“One program is always replaced by another.” Realtor on demand, market prices, and Portugal's future following the end of the “Golden Visa”

How much did real estate in Lisbon cost a year ago, and how much does it cost now? Is it possible to buy property in Portugal inexpensively, and in what regions is it possible? Foreigners from what countries are most actively buying apartments in this country? What will happen after the closure of the program “Golden Visa” in Portugal? We were informed of all of this by Olga Ternova, a realtor at the Nextimo family construction company.

About the demand, liquidity, and price trends in the market

— How have demand and prices in the Portuguese real estate market changed over the last year, and how are they at the moment?

— The situation in the world over the last year has greatly affected all countries, including Portugal. Apartments that could be bought in the middle area of Lisbon (2 bedrooms) for €200 thousand are now sold for €300 thousand. No one can predict what will happen with the prices, but so far, the trend is their growth.

In small towns and villages in Portugal, the demand is not so great and prices are, of course, not so much increased. You can, for example, find options for 3-bedroom apartments for €100,000.

Constant demand in Portugal, both among foreigners and locals, is for investment housing for rent as well as land for building a country house (all tired from the pandemic and wanting more freedom).

Good objects in Portugal are sold even at the stage of the foundation pit. Buying a house directly from the builder when it is already completed is almost impossible. The option remains to buy from those guys who invested in time and now resell this object.

By the way, investing in the early phases of construction and subsequent resale is the most common way to make money. Liquidity depends on the market; last year it was from €30 thousand and more. But no one can guarantee anything; they can only advise.

— Who of the foreigners buys real estate in Portugal most often, and what objects do they usually choose?

— This year, Americans are leading the market in terms of demand, and last year, investors from China were the most active. As for the Russian-speaking population, they are still proactive but have now switched to the rental market (the cost of rent, in turn, has almost doubled in price).

For example, apartments in Lisbon that could be rented for €750 are now rented for €1300, and those that were rented for €2500 are now available for €5000 and more per month. Again, in smaller towns, you can rent an apartment for €800 in good condition, but it will be far from the capital.

About the procedure for buying a home by foreigners and the necessary documents

— How can a foreigner buy property in Portugal? Tell us more about this process, please.

— Buying an apartment, a house, a farm, or just a plot of land in Portugal is a process that requires some caution and awareness and also implies compliance with various local legal requirements.

In order to start the process of buying a home in Portugal, you first need to be clear about what you really want to buy and for what purpose.

You can buy an object for investment (here are the parameters that will bring the maximum profit) or for yourself, for legalization. New or secondary housing, location, square footage, infrastructure—all these parameters affect the value of the object.

Key stages of the purchase:

• Determining a budget, including all taxes and extras.
• Selecting the location and destination of the purchase.
• Preparing documents and opening a bank account.
• Obtaining a local tax number (NIF).
• Selecting the property.
• Appointment for a viewing.
• Making an offer and, if necessary, a reservation.
• Signing a preliminary contract for the sale of the home (this option is mostly used for credit purchases).
• The final transaction.
• Registering your property.
• Drawing up contracts for utilities.

While viewing the apartment, pay special attention to the state of the housing, the neighbors, and the area. It is no secret that in Portugal there is high humidity, and freshly painted walls can hide moisture and fungus.

Often, after you have agreed to the purchase, you must make a reservation until the sale. 

Reservations are made for periods ranging from 48 hours to one month—by agreement of the parties. This means that the seller removes the object from the sale and no longer shows it to anyone while waiting for all the documents to be prepared for registration. This step is optional and is mostly used when buying real estate on credit.

Now I will tell you about the documents that must be prepared by all parties to the transaction.

The seller must provide:

• Certidão registo predial, which provides information about owners and encumbrances.
• Caderneta predial, which contains information about the cadastral value and area.
• Certificado energético: shows the effectiveness of energy conservation.
• Planta do imóvel: a plan of all rooms.
• Ficha técnica: technical description for residential properties (mandatory for buildings built or restored after 2004).
• Licença de utilização determines the purpose of the premises, such as residential or commercial.

A lawyer verifies the next nuances:

• whether the owner has the right to sell the property;
• whether anyone else has the right to use the property (encumbrances);
• whether the property has restrictions of use or legal limitations;
• whether there is an unpaid mortgage or tax debt;
• whether the property is under attachment;
• whether the condominium fee is unpaid; 
• whether the property has the required licenses;
• whether there is a barrier to the transaction in the form of a priority right to purchase from the city council or others.

The following documents will be required of the buyer:

• Citizenship card (cartão de cidadão) / residence permit (título de residência) and/or passport (passaporte).
• VAT registration number (número de identificação fiscal—NIF).
• A certificate of residence in Portugal, which can be obtained from the local town hall (comprovativo de morada).
• Portuguese bank account (cheque for payment of the property, payment of taxes at the time of purchase).
• If you are married, the need for spouses to be present at the signing of the contract depends on the type of property ownership: joint ownership of property acquired during the marriage (applies to post-Soviet countries), separate ownership, or completely joint property.

— Are remote transactions possible?

— It is possible to give power of attorney to a realtor; we recommend being present at the final transaction in person, and the rest of the process can be done remotely.

— Can foreigners take out a mortgage to buy property in Portugal?

— Yes, everything is possible, but at the moment, if we are talking about the Russian-speaking segment, you need to go through three circles of hell with the Portuguese banks.

About the future of Portugal without the program “Golden Visa”

— “Golden Visa” of Portugal, or citizenship by investment. What do you think about this initiative? What will happen, in your opinion, after its closure?

— This program has been canceled, but the law itself has not yet been approved, so the “golden passport” scheme is still in full swing. Probably this year, it will be completely closed. The program itself is not bad—quite a competent and practical way of legalization in the country.

However, you should not get upset: one program is always replaced by another, and this will not affect either the investment or the legalization. The digital nomad visa is now very popular, for example. Yes, it takes a little longer, but the result is the same.

In general, the demand for real estate in Portugal does not end; here come tourists, investors, digital nomads, and just guys who want a quiet life. There is no analog; the country is really very authentic, with a chic climate and very kind people. The country of opportunities—you can invest not only in real estate but also in various projects that are already available in more developed countries.