If you are thinking of making Lisbon your new place of residence then you might be asking yourself if you can buy property there as a foreigner. The answer is yes! Foreigners can buy property in Lisbon!
In fact, many foreigners are already taking advantage of Portugal’s booming real estate market. Lisbon is regarded as one of the most famous tourist destinations in the whole of Europe, and its real estate market is growing at a rapid pace.
With its stunning views, Mediterranean climate, and vibrant culture, it’s no wonder that so many people are interested in buying property in Lisbon. However, there are a number of things to keep in mind if you are a foreigner who is interested in buying property in Lisbon.
This article will look at what they are with some additional information. So without further ado, let’s begin!
What Are The Necessary Steps?
Obtaining A Residency Permit
First, you’ll need to get a Portuguese residency permit. This can be done by investing in a Portuguese company or purchasing property in Portugal. Once you have your residency permit, you’ll be able to open a bank account and apply for a mortgage.
Deciding On the Location And Property
The next thing to consider is the type of property you’re interested in. Lisbon has a variety of different neighborhoods, each with its own unique atmosphere. For example, the historic center of Lisbon is filled with narrow streets and charming old buildings.
If you’re looking for something more modern, there are plenty of new developments popping up around the city.
Find A Real Estate Agent
Once you’ve decided on the type of property you want, it’s time to start looking for a lisbon real estate agent.
There are a few different ways to find a good real estate agent in Lisbon. You can ask friends or families for recommendations, search online, or look for signs in front of properties that say “For Sale.”
When you find a real estate agent you trust, they will help you navigate the process of buying property in Lisbon. They can provide you with information about the different neighborhoods, help you find the right type of property, and negotiate on your behalf.
Things to Consider
Of course, like any major purchase, there are a few things you’ll need to take into consideration before buying property in Lisbon. For starters, you’ll need to have a steady income and a good credit score.
You’ll also need to factor in the costs of purchasing property, such as the down payment, closing costs, and agent fees.
One more thing that is worth mentioning is that the Portuguese government imposes a capital gains tax on properties that are sold within five years of purchase. This tax is calculated based on the absolute contrast between the purchase price of the purchase and the sale price of the property.
So if you’re thinking of buying a property in Lisbon as an investment, you’ll need to be prepared to pay this tax if you sell it within five years.
Below we have listed a number of important things to keep in mind if you’re thinking of buying property in Lisbon:
You Should Have a Good Understanding of the Portuguese Language
Although English is widely spoken in Lisbon, it’s still important to have a good understanding of the Portuguese language before buying property here.
This will make the process much easier, and you’ll be able to communicate with your real estate agent, lawyer, and other professionals more easily.
Be Prepared For the Cost Of Living in Lisbon
Lisbon is a relatively expensive city, so you need to be prepared for the cost of living here. This includes things like food, accommodation, transportation, and entertainment.
Again, doing your research beforehand will help you budget and plan for your life in Lisbon.
Consider Your Lifestyle When Choosing a Property In Lisbon
Think about your lifestyle and what kind of property would suit you best. Do you wish to surround yourself and your family with the hustle and bustle of city life, or do you dream of having a house with a garden outside of the city? Do you need parking?
How near do you want your place of residence to be to public transport? These are all important factors to consider when choosing a property in the country of Lisbon.
If you are someone who is still pondering whether or not you should purchase a property in Lisbon, these are just a small number of things to keep in mind. With proper research, planning, and analysis, you can make sure that you find the perfect property for you.
Common Mistakes You Need To Avoid
Lisbon is a beautiful city, and there’s no denying that purchasing property here comes with its own set of challenges.
As a foreigner, there are a few things you need to take into consideration before buying property in Lisbon. Here are a few examples of common mistakes to avoid:
1. Not Doing Your Research
When it comes to purchasing property, you can never do too much research. This is especially true if you’re looking to buy in a foreign country.
Be sure to read up on Lisbon’s real estate market, as well as any relevant news or developments that could impact your purchase.
2. Failing to Budget Properly
It’s important to have a clear idea of your budget before beginning your search for a property in Lisbon. It is extremely important to keep in mind that there are an array of additional costs associated with owning a property.
Some of them are as follows; stamp duty, legal fees, and renovation costs. Make sure to factor these into your budget so that you do not have to deal with future hurdles.
3. Failing to Get Professional Help
If you’re not familiar with the process of buying property in Portugal, it’s important to seek out professional help. You may not know this, but several different professionals can assist you, including real estate agents, lawyers, and tax advisers.
Getting expert help will ensure that the process is free of obstacles and challenges so that you can end up with the best possible offer.
4. Ignoring Your Gut Feeling
It is worth mentioning that when it comes to buying any property, whether a home or a commercial one, it’s important to listen to your gut instinct. If something doesn’t feel right about a particular property or deal, it’s probably best to walk away.
There is an abundance of other choices out there, and there’s no need to force something if it doesn’t feel right.
Conclusion
Overall, buying property in Lisbon is a great option for foreigners looking for a new place to call home. With its many attractions and friendly atmosphere, Lisbon is sure to make you feel right at home.
If you’re thinking about buying property in Lisbon, now is a great time to do it! Prices are still relatively affordable, and there is a lot of demand for rental properties. With the help of a good real estate agent, you can find the perfect property to invest in.
