Buying property in Azores, Portugal, is a dream for many. The Azore islands have much to offer, from bustling city areas to tranquil spots near stunning beaches. Those buying property in Azores find different types of properties that fit their needs, although it has benefits and pitfalls. This guide helps foreigners who want to buy a home in the Azores, Portugal.
Find your dream property for sale in Azores, Portugal
Buying property in Azores, Portugal, starts with discovering your ideal home. The Azores, or Azore islands, proffer a broad spectrum of properties that fit all tastes, from simple apartments to spacious family homes, luxurious villas to Azores waterfront property for sale. These Azores homes for sale are scattered throughout the islands, from bustling city areas to tranquil spots near Azores’ stunning beaches. Discovering repossessed property for sale or commercial rental property in the Azores is also possible.
Working with a local Azores real estate agent when buying property in Azores is a clever move. These professionals are familiar with the local regulations and comprehensively understand the Azores’ real estate market. They can guide you through the process and find a property that aligns with your needs and desires, making your purchase of a house in Portugal, specifically in the Azores, much smoother. Whether you’re hunting for cheap property for sale in the Azores, villas, bungalows, or apartments, your dream home could be just around the corner.
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Buying property for sale in the Azores: A 7-step guide
Step 1: Obtain the Número de Identificação Fiscal (NIF)
Obtain your Portuguese tax number or Número de Identificação Fiscal (NIF) when buying property in Azores. You can acquire this from the local Azores tax office either in person, via email, or through a local representative.
Step 2: Open a bank account in the Azores
Opening a bank account in Portugal is essential to facilitate buying property in the Azores. Foreign buyers commonly select banks like Millennium BCP, Novo Banco, Banco Santander Totta, Banco BPI, or Caixa Geral de Depósitos.
Step 3: Work with an Azores-based real estate agent and notary
Working with an Azores-based real estate agent can be highly advantageous when buying property in Azores. They can assist you in exploring a broader array of properties, including villas, apartments, or even cheap properties in the Azores, Portugal. They also aid with contract review and due diligence.
To legally transfer property rights in the Azores, the services of a lawyer or notary are required. Ensure your chosen notary office in the Azores possesses the necessary licenses and has experience supporting foreign clients looking to buy property in the Azores.
Step 4: Carry out due diligence on properties in the Azores
Before buying property in the Azores, verifying ownership, conducting a comprehensive inspection, ensuring compliance with government regulations, and reviewing all contracts is crucial. Skilled Azores-based real estate agents or lawyers can guide you through this due diligence process.
Step 5: Sign the preliminary purchase agreement and pay a deposit
Once you’ve identified the right Azores property for sale, you must sign a preliminary purchase agreement with the seller, followed by a deposit payment, typically 10% or more of the total cost. Signing the Deed of Purchase and Sale (Escritura de Compra e Venda) officially marks you as the property owner in the Azores.
Step 6: Pay property taxes and legal fees in the Azores
When buying property in the Azores, the IMT tax (Imposto Municipal sobre Transmissões Onerosas de Imóveis) must be paid within a month. The rate for this property purchase tax fluctuates based on the property type. Remember to account for additional taxes like wealth tax, stamp duty tax, annual property tax (IMI), and rent tax if you’re contemplating property for long-term rental in the Azores, Portugal.
Step 7: Apply for a residency visa in the Azores
Upon buying property in the Azores, non-EU citizens can apply for a Golden Visa or a D7 Visa. The Golden Visa necessitates a minimum real estate investment of €250,000 ($265,000), whereas the D7 Visa demands sufficient passive income.
Purchasing property in the Azores comes with its set of challenges, and it’s pivotal to consider the cost of property in the Azores before progressing. Whether you’re hunting for an exquisite home in the Azores Islands, Portugal, an Azores waterfront property for sale, or a unique property for sale in the Azores, it’s vital to ensure you’re fully informed.
How can non-EU citizens live in Azores, Portugal?
Non-EU citizens seeking to live in the Azores, Portugal, must obtain a residency permit. There are two types of Portuguese residency visas designed for individuals interested in buying property in Portugal, specifically the Azores, and making it their home.
1. Golden Visa
Introduced in 2012, the Golden Visa Program offers an attractive package for non-EU citizens keen on buying property in Azores, Portugal. Foreigners and their families can secure a Portuguese residency permit by pledging to a minimum investment of €250,000 ($265,000) in real estate, including Azores property for sale. This permit allows them to live, work, and study in Portugal for up to five years and unrestricted travel within the Schengen Area.
