I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E

Portugal
Buyers Guide

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Contents
3 Welcome

LOCATIONS

7
4 Central Algarve
7 Western Algarve
10 Eastern Algarve

10
BUYING & LIVING IN PORTUGAL
13 Buying process
14 Ongoing costs
15 Care with currency
16 Managing a holiday let
17 Tax & Financial planning
18 Non-EU residency options
19 Client testimonials

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Olá
Welcome to Ideal Homes Portugal’s guide championship courses of the
upmarket ‘Golden Triangle’ leisure
to buying a property in the Algarve. resorts, home to some of the
world’s finest coastal residences.
For a more traditional lifestyle
We hope this provides a useful Atlantic shoreline, it divides neatly close to dramatic natural scenery,
introduction to the different into three parts – Eastern, Central the Eastern Algarve is popular for
areas along this famous stretch and Western. All offer easy access its barrier islands with their long,
of coastline, and the key things to Faro’s international airport. unspoilt beaches while the furthest
you need to consider to ensure a The Central Algarve, which corners of the Western Algarve
successful holiday-home purchase includes regional capital Faro, have a wilder exhilarating feel.
or a permanent move to this together with perennial favourite We hope this guide helps you
fabulous part of the world. Albufeira, make up the most decide to go ahead and realise your
So why the Algarve? It’s not by developed and amenity-packed dream of buying in the Algarve
chance it has become one of the section. Set around bays beneath – or at least triggers an interest
world’s most desirable lifestyle the area’s distinctive red cliffs, and further questions. Either way,
destinations, one that caters as friendly beach resorts that began please don’t hesitate to get in touch
well for the international jet-set life as fishing villages – and retain with the Ideal Homes Portugal team
as it does for fun-loving families much of their traditional charm and we’ll be happy to help.
and retirees. - are typical here. Not forgetting
Blessed with a balmy year-round you’re never far from quality Happy reading and we look
climate and stunning 150-kilometre golf, most notably the pristine forward to hearing from you. 

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 PORTUGAL SPAIN

WESTERN ALGARVE CENTRAL ALGARVE EASTERN ALGARVE

TAVIRA
LAGOS

LOULE
PORTIMÃO
FUSETA
CARVOEIRO ALBUFEIRA
OLHÃO
SAGRES

FARO AIRPORT

Central Algarve

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› Family friendly beach resorts

› Championship golf courses
› World-class marinas and amenities
› International market for luxury homes
› Albufeira – old town & lively modern strip
› Quinta do Lago, Vale do Lobo & Vilamoura

Central Algarve
Heading west from Faro, the jewel with its whitewashed streets and Its Campus multi-sports hub offers
in the crown of the Central Algarve shady squares is better suited to world-class fitness and training
is the upmarket Golden Triangle families and older people. Five facilities.
area, home to some of the world’s minutes east, the New Town with The largest residential tourist
finest coastal homes. It includes its lively strip attracts younger community in Europe, Vilamoura
the famous golf and leisure resorts crowds who enjoy the bars and boasts six golf courses, including
of Vale do Lobo, Quinta do Lago night-time entertainment. Albufeira the regular venue for the Portugal
and Vilamoura. has a marina, its own local beach Masters. Complementing its
The remainder of the Central and nearby golf courses at Pine other leisure amenities is its
Algarve is characterised by Cliffs, Balaia and Salgados. award-winning marina, the largest
family-friendly resorts, typically in Portugal and popular for its
pretty fishing towns with seafront Golden Triangle waterfront promenade lined with
promenades and sandy beaches Vale do Lobo is the Algarve’s oldest bars and restaurants.
set beneath low cliffs. self-contained residential leisure For a more traditional setting,
Albufeira and Carvoeiro are two resort, as well as one of Portugal’s Almancil is a small town just 10
of the most popular destinations, largest. Its 450 hectares include minutes’ drive inland from the buzz
both offering a good choice two golf courses and various of the Golden Triangle’s resorts.
of homes near the beach and sports facilities, and many of its With a rustic bijou feel, it’s popular
resort centre, or within one of 1,500-plus residences are prime for its top-end restaurants and
the quality golf resorts in the beachfront and fairway villas. boutiques. Further inland into the
surrounding areas. Incorporating the eastern foothills is the old market town
corner of the Ria Formosa park, of Loulé, where a quieter more
Albufeira Quinta do Lago competes with Portuguese lifestyle is on offer.
The largest and busiest beach neighbouring Vale do Lobo to
resort in the Algarve, cheerful be the Algarve’s flagship resort. Galé & Armação de Pêra
Albufeira caters for just about It combines stunning natural In contrast to bustling Albufeira,
everyone and has a large year- scenery with three championship four kilometres west is the cosy
round expat population. Originally golf courses and has hosted the resort of Galé. Tucked above small
a sleepy fishing village, today Portuguese Open numerous times. outcrops and suited to people
Albufeira divides neatly into old Properties are primarily premium who prefer a quieter resort, it
and new parts. The pretty old town plots and villas beside its fairways. marks the start of an unspoilt five-

