Buying a House in Portugal

If you consider buying a house in Portugal, you’ll do well to know that since it is a popular tourist destination, cost of living there may be a bit high in the season. It also reflects on the property prices.

Buying a House in Portugal

There are no restrictions to buying a house in Portugal and the process is not difficult. Once you have found a property, hire a lawyer and he or she will take care of things for you. They will draw up the contracts, check the legal title with the land registry and tax registration and that there are no unpaid charges. The tax office will issue you with a fiscal number, needed for most transactions in Portugal. These are the steps usually taken:

Find a home.
Hire a lawyer – checks title, tax office and obtains fiscal number.
Your lawyer draws up the promissory contract.
This is signed by both parties, who are then both legally bound. This is done by a notary.
You pay a deposit (10-30%).
Both parties agree with a notary on a date for completion.
You pay the municipal tax (6.5%).
The deed of purchase and sale is signed before the notary, and officially recorded.
You pay the balance at the same time.
The property is registered in your name and the transfer is complete.

The total costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc. The stamp duty is around 0.8% of the value of the property.

It usually costs more than you expect, so check your finances carefully. Currency rates will affect you.

Working in Portugal

The European Free Movement of Workers agreement means you can live and work in Portugal without a visa or work permit.

In high season you are simply spoilt for choice as there are numerous jobs on offer, but in winter, unless you are fluent in Portuguese, you have got little chance of finding a good job. It is best to set up your new job before leaving the UK.

Your ability to find work depends upon your language skills. English is a bonus, but it helps to be fairly fluent in Portuguese, as Portuguese people expect you to do the courtesy of learning their language. If you are moving for employment, the administrative details may be handled by the employer. It is wise to get a written contract if possible. A verbal contract will give you very little protection.

There are no restrictions on foreigners setting up a company in Portugal, as long as you are legal residents and have the necessary work permits and minimum capital investment to do so. In many cases the process of setting up a business in Portugal may be done in a single day, through the intermediary of a lawyer, solicitor or notary in possession of a digital certificate.