Buying a house and golden visa in Portugal: How to achieve a win-win situation for investment residency?

In recent years, more and more global investors have chosen to buy houses in Portugal. From 2015 to 2023, Portugal’s housing prices have risen by 105.8%, reflecting its stable investment potential. Rising construction costs, changes in loan interest rates, and the attractiveness of real estate investment returns have driven the prosperity of the market.

Portugal not only provides good investment opportunities for overseas investors, but also enables them to quickly obtain residency through the “Golden Visa” program. Whether investing in city apartments or high-end villas, Portugal’s major cities offer a wealth of choices.

Analysis of the real estate market in major cities

Lisbon

Lisbon, as the capital of Portugal, has always been a popular destination for foreign investment. Areas such as Principe Real and Chiado in the city center have an active real estate market, attracting many overseas investors. According to data from 2024, the average housing price in Lisbon is 5,538 euros per square meter. Although the price is high, the rental return rate is still attractive. Two-bedroom apartments in the city center are expected to have a rental return rate of 5.11%, suitable for buyers who hope to obtain investment returns through rental income.

Porto

Porto’s real estate market is more cost-effective than Lisbon, attracting a large number of overseas buyers looking for low-cost investments. The house price in the city center of Porto is 4,055 euros per square meter, while the price in the suburbs has dropped to 2,581 euros per square meter, making the city an ideal choice for investors. Porto’s rental return rate is also relatively high, with independent suites in the city center achieving a return rate of 5.60%, and one-bedroom apartments having a rental return rate of 5.71%, suitable for investors seeking high returns.

Cascais

Cascais is one of the most popular holiday destinations in Portugal, attracting many investors with its high-end seaside villas and unique Mediterranean climate. The housing prices are relatively high, with an average price of 7,109 euros per square meter in the city center, but the rental return rate in the area is still considerable, with a return rate of 5.40% for two-bedroom apartments and 5.30% for independent suites. Cascais is suitable for buyers who want to enjoy a holiday life while investing in real estate.

Sintra

Sintra is known as one of the most romantic places in Portugal, attracting a large number of tourists and investors. Compared to other big cities, Sintra’s housing prices are more affordable, with an average price of 2,664 euros per square meter in 2023. Sintra’s real estate market offers a rental return rate of up to 7.59%, especially in the high-end residential sector, where investment returns are stable and suitable for buyers who want to invest in properties with unique charm.

How to buy a house in Portugal

Overview of the buying process

The process of buying property in Portugal is relatively simple and suitable for foreign investors. First, you need to choose a suitable property and reach an agreement with the seller. Next, sign the purchase contract and pay a deposit, usually 10% of the house price. After signing the formal purchase contract, the remaining payment will be made before the transfer of ownership.

Real estate market channels

Portugal’s real estate market is rich in information. Investors can find suitable properties through channels such as real estate agencies and online platforms (such as Idealista). It is recommended to use reputable local intermediaries who can provide complete legal and tax support to ensure a smooth home purchase process.

Legal requirements

Foreigners can freely purchase real estate in Portugal, but buyers must have a tax identification number (NIF) and open a bank account in Portugal. Before purchasing a house, hire a lawyer to verify whether there are any legal issues with the property to ensure clear property rights.

Loans and fees

In Portugal, most banks offer mortgages to foreigners, but usually require a down payment of more than 30%. When purchasing a house, stamp duty (about 6%) and some additional fees such as lawyer fees and property registration fees need to be paid.

For overseas investors, the global multi-asset trading wallet BiyaPay provides great convenience. Using BiyaPay can not only effectively manage your property purchase funds, but also ensure that your Portugal investment transaction is not troubled by fund circulation. With BiyaPay, you can easily transfer funds to Portugal for property transactions. Its localization remittance method effectively reduces transaction fees, and there is no limit, simplifying cross-border fund flow.

Practical advice

When choosing a place to buy a house, factors such as the appreciation potential of the property, transportation convenience, living facilities, and rental return rate should be comprehensively considered. For first-time homebuyers, it is best to learn more about the local market and make decisions with the help of lawyers and real estate experts.

Portugal Golden Visa

In addition to finding ideal properties, many foreign investors also consider obtaining residency in Portugal through the Golden Visa program. The Golden Visa provides a convenient way for non-European Union investors to obtain residency in Portugal through real estate investment, allowing investors to not only enjoy residency in Portugal, but also enjoy the benefits and advantages of the entire European Union.

The basic requirements for a golden visa

Golden Visa requires investors to:

• At least 18 years old.
• No criminal record.
• Invest at least 500,000 euros in Portugal real estate.

Through the Golden Visa, investors can not only obtain residency in Portugal, but also apply for a European Union passport after five years. This is very attractive for investors who plan to move freely within the European Union.

The simple process of applying for a golden visa

The application process for the Golden Visa is relatively simple. Investors only need to choose suitable properties for investment and submit application materials. The entire application process usually takes between 6 and 12 months, and investors and their families (spouses, underage children) can obtain residency in Portugal together. Through Portugal’s Golden Visa, you can not only obtain European Union residency, but also achieve dual benefits of capital appreciation and rental returns.

The above is a brief introduction to buying a house and golden visa in Portugal. Interested investors can visit the official website for more detailed information to obtain more accurate assistance.