Buying property in Portugal?
We help you save more money than your bank when transferring currencies abroad with no transfer fees.
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We help you save more money than your bank when transferring currencies abroad with no transfer fees.
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Whether you buy or sell property abroad, you will need large amounts of the local currency to do so.
Our specialized currency transfer service is designed for international real estate investment. We offer the best exchange rates that can save you thousands on your property purchase, with no hidden fees.
Our team of experts understands the intricacies of cross-border transactions and provides personalized risk management strategies to help protect your investment.
It’s often better to use a money transfer provider for sending large sums, as they may get you a much better deal.
Currency providers tend to offer more competitive exchange rates than banks so you get more from your money. They’re also better placed to guide you through the process, offering a wider range of services and personal support.
While many people choose to make large transfers through their banks, this isn’t always the best option.
Banks often work on higher margins than currency specialists, meaning you could get a better deal elsewhere. And they tend to offer a limited range of services, making it harder to time your transfer for when the market is in your favor.
It’s often better to use a money transfer provider for sending large sums, as they may get you a much better deal.
Currency providers tend to offer more competitive exchange rates than banks so you get more from your money. They’re also better placed to guide you through the process, offering a wider range of services and personal support.
At the time of the purchase, the main tax you’ll need to pay is the property transfer tax (IMT). This can reach up to 8% and varies based on factors such as property price, usage, and location (the Portuguese mainland or islands). You’ll also be liable for stamp duty, which is an additional 0.8% of the property price.
There are also ongoing taxes for owning property. The annual property tax (IMI) varies from around 0.3% to 0.8% of the property’s tax value, or valor patrimonial, which tends to be much lower than the market value.
Real estate over €600,000 attracts an additional property tax (AIMI). The amount you’ll pay depends on the property’s tax value and ranges from 0.7% up to 1.5%.
There’s no official requirement that you have a Portuguese bank account when buying property in the country. However, you might want to consider opening an account, particularly if you’re planning on moving to or retiring in Portugal.
Yes, as a foreigner you can obtain a mortgage from a Portuguese bank to buy property in Portugal. Requirements vary, but you'll likely need to provide proof of income, identity, and details about the property.
Generally speaking, you’ll only be able to borrow between 65% and 75% of the property value. It's best to contact several banks to compare terms and interest rates.
The property buying process in Portugal typically takes around three to six months to complete. However, this can vary depending on different factors, such as the complexity of the transaction or any legal issues that may arise.
There currently aren’t any legal requirements for purchasing property in Portugal as a foreigner. That said, you will need a fiscal identification number (NIF), which you can apply for online or at a local municipality office in Portugal.
Portugal’s Golden Visa scheme allows non-EU citizens to obtain a Portuguese residency permit by investing in the country. Previously this included buying property, but property purchases are no longer eligible for the Golden Visa scheme.
The exchange rate you get depends on when you transfer, how much you send, and who you choose to work with. Here at Currencies Direct we offer highly competitive exchange rates, and we can help you time your transfers to move your money when the rate is strong.
Yes, you can use a forward contract to lock in an exchange rate for up to a year in advance of making a money transfer.
The main currency exchange risk is that the exchange rate will weaken when you need to send money. There are two key ways to minimise the risk.
The first is to plan your transfer ahead of time. This could give you the possibility to seize on a strong exchange rate and it means you’re not rushed into sending money when the rate is potentially weak.
The other key thing is to work with us. We offer expert support, market insights and a range of specialist services – such as forward contracts – to help you navigate currency volatility.
You can set up regular payments to automatically go out every month or quarter with Currencies Direct.
You can even use a forward contract along with your regular payments, locking in an exchange rate so you know exactly how much you’ll get from each transfer.