The Eastern Algarve around Tavira is also worth checking out, a lovely little stretch of little harbour towns, sand bars and beaches (and even its own classy golf resort, Monte Rei) from which Spain is easily reached. You’ll fine plenty of choice with a budget of €200,000, and the nearby little village of Cabanas is even more affordable. Or go inland, where in the vibrant little village of Sao Bras de Alportel you can get a choice of two-bed properties for €90,000.
Lisbon is a fabulous city being rejuvenated by overseas buyers – especially Chinese investors – and the popular suburbs of Cascais and Estoril appeal to expats and retirees for whom the Algarve is too sleepy or seasonal.
South of Lisbon is the rural Alentejo region that attracts discerning travelers but fewer home hunters than the Silver Coast – north past Lisbon. Here, where the rolling hills and vineyards meet the Atlantic in hundreds of kilometres of sandy beaches there are some striking contemporary villas, especially around Obidos. Apartments (and smaller townhouses) start at €100,000 to €150,000, villas from €250,000. Other hotspots are the charming town of Leiria and the Praia del Rai resort.
Portugal Property Buying Process
There are two stages to the buying process. The first is the promissory contract (contrato de promessa de compra e venda) between buyer and seller, on the condition of the property.
A deposit is normally paid at this time, usually from 10-25 per cent of the purchase price. Following this, the lawyer does searches and checks for encumbrances or mortgages on the property.
The second part of the transaction is the escritura de compra e venda, or final deed, and this is the point at which the property ownership is transferred to the buyer. As with the promissory contract, it is signed in front of the notary (notario). The final contract is then sent to the Land Registry.
Property in Portugal: Buying Costs
The biggest cost is property transfer tax (IMT), paid on properties over €92,407 on a sliding scale from 2-8 per cent. There is a Stamp Duty that is a fixed rate of 0.8 per cent. Notary, admin and registration fees are 1.5-2.5 per cent, and legal fees 1-2 per cent, of the purchase price. The seller pays the estate agency fees.
You'll also need to find the most cost-effective, safe and easy way to move your money to Portugal to complete your purchase. Bank charges and fluctuating exchange rates can both have an impact on your overall cost - but you can save up to 4% of the cost by working with a specialist currency firm. They can help you achieve currency exchange rates better than the banks, and reduce the risk of your international payments increasing.
On a £100,000 exchange, a currency specialist can save you up to £4,000 by providing better rates compared to your high street bank. Click here to read more, or here to download your free guide to saving money on your purchase.
Property in Portugal: Need to Know
Ensure that your lawyer checks that plans of the property held by the local authorities that refer specifically to the property agree with the existing construction. You should request from your local lawyer a report on title, stating that the property is free of any charges (or that such charges will be removed before completion) and you should also seek advice on the planning rules for the area.