Avoid pitfalls when buying in Portugal
Not check the legal status of the property
Problem: Some properties in Portugal have legal irregularities, including extensions or undeclared modifications.
Solution: Don’t count on the notary to verify this information, in Portugal, it’s not his job! Hire a real estate lawyer to check if the property is in order (building permit, cadastral compliance, absence of debts, etc.).
Not understanding hidden taxes and fees
Problem: Purchase costs go beyond the posted price:
- IMT (Municipal Transaction Tax): Varies according to the value of the property (between 0 and 8%).
- Stamp tax: 0.8% of the price of the property.
- Notarial and registration fees: Approximately 1,000 to 2,000 €.
Solution: Make a detailed estimate of the actual costs before buying, this will save you from unpleasant surprises.
Underestimating the importance of the NIF and the Portuguese bank account
Problem: You will need a NIF (Tax Identification Number) to buy a property, open a bank account and manage tax payments.
Solution: Get your NIF from the Portuguese tax authorities before you start your process. Your lawyer can help you get it remotely. You could also read our article on obtaining the TIN!
Rushing without checking the location
Problem: Some buyers fall in love with a place without checking:
- Accessibility (roads, airports, transport), it’s not the same thing to go somewhere once on vacation, and to want to go there every vacation because you have a pied-à-terre! Be realistic about the accessibility of housing.
- Essential services (hospitals, shops, internet…) that we don’t necessarily think about, especially when buying a second home. However, you will be very happy to be able to telework quietly thanks to a good connection, or to go to the hospital quickly in case of emergency.
- Seasonality: deserted neighborhoods out of season, tourist nuisances in summer, it’s still a great classic when you buy a holiday home.
Solution: Visit in low season and talk to the locals to get a better understanding of local life. Also do several visits at different times (day, evening, weekend) and if you can’t make it, hire a trusted property hunter.
Don’t check co-ownership fees
Problem: We sometimes don’t think about it as much when we buy abroad and yet it’s like everywhere: if you buy an apartment or a house in a residence, there can be high loads (swimming pool, elevator, maintenance…), which can quickly become burdensome at a distance.
Solution: Ask for the condo accounts before buying and check if there is any work to come.
Misunderstandinglocal financing and loans
Problem: If you are financing the purchase with a Portuguese bank, be aware that the conditions may be stricter for foreigners.
Solution: Compare loan offers between French and Portuguese banks, and consult a local real estate broker.
Ignore Residency and tax rules
Problem: Buying a property does not automatically mean having the right to live there permanently.
Solution: If you are non-European, find out about the different residence visas. Even if it is no longer possible to obtain a Golden Visa via personal real estate investment, there are still other ways to obtain it, and other residency visas to take into account!
Sign a contract without having it translated
Problem: Official documents are in Portuguese and misunderstandings can be costly.
Solution: Hire a bilingual lawyer to translate and explain each document before signing.
Conclusion: a successful purchase must be prepared!
Buying a house in Portugal is a great adventure, but it’s better to prepare yourself and surround yourself with the right experts to avoid unpleasant surprises. A specialist lawyer, a good real estate agent and knowledge of the local rules will allow you to buy with peace of mind. And above all, take the time to visit, compare and project yourself into your future living environment. With the right advice and a careful approach, you will soon be able enjoy your home in the sun to the fullest!
