Because Portugal is such an attractive destination for people from the UK, there are many who choose to take advantage of the property for sale in Portugal. There are many good properties and investments here, making this country an ideal choice for a second home.

The prices of property for sale Portugal have been rising in the last decade but have also been made with superior quality. At the moment the prices of Portugal property are higher than in spain, but there are many great properties in rural areas with much lower prices. These properties have been renovated and are in good condition, getting a property for sale with an old house and renovating it yourself can also become a great deal.

Popular Destinations with Property for Sale in Portugal

Most of the people from the UK that have bought a property in Portugal have chosen the Algarve for their second residence. Because of this demand the prices of property for sale have become higher. At the moment the demand for property for sale in the northern areas of Portugal is also rising. Foreign investors are very impressed with the Silver Coast and the Costa Verde, where the prices of property are lower and will make a good investment because the tourism is under heavy development.

The best and most popular places to find property for sale in Portugal, are the Algarve, Costa Verde and the Silver Coast.

Property for Sale in the Algarve

The Algarve is the top choice for the holidaymakers from Ireland and the United Kingdom, it is still the most popular and in demand location for a holiday home in Portugal.

The Algarve is an expensive location in terms of land and property, due to the constant high demand the value of the properties have risen above the Portuguese average. The prices got so high because the holiday homes have a potential value for leasing and renting almost all year long with good weather, and also due to more strict regulations for construction of new villas and buildings. Even so there is still a lot of choice for all budgets depending on the location of the property. The property prices in the region of Lagos, in the west and suburban areas in the east have very good prices comparing with the inland areas.

Property For Sale in the Silver Coast

The Silver coast is located one hour north of Lisbon in central Portugal. The Silver Coast or Costa de Prata in Portuguese gets its name because of the reflection the sun makes on the sea and here you can find some great property for sale Portugal. The Silver Coast stretches from Lisbon to Figueira da Foz, and here you can discovery traditional villas that are different from the Algarve. In the Silver Coast you are an easy drive away from Fátima, Alcobaça and Tomar, you will find a beautiful coastal area with many historic villages, churches and other great architectural and religious structures. If you go inland you will find rural areas with agricultural crops, livestock and the river Tagus. Although this area has excellent connections and highways it is still very calm and quiet.

In the Silver Coast there the international property buyers are not many, and because of that the prices remain much lower than in the other areas of Portugal with a big tourism interest. As the infrastructures are improving, this will create more interest and buyers because of the assured capital growth of these investments.

Property For in Sale Costa Verde

The Costa Verde in Portugal is located in the North-East part of the country, in the districs of Minho and the Douro Litoral. It stretches from the city of Porto, to the north of Viana to Castelo and to the Spanish border. Here you can find green valleys and mountains with prosperous agriculture and a lot of rain fall. If you are interested you can visit the National Park of Peneda and Gerês to see beautiful fauna and flora with a beautiful panorama. If you like a property by the sea, you can choose between property for sale in oPorto, Vila do Conde, Póvoa de Varzim, Esposende, Viana do Castelo and Vila Nova de Corveira. I you still like to be close to the ocean you can check out Maia, Trofa, Barcelos, Ponte de Lima and Paredes de Coura.

In the Costa Verde you can find the lowest prices for property for sale in Portugal, get the best deals and a bargain when you go inland, near the coastal areas the property is more expensive.

From the Algarve, Costa Verde, the Silver Coast or the interior of Portugal there is a lot of choice and good property for sale in Portugal. If you are looking for an investment opportunity and like a hospitable, warm and cheap country be sure to think about Property For Sale in Portugal.

Due to the situation in the global econonomy the prices in Portuguese property have been decreasing and will continue to decrease in the next few months, this means that should get ready to invest.

In the Algarve there is some news about a new golf course that is opening. This golf course is called Amendoeira Golf Resort and is built by the Oceanico Group. This will give the markets of property in Portugal a very nice boost in some very interesting property investment opportunities. The Amendoeira Golf is just 35 minutes away from the Faro international Airport.

