If you are a foreigner, you might be wondering how to buy real estate in Portugal. Many banks in Portugal will not lend to foreigners, so it is necessary to use a mortgage broker. In this article, we’ll cover the basics of getting a mortgage and how to negotiate a price. Once you know how to buy real estate in Portugal, you can get on your way to owning your dream property.
Portuguese banks don’t lend to foreigners
In Portugal, banks are usually reluctant to lend to foreigners, as the currency is not widely used. Foreigners can, however, get a mortgage loan from a Portuguese bank. The bank will lend between 65% and 75% of the value of the property, depending on the borrower’s financial situation. If you are a foreign national, you should consider seeking the advice of a mortgage broker, as they can help you negotiate a more favorable deal for your situation.
Using a mortgage broker
When it comes to buying real estate in Portugal, using a mortgage broker can be of great assistance. These professionals can help you find the best mortgage option for your situation. They can also help you deal with the legalities and other details of buying property in Portugal. Although you don’t necessarily need to use a mortgage broker to buy real estate in Portugal, using a mortgage broker is recommended for the first-time buyer.
Getting a mortgage quote
If you are looking to buy a property in Portugal, obtaining a mortgage quote is a good idea. It is not necessary to have a certain property in mind, but preparing your finances for this important step can save you a lot of time. In Portugal, there are over 15 banks that offer mortgage loans, including BBVA, Banco Santander, Banco Best, and Banco CTT.
Negotiating a price
There are a few steps you can take to avoid making an offer that is too low. If you’re a foreign buyer, you should have a lawyer in place and a real estate agent to represent you. Your agent will make contact with the seller on your behalf and negotiate a price that will suit both you and the seller. You’ll need to be flexible and patient and make sure you’re prepared for any eventualities.
When you buy real estate in Portugal, you’ll need to pay property taxes. These taxes are called Imposto Municipal sobre as Transmissoes Onerosas de Imoveis (IMT) and are payable every time a piece of property changes hands in Portugal. You’ll pay this tax at the local tax office after you sign the preliminary contract to purchase the property. The rate of property purchase tax depends on the type of property, its location, and its value.
Alternatives to buying property
Lisbon, Portugal is one of the most popular cities to buy property in, but its prices have recently risen. This has led many people to look for an alternative. Estoril and Cascais are just 30 minutes away by car, and the real estate prices there are currently on the rise. Although some areas are considered expensive, they are incredibly accessible and offer great value for money. There are also some alternative neighborhoods near Lisbon to consider.