It is a case that interests a large number of Europeans who wish to treat themselves to a corner of paradise on the Portuguese coast. It all depends on the geographical area chosen, but the Algarve offers ideal conditions to spend half of the year there: warm sea, sunshine all year round, authentic architecture and a price ratio Portugal / Europe that can only make you dream.
One must nevertheless be careful that the tax advantages may be less interesting for the purchase of a second home in Portugal. We will therefore see what the differences and obligations are for this type of real estate purchase.
Property hunter in Portugal
Click on the button and fill in the form below to be accompanied from A to Z by English-speaking real estate professionals based in Portugal.
Before telling you about the differences between a main residence and a second home in Portugal, please know that I can put you in touch with 5 different English-speaking agencies for your property search. By doing this by yourself, you will be confronted with certain problems such as properties presented on the internet which are in fact no longer available for a long time but simply used as a product of appeal. This will also allow you to put these 5 agencies on your property search and be sure to find the house that best suits your criteria.
Real estate agencies are English-speaking, have been established in Portugal for a very long time and know the real estate market better than anyone else. A good way to make sure that the best options will be offered to you:
- Get in touch with you to discuss your project and get acquainted with your criteria.
- Scan the real estate market to find properties of interest to you
- Visiting properties upstream to ensure that they are worth visiting
- To welcome you in Lisbon or elsewhere to organize visits
- Accompany you to the administrations to obtain your TIN or Portuguese NHR status if you wish to do so.
- Accompany you to the notary to finalize the purchase
A procedure that also allows you to save time and ensure that your arrival in the country will not be in vain and will advance your expatriation project in Portugal. If you wish to discuss your project with these different agencies, use the button below and fill in the dedicated form, it will come back to you as soon as possible.
Why buy in Portugal
We have already seen this point in various articles, so I will simply summarise it in the form of key points: Portugal offers many advantages that may make you want to buy your second home there.
- 3300 hours of sunshine per year in the South and 1600 in the North
- 80% of tourists wish to return after their stay in the area
- 2 hours from Paris and very close to many European capitals.
- A low cost of living, very favourable for a retirement
- Tax exemption for 10 years if you stay more than 183 days a year.
- 50 of the best golf courses in the world
- A very profitable real estate market for tourist rentals
Difference in lMT: primary and secondary residence
The second point that differs between the purchase of a primary and a secondary residence in Portugal is found in the property tax on onerous real estate transmission: the IMT. As explained on our real estate taxes page, the allowances are not the same depending on whether it is a second home. Again, you will find the table of allowances below:
As you can see, if you wish to buy a house worth 500 000€, the ITM will be :
- 28964,7€ for a second home
- 28040,74€ for a main residence
The difference is not huge but can play on the scales and can be more important for the purchase of a less expensive home.
Renting your Portuguese second home
As you can see in our article on the Portuguese property market, the new impetus is largely due to rental investments and the fact that more and more tourists want to visit the country during the high season. Some regions such as Cascais and the Algarve have done well. There will therefore be fewer opportunities to buy and to search more carefully, but weekly rentals during the months of May to September are still expensive.
These are regions that become very touristy and densely populated during these periods, so it may be wise to buy your second home there and go back to your country to see your family during these months. A rental in Cascais can be rented on specialized sites between 70 and 300€ per night. An interesting calculation which can allow you to finance the maintenance of your second home for free all the rest of the year.
Some more information about real estate in Lisbon or elsewhere in Portugal :
- Taxes and duties on real estate purchases in Portugal
- Taxes and duties on rental income in Portugal
- Taxation in Portugal
Do not hesitate to contact me if you wish to be accompanied in your real estate search in Lisbon: identification of your criteria, contact of the various estate agencies on the spot, realization of photos to visualize the selection, accompaniment with the visits and help with the conclusion of the contract under the best conditions.
Real estate project in Lisbon
By validating the contact form, you authorize me to transmit your request to English-speaking estate agencies of reference which will be able to contact you directly. Nothing is automated: they are people based in Lisbon who are qualified to accompany you in your approach & your project.
