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Portugal Property: How to find a house in Portugal

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By using ComparaJá.pt you can access a whole range of offers in the Portuguese market. Based on your profile, we can present the financial products that the different banks offer for home loans and, from those, you can choose the best one for your needs. Our team will help you obtaining the best loan for the Portugal Property that you want.

In order to get a better analysis from all the Portuguese banks it is mandatory that you reply to a brief questionnaire, so that we can understand which institution has the best offer for you. We will show you all the factors involving this kind of loan: from interest rates, to commissions and taxes. This way you will be able to make an informed and considerate decision. Also, we have a team that will help you throughout the whole process.

The real estate market has been booming in Portugal for quite sometime and it has some reflections in the price per square meters in the major cities. For example, in Lisbon the average square meters price is now around 2.753 Euros, according to information from Portugal´s Statistic Institute. Porto, Portugal´s second city, is cheaper than the capital with an average price per square meters of 1.460 Euros. Faro, one of Portugal´s trendiest destinations, is also one of the most expensive locations to buy a house. Loulé has an average price per square meters that even surpasses Porto, with a average price per square meters of 1.846 Euros. The cheapest locations to buy a home in Portugal are in the interior of the country. For example, in Pampilhosa da Serra (situated near Coimbra), the average price per square meters is around 130 Euros. In Mogadouro (Bragança´s district) it is 275 Euros and in Entrocamento (near Santarém) it is 549 Euros.
As a Portugal property owner, you will have to pay some taxes regarding the house that you have bought. These are:
  • Property Taxes: in Portugal it is mandatory to pay taxes on your property. It is called Imposto Municipal sobre Imóveis (IMI) and it is an yearly tax which is established by the municipal assembly. This tax has rates between 0,3% and 0,45% and it is levied on the properties value.
  • Property Purchase tax: this tax is paid when you buy the new property. The rate varies according to the type and value of the property. The rate can go from 1% to 8%, depending on the propertie´s value. These values are for rental or holiday houses in Portugal.
  • Rental tax: if you wish to buy a house to rent, please be aware that there is a specific tax that needs to be paid. This is a variable tax that depends on the rental contract period. There are tax benefits for long term rentals.
  • Other taxes: depending on your specific situation you may pay other taxes. For example, there is a tax to be paid in properties with a market value of 600.000 euros or more.
There are several websites where you can find houses in Portugal. The most well-know portals are Imovirtual and Casa Sapo, but you can also try Real Estate Agencies such as Remax or Century 21. There are some smaller agencies, that operate in smaller cities, but know that market very well, which is the case of Marcela Properties in Algarve.
The value of the Portugal property will have to be evaluated by the respective bank or financial institution. In order to make a decision about the loan, the bank has to know the real price of the Portuguese house.

This price will affect the Loan-to-Value (LTV), which can range from 60% to 70% in the case of foreign buyers. This means that you would have to be ready to pay between 30% to 40% of the value of the home in Portugal as a down payment.

For example, if the Portugal Property that you are interested in costs about 200.000 €, you may be asked to make a down payment ranging between 60.000 € and 80.000 € so that the bank will provide you with a loan for the remaining amount.
In order to buy this property we can ask for a mortgage loan in Portugal. ComparaJá.pt is now the leading online platform in comparing this kind of products. We will show you the best rates offered by the Portuguese banks. Just click to access our mortgage page.