The Amendoeira golf resort is located its in Silves, and this 10 minutes away from the beach in Armação de Pêra. This golf course has an above average natural beauty, with a nice view of the Monchique Mountains, the valleys of the golf course are filled with almond and olive trees, and with more than 50 species of birds. The properties in this golf resorts are also outstanding, and are available and good investment prices.
In the beginning of November the new motor racing circuit will be opened in Portimão in the Algarve. This race track will be used for the Moto GP, and hopefully for Formula One competitions. The latest forecast expects 1 million extra tourists a year due to this motor racing circuit. The Autódromo Internacional do Algarve hosted the World Superbikes Championship in November of 2008.

Another possible hotspots for property in Portugal is in Sesimbra. Sesimbra, which lies south of Lisbon will be a hot property spot because there will be a new airport built in the vicinity.

In the wonderful island of Madeira there are plans for two new golf resorts. The plans for the luxury property developments are very close to being finished, so you can expect the property in the vicinity of these resorts to have capital gain and appreciate. One of the resorts called Calheta Golf Course is planned on the island of Madeira in the Ponta do Pargo region. The other golf course will be in the island of Porto Santo.

It looks like there is a good property investment opportunity in Porto. The prices of properties have gone down due to the international banking situation. Porto is a city with great potential for long-term rentals due to its strong tourism, people traveling for educational purposes and business travelers. Due to the low prices you may find a great investment there. The property prices in the Algarve have also gone down but still remain high in comparison to the price decreases witnessed in the rest of the country.

Our forecasts predict that the prices will continue decreasing until March 2009 and then it will be the best time for property investment in Portugal. Sure thinking about buying property in Portugal you should know what you want by the end of January to start making your purchases. The prices of rural tourism property are also declining in all areas of Portugal.

Portugal is a prime location for overseas property investment because it is a very strong real estate market and above average rental yields because of its popular tourism resorts. Portugal has had a slower growth rate than in the previous decades but it is still a very attractive and lucrative place to invest in. Portugal has a good appeal for investors that seek to make capital gain of their property and that are looking for a retirement location with a good climate and relaxed environment. Many tourists from the UK look for houses for sale in Portugal because they like the climate and it is easy to reach with a low cost airline.

Advantages of investment in Portugal

Portugal has one of the lowest cost of living in the European Union. Prices are slowly catching up to the level of other European countries because it is regularizing tax policies in conformity with the rest of the European countries.

Portugal has great tourism locations, like the Algarve, Silver Coast, green coast, and the area around Lisbon. These locations cater to every type of person, from the beach lover, nature lover, and golf enthusiasts.

The country also has a very diverse stunning beauty, with beautiful rivers, Rocky or red cliffs. This makes Portugal popular with every kind of visitor and a perfect place for a second home.

This country also has a very interesting history and cultural heritage with great tourism potential everywhere in the country.

The property market in Portugal is very stable and transparent. The buying procedures are very easy to follow for foreign investors, and there are many specialized firms to help you with all the bureaucracy is a very acceptable cost.

English is widely spoken in Portugal and there is a big presence of British residents. The biggest concentration of British residents is being the Algarve, in the south of Portugal there are more than 55,000 British property owners.

Portugal has more than 300 days of sunshine every year, the lowest crime rate in Europe and the very stable political climate.

In the Algarve, located in the South Portugal, the construction density is limited to 8%. This guarantees at all times that the natural environment is protected and preserved.

The Algarve has the largest area covered by golf courses in whole southern Europe. If you’re a golf player you will have a lot of choice and many of the best golf courses in Europe to play on.

When you invest in Portugal property you can get your rates up to 10% a year and rental yields also. This is not in every location, but with the information on this website you will surely get a lot of good tips to get the best possible location for your property.

Sure coming from the UK, you can take advantage of many of the low-cost flights from Ryanair, EasyJet, and many others.

