How do you prepare to buy luxury property in Portugal?

1. Research the best locations

When buying luxury property in Portugal, location is one of the most important factors to consider. Popular regions for luxury real estate include the Algarve, Lisbon and Cascais. Each of these regions has its own unique features and advantages.

• The Algarve is known for its beautiful beaches, golf courses and luxury resorts. It is a popular destination for holidaymakers and second-home buyers alike.
• Lisbon offers a mix of culture, history and modern living. This vibrant city attracts both local and international buyers looking for luxury flats and penthouses.

It is essential to determine which location best suits your needs and desires.

2. Make sure you are well prepared financially

Before you start looking for luxury property in Portugal, it is important to properly assess your financial situation. Although it is possible to take out a mortgage in Portugal, it may be more attractive to use your own funds to buy a luxury property. Banks in Portugal usually offer mortgages for 60% to 70% of the value of the property.

You should also take into account additional costs such as:

• Transfer tax (Imposto de Transmissão de Bens Imóveis, ITBI)
• Notary fees
• Lawyer fees
• Registration fees

These additional costs can add up to 8% of the purchase price. Make sure you have sufficient funds to cover these costs in addition to the purchase of the property itself.

3. Choose a reliable estate agent

At Royal Estates, we offer complete purchase assistance for buying luxury property in Portugal. As an experienced estate agent, we will help you every step of the way, from searching for your dream home to negotiating the best price. Our in-depth knowledge of the market and personal approach ensure that you can invest with confidence. We also coordinate all legal and administrative matters, ensuring you have a worry-free purchase experience. Choose Royal Estates and let us find your perfect home.

4. Legal and tax considerations

When buying luxury property in Portugal, it is very important to be advised by a legal expert. A lawyer can help you check the title deeds, carry out due diligence and ensure the transaction goes smoothly.

You should also consider the tax aspects of the purchase. Portugal has attractive tax benefits for foreigners, such as the Non-Habitual Resident (NHR) programme. This programme offers tax benefits for new residents of Portugal, including a 10-year tax-free status on certain sources of income. It is important to understand these tax benefits and how they may apply to your situation.

5. Check the condition of the property

Before proceeding with the purchase of a luxury property, it is essential to thoroughly check the condition of the property. This is especially true for older homes or properties that may need renovations. Get an independent structural inspection to uncover any hidden defects.

For new construction projects, it is important to research the developer and ensure that all permits and certificates are in place. Luxury property should meet high quality standards, so make sure you get value for money.

6. Closing the deal

Once you have found a suitable luxury property and completed all the legal and financial steps, it is time to finalise the purchase. In Portugal, a preliminary sales contract (Contrato de Promessa de Compra e Venda) is usually signed, setting out the conditions of sale. Here, you usually pay a down payment of 10% to 30% of the purchase price.

The final transfer of ownership takes place at a notary, where the remaining amount is paid and ownership is officially transferred. Make sure your lawyer is present at this step to ensure legalities.

Being prepared to buy luxury property in Portugal

Buying luxury property in Portugal can be a worthwhile investment, but it is important to be well prepared. By choosing the right location, following financial and legal steps carefully, and working with experienced professionals, you can ensure the purchase process goes smoothly. With Royal Estates‘ help, you can find your dream home in Portugal and enjoy a worry-free property transaction.