Looking for a Second Home

Whether you want to buy a villa or an apartment in the Algarve or just rent a holiday home, Albufeira has a full range of specialist services able to meet your requirements.

Estate agents, construction companies, travel agents or other local services will help you on your decision.

How to buy a property

To buy a property in Portugal you will need a Fiscal Number from the Tax Office. However a Portuguese non-resident entity in order to buy a property in Portugal will need to designate a Portuguese Tax Representative.

There are three options:

  • Buy with cash a relatively easy option
  • Re-mortgage the main property in the home country to raise the capital. Again a relatively easy process and one that does not have to deal with any Portuguese banks
  • Get a mortgage from a local company, building society or bank at home specialising in international property transactions, or borrow the money from a Portuguese lender, bank or mortgage provider

The Costs of Buying a Property

Whether considering a cash purchase or to finance the property through mortgage borrowing, there are several costs which have to be met by the purchaser.

  • The Deposit - usually between 10% and 20% of the purchase price
  • The Portuguese Government Property Tax (Imposto Municipal sobre Transmissões). Generally speaking the government will take 5% of the value for a property in the countryside, 6.5% for an urban property, in case such urban property is designated exclusively for the residence of the buyer the local taxes varies at a rate up to 6% according to the property value, and 8% for a property purchased using an offshore account.
  • The purchaser will also be liable to Notary Fees and Land & Property Registration Fees, which vary according to the purchase price of the property. A lawyer acting on the purchaser's behalf will usually sort this out but a list can be obtained from the local municipal or town council (Câmara Municipal). A useful place for information and advice on Notaries are the Citizens' Shops (Lojas do Cidadão)
  • Stamp Duty (Imposto de Selo) generally 0.8% of the purchase price
  • Estate Agency Fees These are normally around 5% and are included in the sale price
  • The costs of the mortgage (Credito Habitação)