Property in Portugal is not limited to the Algarve, there are many emerging investment locations, such as the Silver Coast, Lisbon area, green coast, and others. These locations at much lower prices than in the Algarve and can be great investment properties.

Insurgent parts of the Algarve off-line purchase is becoming very popular again, specially in some of the new luxury golf resorts that are being built. These investments yield the best returns with up to 10% of capital gain.

These properties are the ones that have the most capital appreciation for resale. Although there are people looking for land for sale in Portugal it is best to buy an off plan property because of the licensing process that takes a long time, is very bureaucratic and can become expensive. If you are looking for houses for sale in Portugal then you have come to the right place. Here we have a vast selection of property in Portugal and you will surely find something to suit your needs.

Another convenience factor that makes Portugal a great holiday destination for UK residents is a great direct flight communications with the United Kingdom and other European countries. Because the country is so accessible it increases the potential investment yields for later resale of your property. To know more about the best places to buy property in Portugal you can check out our articles about the different Portuguese tourism areas.

The Algarve in Portugal has a lot of investment potential and low prices in comparison with other tourist destinations in Europe. This country this country has a well developed and matured tourism infrastructure and the backing of a strong European Union economy. These factors ensure that you will get the best possible capital gain on your property investment in Portugal.

Portugal has a very strong tourism industry, with great natural resources that will delight the beach lovers and golf players. The prices in Portugal are still relatively low, and the lifestyle is very relaxed. This makes Portugal an ideal place for many people that are looking for a great holiday or the perfect place to spend their retirement.

There are many more reasons to invest in a Portuguese property. Now I will tell you a little bit about the natural and cultural factors of the country.

In Portugal you can enjoy over 300 days of sunshine every year, with minimum temperatures of around 14°C. This makes Portugal a great destination for the people that love the outdoor lifestyle, with fresh air from the Atlantic Ocean.

This country has fantastic natural beauty and scenery, with fantastic gold sand beaches, beautiful rocky coastlines, and the best golf courses that you can ever find in Europe.

Portugal has always been a favorite location for British tourists, because of that English is widely spoken over here, and most lawyers and real estate agents can speak English very well.

The Portuguese people are always very friendly and helpful; this is the southern hospitality at its best.

When traveling from the UK, you can fly to Portugal in only 2 1/2 hours, with direct low cost flights from many airports in the United Kingdom.

The economic factors in Portugal are also very good. The economy is still growing at a slower pace now, but growing nonetheless. If you do a good search for investment property in Portugal, you can find properties with a very solid capital return. You can find properties that have capital return and rental yields of over 10% per year.

In this country you can take advantage of the low cost of living in the great value for money, even with the stronger euro, you have great value for your money.

Portugal and especially the Algarve is well known for it’s prospering and growing tourism industry. Here you will not have a problem renting your investment property during the summer because the demand is always very high.

Because of the low cost flights and airlines, Portugal’s tourism industry is still increasing year after year even after more than three decades of growth. This growth in the tourism industry is not as accentuated as before, but in the last years many efforts have been made to rise the quality of tourism installations and golf courses.

Many people from abroad invest in an old property to renovate in Portugal. There are many great deals on property to renovate, in the Silver Coast, the north of Portugal and in the inland of Portugal.

Land for development and project sourcing is also widely available in Portugal. There are some great property investments that can be made here. On this website you can find a comprehensive source of information in regards to the newest opportunities for investment in Portugal, we make an effort to give you the best possible selection between all the available investment properties in Portugal. Between all that is available in Portuguese properties, from golf property, off plan property, the beach resort properties, rural area properties or properties to renovate, there will surely be something for you.

When you invest in off plan property, it allows you as the investor, to make your purchase at the lowest possible price. This way you will achieve the maximum possible return on investment.

