Tips for Saving Money on New Homes in Portugal

Are you thinking about buying a new home in Portugal? The warm climate, stunning beaches, varied landscape, and wonderfully preserved history are just a few of the reasons people choose to buy property here. If Portugal is on your property radar, you’ll want to know how to save money on such a large purchase. Fortunately, there are some simple strategies you can use to make sure you get the best deal. In this blog post, we’ll provide some tips for saving money and how you can make smart decisions when investing in a new home in Portugal.

Plan your budget 

When buying in Portugal, it's important to plan your budget and understand exactly what you can afford. Look at the different housing options available, from houses to apartments and villas. Once you know what you can afford, it’s time to start the exciting process of looking for a new home in Portugal. With the recent surge in new construction in cities, coastal areas, and Algarve in particular, there is a mix of older properties and new-build condos available for all budgets. Your budget should also take into consideration other costs such as:

·       Legal fees

·       Travel costs

·       Deposit

·       Registration and notary fees

·       Taxes and Commissions

Look for incentives

Portugal is really welcoming for foreign investors and there are schemes and incentives in place to encourage people to invest, live, study, and work in Portugal. Over the past decade, Portugal has made a conscious effort to attract more tourists, investors and potential homeowners and now features highly on world rankings for best places to live and retire. Currently, there are several incentives for those looking to buy a new home in Portugal.

Non-Habitual Resident Tax Regime

Taxes on personal income made in Portugal are fixed at 20% for 10 years.

Golden Visa scheme

This allows a fast-track process for residency in Portugal through investment in as little as 5 years.

High rental demand

If you want to rent out your home in Portugal, the demand is there thanks to the high number of tourists that visit each year.

Get the most out of your money 

You can save money on your dream home in Portugal by using our service to exchange your currency and transfer the funds. We help property buyers from all around the world with foreign exchange and money transfer services that are quick, simple, and stress-free. We specialise in transferring large amounts securely and your personal account manager will be on hand to answer any questions you have every step of the way.

Get a real estate agent and legal support 

When buying property in Portugal, it's important to get a good real estate agent and legal support. A Portuguese-speaking real estate agent (imobiliária) will be able to provide advice on the local market and can help make the process of purchasing a property go smoothly. There will be costs involved, but overall, it will save you time, stress, and energy during the property-buying process. Before you use an estate agent in Portugal, check they have a valid license number (Associacao de Mediadores Imobiliarios).

Legal advice is also very important as having all the necessary paperwork in place is essential when buying property in Portugal. The process of buying property in Portugal can be relatively straightforward, but it's important to take the time to understand all the regulations and laws related to buying a house or apartment. With the right help and guidance, you can ensure that your purchase goes smoothly. In Portugal, there are legal professionals known as a solicitador and an advogado. A solicitador is a conveying specialist, and an advogado is a qualified lawyer.

Choose the right location

You may have heard it a million times but it's true. Location. Location. Location. The cost of homes in each region of Portugal will vary so there may need to be some compromise between your budget and the location. For example, a brand new luxury villa in Vilamoura will cost you upwards of €2.5m whereas a beautiful 1 bed apartment amidst the beautiful scenery of the Mexilhoeira Grande in the Algarve will cost around €199,000. Popular tourist areas will be easier to rent due to high demand, but you will pay a premium. You’ll also pay more for properties with a sea view or that are close to the city. Searching just a few miles inland will give you a lot more for your money while still being within reaching distance of the most popular areas.

To find out more about your financial options when buying a home in Portugal, get in touch. The Moving Currency Team are here whenever you need us.