Calculation: How Much Does It Cost to Purchase and Maintain an Oceanfront Apartment in Portugal

What to Buy in Portugal

Market and Prices

The global crisis of 2008-2009 has touched the real estate market of Portugal. Until after 2014, square meters continued to fall in price. But since then, recovery of the market has begun and it continues so far. At the end of the first quarter of 2020, real estate in Portugal has risen in price by 16.3% on year to year basis.

In the capital and in the popular resorts of Portugal, real estate in the price range of € 50-200 thousand is considered to be inexpensive.

For €200,000-300,000 you can count to purchase apartments in the sleeping areas of Lisbon, but not in new developments. New housing in the capital is available with a budget of  €300,000-350,000 - one-bedroom apartments, €350,000-400,000 - with two bedrooms.

Properties in the capital with good location and roomage  starting from 100 sq. m cost at least € 500,000.

Secondary Market Oceanfront Apartment

Let's calculate the cost of buying and maintaining housing in Portugal using the example of spacious apartments in the  Albufeira outskirts with a swimming pool and ocean view.

Given: 
Area - 126 sq.m
Plot area -106 sq.m
Bedrooms - 3
Bathrooms - 3
Year Built - 2009
Type - secondary market 

The apartments are located in a two-storey townhouse away from the Praia dos Arrifes beach.  The journey by car takes no more than ten minutes.

The apartment was built in 2009, it is fully furnished and is located in a building with a closed territory. There are three bedrooms, an equipped kitchen, a hall with access to a terrace with a barbecue - all this is at the disposal of the new owner. There is a solarium on the roof of the building and another terrace and garden surround the apartment.

How Much Will You Pay at the Purchase Stage

Price of the apartment : €420 000

Purchasing procedure happens in three stages:

• А €5,000 deposit is made when agreeing the cost of the property.
• Another 10-25% deposit is made цhen signing the letter of  intent (within 15 days after agreeing on the cost).
• The remaining amount is paid upon completion of the purchase and sale transaction.

 All payments go through a Portuguese bank account, which can also be opened by non-residents. In order to open and maintain an account, it is necessary to keep a minimum deposit  (from €150) on the balance.

When purchasing with a mortgage, it is important to keep in mind that there is a mortgage tax, which depends on the amount of financing and the conditions of a particular bank.

Lawyer's fee: €4,200

Real estate agencies help with all issues, but you can hire your own lawyer. In Portugal, legal support of the transaction is paid at a rate of 1% of the value of the property (sometimes more expensive).

Notary services: about €480

The Portuguese notary will request from € 250 to € 1500 for his services. Often an agency or a lawyer of one of the parties proposes a candidate for a specialist.

The cost of supporting the transaction by a notary depends on the price of the object (usually the fee is about 1% of the transaction amount plus VAT). In our case, the buyer will pay around € 480.

Translation services: €0

Realtor's Fee: €0

In Portugal, the realtor is not paid by the buyer, but by the seller. Usually the agent receives 5% of the property value for each transaction.

Fiscal Agen’s Fee: €0

To perform any legally significant activity in Portugal, including purchasing real estate, you will need a taxpayer identification number (Numero de identificação Fiscal, NIF). The local TIN can be obtained in 1 day by contacting the tax office (Finanças). A small fee is charged for its manufacture - less than €10.

But in order to issue a local TIN for a non-resident (foreigner not from the EU), it is necessary to involve a fiscal agent - a guarantor to the Portuguese tax authorities. This service usually costs from €150 euros per year.

Property transfer tax: €21,640

The tax rate on the transfer of ownership depends on the value of the object, its location and purpose of use (you can find out the amount of payment in the table).

For example, the tax rate for residential accommodation intended solely for  permanent residence of the owner ranges from 0 to 8% (depending on value). If the property is purchased for less than € 92,407, then the property is not taxed. The payment is made when signing the sales contract.

Stamp duty: €3,360

Stamp duty (Imposto do Selo, IS) for  purchasing  real estate is fixed and is 0.8% of the transaction amount. It is also paid in other situations: inheritance, execution of a long-term lease agreement, winning the lottery, etc.

Recording  the real estate in the Register: €225

Property registration costs starting from €225 euros. If you need urgent registration in the Register,  you will have to pay €450 per one object.

During the meeting with the notary, the client pays the tax bills and signs the sales contract. The notary only has to record the transaction into the Register.

Utility Connection : €0

Once the new owner has submitted the sales contract to the utility providers, all contracts are reissued to the owner’s name. 