Some investors choose to rent their property for a number of years to further increase their capital gain and income. Renting your property is a great way to make extra income while you’re property value is increasing steadily.
When you buy off plan property in Portugal many developers offer very beneficial payment schemes. When you work with the most reputable property developers and property development companies you will achieve the best results for your investment.

When you buy off plan property it allows you to make your purchase at the lowest price possible, this is because you buy your property before the development and construction begin. When the property is finished, the prices will already have arisen due to the market forces, and due to the end appeal of the finished property. Portugal property investors can then choose to sell their property with the returned from 10% to 60%, while not even having paid the full purchase price of the property. The profits from off plan property investment deals can go between 30% to 100% per year, depending on the down payment and the speed of the completed construction.

Of course this is not as easy as it seems, because you’re property investment needs to have a good location, high demand is crucial to sell the property quickly. You need to buy an off plan property investment where there is a high demand so that you can resell as quickly as possible.

Why is Portugal property so much cheaper when bought off plan?

The property is cheaper when you buy it off plan because the developers of the project office to sell a few units before they start construction, in order to reduce financial risk and debts. The developers know that when the buyers cannot see the finished property they will have to sell it for a lower price, because the buyer has to rely purely on the reputation of the developer, on the property location, and on the design and pre-rendered graphics of the final product.

Another great advantage of buying off plan properties in Portugal is it many times you need to pay only 20% to 40% of the purchase price on deposit. The rest can be payable on completion of the property and this may be financed by a mortgage if that is your choice.

When you decide to invest in an off plan property in Portugal, you have to first decide what kind of strategy you will adopt, so you can make the provision of your return on investment. I hope this article was helpful for you to understand a little bit more about off plan property investment purchasing in Portugal.

We can, nevertheless, give a generalized guide on how to get the best estimate on the costs of your property for sale in Portugal.

The costs are accounted based on the price of the property written on the Escritura. Because these expenses are heavy and with an added dislike of paying tax by the Portuguese there existed a habit of accidentally under-declaring the price of the property for sale. In the past this was almost certain, but nowadays it rarely ever happens. As a group of solicitors we can only advocate you to declare the full price of the purchase when buying a property in Portugal.

Real Estate Agent Fees

In Portugal the buyer doesn’t have to pay Real Estate Agent fees because the real estate agent acts on behalf of the seller and not the buyer. He receives a commission, like a real estate agent in the United Kingdom. Consequently, when buying a property in Portugal, it is always important and recommended that you take independent legal advice before signing any kind of contract. Only this way it will be possible for you to have an precise search at the Land Registry, Tax Office and Town Hall.

Legal fees

The legal fees amount up to 1% to 2% of the purchase price of the property.

Notary and registration fees

When the Notaries profession was privatized, Notary fees changed substantially and now depend on the office where the Escritura is signed. This means that the prices may vary depending on the notary. The Land Registry

Fees, will be around 200€ when the property is bought without a mortgage. When there is a mortgage involved they can increase up to 600€.

Taxes

In Portugal there are several different taxes on the purchase, possession and disposal of property. These taxes include:

IMT (Real Estate Transfer Tax) – This tax is payable by the purchaser. The tax payable on residential property depends on the price of the property and the average will be between 5% and 6% of the property price.

In the case of construction plots the IMT has a fixed rate of 6.5% and if the property is located in a rural area, the IMT rate is 5%.

IMI (Municipal Property Tax) – This tax is to be paid annually and it is levied by the municipality on the following terms:

• Rural property: 0.8%
• Urban property: (not revalued according to the new valuation rules): 0.4% to 0.8%.
• Urban property liable to the new valuation regime (revalued according to the new valuation rules): 0.2% to 0.5%.

Stamp Duty or Imposto de Selo – The transfer of property is liable to 0.8% stamp duty. In case of a donation to a spouse, descendants or antecedents are exempt from taxation while other types of donations are liable to a 10% stamp duty tax. Also exempt of tax are inheritances to a spouse, descendants or ascendants. Assets left to anyone else are liable to a 10% tax.

