Buying property in Alentejo, Portugal, can be exciting. Property types extend from affordable apartments to big villas with swimming pools priced over a million euros. The procedure of Alentejo property acquisition involves securing a fiscal number (NIF), opening a bank account, and gaining a solid understanding of property taxes. Enlisting the services of a local real estate attorney can provide invaluable assistance in navigating these complexities. This guide is designed to support foreigners interested in buying property in Alentejo, Portugal.
Types of real estate properties in Alentejo, Portugal
The Alentejo area offers a wide array of real estate options. From contemporary apartments, family homes, luxury villas, and expansive land parcels to idyllic abodes for nature enthusiasts. Alentejo’s property market caters to various preferences. Alentejo’s real estate landscape provides ample choices if you’re searching for an upscale or luxurious home.
9-Step guide for foreigners to buy a house in Alentejo
Foreigners can acquire property in Alentejo by following these nine steps:
Step 1: Obtain a Portuguese Tax Number (NIF)
The first step towards owning property in Alentejo involves procuring a Número de Identificação Fiscal (NIF), your official Portuguese tax number. You can apply for it at the Portuguese tax office in Alentejo either via email or through a local representative.
Step 2: Open a Portuguese bank account
Opening a bank account in Portugal is a necessary step when buying property in Alentejo. Foreign investors often opt for banks like Millennium BCP, Novo Banco, Banco Santander Totta, Banco BPI, or Caixa Geral de Depósitos.
Step 3: Engage a real estate agent based in Alentejo
Working with a local Alentejo-based real estate agent gives foreigners access to a broader array of property listings, facilitates negotiation for better deals, and aids in reviewing contracts and ensuring regulatory compliance.
Step 4: Appoint an Alentejo-based notary
Notary services are necessary for the legal transfer of property ownership in Alentejo. Confirming that the notary office has the appropriate licenses and ample experience dealing with foreigners is essential.
Step 5: Carry out due diligence on Alentejo properties
Before buying property in Alentejo, always confirm ownership, inspect the property, ensure compliance with government regulations, and review all agreements. Reliable Alentejo-based real estate agents or lawyers can assist in conducting due diligence.
Step 6: Sign the provisional purchase agreement and make a down payment
Once you’ve selected your desired property in Alentejo, sign a preliminary purchase agreement with the seller and pay a deposit, usually 10% or more of the total cost.
Step 7: Sign the final Deed of Purchase and Sale contract
Signing the Deed of Purchase and Sale (Escritura de Compra e Venda) officially grants you ownership of the property in Alentejo.
Step 8: Pay property taxes in Alentejo
Upon acquiring property in Alentejo, you must pay IMT tax (Imposto Municipal sobre Transmissões Onerosas de Imóveis) within a month. The property type determines the tax rate. Additional taxes such as a special wealth tax, stamp duty tax, annual property tax (IMI), and rental tax might also be due. When buying property in Alentejo, familiarize yourself with the Portuguese property taxes.
Step 9: Apply for a Visa
Non-EU citizens who have bought property in Alentejo should apply for either a Golden Visa or a D7 Visa. The Golden Visa is an investment-based visa that requires a minimum investment of €250.000 ($266.900) in Portuguese real estate. The D7 Visa, on the other hand, is based on showing sufficient passive income.
Residence permit and visa for foreigners buying property in Alentejo
While EU citizens don’t need a visa or residence permit, non-EU citizens do. There are two primary visa options for foreigners buying property in Alentejo:
1. Golden Visa Program
Launched in 2012, the Golden Visa Program offers a compelling opportunity for foreign investors in Portugal, including Alentejo. You and your family can secure residency rights in Portugal by making a minimum real estate investment of €250.000 ($266.900). This permit allows you to live, work, and study in Portugal for up to five years and provides the freedom to travel within the Schengen Area.
2. D7 Visa or ‘Retirement Visa’
Alternatively, foreigners may opt for the D7 Visa, often called a “passive income visa” or “retirement visa”. Unlike the Golden Visa Program, the D7 Visa doesn’t require property investment. Instead, it’s designed for individuals with a yearly income of at least €9.120 ($9.735). Those planning particularly favors this income-based residency permit to retire in Portugal.
As a non-EU resident, consider enlisting the services of a Portuguese visa agency to facilitate the application process for these visas.
Best villages to purchase property in Alentejo
Alentejo is a big area in Portugal with many different villages. Here are some of Alentejo’s best towns and cities to live and buy property:
- Évora: This captivating city is the capital of Alentejo, situated two hours east of Lisbon and a little over two hours from Spain. Its stunning beauty, adorned with remarkable Roman architecture, the slow, relaxed pace of life, and an emphasis on local products and crafts make it unique. Owning a house in Évora allows the perfect blend of city and country living. The municipality of Viana do Alentejo, known for its array of farms and luxury estates, is a prime spot if you’re interested in Alentejo’s farm properties.
- Reguengos de Monsaraz: Recognized as the “European Wine City” in 2015, Reguengos de Monsaraz is famous for its exquisite wineries. Its significance in the wool trade has also earned it a reputation in Portugal. Its picturesque alleyways, breathtaking views, boutique hotels, and wineries make it an ideal location for those wanting to embrace the Portuguese lifestyle fully.
