Move to Portugal

The costs you can expect when selling your property in Portugal include:

• If you use the services of a real estate agency, you will have to pay a commission (a percentage to be mutually agreed by both parties), plus VAT (Value Added Tax), on the price entered at the signing.

• If you are going to sell a property purchased with a mortgage still in progress, the request for cancellation of the mortgage will also have a fee charged by the Land Registry Service (Conservatoria do Registo Predial). It is also important to be aware of any fees due to your bank because of paying your mortgage in advance.

• The sale of property also requires that you have in your possession a set of documents required by law, namely: a permanent land certificate, a second copy of the property licence, a second copy of the property's technical file, and an energy certificate. The cost of these documents varies according to the type of property being sold. However, in some cases, you may already have these documents. 

• When selling a property in Portugal you will also have to pay Real Estate Capital Gains Tax.

Portugal offers a series of tax and residency invectives aimed at foreigners who want to invest in Portugal.
As these programmes are constantly evolving, it is wise to check with Portuguese official services to make sure which incentives you qualify for or offer more advantages to your personal situation.

Portugal's Non-Habitual Resident tax regime, also known as the NHR status, was created by the Portuguese Government to attract investment from foreign retirees and professionals who are considered of high cultural and economic worth.
This regime allows for its beneficiaries to receive substantial tax savings, such as tax exemptions on foreign source income or paying a fixed rate in personal income tax during a specific time period.
If you wish to benefit from the NHR status, bear in mind that this programme has changed a bit over the years so be sure that the information you have is up to date. We strongly recommend you find an experienced Portuguese Accountant to assist you in confirming what benefits exist at the time of your application, whether you qualify and what steps and legal documentation are required to apply to the programme.

As in all European countries, Portugal has property taxes that, apart from a few rare exceptions, have to be paid when buying, selling, or owning a property.
It is important to be aware of these taxes in order to weigh all the costs involved in a property transaction. In addition, having an early notion of these obligations will help you have a more accurate cost estimate and avoid last-minute surprises.
These taxes, which in some cases are much lower than in other European countries,  include:

• Real Estate Capital Gains Tax: Paid by whoever sells a property;
  
  
• IMT - Imposto Municipal sobre as Transmissões Onerosas de Imóveis and IS - Imposto de Selo: Paid by whoever buys a property;
  
  
• IMI - Imposto Municipal sobre Imóveis (municipal property tax): Paid annually by any property owner.

The IMT tax has to be paid regardless of whether the property purchased is new or used. However, the value of this tax is not the same in all cases.
The IMT tax varies according to the acquisition value of the property or tax asset value (whichever is higher), its location and its purpose, and there may be cases in which you are exempt from paying this tax. For example, this tax is lower if the property is for your own use and permanent residence, and higher if it is a buy to let.

Portugal provides excellent tax opportunities for foreigners who invest in Portugal.
If managed correctly, these opportunities, granted through specific incentive programmes and tax legislation, allow foreigners to benefit from tax cuts or even pay zero taxes due to conventions with other countries to avoid double taxation. However, each case should be analysed individually to see what incentives are available and what requirements are needed to qualify.

Portugal is one of the sunniest places in the world, with more than 300 days of sunshine a year! Here you'll find a wonderful Mediterranean climate, as Portugal is one of the European countries with milder temperatures all year round.
The southern region of Portugal is the warmest, but even the hottest summers are cooled by the Atlantic breeze. In the winter there are plenty of sun-filled days to keep you warm and cheerful.
The average annual temperature in mainland Portugal varies between the mountainous north interior, which is much cooler, and the south, that registers an average annual temperature of about 18 °C.
Snow only occurs in four districts in the north of the country (Guarda, Bragança, Vila Real and Viseu) and is almost non-existent in most of the Algarve and the coast of Portugal.

Portugal is regularly ranked by the Global Peace Index as one of the world’s top 5 most peaceful countries. But no one in Portugal needs statistics to know the country is safe! In small rural villages, it is still common for people to leave their doors unlocked.
Larger cities such as Lisbon and Porto do, however, register the same annoyances as other major European tourist hotspots where foreigners are sometimes victims of pickpocketing and bag snatching. But even in these two larger cities, it is still very safe to visit as a tourist or live, even for solo female travellers.

