Property investment in Portugal: What you need to know

Although prices on property have risen steadily in Portugal the investment market is still a lucrative one, with property moguls and developers jetting over to the country to take advantage of the potential high yields.

If you are considering using your investment savings for this very reason, then here’s what you need to know:

1. Take advantage of the Golden Visa

We don’t yet know how the UK referendum will affect this scheme but as it currently stands, you can obtain EU citizenship if you are purchasing property worth €500,000, which should come in handy now that we’re out.

2. Property near a golf course is always a great buy

Portugal is renowned for its golf, with courses dotted up and down the country for retirees and fans of the sport to enjoy during their regular getaways. Therefore, investment property with easy access to these will also enjoy a high return.

3. There’s lots of help available

When it comes to legal help while purchasing a property, there are plenty of English speaking companies to be found. You’ll also find plenty of property listings online to browse before you even get on a plane to the country – although it’s very important you look at properties you are interested in before putting in an offer to avoid any surprises when you get there.

4. Choose your location carefully

Your location will make a huge difference to the sale of your property, whether you opt for a tourist hotspot such as Lisbon or somewhere a little more remote such as the West area of the Algarve which still features plenty of unspoilt scenery.

5. Check what’s required in terms of fees

When it comes to purchasing property overseas there are fees to consider on top of the purchase price. Here is a list of what you may need to pay out for:

• Property Tax (IMI) -  This is charged at different rates per municipal and ranges from 0.2% to 0.8%.
• Stamp Duty
• Legal fees – You will need a lawyer to take care of any legal issues on your behalf while purchasing an investment property.
• Notary fees – These are charged by the Portuguese Government who will then give you the official documents so you can prove you own the property.
• Registration fees – To be recorded as the legal owner of the property you will need to pay the land registry and then provide your legal advisor with the confirmation.

Property investment is a great route to take if you want to see a high return on your money, and in Portugal whether you choose to sell on straight away or rent you will find great priced properties to choose from.