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kilometre golden beach, much of spread in each direction along the buyers looking to be set back
it protected and flanked by sand coast. Carvoeiro is popular for from the busier coastal areas. It’s
dunes. Starting as Galé beach, it its coastal walks, its proximity to convenient for the golf courses
becomes Grande Pêra beach then other beaches, including Centianes around Carvoeiro, as well as the
Salgados beach before ending at and Benagil and being the home of Slide and Splash water park.
the modern resort of Armação de the Pestana Golf Resort.
Pêra, with its seafront promenade Ferragudo
lined with apartment blocks. Silves & Lagoa With its palm-lined riverfront and
Along the way is the Salgados Silves is a medieval town on the beautifully preserved old town,
Lagoon and Salgados golf club, banks of the River Arade, 20-25 Ferragudo is the final resort in
beside which is a small selection minutes’ drive from the coast the Central Algarve and a real
of boutique developments. at Carvoeiro. The surrounding gem. It sits on an inlet in the River
countryside, typically a carpet to Arade estuary, directly opposite
Alcantarilha citrus groves and cork trees, is Portimão’s world-class marina.
Ten minutes inland of Armação popular with year-round residents Highlights include its main square
de Pêra is the municipality who prefer a peaceful rustic and winding streets, its fish
of Alcantarilha, popular for way of life. There is also a golf restaurants and the collection
its traditional village centre course there. of calm sandy beaches, ideal for
and proximity to a number of Nearby Lagoa is another water sports thanks to being in
attractions. All within five minutes traditional town that attracts the estuary. 
are the Amendoeira Golf Resort,
Aqualand Algarve water park,
Zoomarina Express marine AVERAGE PRICE GUIDE
park and Algarve Shopping
mall at Guia. Golden Triangle
Modern 2/3-bed apartments - from €600,000
Carvoeiro Modern townhouses – from €850,000
Nestled between sandstone cliffs Modern detached villas – from €1,000,000
and with a hilly backdrop, fishing
village Carvoeiro is one of the Rest of Central Algarve
Algarve’s prettiest resorts. Set Modern 2/3 bed apartments - from €300,000
within a horseshoe bay, its small Modern townhouses – from €450,000
sandy beach is protected and Modern detached villas – from €500,000
especially suited to families. From
the old white-washed centre, Prices for older resales are typically lower
low-rise low density communities

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 PORTUGAL

WESTERN ALGARVE CENTRAL ALGARVE E

LAGOS

LOULE
PORTIMÃO
CARVOEIRO ALBUFEIRA

SAGRES

FARO AIRPORT

Western Algarve

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› Unspoilt fishing villages

› Costa Vicentina Natural Park
› Trendy port cities Lagos and Portimão
› Wild untouched coastline
› Lots of culture & maritime history
› Penina, Boavista & Parque da Floresta golf resorts

Western Algarve
Often regarded as the most scenic apartment blocks, it’s a trendy
part of the Algarve, the west is resort in its own right. Notable
special for its dramatic coastline, golf options in the Portimão
sweet fishing villages and historic area include the Penina Hotel &
Lagos and Portimão. It’s popular Golf Resort
with people who prefer quieter
resorts and thrill of a dramatic Alvor
coastline, or those who enjoy A few kilometres west of Praia
the cosmopolitan buzz of its two da Rocha is the desirable fishing
estuary cities, with Lagos and its village of Alvor. In an idyllic
environs being the busiest area. It location, it has a small harbour in
ends at Cape St Vincent, the most the lagoon of the Alvor estuary as
south-westerly point in continental well as its own stretch of Atlantic
Europe. Even at this furthest end beachfront.
of the Algarve, Faro Airport is no
more than 90 minutes away.

