Good to know

NIF : Portuguese Fiscal Number

Why are we talking about the Tax Identification Number in the first place?

This number is compulsory for all steps to be taken in Portugal (buying property, opening a bank account, renting, etc....). Once you have found your dream property and started the process, you will be asked for the NIF immediately.

You will not be able to perform any acts without this number.

To know how to obtain a NIF, it is simple, click here :

Why are we talking about the Tax Identification Number in the first place?

This number is compulsory for all steps to be taken in Portugal (buying property, opening a bank account, renting, etc....). Once you have found your dream property and started the process, you will be asked for the NIF immediately.

You will not be able to perform any acts without this number.

To know how to obtain a NIF, it is simple, click here :

Why are we talking about the Tax Identification Number in the first place?

This number is compulsory for all steps to be taken in Portugal (buying property, opening a bank account, renting, etc....). Once you have found your dream property and started the process, you will be asked for the NIF immediately.

You will not be able to perform any acts without this number.

To know how to obtain a NIF, it is simple, click here :

Lawyer : required or not ?

It is not mandatory to hire a lawyer for your purchase in Portugal, however, it is strongly recommended, especially if you do not know the language, the necessary legal documents or procedures to adopt at the time of acquisition.

It is true that hiring a lawyer will increase your costs, but it is in fact a safety measure to acquire your property in complete serenity and to avoid future problems.

When buying a property, in general, lawyers (here in the Algarve), offer a fixed rate which includes :

- Obtaining your Fiscal Number ( NIF );

- Opening a bank account in your name;

- Analyzing the property documents;

- Drafting the sale and purchase contract in Portuguese (official language) and translation (if you hire a bilingual or trilingual lawyer).

- Verbal translation of the final deed on the day.

- If necessary, drafting of powers of attorney, signatures notarization and authentication of documents;

- Tax payment procedures and others;

- Issuing and updating documents in your name;

- Visits to tax offices and notaries;

- Meetings, e-mails, telephone calls;

- Water, gas and electricity ownership contract alteration on your behalf....

This will allow you to secure your purchase, but also guide you and facilitate all your administrative procedures that you may need even after the purchase (RNH status, foreign vehicle registration, last will and testament, etc....).

Cost: as a general rule, you need to consider 1% of the purchase price of the property + VAT (rate in force in 2021 of 23%) but beware, this is only a global information because everything depends on the lawyer and on the purchase price of your property.

Bank : Bank loan

Bank : Bank loan

Bank : Bank loan

2 possibilities: either hire a bank in your home country to follow you in a purchase abroad or you will have to use a Portuguese bank.

Here are some names of banking institutions in Portugal: Millennium BCP, Banco BPI, Caixa Crédito Agrícola, Caixa Geral de Depósitos, Santander Totta, Bankinter, Novo Banco, Banco CTT...

Type of loan: Variable Rate or Fixed Rate?

Variable Rate: rate generally indexed on Euribor at 3, 6 or 12 months.

Fixed Rate: nowadays Portuguese banks also offer fixed rate loans for 5, 10 or 15 years, which can be extended at variable rates after this first period.

In all cases, the bank will require a (voluntary) mortgage on your behalf on the property purchased.

Local banks generally finance non-residents up to 70%-75% of the price of the property valuation, carried out by an expert appointed by the bank.

This amount may rise to 80-85% if you plan to become a resident in Portugal.

The basis of the calculation is therefore not the purchase price, but the amount of the expert valuation, which means that you will have to make a substantial contribution to reach the purchase price, bearing in mind that there are other costs that you will have to cover with your own capital.