A Step-by-Step Guide to Buying a House in Portugal from abroad: remote Real Estate Investment
Buying a house in Portugal as a foreigner can be an exciting but challenging process, especially when doing so from afar. Here are 15+1 essential steps to navigate this process efficiently and safely:
First and foremost, research the different regions of Portugal to determine which area best meets your needs and preferences. Consider factors such as climate, local services, connectivity and community:
The second step in buying property from abroad in Portugal is to clearly define the type of property you are looking for and your budget. Consider factors such as location, size, type of property (apartment, house, etc.), desired amenities, and the purpose of the purchase (investment, own housing, rental, etc.). Having a clear idea of your needs will help filter options and make the search easier.
Use recognized real estate websites in Portugal to start your search. Platforms like Idealista or Remax.pt, offer a wide range of properties listed throughout the country, allowing you to filter your search according to your preferences. Furthermore, many of these sites offer virtual tours, which are an excellent tool for those buying from a distance.
Considering that you are making the purchase from a distance, having a local real estate agent is crucial. Choose a professional or agency with a good reputation, preferably one that speaks your language to facilitate communication. The agent can provide support throughout the entire process, from searching for the ideal property to closing the deal, including organizing virtual visits, negotiating with the seller, and providing legal assistance from the agency's lawyer.
To buy a property in Portugal, you'll need a NIF, which is equivalent to a Tax Identification Number. Your lawyer can help obtain this number, even from afar. How to Get the NIF
Before proceeding with the purchase, it is important to perform due diligence to ensure that the property complies with all local laws and regulations. This includes verifying the legality of the construction, the existence of liens or mortgages on the property, and other potential legal issues. Hence, the importance of working with an international real estate agency that offers the services of its lawyer for free, and that allows hiring an experienced real estate agent to ensure that the asking price is aligned with the market value of the property.
Once you have found the desired property and conducted due diligence, the next step is to formalize a purchase proposal. This process can be done from a distance with the help of your real estate agent. The negotiation of the price and purchase conditions will also be conducted by your agent, based on your instructions.
When you find the house you want, make an offer through your lawyer or estate agent.
After the proposal is accepted, a promissory contract of purchase and sale (CPCV) is celebrated, which is legally binding for both parties. The CPCV establishes the terms and conditions of the sale, including the price, the completion date, and any other agreed conditions. This contract can be signed electronically or sent by mail if necessary.
Normally, a deposit is required at the time of signing the CPCV. The amount of the deposit varies but is generally 10% of the purchase price. This payment can be made through international bank transfer, although if the buyer resides outside the European Union, it is necessary to open an account in a Portuguese bank to make the payment to the owner.
If you need financing, this is the time to finalize your mortgage with a financial institution.
Before the final deed, you will need to pay the IMT, the property transfer tax in Portugal.
The final step is the deed of purchase and sale, which is carried out at a notary office in Portugal. For buyers from a distance, it is possible to grant power of attorney to a representative, such as your lawyer or real estate agent, to sign the deed on your behalf. After the signing, the property must be registered in your name at the Land Registry.
Finally, consider taking out home insurance to protect your new property.
Final Considerations
Buying property from a distance in Portugal requires research, planning, and choosing the right partners to assist in the process. It is essential to understand the legal and fiscal aspects of buying property in Portugal, as well as being prepared for international payments. Although buying from a distance may seem challenging, by following these steps and with due diligence, it is possible to carry out a secure and satisfactory transaction.
Ready to start your adventure in Cascais or Lisbon? Contact RE/MAX Cidadela today.
Avenida 25 de Abril 722, C-9, Cascais or Avenida 25 de Abril 890, Cascais,
+351 214826710, ppettermann@remax.pt
Discover your perfect home with RE/MAX Cidadela. Download our property buying guide and get expert guidance: GUIDE FOR BUYERS
RE/MAX Cidadela: Your key to a life by the sea in Cascais since 2004
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By Pedro Pettermann and Sol deAlós
Brokers at RE/MAX Cidadela in Cascais and Lisbon since 2004
Making dreams come true: Over 4,500 families have found their perfect homes with our team
A RE/MAX CIDADELA é uma agência de referência internacional com mais de 30 agentes. Desde o ano 2004 a trabalhar na linha de Cascais, Lisboa e Sintra. Todos os anos estamos entre as melhores 30 agências, numa rede com mais de 400 agências em Portugal, sendo vários anos premiados como a Best Single Office em Cascais e Oeiras. Mais de 4.500 clientes já compraram ou venderam o seu imóvel com a RE/MAX CIDADELA
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