Portimão & Praia da Rocha

The second largest city in the
Algarve and largest in the
west, Portimão’s shipbuilding
and sardine heritage continues
today. Suited to those who enjoy
something busier and more
urban to a small fishing town, it
boasts a historic centre, fantastic
market, lively waterfront and
internationally acclaimed marina.
Around its estuary mouth is the
1.5-kilometre long Praia da Rocha
beach. Fringed with amenities and

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Lagos & Porto do Mos Burgau & Salema Sagres

West of the Alvor estuary is Marking the start of the Southwest The most westerly town next to
Meia Praia, one of the Algarve’s Alentejo and Costa Vicentina Cape St Vincent, Sagres has an
longest beaches which runs Natural Park, Burgau is where end-of-the-world feel, thanks to
around the bay as far as Lagos. the coastline really starts to get its remote location surrounded by
With a seafaring tradition, wild, even more so five minutes the Atlantic. Steeped in maritime
Lagos’ world-class marina and further west at Salema. Both are history, it has a harbour and
fishing port remain a focal point. traditional fishing villages where a marina. Conditions suit aquatic
Other highlights are its busy typical day revolves what the local thrill-seekers – especially surfers
waterfront and maze-like old fishing boats land for dinner! Five and kite-surfers. 
town and colourful night spots. minutes inland is the upmarket
Properties around the edge of Parque da Floresta golf resort.
Lagos within a short drive of
the centre are popular with
foreign buyers.
Golf in the Lagos area includes AVERAGE PRICE GUIDE
the Boavista Golf and Spa
resort, set around a championship Portimão area
course. Modern 2/3-bed apartments - from €375,000
Modern townhouses – from €450,000
Praia da Luz Modern detached villas – from €500,000
Just west of Lagos is the relaxed
family resort of Praia da Luz, Lagos area
complete with its own beach. Modern 2/3-bed apartments - €500,000
Built around the original fishing Modern townhouses – from €650,000
village, the resort has grown into Modern detached villas – from €900,000
a collection of low-rise complexes
and residences with access to a Prices for older resales are typically lower
range of leisure amenities.

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 PORTUGAL SPAIN

GARVE CENTRAL ALGARVE EASTERN ALGARVE

TAVIRA

LOULE
ORTIMÃO
FUSETA
CARVOEIRO ALBUFEIRA
OLHÃO

FARO AIRPORT

Eastern Algarve

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› Unspoilt lagoon beaches

› Ria Formosa Natural Park
› Authentic fishing village vibe
› Less developed and more affordable
› Tavira – charming riverside town
› Monte Rei and Castro Marim golf resorts

Eastern Algarve
Stretching eastwards from Faro Fuseta
as far as the Spanish border, The old fishing town of Fuseta
the Eastern Algarve is less (or Fuzeta) is the closest resort to
developed than other parts of the Faro Airport (30 mins). Located
Algarve. Historically popular with on the Ria Formosa lagoon, its
Portuguese second homeowners, busy fishing harbour is a gateway
today increasing numbers of via water taxi to beaches on Ilha
overseas buyers are attracted by da Armona island. Fuseta also
its traditional lifestyle, affordable has a local beach next to the
prices and stunning beaches. harbour. Popular for its excellent
A highlight is the Ria Formosa fish restaurants and picturesque
Natural Park with its lagoon and old town, Fuseta comes alive in
virgin barrier islands. World-class summer.
golf is available at the resorts of
Castro Marim, Quinta do Vale and Tavira & Luz de Tavira
award-winning Monte Rei. Typical A cultural gem suited to year-
transfers to Faro Airport are 30- round living, Tavira is a charming
40 minutes. white town on the River Gilão.
Highlights include its cobbled
streets, main square, food market
and picturesque river frontage.
Three kilometres down the river
and connected to the town by
water taxi is the 11-kilometre
island Ilha de Tavira, often ranked
Portugal’s finest beach.
About five kilometres west is
Luz de Tavira, a small traditional
town with amenities, where new
homes are increasingly popular.

