Buying a house on the Silver Coast
Considering investing in real estate on the popular Silver Coast of Portugal?
Here are the intricacies that go into buying a house on the Silver Coast.
We understand that buying a house on the Silver Coast is a tall order, especially for ex-pats. This region of Portugal is one of the most popular destinations for tourists and ex-pats looking for a piece of Portugal’s paradise. Often referred to as original Portugal, the Silver Coast has a lot to offer everyone.
Getting proper and affordable accommodation is paramount if you relocate to a foreign country. For this reason, it’s also worth mentioning that the Silver Coast offers plenty of accommodation options, from luxurious villas to more budget-friendly ones.
This post gives you a comprehensive guide on how to buy a house on the Silver Coast of Portugal. Read on to learn more about the region’s real estate prospects.
Why should I think about buying a house on the Silver Coast
This region is among the most popular destinations in Portugal. It’s full of activities for anyone who loves adventure, for instance, surfing and hiking.
Let’s take a look at some other reasons why the Silver Coast is enticing for real estate investors and anyone looking to buy a house in this region.
Portugal’s Silver Coast is the new darling of ex-pats
The Silver Coast is everything you’ve been dreaming of about Europe but on a budget. It’s no coincidence that ex-pats are finally finding out about this European paradise tucked deep in the heart of Portugal. You’ll easily find the necessary facilities for daily living without the noise and confusion of major cities.
There are plenty of good schools, reliable healthcare facilities, and also a vibrant business environment. The expansive coastline offers plenty of outdoor activities to do. Also, the many coastal towns on the Silver Coast provide affordable accommodation. Not to mention how the residents are welcoming and always extend a helping hand to ex-pats who feel lost.
Real estate investments here are just getting started
This picturesque destination with plenty of scenic views is in the middle of a real estate boom that you should be a part of. Compared to other equally popular destinations in Portugal like Lisbon or the Algarve, property prices are still quite attractive even for expats who want to move and set up a second home in Portugal.
Currently, there’s a lot of property development on the Silver Coast, which is quite evident because of the annual increase in property prices. It’s worth mentioning that the controlled development on the Silver Coast put to account the pristine beaches.
Therefore, the region will retain its beauty and keep the real estate prospects attractive even in the future.
When investing in some areas here, you can apply for the Golden Visa
This program was introduced as an incentive for real estate investors interested in starting businesses and developing Portugal. Initially, real estate investment in any region in Portugal would make an investor eligible for the Golden Visa program.
However, the beginning of 2022 saw new changes to this program. Buying residential properties in major cities or coastal towns, such as Lisbon or the Algarve, is no longer viable.
The purchase of commercial property in the said regions no longer qualifies you for a Golden Visa program. However, the good news is that other areas with a low population density are eligible for the Golden Visa program.
How to buy a house on the Silver Coast
Just like in any other region in the world, buying a house on the Silver Coast is an important step for anyone looking to settle in Portugal. It’s a worthy venture that you should consider and also do a lot of due diligence before taking the plunge in just any house thrown in your way.
If you’re aware of the Portuguese public system, you almost immediately expect a couple of bottlenecks and bureaucracies along the process. There’s a lot of paperwork you’ll have to go through that is geared at protecting you and ensuring the process is legitimate.
We do recommend getting the help of professionals to hold your hand and take you through the process effortlessly.
Can a foreigner buy a house in Portugal?
Fortunately, Portugal is among the few countries in Europe that grant foreigners the right to own property in Portugal. The Portuguese government has gone a step further and provided incentives to encourage foreign investors to consider investing in the real estate business in Portugal through the Golden Visa program.
The Golden Visa allows you to travel freely across the Schengen area, and in five years, you have automatically become eligible for a permanent residency visa or citizenship. That’s right; buying a house on the Silver Coast can be your golden ticket to a European Passport!
How can I buy a house on the Silver Coast?
Now that you have an idea about the Silver Coast’s real estate prospects, let’s look at how you can go forward buying a house on the Silver Coast as an expat.
Research and choose your investment
Again, the Silver Coast in Portugal has plenty of options that you can choose from, right from luxury villas to more laid-back apartments. So, just like any other investment or business, you need to do proper research on the type of house you want. The region and your budget will inform this decision.
Houses are valued differently from one region to the next. Understand your investment objective and look for a property that best suits your needs as an expat looking to move and settle in Portugal.
Consider other factors like the home’s resale value just in case you need to resell it in the future.
Prepare the paperwork
As mentioned before, you should be ready to deal with a lot of paperwork. However, it’s important to note that Portugal gives foreign nationals the right to own property there. The good news is that you don’t need a residency permit to buy a house on the Silver Coast.
Nonetheless, you’ll need specific legal documents to successfully change the house’s deed to your name.
One of the documents that you must have is a legal identification document like a valid passport that has all the necessary personal details. Also, you’ll need to have a Tax Identification Number (NIF Number) that you can easily get from the local finance offices. Lastly, you must show proof of income from your country of origin.
