Buying a second home in Portugal...

Discussion in 'Portugal: NSR' started by Aveirenses, Dec 1, 2009.

  1. Aveirenses

    Aveirenses Member

    Joined:
    Mar 3, 2004
    Location:
    Guardiolunya
    Club:
    Sporting CP Lisbon
    Country:
    Portugal
    OK_so barring another economic windfall it looks like I'll be getting a decent bonus check and a little more breathing room in my opockets this December...

    I'm looking at the possibility of mortgaging out a home in POrtugal, with a view to rent it out during the year, bar for one room that I would use during the summer and/or use every few months or so on a week off. I've seen some nice places listed on CL for the 300-500K range and I'm looking to stay in that range, my only concern would be as far as things like property tax would be concerned, and any other fees that I might be overlooking.

    Thanks for any advice/tips.


  2. Joelzinho

    Joelzinho Moderator Staff Member

    Joined:
    May 23, 2005
    Location:
    Montreal!
    Country:
    Portugal
    Depends where you want to get this house/condo.

    My family has a very nice condo about 1 block from the beach in the South. When we aren't there we rent it out to Lawyers, Doctors, Businessmen with families, and it basically pays for itself.

    If your looking for an actual house in the desired range, I might suggest Cascais. Very beautiful there, and about 30 minutes out from the downtown center of Lisboa. My family were also looking in that area to buy a condo(bye bye Olaias:( )

    A few beaches near by, some very good resturants, nightlife, Casino, women, Estoril futebol club..lol
  3. Aveirenses

    Aveirenses Member

    Joined:
    Mar 3, 2004
    Location:
    Guardiolunya
    Club:
    Sporting CP Lisbon
    Country:
    Portugal
    Yeah, I'm mainly looking for something in Lisbon proper. Cascais is not a bad option either. I've looked at some nice villas and even some decent flats. Again, I'm just wondering if beyond the property tax I'm overlooking any applicable fees... aside from the mortgage itself.
  4. Joelzinho

    Joelzinho Moderator Staff Member

    Joined:
    May 23, 2005
    Location:
    Montreal!
    Country:
    Portugal
    There will most definitely be some fee. I have an aunt that lives in Cascais. If you want, I could inform about her property whenever she comes around, and get back to you...


  5. FigoTX

    FigoTX Member

    Joined:
    Feb 15, 2006
    Location:
    H-town, TX
    Just make sure you're fully aware of any rent control and resident rights. By resident rights, I'm talking about people living in the same flat for years and transferring the unit to their kids while paying the same amount. I know rules have changed, but my grandfather (who played for Sporting) had several flats in Lisboa and the tenants lived there for basically the same rent for 40 years or so.

    Again, I know rules have changed and it may depend on area and rental agreements. My uncle has a couple of places in the Algarve that I believe he rents out, and my aunt used to have a flat in Cascais. Let me know if you want me to ask them about taxes and such.
  6. ---Z---

    ---Z--- Member+

    Joined:
    Nov 2, 2005
    Club:
    Sporting CP Lisbon
    Country:
    Portugal
    Ask your boss Donald Trump for advice, he knows real estate pretty well.
  7. Aveirenses

    Aveirenses Member

    Joined:
    Mar 3, 2004
    Location:
    Guardiolunya
    Club:
    Sporting CP Lisbon
    Country:
    Portugal
    Unfortunately he doesn't do much business in Portugal... I'm assuming because he came across the board and saw that he might encounter sever prick headed morons like yourself.:rolleyes: Troll along now...

    FigoTX-Thanks. Do you have any clue what kind of percentage I should expect to pay in terms of property tax?
  8. FigoTX

    FigoTX Member

    Joined:
    Feb 15, 2006
    Location:
    H-town, TX
    Ok, got this from my aunt and I'm following up on the IMI tax amount. I copied her reply below (with some adjustments):

    "If you own an appartment you pay an yearly municipal tax called IMI (Imposto Municipal sobre Imoveis). And if it is rented to someone else, you pay the IMI plus a statal tax (IRS - Imposto sobre o Rendimento de pessoas
    Singulares) that is a percentage (15%) of the monthly rent you receive.
    Also, in case it is a flat, you'll also pay a condominium fee...

    Just to give you an idea, do you remember tia Maria Emilia's flat? It has a quite large living room and 3 bedrooms, 2 WCs, kitchen and is in a very nice building in one of the best avenues of Cascais.
    I pay nearly 750 euros per year of IMI and another 750 for the yearly condominium.
    The rent is 750 euros/month. So, 2/12 of the rent is for taxes."

    PLUS the 15% of the monthly rent, so it would be another $1350. So if you plan to rent it out, about 3 months worth of rent would go to taxes and in this case another month to condo fees.

    I would never suggest skirting taxes in one of the poorest yet highest taxed countries in EU, but there are always ways around some of these taxes.

    Anywho, I'm sure the Municipal tax varies by Municipality.
  9. FigoTX

    FigoTX Member

    Joined:
    Feb 15, 2006
    Location:
    H-town, TX
    Here is more info/thoughts about buying in Cascais:

    The IMI in Cascais is less than 1% of the official estimate value of the flat. The estimate value is calculated by the Finances and ususally is lower than the real value of the flat provided it is not brand new!
    To invest here is good (it's considered the best/most expensive... place in the whole country) but risky. Right now, the real estate situation is:
    1. Plenty of houses/apts to buy or rent 2. Prices went down so it's a good occasion to buy or rent to your own use 3. The risk of renting a place to someone else is that if he does not pay the rent then it takes years for the justice to act.....
    4. But if you rent it "well", then the money you receive each month may be enough to pay the cost of the investment.


    Of course, if you're looking for a place to rent out part of the year and then be empty for your vacation (August I presume :D ) then it changes your tactics and locations. Basically, are you looking for a vacation home or an investment home?
  10. ChopSoccerDude

    ChopSoccerDude New Member

    Joined:
    Dec 3, 2004
    Location:
    New Jersey
    Club:
    FC Porto
    Country:
    Portugal
    unbelievable! :eek:

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