Mortgage Costs

If you are taking out a mortgage for your property, there will be additional costs that typically amount, altogether, to about 4 per cent of the amount borrowed.

The Banks in Portugal will loan to someone in permanent residence in the country and offshore Banks will usually finance up to 65% of the property value. Mortgage periods are shorter and usually are no longer than 20 years. The rates are lower than the ones in the UK but there is the disadvantage of having to be subject to the exchange rate of the day when the mortgage payments are due.

Other Charges

There are several other minor charges that can add up a bit. These are the architect’s fees, surveyor’s fees, UK legal fees (typically 1 per cent), first connection to water, electricity, etc. Most of these will be subject to Portuguese VAT at 20 per cent; however a UK lawyer’s fees will be outside the scope of Portuguese VAT.

Buying your property

There are various phases to the acquisition of property in Portugal, I will now describe to you the main parts of the property sale. After you have chosen the Portuguese property of your desires, the first step will be to sign a Reservation Form. This form will include the identification of both parties and identification of the property and also define the amount to be paid upon its signature, the total price, the payment conditions and the period in which the Promissory Contract will be signed. The amount paid on reservation is subtracted from the total price to be paid off by the buyer. The contract also makes clear the consequences of not signing the Promissory Contract and any of the parties withdrawing from the transaction.

The second step is the signature of the Promissory Contract. While not compulsory, and whether or not reservation has anteceded it, generally both parties enroll into a promissory agreement identifying the property to be sold and detailing the conditions of the transaction: this is the Contrato de Promessa de Compra e Venda. This contract is used in almost 100% of property transactions in Portugal and is prepared by the purchaser’s lawyer.

Usually, the Promissory Contract of Sale and Purchase is legitimatized by a Notary that indorses the signatures of both parties; as an alternative the parties can agree not to legalize the contract. In either case the Promissory

Contract of Sale and Purchase is legally binding on both sides.

The Promissory Contract of Sale and Purchase establishes all the procedures and conditions on how the property sale will be made. These include stage payments and the term allowed for completion of the property sale.

With the signing of this contract a deposit (‘sinal’) must be paid at the same time by the buyer to the seller. This generally this varies between 10 and 30% of the purchase price of the property.

Portuguese law protects both parties in case one of them fails to accomplish any contractual obligation. In some cases, the innocent party is allowed to start court proceedings requesting the judge to formally replace the other party and perform the act that this party is refusing to perform. It is the so-called ‘specific performance of the contract’ (‘execução específica’), normally introduced by the parties in this kind of contracts. There are other particular rules concerning to the Promissory Contract of Sale and Purchase that a lawyer will be able to explain. The other consequence in case of non compliance with the contract which is used in alternative to the “specific performance of the contract” is, for the buyer recovering double the deposit paid and, for the vendor, keeping the deposit paid.

The Promissory Agreement of Sale and Purchase can be signed personally by the parties or by the lawyers acting for them.

The final step is done once the seller has delivered the Notary with all appropriate documents and the when the Transmission Tax is duly paid. The formal act of the property sale and purchase can proceed at any notary office in Portugal. This is known as the Public Deed of Sale and Purchase (Escritura Pública de Compra e Venda), happens in the presence of the chosen Notary and consists of a formal record of the purchase and sale that is printed in the official and public books of the Notary.

The Deed is prepared by the lawyers of the parties together with the Notary and is then signed by the parties and by the Notary.

The main tasks of the Notary are the following: Assure that all appropriate rules are applied, check that all taxes have been paid and to protect the interests of both parties.

Consequently, the notary public must ascertain prior to the carrying out of the Deed that all required documents are in order, with the purpose of ensuring that the transaction proceeds in compliance with the law.

Simultaneously, the payment to the seller is concluded, according to the agreed purchase price of the Promissory Contract of Sale and Purchase.

