Buying in Portugal: what we wish we had known first
The first time I viewed a flat in Lisbon, I nodded confidently for twenty minutes. I had understood one word in three. Today, I live between Pélissanne and Lisbon, and I support teams in Portugal. Here is what I wish I had known before taking the plunge.
Love at first sight, and then reality
Portugal wins you over quickly. The light, the ocean, the easy pace of life, the azulejos on the façades. You visit for a weekend, and that same evening you are picturing your life there. I know. I have been there.
Falling in love with a place is an excellent reason to start looking. It is a very bad reason to sign quickly. Buying abroad stacks up several unknowns: another language, another legal system, other customs, another tax regime.
You also need to ask yourself a very practical question: how will the property actually be used? A home where you will live all year round is not chosen in the same way as a pied-à-terre for a few weeks a year, or as a buy-to-let investment. The neighbourhood, the size and the proximity to transport will not carry the same weight.
My starting advice is simple: let your heart choose the city, and let method choose the property.
The main steps of a purchase, in broad strokes
I am deliberately keeping this general, because the rules change and every situation is different. But the process often looks like this.
First, get a Portuguese tax identification number. Without it, not much is possible. Next, opening a local bank account is often useful, even if it is not always compulsory.
Then comes searching for and viewing properties. Once the property is found, the parties usually sign a preliminary contract, with a deposit paid. Then comes the final deed, signed before a public official, before the property is registered.
The time between the preliminary contract and the final deed varies. It depends on financing, the documents to be gathered and the agreement between the parties. Allow some leeway, especially if you do not yet live there and need to plan your trips.
Between each step, there are checks: the legal status of the property, any debts or charges attached to it, whether the floor areas and permits are compliant. That is where good support makes all the difference.
An advisor on the ground who speaks your language
I don’t speak Portuguese well. I say so without embarrassment: that is precisely why I appreciate the value of an advisor who speaks your language and knows the area.
Understanding a viewing is good. Understanding what is left unsaid during the viewing is better. A neighbourhood that gets noisy at weekends. A building where façade works are being planned. A price that does not match the local market. That kind of information does not appear in any listing.
My teams are present in Portugal, notably in Lisbon and Porto. They can support you in French, explain each step and put you in touch with the right professionals. You remain the one who decides. But you decide with full understanding.
Tax: caution above all
This is the subject where I see the most misconceptions. You hear everything and its opposite, often based on an article read a few years ago.
I will not give you any rates, or any promise of a tax advantage. The rules change, and they depend on your situation: main or second home, buy-to-let investment, country of tax residence, family circumstances.
Before signing anything, consult a Portuguese lawyer or tax adviser, and a notaire (the French public official who handles property transactions) or an adviser in France if you remain taxed there. That appointment costs little compared with what is at stake. It can save you some very nasty surprises.
What I would do again, what I would avoid
I would again choose to surround myself with the right people early on. A property advisor, a lawyer, a bank contact: when each one is identified from the start, everything flows more calmly. When you look for them in a rush, you take whoever is available, not necessarily the right one.
I would do the scouting trips again without hesitation. Spending a few days in a neighbourhood, on weekdays and out of season, teaches you more than ten listings.
I would also make the effort to learn a few words of Portuguese. Not to negotiate, but for everyday life. A “bom dia” to the neighbour opens more doors than you might think.
I would avoid managing everything from a distance, with nobody on the ground. And I would avoid assuming that what works in France necessarily works the same way in Portugal. Customs differ, and so do timescales.
Finally, I would take my time. “Time is not a resource. It is the only one.” Used well before the purchase, it will save you a great deal of it afterwards.
Frequently asked questions
- Can you buy in Portugal without speaking Portuguese?
- Yes, provided you have good support. An advisor on the ground who speaks your language, along with a local lawyer, lets you understand every step and every document.
- What are the main steps of a purchase?
- Generally: tax identification number, search and viewings, preliminary contract with a deposit, final deed before a public official, then registration. The details vary from case to case.
- What tax applies to my purchase?
- That depends on your personal situation and the rules in force at the time of purchase. Consult a Portuguese lawyer or tax adviser, and a professional in France if you are taxed there.
Your project in Portugal
Dreaming of Lisbon, Porto or elsewhere in Portugal? Let’s talk about it. I will put you in touch with an advisor from my teams on the ground, who will support you in French, at your own pace.