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Buying a Property in Portugal

Passports, visas and residency

Passports and visas

EU citizens must be in possession of a valid national identity card or passport to enter Portugal. It must be valid for the duration of their stay, which can be up to 90 days. A visa is not required.

Residency

Portugal does not require EU citizens (including British nationals) to have residence permits. They can, however, be useful in certain circumstances (when applying for a driver’s licence, for example, or for tax purposes) as official proof of residence.

A short-term residence permit is valid for stays of between 90 days and a year. A long-term permit is valid for five years, after which it may be renewed automatically for a further five years. After that, applicants must apply in person for renewal.

The Portuguese economy

Portugal has enjoyed one of the EU’s fastest-developing economies over the past few years, thanks in part to almost 23 billion euros of EU funds, which are helping to transform its transport infrastructure, opening up new areas to tourism and the international housing market.

In recent times, successive governments have privatised many state-controlled firms and liberalised key areas of the economy. Portugal has become a diversified and increasingly service-based economy, with the services sector now supplying nearly two-thirds of its GDP. Agriculture contributes around 6 per cent and industry the remainder. Key exports are machinery and equipment, clothing, wood and cork, footwear, mining equipment and wine.

Relationships with the UK have always been good. The UK is one of Portugal’s largest foreign investors.

Portugal property: Investment potential

Although Portugal is seen as one of the most established overseas property markets in the world, it is also seen as a much better investment prospect than many of the newer ‘emerging’ markets. In fact, A Place in the Sun recommended it as the best place in world to invest in property a couple of years ago, based on the rental return and projected capital appreciation over ten years.

As the rental potential for buying property in Portugal makes up a large part of the investment attraction for British buyers, it is worth considering the possible obstacles that need to be overcome before you can begin to earn money. All property in Portugal that is rented out to holidaymakers must be inspected by the local authorities for safety and security, and you will have to provide details of the appropriate insurances for the permit.

If you are buying a run-down country property for renovation, you should also be aware of the planning laws in Portugal. For most residential properties, in rural areas especially, building is only permitted on the footprint of structures that are already on-site. There are some further restrictions and exceptions to this, and the local town hall planning department will be able to advise you of the specifics as well as any other local differences.

And finally...

Buying property in Portugal, or anywhere else abroad is a major decision and one that should not be taken lightly. It is vital to ensure you have researched all aspects thoroughly and have all the relevant facts.

Individual circumstances will vary widely, so it is essential to obtain professional advice and guidance tailored to your particular situation, especially in areas such as property purchase, potential rental returns, taxation and mortgages.

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More pages

Page 1: Why Portugal?
Page 2: Costa Verde (Green Coast property)
Page 3: Passports, visas and residency

Related Articles

• Portugal: An Overview
• Guide to the Silver Coast
• Guide to Madeira
• Emigration Fact Sheet
• Costa Verde (Green Coast)

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