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Cabanas (de Tavira)

& Santa Luzia
On opposite sides of Tavira’s
estuary are the small fishing
villages of Cabanas and Santa
Luzia. With harbours on the
lagoon, both offer access via ferry
boat to beaches on the barrier
islands. Santa Luzia, famous for
its locally caught octopus, has a
pretty promenade and a small old
town. There is also a bridge to
Ilha de Tavira, crossable on foot or
tourist train.
Larger and more developed
Cabanas has a pretty old town
and promenade with boardwalk.
New tourist properties now link AVERAGE PRICE GUIDE
it with the neighbouring village
of Conceicão, home to Benamor Average price guide
golf club. Modern 2/3-bed apartments - from €250,000
Modern townhouses – from €350,000
Manta Rota Modern detached villas – from €450,000
& Monte Gordo Prices for older resales are typically lower
These two resorts offer direct
access to 22 kilometres of Blue
Flag beaches. Manta Rota, which
is an extension of the town of
Vila Nova de Cacela, has low-rise
holiday homes set back from the
sand dunes. Meanwhile, former
fishing beach Monte Gordo is
today the most commercial tourist
resort in the Eastern Algarve, as
well as closest to the Spanish
border. Its wide sandy beach is
overlooked by apartment blocks
and hotels. Traditional Portugal
is just five minutes away at Vila
Real de Santo António, a charming
white border town on the River
Guadiana. 

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Buying process,
legal & costs
Preparation it; the property’s documentation organise the transfer of funds
Portugal has a notarised at Portugal’s Land Registry is needed for completion. Your
conveyancing system. This means satisfactory. lawyer will advise you on the
a property transaction can only be Your lawyer will revert back to outstanding balance and organise
completed legally in the presence you with any information they the payment of all taxes and fees
of a notary (notário). consider important and check you in time for completion day.
Before you even make an offer are happy to proceed with the When that day comes, you
on a property, you should appoint purchase. Typically, this part of or your lawyer must attend the
an independent bi-lingual lawyer, the process can take a couple of notary’s office, together with the
not only to oversee all legal weeks. Up until this point you are vendor or their representative,
procedures but to protect your free to pull out of the purchase where both parties will sign
interests throughout the buying without penalty. the final deed of sale (Escritura
process. Publica de Compra e Venda).
Your lawyer can advise on The promissory contract Afterwards, your lawyer will
property law and buying costs, Your lawyer can now prepare ensure you are registered at the
apply for your tax identity number the ‘promissory contract’, which Land Registry and Portuguese tax
(known as ‘NIF’ or ‘Número de must be approved and signed by office as the new owner.
Contribuinte’) and open a both the vendor and buyer. This
Portuguese bank account for you. is a legally binding agreement Buying costs
It is common to grant them power prepared in Portuguese and In Portugal, buyers should budget
of attorney, so they can represent English that will include the terms an additional 7-8 per cent of the
you throughout the purchase. and conditions of the sale and agreed price – depending on the
an agreed completion date. On property’s value and use - to cover
Reservation stage signing, you will be required to pay the buying costs that come with a
Once you’ve made a successful a deposit, which is decided by the purchase. Most of these costs are
offer, a reservation agreement vendor and will be between 10 transfer tax (IMT), which is levied
should be signed with the property per cent and 30 per cent of the on a complicated sliding scale of
vendor stating the agreed purchase price (the reservation fee 1-6 per cent, with a higher rate (10
purchase price and how long will go towards this). per cent) for offshore/ company
the property will be reserved for A buyer that pulls out of a sale owners and some exemption for
you. Typically, these agreements after signing a promissory contract primary residences.
require buyers to pay a refundable should expect to lose their deposit. The remainder is made up of
reservation fee, usually €3,000 - If a vendor defaults, usually they stamp duty (0.8 per cent), lawyer’s
€6,000, which is protected in an are required to repay the buyer fees (1-2 per cent), notary fees
escrow account. double the value of the deposit. (0.2-0.5 per cent) and other small
Your lawyer can now do some disbursements.
key due diligence before moving Completion If buying with a mortgage, add
on to the formal contract stage. Promissory contract signed, the an extra 1-2 per cent (for valuation
This includes checking that: the final step is completion, which and application fees). 
property’s licences and building should happen between one and
plans on file at the town hall two months later. All being well,
are all correct; the property is you shouldn’t expect to hear from
registered correctly with the your lawyer until a week or two
Portuguese tax office; the property before the agreed completion
has no debts or charges against date, when they will ask you to

