Investment property in Portugal
Buying Guide
Property Overview
Varied market
The property market in Portugal is varied as there are parts which are highly established such as the Algarve, others which are emerging like the Costa Verde, and whole areas which are completely undiscovered, namely Tras-Os-Montes.
Buying areas and prices
The easiest way to designate property markets is to follow more or less the regional and provincial boundaries.
From the north down there is: the Minho, Tras-Os-Montes, Porto & the Douro Valley, the Beiras (split into coastal and mountain), Estremadura, Lisbon, the Alentejo, the Algarve, the Madeira Islands and the Azores.
Average prices vary wildly from region to region, but the national average per metre square of property is 1,225 EUR.
Property types
All types of property are available for purchase, from quintas (estates) to land on which you can build.
Residential property in Portugal is all freehold, however commercial property has a trespasse, a special lease for commercial property only, which has been subject to recent change meaning that some businesses have lost their lease, which they originally thought would last ad infinitum.
Also, residential tourism has been hit recently as villa owners are finding it impossible to obtain the correct licence to rent out their properties for tourism purposes, without which they cannot legally rent out the property and are subject to fines.
Many properties must be re-classified from ‘habitation only’ but the Government isn’t being particularly helpful with this one.
Key facts
- Variety of markets: established (Algarve), emerging (Costa Verde) and undiscovered (Tras-Os-Montes)
- All residential property is freehold
- Commercial property is bought on a special lease, a trespasse
- The national average price per square metre of property is 1,225 EUR
- Buying areas are the Minho, Tras-Os-Montes, Porto & the Douro Valley, the Beiras (coastal and mountain), Estremadura, Lisbon, the Alentejo, the Algarve, the Madeira Islands and the Azores
- Until the law is changed, make sure any property bought for its holiday-let potential has the necessary Licença de Utilização Turistica and is not simply licensed for ‘habitation purposes only’
Downloadable Reports and Documents
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