- Comporta: A unique destination, Comporta is known for its extensive rice fields—the largest in Portugal. Investing in a property here promises a luxurious lifestyle, with Tróia nearby offering similar prospects. Comporta has been hailed as the “Hamptons of Europe,” attracting renowned designers who find inspiration in its signature Alentejan architecture that blends contemporary, ecological, and Bohemian styles. Comporta is surrounded by pine trees and dunes, with the ocean’s allure adding to its appeal.
- Melides: Offering a blend of luxury, nature, and simplicity, Melides is home to impressive modern villas that align with local Alentejan architecture. Many are nestled amid trees and dunes near the river’s estuary, owned by international designers like Christian Louboutin and Philippe Starck and renowned artists like British painter Jason Martin and Belgian architect Vincent Van Duysen. Melides focuses on eco-design, offering a laid-back lifestyle without compromising luxury. With increasing interest in the area, Melides provides a variety of activities like beach outings, watersports, and yoga.
Alentejo has something to offer everyone, but remember that the “best” villages in Alentejo rely significantly on your wants, lifestyle, and personal tastes.
Alentejo real estate prices
The average price for apartments in Alentejo is €1.078/m² ($1.154/m²), with a +2% variation over the last 12 months. The average house price in Alentejo is €953/m² ($1.020/m²), with a +5% variation in the previous 12 months. The table below gives an overview of the real estate prices in the Alentejo region.
|Property type||Average price|
|Apartment studio||€119.900 ($128.299)|
|2-Room apartment||€161.700 ($173.027)|
|3-Room apartment||€170.749 ($182.710)|
|4-Room apartment||€208.868 ($223.500)|
|House with 4 rooms||€166.667 ($178.342)|
|House with 5 rooms||€203.806 ($218.083)|
|House with 6 rooms||€285.000 ($304.964)|
Actual prices can differ depending on various factors like property size, location, age of the property, renovation status, and additional facilities like a pool, gym, parking, or garden.
Why buy real estate in Alentejo, Portugal?
Are you thinking about buying a home in Portugal? Alentejo is a beautiful area that has everything you need. This attractive place has a unique mix of peace, cultural diversity, and natural beauty, making it a good choice for people who want to buy land or change scenery.
- Beautiful, cultural, and historical: Alentejo is known for its peaceful farmland, beautiful beaches, historic towns, and rich cultural history. If you buy a home here, you can experience a genuinely Portuguese way of life that is both relaxing and culturally interesting.
- Promising real estate market: Alentejo’s real estate market has been rising steadily. Properties here tend to keep their value well and have a good chance of growing over time, making it an excellent place to spend.
- Tourism potential: Alentejo gets a lot of visitors every year because of its natural beauty, rich culture, and well-known wine route. If you want to rent out your home, the tourist industry in the area can give you a steady source of income.
- Excellent quality of life: Alentejo has a great quality of life, with a slow pace, friendly people, delicious local food, and a pleasant temperature with lots of sunshine. Buying a home in Alentejo can be a good idea for people who want a better work-life balance or a great retirement place.
Alentejo is a gem that not many people know about. Its appeal goes beyond the natural beauty of the area. It also has a strong real estate market, good things to do, and a good chance of making money from tourists.
Property management in Alentejo
When looking for a property manager in Alentejo, it’s important to keep a few things in mind to make sure that your property is taken care of in a professional way. Choose a company based in Alentejo that knows the local rules and how the real estate market works there. Make sure the company knows what it’s doing when it comes to managing property like yours. You can find out by asking about their current clients, the size of their business, and how long they’ve been in the real estate business.
You can find a good property management company with the help of recommendations from friends or other expats in Alentejo. Lastly, you can judge how good they are at customer service by how quickly and effectively they answer to your needs as a property owner. The best company should give you and your renters great service.
Real estate agents in Alentejo
Working with a local real estate agent can simplify buying property in Alentejo. If you are contemplating buying a home for investment purposes or potential appreciation, it’s important to consider aspects such as potential rental income, repair expenses, and local real estate market trends. Prior to making a purchase, it’s advisable to conduct thorough research and consult with experts in the fields of real estate, legal matters, and finance.
Frequently Asked Questions (FAQs)
Is buying property in Alentejo a good investment?
Yes, buying property in Alentejo can be a good investment. The region offers a blend of tranquility, cultural richness, and natural beauty, which attracts many foreigners. With growing tourism and a stable real estate market, property in Alentejo has potential for both capital appreciation and rental income.
Which village in Alentejo is the best to live in?
While the “best” village to live in Alentejo depends on personal preferences, Évora often tops the list due to its historical charm, remarkable Roman architecture, and array of local crafts and produce. Other popular choices include the wine city Reguengos de Monsaraz, luxurious Comporta, and nature-friendly Melides.
How to buy property in Alentejo?
To buy property in Alentejo, you need to follow a few steps: secure a Portuguese Tax Number (NIF), open a Portuguese bank account, identify a suitable property, engage a local real estate agent and a notary, conduct due diligence, sign a provisional purchase agreement and make a downpayment, sign the final Deed of Purchase and Sale contract, settle property taxes, and if you’re a non-EU citizen, apply for a visa such as the Golden Visa or D7 Visa.
Will the Portugal Golden Visa changes impact buying Alentejo real estate?
Changes to Portugal’s Golden Visa program were proposed to restrict property purchases in high-density areas such as Lisbon, Porto, and the coastal strip. However, these changes should not affect Alentejo, as it’s not within the areas targeted for restriction.