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Property in Portugal
- Ongoing Costs
A vital part of planning facilities. This is done through the Fiscal representation
for a property purchase is payment of condominium fees (also Non-resident property-owners
understanding what your ongoing called service charge). Typically, from outside the European Union,
costs will be once you are the the larger and more sophisticated such as UK citizens, must have a
registered owner. Not checking gated resorts, such as those with fiscal representative in Portugal
these could leave you with a nasty pools, a reception area, gym/Spa – your Portuguese lawyer should
surprise if unexpected bills start and children’s play areas, will attract do this for a small fee. Foreign
arriving. higher charges, while the fees for residents must file an annual
The good news is that Portugal a simple apartment block, perhaps tax return.
is not an expensive country to be with gardens and parking, will be
a homeowner. For an idea of what minimal. Wealth tax
outlays a property generates, start See Tax & Financial Planning
by asking your Ideal Homes agent. Insurance section
Speaking to owners of properties Buildings and contents insurance
in the same resort or local area is recommended (obligatory if you Tax on rentals
can also be useful. For taxes, your have a mortgage), especially if your If you let your property to
lawyer will also be able to advise. property will be left for vacant holidaymakers or long-term
Here are the key costs to consider, for periods. Annual cover can be residents, the rental income will
as owner of a holiday home or provided locally in Portugal or be subject to income tax at a
primary residence. through an international specialist. rate of 28 per cent. Maintenance
If you intend to do holiday lets, expenses and IMI are tax
Utilities ensure you have suitable cover that deductible. For non-residents,
Typical of most countries, you’ll includes public liability insurance. double taxation treaties should
need contracts with utilities prevent you from paying tax again
companies for the provision of Key-holding/ maintenance in your country of tax residency,
electricity, gas, water, telephone/ Non-resident holiday homeowners including the UK. 
internet and - if required - often appoint a local management
Satellite. Your lawyer should help agency to hold a key for their
get these set up. Monthly bills for property and take care of general
each are usually paid by automatic maintenance, such as upkeep of
bank transfer. Older or more rustic the pool and garden. Ideal Homes
properties may not have mains can assist with this also.
gas, but increasing numbers are
using solar energy for heating and Council tax
even electricity. Depending on Portugal’s council tax is called
occupancy levels, air conditioning ‘Imposto Municipal sobre
will bump up your electricity bills Imóveis’ (IMI). Payable by the
in the summer, as will running a owner annually and based on
private pool. rateable values (‘Valor Patrimonial
Tributável’ or VPT), rates vary
Condominium fees depending on a property’s
If your property is part of a block, classification, municipality and age,
complex or leisure resort, it is likely but a rate of 0.3-0.45 per cent is
you will have to contribute to the standard for urban properties and
upkeep of any communal areas and 0.8 per cent for rural properties.

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Take Care with

Your Currency
Most British, US and other non- understand the purchase process in contract. This allows you to agree
European buyers will need to Portugal and the typical timescales and fix an exchange rate that can
exchange funds into euros for and payments involved, so can applied to payments at a future
onward transfer to Portugal when address your requirements on an date, such as paying a deposit for
they purchase a property. individual basis. For peace of mind, a property purchase or the balance
Sadly, too many people give little currency specialists should be at completion. In effect, this gives
thought to this important part of authorised and regulated by the FCA you the power to fix the cost of a
the purchase process and leave it in the UK. This means they must Portuguese property in pounds, or
to the last minute – our advice is adhere to strict compliance rules any other currency, at the point of
to plan ahead! and any money you transfer through agreeing a purchase price in euros.
Thinking about your currency them is protected at all times in a For the duration of the purchase
transfers before you find a ring-fenced bank account. process, you then have peace of
property will not only save you Once signed up with a currency mind knowing exactly how much
time and money, but could also specialist, consider pre-funding your the transaction will cost you in both
help you to budget effectively. account before viewing properties. currencies, regardless of what the
Why? The nature of currency In a competitive market, such as exchange rate is on completion day.
markets means exchange rates, the Algarve, being able to move Once you have the keys to your
such as €/£ or €/$, never stop fast and pay a deposit, could make new home, a currency specialist can
fluctuating. As a result, while the the difference between securing assist with all types of day-to-day
agreed price of a Portuguese your perfect property or losing it. transfers. These include one-off
property will remain fixed in euros, The alternative is having to make and regular payments to and from
its cost in another currency, such unplanned bank transfers from your Portugal, such as transferring your
as pounds, changes constantly in UK bank account while in Portugal, pension or sending euros to cover
line with exchange rates. As an which can throw up compliance mortgage payments and bills. You
overseas buyer with source funds issues such as daily limits. can also use a forward contract
in a foreign currency, not giving Among the solutions offered to guarantee how much a regular
careful thought to transfers means by currency specialists, one that payment will be each month, which
you have no control over the cost is especially useful is the forward can help with budgeting. 
of your property.
Your first step should be to
speak to a currency transfer
specialist, such as Ideal Homes’
partner, Moving Currency.
Offering a personalised service,
they are experts at exchanging
and transferring large amounts
of money for overseas property-
buyers, as well as servicing their
ongoing needs as a holiday home-
owner or Portuguese resident.
Compared to typical high street
banks, they offer more competitive
exchange rates and a better all-
round service - plus they don’t
charge transfer fees.
Crucially, currency specialists

