Real estate purchase in Portugal 2022: costs, taxes, and expenses

real estateinPortugalin 2022? It is important to know all the costs you will have to pay in addition to the cost of thereal estate. Buyinghousesin Portugal requires financial planning to cope with the initial costs associated with buying a property in the country. It is not just a question of how much the mortgage will cost. There are a number of fees, commissions and taxes that cannot be avoided. What are the costs of buying real estate in Portugal? How much tax do you pay when buying a property in Portugal?

We will explain everything with the help of personal finance experts in Portugal.

Real estate market in Portugal in 2022

The real estate market in Portugal in 2022 remains dynamic, with more transactions already taking place than before the Covid-19 pandemic. Despite rising house prices, people from Portugal and abroad continue to buy property in Portugal. This is also reflected in the most recent data from the Bank of Portugal, which shows a 1.5% increase in the issuance of new mortgages compared to the figure recorded in July 2020.

Financing of mortgages

100% financing of mortgages in Portugal is a thing of the past and since July 2018, the Bank of Portugal has established that banks must finance a maximum of 90% of the lower value between the purchase price of the property and the appraised value.

Costs of buying real estate in Portugal

• The most money you will have to pay when buying real estate in Portugal is the down payment or deposit.
• Bank commissions are another expense, aboutwhichit's worth remembering, although they vary from bank to bank.
• The formalization of the purchase and sale transaction also includes certain expenses.

Avoiding the dream of buying a house in Portugal turning into a nightmare is very important. According to 2020 data, the average price of real estate,purchasedpeople in Portugal, is 150,000 euros. In the case of a mortgage for 90% of this value, the expected costs would be as follows: deposit, bank fees, taxes, registration of documents. The total costs are around 20,600 euros.

From property visits, house selection, mortgage deal and all the documentation, buying a house in Portugal is a process that often becomes long and tedious, especially if you are moving from abroad. Financial planning is therefore key and helps many people make the right decisions.