Visit the property on the Silver Coast
While there are other alternatives to visiting the property, you should know that only you know what is best for you. Yes, you can have legal representatives pay a visit to the prospective properties; however, nothing beats the peace of mind that comes with personal verification of the house’s authenticity.
You can choose to have a legal representative accompany you in your reconnaissance tour just to ensure that everything checks out to avoid possible scams. What’s more, this could be a scouting opportunity for you to experience life on the Silver Coast or even negotiate a better deal with the property owner.
Get your documents settled in Portugal
Before finalizing the process, you need to process a few more documents. According to the Portuguese government regulations, the following documents are necessary for making the whole process legitimate
Housing Technical File (Ficha Técnica de Habitação): This document features all the technical descriptions of that particular property.
Certificate of Land Registry (Certidão do Registo Predial): You can get this document from the local land registry. It documents the property’s legitimate owner before the resell.
The license of Use (Licença de Utilização): Get this document from the local parish. It describes the purpose of the property.
Building book (Caderneta Predial): This is another important document showing the property’s regular tax compliance record. You can get it also from the local finance department as well.
Transfer the payment and sign the deed
If you’ve gotten this far, the problematic hurdles have long passed. Thanks to technology, sending money to Portugal from anywhere in the world has never been easier. You don’t need to send money via the bank since other better options are not only safe but faster than regular bank transfers.
Among the best companies that we recommend include World Remit, Xoom (A PayPal Service), and Wise. Nonetheless, you must research the best times to convert money to Euros before making the transfer.
Once you’ve settled the documentation processes and paid the money, all that’s left is to transfer the deed into your name. While the entire process is long and tedious, the wait is worth the quality of life you’ll get once you settle on the Silver Coast.
How much does it cost to buy and rent property on the Silver Coast?
It’s no secret that buying or renting a property on the Silver Coast is different from one region to the next. Let’s have a look at what you should expect as far as the cost of renting or purchasing property in the different districts in the Silver Coast region in Portugal.
Take a look at the average sale and rent prices from the major districts on the Silver Coast:
Real estate prices in the Aveiro district
Aveiro, often referred to as the Venice of Portugal, is the most northern city on the Silver Coast and is home to more than 70,000 inhabitants. Unlike other towns on the Silver Coast, Aveiro is an old city and is a popular tourist attraction destination.
In this regard, properties in this part of the Silver Coast are most sought after by those looking to capitalize on tourism which is quite big in this district. It’s also worth mentioning that the cost of property in Aveiro is well priced, given the proximity to the coast and the airport at Porto.
The table below summarizes prices from different municipalities within Aveiro:
Real estate prices in the Coimbra district
If you know a little about Portuguese history, you’re probably aware of the fact that Coimbra was the first capital of Portugal. It’s also home to one of the oldest universities in the country, so it’s a place with deep historical culture.
When it comes to real estate prospects in the district of Coimbra, you should know that this region is frequented by students from all over the world. Therefore, there’s a high demand for ample accommodation for the students. A rental business is ideal for this part of the Silver Coast.
Take a look at some of the municipalities’ prices in Coimbra:
Real estate prices in the Leiria district
The district of Leiria is one of the best places to live on the Silver Coast. It has a decent number of foreign nationals, close to 6% of the population. It’s not as crowded and noisy as other districts, but the natural beauty is astonishing.
While it’s close to Lisbon, the capital of Portugal, real estate properties are still reasonable. If you’re looking for an affordable place to live near the capital, Leiria is a great option.
The table below summarizes prices from different municipalities within Leiria:
Can I apply for a Portugal Golden Visa to invest in a property on the Silver Coast?
As a result of the recent changes to the Golden Visa regulations, many districts in the Silver Coast are considered high population regions, therefore, not eligible for the program. However, the good news is that there are a few places left that still qualify under the Golden Visa program.
First, do your due diligence, learn about the particular place’s population density, and determine whether it’s eligible for the Golden Visa program. So, it’s fair to infer that you can apply for the Golden Visa program in specific places on the Silver Coast that are considered rural or have a low population density.
Is making a real estate investment on the Silver Coast worth it?
Real estate is thriving in Portugal. The past couple of years has experienced a steady increase in the cost of properties, and it’s expected to go even further. The Silver Coast is no different; it’s the most affordable region compared to other popular destinations in Portugal, for instance, the Algarve or Lisbon.
There are plenty of various real estate options that you can choose from depending on your budget and investment objectives.
Like the Algarve, the Silver Coast is another tourist hub; therefore, the rental business thrives during summer. Unfortunately, this is a decision you must make on your own when it comes down to whether to invest or not. Like any other investment option, you must do your due diligence beforehand.
When are you coming to the Silver Coast of Portugal?
Buying a house on the Silver Coast has a lot to offer foreign nationals. The prospects of good quality of life and a relatively lower cost of living are just a few of the many reasons you should consider moving to Portugal.
As far as real estate is concerned, Portugal is still breaking new ground, which means more is still to come. There’s no better time to join the real estate industry in Portugal.
Article by Viv Europe - Official Legal and Relocation Partner to KipperTree.
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