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Letting your
Property
Renting out a property to • It’s a legal requirement in eating out, shopping and
holidaymakers is a popular way to Portugal for all properties rented favourite beaches.
generate income, which at the very out short-term, including holiday
least should cover running costs lets, to have a valid Alojamento • At the start of each year, plan
and leave the owner with some Local (AL) licence. These are when you want to have the
welcome spending money. obtained from the local council property left free for your own
Portugal’s Algarve is one of the (Câmara Municipal). To obtain use. You’ll earn more from
most desirable tourist areas in one, your property will need rentals in the peak summer
Europe, making it an ideal place to be in good condition and months when both your weekly
for short-term lets. Thanks to its meet specified compliance rate and occupancy levels will
balmy year-round climate, demand requirements, including health be highest, so avoid this time if
for accommodation is strong, not and safety. AL licences are you wish to maximise your
only in peak summertime but also usually obtained through a local annual rental yield.
spring and the later months of the law or accountancy firm,
year. A real asset in the region are otherwise speak to Ideal • Rental income generated from
the numerous championship golf Homes or your chosen your property should be
courses that help to maintain high management agency. declared to the Portuguese tax
occupancy levels – golfers tend to office. A local accountant or
avoid the hottest months! • If you decide to advertise your lawyer can assist with a tax
If a good rental return is a priority property and manage bookings return to do this. Provided your
when choosing your Portuguese yourself, research the best country of residence has a
home, be sure to pick an area that portals to use. Compare similar double tax treaty with Portugal,
delivers this – your Ideal Homes properties in your area, to help such as the UK, you won’t pay
agent will be able to guide you. You you decide on appropriate the same tax twice.
also need to think about Portugal’s pricing. Use high quality photos
regulations for holiday rentals and in your listing and where Most non-resident holiday
how you will manage your property possible include a video tour. homeowners hire a management
and guests. Here are some pointers In the content, sell the local agency to look after their property
to get your started. area and its amenities as well and rentals. If you are based
as the actual property. overseas and have a busy life, it
makes sense to pay a local firm
• Make your property stand out a small fee to take care of things
from the crowd by adding for you. Typically, their service will
personal touches that enhance range from simple key-holding with
your guests’ experiences. property inspections and cleaning
This could be simple things like to a comprehensive package that
welcoming new guests with covers all aspects of maintenance
a small note and fresh flowers and lettings, including advertising/
and making sure there are basic bookings and managing guests.
groceries and local treats in the Ideal Homes Portugal has an
kitchen and a bottle of fizz in experienced property management
the fridge! Include booklets team, offering a comprehensive
and information about local service that ranges from key-
attractions and amenities, holding to the full rental package,
as well as a list of your including maintenance, bookings
own recommendations for and changeovers.

