BUY PORTUGAL PROPERTY - REAL ESTATE!
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!
As at 2018, House prices in Portugal have been increasing in most cities,
including:
- Lisbon metropolitan area - property prices were up by 7.9% (7.2% in
real terms) to an average of 1,502 (US$1,717) per sq. m.
- Porto - Porto recorded the highest increase of 15.6%
- Amadora and Seixal - 13.9% increase
- Sintra - 13.7% increase
- Setbal - 13.5% increase
- Maia - 13.4% increase
- Almada - 12.9% increase
- Loures - 12.6% increase
- Barcelos - 11.4% increase
- Cascais - 10.6% increase
- Vila Franca de Xira - 10.5% increase
Property Taxes - In Portugal

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:
- Stamp tax on the transaction (purchase and sale), corresponding to a rate
of 0.8% on the acquisition value of the property as set forth in the Deed;
- Stamp duty on the loan, if you use a Mortgage to buy the property, which
corresponds to a rate of 0.6% on the loan amount.
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

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:
- Proof of legal entry - and permanence in national territory
- Translation - of all documents into the Portuguese language
- Schengen Visitor visa - to visit Portugal
- Power of Attorney - is signed with the Portuguese lawyers
- Portugal Bank Account - assistance in opening bank account
- Legalizing of Documents - All documents should be legalized in the
nearest Portuguese consulate or apostilled in case you belong to an apostille
country
- Biometrics at Portugal Immigration Department - On the applicant's
2nd visit to Portugal, they must visit the Immigration Department with the
Portugal lawyers to complete formalities and biometrics
- Declaration proving the absence of debts - issued by the Inland
Revenue and Customs Authority and by the Social Security
- Property Documentation - Updated property documents showing
ownership of property or Signed Promissory Contract with payment of a deposit
above 500,000 Euros, or Declaration from a bank in Portugal confirming the
transfer of the funds
- Absence of notice - from the Portuguese Immigration Authorities or
Schengen Services
- Declaration from the Investor - confirming compliance with the
investment requirements for 5 years
- Portuguese Residence Cards - application and renewal of Residence
Permit and Residence Cards
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
Lisboa
Portugal
Telephone: (+351) 304 501 939
Useful Links - Purchase of Portugal Property