Buying a Property in Portugal
When Buying a Property in Portugal we at Ocean Key Property are a Portuguese license Real Estate agency with properties throughout the Algarve. If you are looking for apartments, villas, plots or other investments we will help you purchase your dream home with us here in Portugal.
When you purchase a property in Portugal, you will have to pay the annual tax on your purchased property. The property tax here in Portugal is called Imposto Municipal sobre Imóveis or IMI. This is the municipal tax which is usually at the end of every calendar year. It works out that if your amount owing is between 250 – 500 Euros you can pay in two instalments. If the amount is over 500 Euros then you are allowed to pay this in three instalments starting from the month of April.
Rates on the tax vary from 0.2 and 0.8 percent of the property value this is known as the Valor Patromorial here in Portugal.
Homes that are before 2004 have different rates between 0.4 and 0.8 percent of the registered value. Homes evaluated after this period then their percentage is between 0.2 and 0.5 percent of the registered value.
If you purchase a property in Portugal for permanent residency, you can be exempted from paying property tax for a period of 3 to 6 years. This tax exemption will depend on the value of the property.
Reasons for Purchasing in Portugal
Portugal has a very sunny climate and due to the sea breeze coming off the Atlantic Ocean the breeze is never muggy. The spring in Portugal offers blooming flowers in March and lovely greenery all around the coastal lines.
Crime in Portugal is amongst the lowest throughout Europe. This makes Portugal one of the best places to invest in Real Estate due to its low crime levels.
Although the property market is stable, prices are expected to rise again in the coming years. Buying Property in Portugal at this time will be profitable for any new owner.
Faro airport is the most popular airport in Portugal for tourists who come to visit the Algarve. Every year millions of tourists from around the world enter Portugal through Faro airport. You will find the prices go up drastically through the summer making it hard for any buyer to view properties. Spring and winter are the best months to travel to the Algarve to look at properties. This is not just because of the fewer tourists, but also the weather through the year is quite pleasant and not as hot as the summer months.
For those who are pursuing investment in Portugal can apply for a Residence Permit, this is for example if they wish to transfer capital, create a company which also creates jobs, or purchase Real Estate. The holders of the Golden Residence Permit (also known as the Golden Visa) have the right to family regrouping and permanent residency along with Portuguese citizenship with accordance to the legal provisions.
The people allowed to apply for the Golden Visa are;
- those involved in an investment activity for a minimum time of five years, acquiring property with a value equal or above 500,000 Euros
- Transfer of capital from or above 1,000,000 Euros
- The creation of jobs for up to at least 10 job positions
For more information on the Golden Visa please don’t hesitate to enquire with us