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Tax & Financial

Planning
Moving to Portugal full-time are subject to an annual wealth
means becoming a Portuguese tax, known as ‘Adicional Imposto
tax resident with your income and Municipal sobre Imóveis’ (AIMI).
assets subject to the country’s The rate levied for individual
tax regime. It is likely the rules owners is 0.7 per cent on the
surrounding savings, income, VPT amount above €600,000,
pensions and other assets will be rising to 1 per cent on the value
different to those in your former over €1million and 1.5 per cent
country of residency. This makes upwards of €2millon. Two partners
getting professional advice from who jointly own a property can
financial advisors and cross-border combine their tax-free allowance
tax specialists before you relocate so that AIMI is only applicable from
advisable. By not doing so you €1.2million.
risk losing out financially. In fact, Non-Habitual Residence
proper planning will not just bring
peace of mind but could mean you
(NHR)
have more money in your pocket in Portugal’s Non-Habitual Residence
Portugal. Here are some key points regime is a special tax scheme
to consider. designed to offer very favourable
tax rates, often exemption, for
183-day rule new foreign residents. Once
New arrivals are considered gained, NHR status lasts for 10
tax resident by the Portuguese years, provided that the qualifying
Tax Authorities (Finanças) after individual meets the criteria as a
spending 183 days or more within tax resident each consecutive year. before they make their application,
a 12-month period. If you move The key benefits apply to any which should be done through a
to a home in Portugal that is your income sourced from outside tax specialist or lawyer. NHR status
new permanent residence, you of Portugal. Foreign pension can gained in conjunction with a
could be regarded tax resident income is taxed at just 10 per D7 visa or Golden Visa.
before 183 days have passed. cent (or exempt if taxed in the
When working out the best time source country), while UK rental Wealth planning
to move, consider how being a income, capital gains on real Reviewing the structure of all your
Portuguese resident might affect estate, interest, dividends and investments, including pensions
any capital gains tax implications non-Portuguese employment and savings, with a professional
if you’re planning to sell certain income could be exempt from all when you move to Portugal is
assets in your former country of tax so long as the income may always worthwhile. They will assess
residence, especially property. be eligible for tax in the country your portfolio and overall financial
Portugal uses the calendar year of its source. NHR also applies a situation, including your long-term
for its tax year. Foreign residents reduced flat rate of income tax goals, income requirements and
must file an annual tax return, (20 per cent instead of 48 per risk profile, and may offer solutions
which can be done through a fiscal cent) to individuals employed in that offer further tax benefits.
representative. activity in Portugal deemed ‘high Inheritance tax in Portugal in
value-added’. To be eligible for minimal. Spouses and descendants
Wealth Tax NHR status, applicants must not are exempt and it is charged on
Owners of property with a rateable have been registered as resident assets located in Portugal with a
value (VPT) in excess of €600,000 in Portugal for at least five years tax rate of just 10 per cent. 

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Visas &
Residency
Moving to Portugal and becoming three months in a six-month period The D3 is a specialist visa for
a resident is an option open to all at their Portuguese home. professionals with advanced skills
overseas nationals. To be permitted or qualifications.
to do this, you need to have formal The D7 Visa
residency status, which you get For most British and other non-EU The Golden Visa
automatically depending on your citizens wishing to retire or live in Another visa option suited to
citizenship and family connections Portugal without working, the D7 high-worth foreigners, particularly
or through obtaining a suitable visa is usually the best route for mobile entrepreneurs who don’t
visa. Having residency also brings obtaining residency – it is often intend to spend much time in
entitlement to the Portuguese called the Retirement Visa or Portugal, is the Golden Visa.
healthcare system and other social Passive Income Visa. Holders of a Obtaining this requires capital
security benefits. D7 visa may not be employed in investment, including the purchase
Portugal. of property in designated areas
EU citizens Key to eligibility is having an worth a minimum of €500,000, or
All citizens of Member States of income from outside of Portugal €350,000 for a restoration project
the European Union (EU), EEA (such as pension or rental income, (less for each in low-density areas).
and Switzerland have automatic investments or even working Extendable to the main applicant’s
entitlement to reside in any EU remotely for a foreign company) family members, the visa is
State, such as Portugal. This that is equal to or more than the renewable for up to five years,
extends to family members. Portuguese minimum wage (approx. after which permanent residency
No visa process is required, €700-€750). Add a further 50 per can be applied for. Holders are
but anyone intending to live cent of the minimum wage for an required to spend just seven days
in Portugal should apply for a accompanying spouse or adult in Portugal in their first year and
registration certificate formalising dependent. Applicants must also 14 days in each of the following
their residency. A new arrival have an approved level of private two-year periods. 
should ideally register within medical insurance valid for a year.
their first three months of being The process for gaining residency
in Portugal and no later than 30 is in two stages. First is the visa
days after this period. Non-EU application, which typically is done
citizens who are accompanying through the Portuguese Consulate
a family member who is an EU in your country of origin. Once the
citizen can apply for a specific D7 has been granted, the applicant
type of residence permit. can travel to Portugal where they
must apply for their residency
Visiting non-EU citizens permit within four months of
Non-EU citizens (whose official arriving. Residency through a D7
country of residency is also outside visa is renewable and after five
the EU/Schengen) can spend up to consecutive years holders can apply
six months accumulatively in any for permanent residency.
one year in Portugal. This must be
done according to the Schengen D2 & D3 Visas
90/180 rule, which means Portugal also has visas for
spending no more than 90 days non-EU citizens who wish to be
in any rolling 180-day period. In economically active. The D2 is for
practice, this means British holiday entrepreneurs who set up small
homeowners can spend up to and medium sized companies.

