An expat's guide to buying real estate in Portugal.

In this guide for foreigners, we take a look at how the process of buying real estate in Portugal works, what to expect from the process and how to ensure you get the best value from your move.

First, the rules of buying real estate in Portugal

Many foreigners are unable to buy property in the country they have chosen to live in, or face restrictions on the types of property they are legally allowed to buy. In Portugal, some 60,000 British foreigners face no such restrictions. To do this, you will need to register with the Portuguese Tax Authority (called "numero fiscal de contribuinte"). Foreigners can easily apply for this number through their local tax office and do not have to open a local bank account. Otherwise, you are free to buy a home as you see fit.

Of course, however, if you are investing in Portuguese real estate under the permanent residency program, you will need to ensure that the purchase meets the required value and is subject to changing rules about which areas qualify for golden visa applications.

Buying property in Portugal under the golden visa program

Many UK citizens are choosing to purchase property in Portugal under the golden visa program. This program entitles foreign investors to permanent residency status. The rules are pretty simple: purchases must start from €280,000, €350,000 or €500,000 depending on the type of property and location. You will need to maintain ownership for at least five years and spend at least seven days in Portugal in the first year of your visa, increasing to 14 days every two years thereafter. Applying for permanent residency usually takes at least two months, but you won't need to take language tests or move to Portugal permanently if you don't want to.

The process of buying a property in Portugal

The first thing to check is that any estate agent you purchase through must be properly registered.

Property taxes and the cost of owning real estate in Portugal

You will have to consider property taxes, depending on the value of your home. Some of these include Imposto Municipal Sobre a Transmissão Onerosa de Imóveis, Imposto do Selo and the printing tax. You will also have mandatory government fees and property survey costs.

Borrowing to buy a property in Portugal

If you need a mortgage to buy a property in Portugal, there are several options including non-resident mortgages and building mortgages. You will need to apply for a mortgage from a Portuguese bank and take into account various conditions and requirements.