The quality of life in Portugal is one of the best in the world although the general cost of living is surprisingly low. In most places in the country, you can comfortably live on as little as 1000 euros per month, in addition to whatever you're spending on rent.

For example, a meal at an inexpensive restaurant will cost you an average of 15 €, one litre of regular milk 0.90 €, one kg of apples 1.80 € and a one-way ticket on a means of public transport such as the Metro in Lisbon 1.65 €.

Also, public services such as education and healthcare in Portugal are free for children and most of the elderly, or require very small co-payments for the rest of the population who are residents, which makes the overall cost of living even more affordable.

Utility costs in Portugal depend on the size of the property, materials used in the construction, the number of people living in it and day-to-day general use. For example, a new build property with an energy certification of B or higher will have much lower comfort costs.
To get an idea of the costs in general, a 2-bedroom apartment will cost you an average of 40€ in electricity and 17€ in water per month.

Although the vast majority of people in Portugal do speak foreign languages, namely English, the Portuguese appreciate the effort that some foreigners make in learning their language.
If you do decide to learn the language, there are several language schools throughout the country, and in some locations public schools and local volunteer groups that offer free Portuguese classes. You can also find a wide range of tools for learning Portuguese online, such as online Portuguese courses, apps, podcasts, YouTube videos as well as e-books and audiobooks on Portuguese Grammar and useful phrases.

Portugal is one of the sunniest places in Europe, with over 3,000 hours of sunshine per year. But that’s not the only reason the country is so popular amongst retirees.

The country also offers an excellent healthcare system, three international airports with low-cost daily flights to practically everywhere in Europe, an affordable cost of living, as well as a welcoming and laid-back lifestyle.

The type of visa you require depends on how long you want to stay in Portugal.
Portuguese visa requirements also differ depending on your citizenship (for example, European Union nationals can stay in Portugal for as long as they want and do not require a visa to enter the country).

There are two systems of education in Portugal: private and public state schooling.

Generally, children attend public schools located within their communities or as close as possible to their neighbourhood. Public or state schools are free and all lessons are given in Portuguese.

The alternative option is either private or international schools, mostly found in Lisbon and the Algarve. International schools in Portugal offer international curricula and a few also have boarding options.

The Portuguese take pleasure in small things, such as watching the sunset or savouring delicious food, without overthinking it or complicating what is already perfect. They live each moment fully, with sincere gratitude for life’s simple pleasures.

At Portugal Realty, we believe that a simple life is living a step from the beach, taking time to go for a coffee and enjoy the view, feeling the sea breeze and the freshness of the water on your feet, letting the sun turn your skin golden… you relax and take in all the best Portugal has to offer, we'll care of the rest.

To find out more about living in Portugal and the Portuguese lifestyle, subscribe to Portugal The Simple Life Podcast.

More and more families from all over the world are moving to Portugal to enjoy the exceptional possibilities our country provides for kids and grown-ups alike.

Portugal offers a gorgeous coastline, lots of things to see and do, excellent public and international schools, a safe and welcoming environment and all the commodities of modern living, from an excellent healthcare system to a robust coverage of services, commerce and access to technology.

If your property is a second home or you intend to maximize your investment through holiday rentals, rest assured you don't have to take care of everything yourself.
Portuguese property management companies offer a professional service aimed at your comfort and peace of mind, including everything from simple key holding to collecting the mail to cleaning, laundry, garden & pool maintenance.
Click here to see how our network of qualified partners can help you maximize the investment of your holiday home in Portugal.

If you intend to rent your Portuguese Property as a holiday home, Portuguese law requires a touristic rental license called AL licence (AL - Alojamento Local).
You can take care of this yourself or seek help from a holiday rental agency. Such companies will not only assist you with all the legalities but also provide management and marketing services that will help you get the best results on rental platforms such as Booking.com, Airbnb or HomeAway, amongst others.
Click here to see how our network of qualified partners can help you maximize the investment of your holiday home in Portugal.