Buying Property In Portugal With Peace of Mind - Part 2

Article By Portugal Residency Advisors - Offical Legal and Residency Partner to KipperTree.

09 08 2023

Link to Portugal Residency Advisors here

Popular areas to buy property in Portugal

Portugal offers a wide range of locations to buy property, from cosmopolitan cities like Lisbon and Porto to charming coastal towns like Cascais and Albufeira. 

The Algarve region is also a popular area for those looking for a holiday home or retirement property.


Lisbon

Lisbon is the capital of Portugal and is known for its historic architecture, cultural attractions, and lively nightlife. 

The city has a diverse range of neighbourhoods, each with its own character and atmosphere. 

Property prices in Lisbon are generally higher than in other parts of Portugal, particularly in popular areas such as Chiado, Baixa, and Bairro Alto.


Porto

Porto is Portugal’s second-largest city and is known for its port wine, charming riverside district, and historic buildings. 

The city has a more laid-back atmosphere than Lisbon and is popular with expats looking for a slower pace of life. 

Property prices in Porto are generally lower than in Lisbon but have been rising in recent years.


Algarve

The Algarve is a popular tourist destination in the south of Portugal, known for its sandy beaches, golf courses, and warm climate. 

The region is particularly popular with retirees and second-home buyers. Property prices in the Algarve can vary widely depending on the location, with some of the most sought-after areas being Vilamoura, Albufeira, and Lagos.


Silver Coast

The Silver Coast is a region of Portugal located north of Lisbon and stretches from the Atlantic Ocean to the hills of the interior. 

The area is known for its rugged coastline, traditional fishing villages, and historic towns. 

Buying a home on the Silver Coast is generally cheaper compared to Lisbon and the Algarve, but there are still some areas that are popular with expats, such as the town of Obidos and the beach resort of Sao Martinho do Porto.


Madeira

Madeira is known for its stunning natural beauty, with lush forests, rugged mountains, and crystal-clear waters. 

This makes it an ideal location for those who love the outdoors and want to enjoy a relaxing, natural lifestyle. 

Madeira consistently ranks high in quality-of-life indices, which makes the island a popular tourist destination, with millions of visitors each year. 

This means that there is a high demand for short-term rental properties, making it an attractive option for those looking to invest in vacation rentals.

Types of properties available in Portugal

Portugal offers a range of property types, including apartments, townhouses, villas, and farmhouses. Each property type has its advantages and disadvantages, so it’s important to consider which one suits your needs and lifestyle.


Apartamento

This is the Portuguese word for an apartment, which is a self-contained living unit within a larger building that is typically divided into multiple units.


Moradia

This is the Portuguese word for a house or a dwelling, which refers to a standalone residential property that is not connected to any other building.

Loft

This is a style of living space that is typically characterized by high ceilings, large open spaces, and minimal partitions. Lofts often have an industrial aesthetic and are commonly found in converted warehouses or factories.


Moradia Geminada

This is a type of semi-detached house, which is a residential property that shares one or more walls with another house. Moradia geminada is a specific term used in Portugal to refer to this type of property.


Duplex

This is a residential unit that spans two floors of a building. Duplexes often have a staircase that connects the two levels and may include features like a private entrance or outdoor space.


Videnda

This is a Portuguese word for a villa or a large, luxurious house, often with a large garden or outdoor area.


Casa de Campo

This is a type of dwelling that is typically small and rustic in design, often featuring a steep-pitched roof and made of wood or stone.


Penthouse

This is a luxurious apartment that is typically located on the top floor of a building, offering panoramic views and often featuring high-end finishes and amenities.


Quinta

This is a Portuguese word for a country estate or farm, often featuring a large house or manor, as well as agricultural land or gardens.

Process of buying a property in Portugal

Property Search

Begin by searching for properties that meet your requirements and budget. You can work with a real estate agent, browse property websites, or attend property expos.


Offer and negotiation

Once you have found a property that you are interested in, make an offer to the seller. Negotiations may take place until a final price is agreed upon.


Preliminary contract

The next step is to sign a preliminary contract, also known as a promissory contract (CPCV). This is a legally binding agreement between the buyer and seller that outlines the terms of the sale, including the price, payment terms, and other conditions. 

In this t this point, the buyer is also required to do a downpayment, in general, equivalent to 10 per cent of the agreed price to avoid buyers pulling out of the deal.

Property Check

It’s recommended to carry out a survey of the property to identify any potential issues or defects. This can be arranged by the buyer or through a surveyor recommended by the real estate agent.
 (KipperTree strongly recommends using a surveyor)

Due Diligence

A law firm will carry out legal checks on the property, including verifying ownership, checking for any liens or mortgages, and ensuring that all permits and licenses are in order.


Property Deed

Once all legal checks and surveys have been completed, the final contract can be signed. 

This is typically done at a notary public office, and the full purchase price is paid at this time.

To further understand how to buy a property in Portugal, read the full article here