As said, the Deed of sale and Purchase is put down in the Notary books. After this the Notary Office will issue as many certified copies of the related entry as required, and these serve as official proof that the transaction has been lawfully accomplished and the price was paid in full. The copies bear the official seal of the Notary Office but, as further official certified copies can be requested at any time, these documents should not be confused with a ‘Title Deed’ as in English law.

As with the Promissory Contract of Sale and Purchase, the Public Deed of Sale and Purchase can be signed personally by the parties or by their lawyers.

After the Public Deed of Sale and Purchase, the transmission of ownership (‘transmissão de propriedade’) has to be filed at the local Property Registrar (‘Conservatória do Registo Predial’). Meaning that it is required to ‘inform’ the Property Registrar that the sale has been completed by providing a certified copy of the Public Deed of Sale and Purchase and requesting that the property in question to be registered in favour of its new owner. It is recommended that this registration be made immediately after the execution of the Public Deed of Sale and Purchase.

Simultaneously, it is also necessary to provide a certified copy of the Public Deed of Sale and Purchase to the local Tax Office (‘Serviço de Finanças’) and request the property to be inscribed in name of the new owner. I hope this has given you a clear idea on the costs of buying and selling property in Portugal. If you have any questions or suggestions, please leava a comment below!

The first thing that will happen is a verbal agreement between the buyer and the seller, directly or through a real estate agent. After a verbal agreement has been made between the vendor and the purchaser, it is followed by an examination of the title deeds and other documents by the solicitor of the person who will be buying the Portuguese property.

This is done to ensure that all the legal documents including the caderneta urbana and the habitation license are in order. The caderneta urbana delineates the dimensions, borders and chargeable price of the property for sale. The habitation license is a document that reveals if all the construction rules were followed correctly.

After this documentation is taken care of and verified, a Fiscal Number is issued by the local tax office. The next step is to draw an interim indenture between the buyer and the seller, with all the terms of the transaction written and described. After that, the buyer makes a deposit that usually amounts from 5 to 10 per cent of the purchase price of the property for sale. This is called a Contrato de Promessa de Compra e Venda, which translates to an agreement of future purchase, where both the seller and the buyer agree to deal and its terms. If either back out on the deal, the deposit is lost.

After all the conditions detailed in the provisional agreement are fulfilled, both parties sign the final agreement in front of a Notary Public. At this point the remaining sum of the property for sale is paid. The notary registers the deal with the Land Registry and records the caderneta urbana at the tax office.

Costs of Buying a Property in Portugal

When you are dealing with a property for sale in Portugal and its registration, you need to register your property with all the necessary government departments. For all these registrations you will need to pay a number of charges. To account for such expenses, you need to set your budget in a manner that accommodates an advancement of 10 to 15 percent over the cost price of the property. These fees include:

• Transfer tax (applicable for resale properties only). This varies according to the type, size and value of the property for sale under consideration.
• Value Added Tax (applied only on new constructions). This is typically 20 percent.
• Notary fees. This usually is set at around 200€
• Legal charges. This amounts to 1 or 2 percent.
• Deed registration fee. This is normally 0.75-1 percent.
• Contribuição autárquica is a municipal property tax that is collected on a yearly basis as per the registered value of a property and the existing local services. This amounts to 0.8 percent for properties in rural areas and for properties in urban areas this ranges from 1.1 to 1.3 percent.

Declared Values

It was a common practice in the pas to reduce the declared values of the property for sale in order to reduce the amount of capital gains tax and other charges levied in the event of a property sale.

Even now some private sellers may insist on this practice and it is not advisable and brings disadvantages on the buyer. Other than it being an illegal practice liable to rigid penalties. Even if you are able to avoid the watchful eyes of the authorities on the matter of under-declaration at the time of buying the property, it is very likely that you will be adversely affected by the difference in capital gains when you decide to sell your property.

Getting a property for sale in Portugal may look a bit confusing but the real estate agents are all very helpful an competent in arranging all the licenses and paperwork for a property investment in Portugal. If you have any questions or doubts do not hesitate to leave a comment.