Check out residential real estate in Portugal:

80 000 €

Flat in Braganca, Portugal

154 sq.m 4 3 2

Rental property

A great investment opportunity for a family or for monetization!! The property consists of a large living room, a kitchen with natural light, three bedrooms, two toilets, a storage room, a laundry room and a garage! The house was built in 2007. Hallway : 5.9 m2 Kitchen : 11.97 m2 Laundry room : 2.43 m2 Storage room : 1.88 m2 Living room :...

Portugal Subtil

83 000 €

Flat in Barreiro, Portugal

52 sq.m 2 1 1

Credit Rental property

Located in Motana Rue de Moçambique, 1-room apartment with a gross area of 51.86 m2. It needs repair. Hall. A spacious living room and dining room. Rooms for the bedroom, bathroom and kitchen. Private courtyard of about 25 m2. The location of this property is central. It is located next to a supermarket, services, a school and next to...

Portugal Subtil

85 000 €

Flat in Macedo de Cavaleiros, Portugal

117 sq.m 3 2 1

Rental property

Located in the center of Macedo de Cavaleiros. It consists of a hall, a living room, a furnished and equipped kitchen, a pantry, a bathroom, a utility room and a balcony. 2 bedrooms The house was built in 1994.

Portugal Subtil

125 000 €

Flat in Porto, Portugal

65 sq.m 2 1 1

Secondary real estate. It is located on the ground floor. One bedroom, kitchen- living room. Garage. Excellent investment, affordable price.

Portugal Subtil

125 000 €

Flat in Porto, Portugal

65 sq.m 2 1 1

Secondary real estate. It is located on the ground floor. One bedroom, kitchen- living room. Garage. Excellent investment, affordable price.

Portugal Subtil

140 000 €

House in Braganca, Portugal

185 sq.m 5 2 3

Rental property

Bragança, Rabal € 140000 8 km from Braganza, in the heart of the Montezinho Natural Park, we find Rabal, one of the tourist villages of the northeast of transmontano! Shrouded in silence, tranquility and nature, it invites you to long walks in the countryside, diving into the Sabor River and fishing! The house was built in 2017...

Portugal Subtil

148 000 €

Apartment in Portalegre, Portugal

101 sq.m 4 3 2

Online Viewing Remote Transaction Credit

3 bedroom apartment in Portalegre, in a totally refurbished building with high end finishes, ready to live. The apartment has a total area of 101m2 which is divided into: -Living room; -Kitchen; - 3 Bedrooms; - 2 Bathrooms -Balcony. The apartment has parking. Expected completion of construction is August 2024. Located in...

Amber Star Real Estate

150 000 €

House in Obidos, Portugal

50 sq.m 4 2 2

Rental property

A newly renovated house that offers a welcoming and modern environment. On the ground floor you will find a fully equipped kitchen with an open-plan living room, a bedroom and a large bathroom. On the upper floor there is a large bedroom with a bathroom and a storage room. There are two enclosed storage rooms outside. All materials used...

Portugal Subtil

165 000 €

Flat in Montijo, Portugal

92 sq.m 3 1 2

Rental property

Apartment in Montejo!!! T2 in the Garage for 165,000€ ! A two-bedroom apartment located in the center of Montigou, next to the Carlos Hidalgo Gomez City Park and the Montigou Court. Transport accessibility: close to bus and river stops, close to schools up to 12th grade, Montijo municipal swimming pool, supermarkets and all kinds of trade....

VRC Idrisova

169 000 €

Apartment in Lagos, Portugal

25 sq.m 1 1 1

Online Viewing Remote Transaction

The restoration project, which should turn the old hotel into a modern four-star SPA hotel. Rooms are issued in full ownership. No maintenance costs for 30 years. Completion of construction is the end of 2023. The apartments are suitable for the residence permit program from 280.000 euros. The possibility of repurchase in 5-7 years.

Intermark Global

170 000 €

Flat in Porto, Portugal

29 sq.m 1 1 1

Online Viewing Remote Transaction Cryptocurrency payment Credit

This project includes 2 renovated buildings with an internal garden of 50 apartments (from studios to 3-room and duplex) Area from 29 - 90 m2 Price from 170 000 - 690 000

Invest Cafe

170 000 €

Apartment in Porto, Portugal

29 sq.m 1 1 1

Online Viewing Remote Transaction Cryptocurrency payment Credit 3.5-5% Rental property

We offer apartments in a luxury apartment complex, which is located in Bonfim, in the Port! This project includes 2 renovated buildings with an internal garden of 50 apartments (from studios to 3-room and duplex) Area from 29 - 90 m2 Price from 170 000 - 690 000

VRC Idrisova

170 000 €

Apartment in Porto, Portugal

29 sq.m

Online Viewing Remote Transaction Cryptocurrency payment Credit 3.5-5%

We offer apartments in a chic apartment hotel, which is located in Bonfim, in the Port. This project includes 2 renovated buildings with an internal garden of 50 apartments (from studios to 3-room and duplex) Area from 29 - 90 m2 Price from 170 000 - 690 000

IP Kotlyarova E.I.

