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At Immo Lusitania we specialize in ✔ Luxury homes investment properties and relocations ✔ Vetted partners including lawyers surveyors and mortgage experts ✔ Tailored advice to help you make a secure and informed purchase

Buying Property in Portugal? Avoid These 10 Costly Mistakes!

January 28, 2025

Buying property in Portugal is an exciting step, whether for a permanent move, holiday home, or investment. However, to avoid pitfalls and ensure a smooth process, there are key factors every buyer should consider. From legal paperwork to property inspections and financing, here are the 10 most important things to check before purchasing real estate in Portugal.

📌 Tip: Immo Lusitania has vetted partners—from lawyers to surveyors and mortgage brokers—to assist you every step of the way. Simply contact us for expert guidance!


1. Ensure the Property Has the Correct Legal Paperwork

Before purchasing any property in Portugal, verifying all legal documents is crucial. Missing or incorrect paperwork can cause legal issues or delays. Key documents to check include:

Land Registry Certificate (Certidão Permanente): Confirms the ownership status and any debts or mortgages attached to the property.
Caderneta Predial (Tax Certificate): Shows the property’s fiscal status and taxable value.
Habitation License (Licença de Utilização): Confirms the property meets legal living standards.
Energy Performance Certificate (Certificado Energético): A legal requirement, indicating the home’s energy efficiency rating.

📌 Tip: A trusted lawyer can verify all paperwork before you commit. Immo Lusitania works with expert real estate lawyers to handle this process for you.


2. Conduct a Structural Survey

A structural survey is essential, particularly for older properties, countryside estates, and renovations. Even newly built homes can have hidden defects that could become costly over time.

🔎 A survey checks for:

  • Structural integrity (cracks, damp, foundation issues).
  • Roofing and insulation conditions.
  • Plumbing, wiring, and drainage systems.

📌 Tip: Immo Lusitania partners with experienced surveyors to provide comprehensive property inspections before purchase.


3. Choose a Lawyer with Real Estate Experience

Having the right legal representation is crucial. A good real estate lawyer will:

Ensure the property title is clear.
Check for outstanding debts, taxes, or legal disputes.
Negotiate favorable contract terms and oversee the process from start to finish.

📌 Tip: Avoid using a lawyer recommended by the seller—always choose an independent legal expert. Immo Lusitania can connect you with trusted real estate lawyers with local expertise.


4. Understand the Buying Costs & Taxes

Buying property in Portugal comes with additional costs, including:

💰 Property Transfer Tax (IMT): 1%–8% depending on location & price.
📄 Stamp Duty (Imposto de Selo): 0.8% of the purchase price.
📝 Notary & Registration Fees: €1,000–€2,000.
🏦 Legal Fees: Typically 1%–2% of the purchase price.

📌 Tip: Budget 10%–12% extra for closing costs. Immo Lusitania’s financial advisors can help you calculate the full cost breakdown before you commit.


5. Research the Location & Infrastructure

The location of a property significantly impacts its resale value, rental potential, and quality of life. Consider:

🏡 Proximity to essential services (hospitals, schools, shops).
🚗 Transport & accessibility (public transport, road connections).
🌅 Lifestyle factors (beachfront, city center, countryside tranquility).

📌 Tip: Visit the area at different times of the day to assess traffic, noise, and neighborhood vibes. Immo Lusitania can provide insider knowledge on Portugal’s best locations.


6. Verify That the Property Matches Official Plans

It’s not uncommon for homes in Portugal to have unregistered extensions or alterations. If parts of the property aren’t legally documented, this can cause issues with financing, renovations, or future resale.

📌 Tip: A lawyer or surveyor can confirm that the property matches municipal records. Immo Lusitania can arrange professional verification before you sign anything.


7. Consider the Rental & Investment Potential

If you’re buying a property as an investment, research:

📈 Local rental demand (long-term vs. short-term).
💵 Potential rental yields in the area.
📜 Tourist rental licenses (AL – Alojamento Local) requirements.

📌 Tip: Some areas restrict short-term Airbnb rentalsImmo Lusitania can advise on the best locations for maximizing rental income.


8. Secure the Best Financing (If Using a Mortgage)

If you need a mortgage, Portugal offers financing options for both residents and foreign buyers.

🏦 Key steps for mortgage approval:
✔ Compare banks & interest rates.
✔ Get pre-approved before house-hunting.
✔ Understand loan conditions, repayment terms, and hidden fees.

📌 Tip: Immo Lusitania’s mortgage experts help buyers secure the best financing options with competitive rates.


9. Confirm Utility & Service Connections

Before purchasing, check that the property has:

💡 Electricity, water, and sewage connections.
📡 High-speed internet & mobile coverage (important for remote workers).
💰 Community fees (if applicable) are up to date.

📌 Tip: Rural homes may require well water, solar energy, or septic tanks—our team at Immo Lusitania can verify all infrastructure details for you.


10. Be Aware of Local Laws & Regulations

Different regions in Portugal have specific property laws, zoning regulations, and building restrictions. If you’re buying:

🏠 A historic home – Check if renovations require government approval.
🌊 A coastal property – Ensure compliance with environmental laws.
🛠 A renovation project – Verify necessary building permits.

📌 Tip: Immo Lusitania works with experienced legal teams who understand regional property laws to protect your investment.


🏡 Find Your Dream Property in Portugal with Immo Lusitania

Navigating Portugal’s real estate market can be complex, but with expert guidance, you can secure the perfect property with confidence.

At Immo Lusitania, we specialize in:

Luxury homes, investment properties, and relocations.
Vetted partners including lawyers, surveyors, and mortgage experts.
Tailored advice to help you make a secure and informed purchase.

📩 Contact Immo Lusitania today and let us handle all the details—from paperwork to financing, inspections, and legalities.

🔗 Explore our exclusive listings: Immo Lusitania 🚀🏡

 

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