Portuguese Property Market Overview

The Portuguese property market has long been popular amongst British buyers who have traditionally favoured the southern shores of the Algarve as a destination, where some 50,000 properties are now British owned. As a member of the European Union since 1986, Portugal is regarded as a safe bet amongst purchasers seeking a well established and stable economic climate in which to invest.

One of the beauties of Portuguese property lies in the diversity of opportunities available to suit all tastes and budgets: Property located in the popular golf resorts of the Algarve is now priced high, some at multi-million levels, while you'll find very little to buy for less than 100,000 GBP. As a general guide, a good standard two bedroom apartment will cost approximately 200,000 GBP.

Lower prices can be found further north towards Lisbon and the Silver coast where an emerging property market is in progress due to a new motorway linking the area easily to Lisbon and the rest of the country. As a new trend emerges for well located rustic, rural properties, many of which are in need of some restoration, property further north along the Green Coast, beyond the beautiful city of Porto can be purchased for as little as around 30,000 GBP, but do remember that the weather is not as warm as further south. Meanwhile if it is top class golf facilities you are after, then the most popular spot remains the Algarve, between Lagos and Tavira, where the country's most prestigious golf courses can be found, all within easy access of Faro airport. Heading east from the airport, property on the eastern Algarve is still around 30% cheaper than further west, with three bedroom villas priced at around 150,000 GBP.

Reasons why property in Portugal is a good investment

• One of the lowest costs of living in the EU, though prices are slowly creeping up as Portugal regularizes its tax policies with the rest of the EU
• A highly appealing tourist location and quality of life conducive to a peaceful retirement destination
• Stunning and diverse natural beauty, from rivers, cliffs and clean sandy beaches to mountains and championship golf courses, making it popular with all kinds of visitor
• Interesting history and cultural heritage with a wealth of tourism potential throughout the country
• Well trodden property market place, with stability and transparency in buying procedures for foreign purchasers
• English is widely spoken
• Over 300 days of sunshine per year
• Lowest crime rate in Europe and stable political climate
• Construction density limits in the Algarve set at 8%, guaranteeing preservation of the natural environment
• The largest area covered by golf courses in southern Europe
• Growth rates of around 10% per annum and rental yields of maximum 10% in key locations
• Easy access via budget airlines (2 ½ hours flight from the UK) and an advanced road infrastructure
• Interesting new markets emerging on the Silver Coast, north of Lisbon, at lower prices than in more traditional locations
• Founding member of NATO

According to the Decree-Law 76-A/2006 (March 2006), the cost has been increased to EUR 31.5 from EUR 27. The cost is 31.5 EUR assuming that the certificate is up to 10 pages long; 1 EUR is charged for each additional page after 10 pages.

This certificate may be requested and validly printed from the internet site, www.dgci.min-financas.pt. When it is requested this way, it is received immediately and free of charge. If one requests it directly from the Tax Registry, a cost of EUR 4.96 is incurred. One may use this internet site after applying with the Tax Authorities for a username and password regarding tax declarations by internet; notaries can also obtain tax certificates free of charge on behalf of the seller and the buyer, according to Decree-Law no. 238/2006, of December, 20th.

The payment can be made at any post office or ATM terminal, but must be initiated (or paid) at the Tax Authority office or at the internet site www.e-financas.gov.pt. Applicants can use this site after applying with the Tax Auhorities for a username and password.

This procedure may take up to 30 days or a minimum of 7 days, depending on the notary used. As of February 2004 through full implementation in February 2006, the notarial profession has been liberalized. One can contract either a public notary and pay according to the scale of costs as noted above; or one can contract a private notary and agree on any cost for his services. The majority of notaries are private as of January 2007.
Because of the law on prevention and repression of money-laundering (Section 1, no. 2, i), parties’ identities must be verified for sums over EUR 15,000 as well as information about the origin and destiny of funds involved, justification of the transaction and identities of the beneficiaries (if other than the parties) if the transaction is over EUR 12,500.

The time to complete is variable according to the department in Lisbon where one registers—it may at times take as little as 2 weeks, or as much as one month depending on department and time of year, for example.