175 000 €

Flat in Porto, Portugal

29 sq.m 1 1

Online Viewing Remote Transaction Credit

An excellent development with a guaranteed return of 4% per year (for 5 years). The development's incredible location has a complete infrastructure of shops and services, with a high demand for short and long-term accommodation. The development is located just a few metres from University Centres, Business Centres, Shopping Centres,...

Amber Star Real Estate

180 000 €

Flat in Porto, Portugal

71 sq.m 3 2 2

Rental property

An excellent offer for investment and accommodation. Apartment with furniture, renovated, two terraces, 2 WC, two bedrooms, open kitchen and living room. It is located in the central part of the city of Porto

Portugal Subtil

180 000 €

Studio in Porto, Portugal

30 sq.m 1 1 1

Online Viewing Cryptocurrency payment

Studio for sale in Porto for 180,000 € Location:

Invest Cafe

184 900 €

Flat in Porto, Portugal

87 sq.m 3 2 3

A new residential complex is on sale. It is a building with 2 sections. There are 5 floors and 44 apartments in total. Elevator. Layouts of apartments for sale " with two bedrooms T2" and "with three bedrooms T3" There are only 2 three-bedroom apartments left for sale. They are located on the 5th floor and have a large...

Portugal Subtil

190 000 €

Apartment in Montijo, Portugal

104 sq.m 4 3 2

Online Viewing Remote Transaction Cryptocurrency payment Credit from 3.5% Rental property

Apartment with 3 bedrooms and a storage room in Montiggio 190 000 € Two-bedroom apartment of 104 m2 with a storage room in the center of Mjontijo. The building consists of 4 floors with 2 apartments per floor, with a gas pipeline, the apartment is on the 2nd floor and there is no elevator in the building. The apartment with a north-south...

IP Kotlyarova E.I.

192 000 €

Flat in Porto, Portugal

35 sq.m

A magnificent and modern complex, located on the banks of the Douro River, in the historic center of Porto, a UNESCO World Heritage Site, since 1996, offers you a choice of apartments. This street at all times was considered a prestigious place, attracting the construction of elite houses for the residence of the bourgeois elite and clergy....

Mercury Group

195 000 €

Flat in Amadora, Portugal

94 sq.m 4 3 3

Rental property

Great apartment for living and investment!!! Apartment in Amador!!! Fully renovated 3 bedroom apartment located in Kasem. The apartment is strategically located in an area with proximity to public transport. The presence of trade and services in the surroundings makes this area convenient for everyday life. The apartment has three bedrooms...

VRC Idrisova

See more 680 similar properties

How Expensive is It to Maintain an Apartment in Portugal

The cost of utilities depends on how many months the owners spend in the new apartment. Let's make a calculation for a situation where a family of two lives in a new Portuguese apartment all year round.

Expenses

Property tax: € 660 per year

The owner of an apartment in Portugal is obliged to pay an annual municipal property tax (IMI - Imposto municipal sobre os imoveis). The rate is progressive, ranging from 0.3% to 0.8% of the cadastral value of the property. It is usually paid at the tax office at the place of residence  or online.

In our case, the cadastral value of the apartments is €220,000, and the rate is 0.3%. In total, the owner will pay €660 per year (€220,000 * 0.0003).

Condominium Fee: € 2,040 per year

This includes: maintenance of the complex, garden, swimming pool, cleaning of stairwells. The payment, as a rule, goes through the bank to the account of the managing company. The annual fee is usually split into parts and is paid four times a year, which makes each payment about  € 510, and it will be € 170 per month. 

Insurance: €150 per year

It is drawn up at the request of the owner. An insurance certificate in Portugal will cost at least € 150 per year.

Utility bills: € 2,160 per year

On average, utility bills cost € 180-200 per month. In our case, the amount consists not only of electricity, water and gas, but also includes a landline phone and the Internet.

Itemized expenses

Electricity: от €50
Water supply: от €25
Gas: от €50
Phone: от €25
Internet: от €30

You have three ways to pay your bills:

1. via a bank deposit (you need to enable automatic debiting of funds from the account);
2. after receiving a receipt;
3. via online banking.

Table of Costs for the Purchasing and Caintenance of an Apartment in Portugal

The article was prepared jointly with the company PORTUGALITY.
Photo: pixabay.com

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