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Testimonials

Carl, Hayley, Hugh & Miles – moved from the UK Joe and Terri Eley – moved from the USA
Carl Detloff, 47, his partner Hayley, 40, and their teenage Americans Joe and Terri Eley are loving life since they
sons, Hugh and Miles, couldn’t be happier with their life in decided to head across the Atlantic for their retirement.
the Algarve, where they live in a villa bought through Ideal The couple got the keys and moved into their brand-new
Homes Portugal.  apartment in Lagos in August 2021, having arrived in
Portugal from Seattle a month earlier. 
Occupying a peaceful hillside spot just inland of Ideal Homes had introduced them to their property
Vilamoura, their quinta-style property has glorious remotely a year earlier. Liking what they saw, they agreed
views to the sea at the front while the back looks across to the purchase price of €450,000, paid a deposit and
undulating countryside. The beaches and world-class waited for the development to be completed before
leisure amenities of the famous Golden Triangle are 10 swapping the north-west coast of the US for the sunny
minutes’ drive away.  Algarve.

“It was one of the first properties that Ideal Homes “Sasha at Ideal Homes was incredible at communicating
showed us,” said Carl. “We looked at a few others, but for and staying in touch, including via Zoom” said Joe. “He did
Hayley it was a clear winner. We loved the location, on a great job guiding us and matching our requirements with
the edge of the village of Portela-Sao Faustino, and the the western Algarve and our chosen property. Without his
fact it had been fully renovated not long before, so was help, for sure we wouldn’t be where we are today.”
like brand new. It was unoccupied and as we were cash-
buyers, renting on a temporary basis in nearby Loulé, we Fast forward a year and the Eleys, who moved to Portugal
were able to move fast. With Ideal Homes’ assistance we on a D7 visa, have no regrets they chose Lagos for their
completed and had the keys to it within a few weeks.” retirement years.

The single-storey property includes three bedrooms, two “The location ticks all the boxes,” continued Joe, who
bathrooms, an open-plan living/ dining area connected checked the development on Google Earth before
to the kitchen and a glazed family/sun room. There is buying. “Our apartment is just 12-15 minutes’ walk
also an independent one-bedroom annexe. The outside from the old town, five minutes from the marina and
space includes a swimming pool, terrace and an outdoor restaurants and even less from the medical clinic. Lagos
kitchen-BBQ area with a bar, which Carl added to pass itself is not too big and is a perfect mix of old and new. It
time during lockdown! has every amenity you could need in a modern city. The
climate is just right too, warm but not humid.”
“Things have worked out well,” said Carl. “The boys settled
easily into the international school, where initially we The couple enjoy exploring outside the city and already
made them follow the Portuguese syllabus to help them have visited the wider Algarve, Lisbon and Silver Coast.
with the language. The Algarve is a very social place They’ve met lots of other expats too, mainly American
and we spend a lot of time entertaining or visiting other and British, and say it’s years since they had such a busy
expats’ homes. We get on really with Chris at Ideal Homes social life.
and his team, so much so they’re like family now.

www.idealhomesportugal.com 19
 AS SEEN
ON CHANNE
L4
– SUN, SEA
& SELLING
HOUSES

€340,000 €460,000 €525,000

2-bed apartment, Tavira 2+1 bed villa, Loulé 2-bed apartment, Lagos

€550,000 €650,000 €840,000

1+1-bed apartment, Vilamoura 3-bed villa, Paderne 3-bed villa, Porches

€930,000 €1,750,000 €2,250,000

4-bed villa, Albufeira 4-bed villa, Olhos de Água 3+1 bed villa, Porto de Mós

At Ideal Homes, we’re passionate about Portugal. The white sand beaches stretching
for miles, the relaxing lifestyle, the fabulous cuisine. We’ve helped hundreds of
happy customers find their dream home since we first opened in 2012. We now have
branches in Lagos and Vila Sol, and more than 300 properties for sale across the Algarve.
Put your trust in us, and we’ll help you find your perfect place in the sun.

Contact us
+351 289 513 434 • UK Freephone 0800 133 7644
[email protected] Offices in Lagos & Vila Sol
SCAN ME

www.idealhomesportugal.com AMI Nº - 9540

 Portugal
Buyers Guide

Contact us
+351 289 513 434 • UK Freephone 0800 133 7644
[email protected] Offices in Lagos & Vila Sol

www.idealhomesportugal.com