Buy Property in Porto, Portugal

Table of Contents

Buy Investment Property in Portugal, in 2023

Portugal is a dynamic property market due to tax incentives and the Golden Visa Program for foreigners to acquire Portugal Residence. Foreign investors have invested 4.3 billion euros into Portuguese real estate through the residency program since it commenced in 2012.

According to data compiled by Eurostat, Portuguese property prices increased 9.2% in the first quarter of 2019, the biggest gain in the euro region and the steepest rise in the European Union after Hungary and the Czech Republic. Lisbon's cobblestone streets and hilltop palaces are being restored, and numerous buildings are being converted into new hotels, short-term rental apartments and luxury retail stores. The tourism industry and investment in Portugal Real Estate has boosted the Portuguese economy, which expanded for a 5th consecutive year to 2.2%, in 2018.

Now, in 2023, it is possible to apply for High Net Worth Immigration to Portugal through the purchase of an Apartment, House or Villa and then you can apply for the Golden Resident Permit, and after 5 years, apply for Permanent Residence, Portuguese Citizenship and a Portuguese EU Passport. Contact our Portugal Immigration Consultants and Lawyers by telephone or visit us in our offices in Brisbane, Australia, Singapore, Hong Kong, London, UK and Lisbon, Portugal.

Portugal Property Prices Are Increasing!

Lisbon, Portugal Apartments - Golden Visa Assistance     Lisbon, Portugal Apartments Interior - Golden Visa Advice
As at 2018, House prices in Portugal have been increasing in most cities, including:

Property Taxes - In Portugal

Lisbon, Portugal Apartments - Residence Permit
The following taxes are directly related to the acquisition of Real Estate in Portugal:

1. IMT - Municipal Tax on Onerous transfers of Real Estate - This tax is paid by the buyer at the time of the transaction. The tax is applicable to all real estate transactions, with the applicable rate by the Portuguese State, varying according to the value of the purchase. For properties worth more than 550,000 Euros, the applicable rate is 6%. For rustic buildings or other types of buildings the rates are 5% and 6.5%, respectively.

2. IS - Stamp Tax - There are two types of stamp duty related to the purchase of a property:
3. IMI - Municipal Property Tax - Annual tax, with reference to the previous year based on the calculation of the Tax Asset Value (VPT) - value of the property attributed by the Finance. It may vary from 0.3% to 0.5%, a limit that is annually taxed by the Municipal Assembly where the property is located (Ex. Cascais - 0.39%, Oeiras - 0.34%, Sintra - 0.39% , Lisbon - 0.30%). The IMI for rustic buildings remains at 0.8%.

4. Notary Fees and Registration Fees - Amounts to be paid by the buyer after granting a notarial deed, together with the registration fees. The cost of registration is 250 Euros and online is 225 Euros.

5. Inheritance Tax - In Portugal, this tax is not currently applicable to inheritances or donations that occur between parents and children or between spouses, although a stamp duty is charged, which amounts to 0.8% of the property's value. Other inheritance or donation situations are subject to stamp duty at the rate of 10% of the VPT.

6. Capital Income Tax (Capital Gains) - Following the transaction of a property, the seller is required to declare the sale and eventually pay a capital income tax, which corresponds to an average of 28% for individuals and 25% for legal entities (non-residents). This tax is calculated based on the difference between the sale price and the purchase price, and the tax payment can be deducted.

7. Wealth Tax - Adicional Imposto Municipal Sobre Imveis (AIMI) - is an annual tax, charged on the Valor Patrimonial Tributrio (VPT) of higher-value properties, regardless of where the owner resides. Under the new wealth tax, the owner is liable if his/her property (or share of a property) is worth over 600,000 Euros, and the current tax rate is 0.7% for properties up to 1 million Euros, and the tax rate is 1.0% on the value of the holding in excess of 1 million Euros.

Portugal Property Lawyers - Advice and Assistance

Portugal Immigration and Property Lawyers
VisaConnect's Consultants and our Portugal Lawyers can advise and assist you with your Golden Visa application and Property purchase. Our service includes the following assistance:

Portugal Golden Visa and Portugal Citizenship

For information about the Portugal Golden Visa (Portugal Residence Permit) and Portugal Citizenship, and how our Immigration Consultants and Lawyers can assist you, click on the following VisaConnect website pages:

Office Address and Telephone - VisaConnect Portugal

Contact VisaConnect's Consultants at our Lisbon, Portugal office below:

VisaConnect Portugal
Avenida do Atlântico, Nº 16, escritório 5.07,
1990-019, Parque das Nações

Telephone: (+351) 304 501 939

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