INVESTING IN PORTUGAL PROPERTY

Portugal’s real estate boom has been fueled by the increased interest of individuals and investors There’s a huge demand for homes in Portugal, and investors have themselves put money into the residential developments and commercial real estate ventures. One example of this is the investment in shopping malls and shopping districts. There are also a large number of entertainment and recreation facilities to support the increasing droves of tourists, like restaurants and water sports facilities.

SINGLE FAMILY PROPERTIES

Many of the investments in Portugal properties are by families who want a second home where they can spend their vacations. The properties come in every size, to suit every budget. Some are very luxurious villas, fitted with every kind of elegant fixture. Others are simple but cozy, ideal for those with limited budgets, but still very charming in their own way. The old adage that there is something for everyone really holds true.

APARTMENTS

The advantage of apartments is that it they require less maintenance and are less expensive to keep clean. They are ideal for those who want something small and convenient, perhaps a place that can act as a base for their tours, without any frills but still comfortable. Occupants include business travelers, expatriates, executives who spend several months in Portugal, professionals with long hours, or couples where both partners are working and have little time to handle housework. In fact, the apartments in Lisbon and other major countries are selling quite well.

Apartments are also affordable and practical alternatives to hotels, and small families rent apartments so they can use the kitchen and save a large amount of money on food. Sometimes groups of tourists will rent apartments and split the rent among themselves, which ends up cheaper than hotel rooms.

Others buy apartments as investment and lease it to other people. This is a very solid method of generating a reliable source of income.

HOLIDAY PROPERTY

The coastal areas of Portugal are very very popular among investors, and the demand for them have led to fierce competition for those with “prime” locations. Most buyers are interested in using the property for themselves, as a vacation destination, but then lease them or rent them out during the months they aren’t there. Unlike apartments, the key feature of holiday properties are the view and the convenient location. Most are just a few steps away from the beach and other main Portugal attractions. As such they are often a little more expensive.

HOW TO BUY PROPERTY IN PORTUGAL

As is the procedure in every other country, the first step in the process of buying real estate purchase is the creation of a preliminary sales contract. In Portugal, this is called the contrato de promessa de compra e venda. It’s important to have this document looked at by an attorney as it is a legally binding contract that determines the conditions of the sale.

The contrato de promessa de compra e venda is signed before a notary. When the contract is finalized, the buyer of the property is asked to pay a deposit, The amount is usually about ten and twelve percent of the total property value. If for whatever reasons the buyer decides not to push through with the sale, he loses the deposit that has been paid. Of course, there are cases when the reasons are perfectly valid, like when the seller can’t give a title. In these circumstances the deposit is returned in full, but to be sure, the contract must state the instances when this will happen.

But when the seller decides to renege on the sale, perhaps offering it to another buyer, then he pays the penalty equal to twice the deposit placed by the buyer in the first instance. It’s a level of protection that isn’t found in that many other countries

The buyer must also take out a “Fiscal Number” from the local Tax Office, which is a fairly easy process that just requires filling out a form. Processing is very fast.