aware of the legal process for purchasing property and any taxes and fees that may be involved. It is recommended to hire a lawyer to assist with the process.

In Portugal, property purchases are usually conducted through a private contract known as a "promessa de compra e venda," or a "promise to purchase and sell." This contract outlines the terms of the sale and serves as a legally binding agreement between the buyer and seller.

After the private contract is signed, the buyer must pay a deposit, typically between 5% and 10% of the purchase price. The final payment is usually due at the "escritura," or deed signing, which takes place at a notary's office.

It is also important to be aware of any taxes and fees that may be involved in the purchase process. These can include a stamp duty tax, a registration tax, and a notary fee.

If you are planning on living in Portugal, you should also research the requirements for obtaining residency.