2. D7 Visa
The D7 Visa, often called the ‘Passive Income Visa’ or ‘Retirement Visa,’ is for non-EU individuals wishing to live in the Azores, especially those contemplating retirement. Unlike the Golden Visa, this permit does not necessitate buying property in the Azores but demands a steady annual passive income of at least €9,120 ($9,667).
It is recommended to work with a Portuguese visa agent when seeking to obtain these residency visas. Understanding the visa requirements is crucial whether you’re planning to buy a house in Portugal or the Azores, or seek a long-term rental property in the Azores. If you’re searching for cheap property for sale in the Azores, these visas can facilitate making the Azores your new home.
Real estate prices in the Azores
The average cost of apartments in the Azores stands at €1,922 ($2,037)/m², noting a +5% increase over the last year. Houses for sale in the Azores carry an average price tag of €1,249 ($1,324)/m², experiencing a +14% increase in the previous year. The table below offers an overview of Azores’ real estate prices.
|Property type||Average price|
|Apartment studio||€308,229 ($326,723)|
|2-Room apartment||€150,483 ($159,512)|
|3-Room apartment||€166,650 ($176,649)|
|4-Room apartment||€248,167 ($263,057)|
|5-Room apartment||€299,950 ($317,947)|
|House with 4 rooms||€206,706 ($219,108)|
|House with 5 rooms||€297,983 ($315,862)|
|House with 6 rooms||€310,825 ($329,475)|
|House with 7 rooms||€354,333 ($375,593)|
|House with 8 rooms||€436,667 ($462,867)|
Compared to numerous other destinations in Portugal, property for sale in the Azores provides budget-friendly options, making hunting for cheap property in the Azores possible.
What are the best islands and cities for buying property in Azores, Portugal?
The Azores are a set of stunning Portuguese islands. They can be divided into three groups, each offering a unique charm, culture, and cuisine. These groups include the eastern isles of São Miguel and Santa Maria, the central islands of Terceira, Graciosa, São Jorge, Pico, and Faial, and the western islands of Corvo and Flores. Buying property in Azores has benefits and pitfalls, depending on the destination.
The Eastern Islands: São Miguel and Santa Maria
São Miguel, the most developed island, is an excellent place to start your search if you’re seeking luxury properties in the Azores. Its capital, Ponta Delgada, is home to upscale dining, top-tier hotels, and a vibrant nightlife. The city’s rustic elegance stems from using volcanic rocks in its infrastructure. São Miguel also offers Azores waterfront properties for sale.
Santa Maria, the nearby island, features white sandy beaches, lush vineyards, and an architecturally pleasing amphitheater. Many expats seek to buy a property in Santa Maria.
The Central Islands: Terceira, Graciosa, São Jorge, Pico, and Faial
Terceira, the second-largest island, is an attractive location for a luxurious villa boasting spectacular Atlantic Ocean views and peaceful natural settings. The island is less crowded than São Miguel, offering a more tranquil experience.
Graciosa is one of the most peaceful islands, with just 4,780 inhabitants. São Jorge is known for its unique cuisine, heavily influenced by the spices introduced during the Age of Exploration. Pico Island, home to Portugal’s highest mountain, is known for its exceptional wine scene and unique ambiance. Lajes do Pico, a historically significant town, is worth a visit. Faial Island, famed for its beautiful hydrangeas, offers an experience for the adventurous. Real estate options in the central islands are plentiful.
The Western Islands: Corvo and Flores
Corvo, the smallest island, offers low-cost real estate options in an ecologically unique environment, abundant with protected areas and diverse bird species. Flores is slightly larger but remains relatively untapped in terms of real estate, also featuring unique bird species. The central or eastern islands are your best bet for luxury Azores real estate, while the properties in the western islands appeal to those seeking nature.
Overall, the Azores’ real estate market offers a range of properties to suit various needs, whether you’re looking to buy or rent. From a large house in Graciosa to an affordable village house in Pico, there’s something for everyone in the Azores.
5 Reasons to buy property in Azores, Portugal
Here are five reasons why buying property in Azores, Portugal, can be an excellent choice:
- Luxury real estate market: The market in the Azores, especially in Ponta Delgada, the capital city on Sao Miguel Island, has grown significantly in recent years. The Azores are a good place to invest because the market is growing quickly and have great restaurants, luxury hotels, and waterfront homes with stunning views of the Atlantic Ocean.
- Golden Visa eligibility: As of 2022, changes to the Golden Visa Program limit investments in places like Lisbon, Porto, and parts of the Algarve. But the Azores are still eligible because they are considered an interior area. This makes them more appealing to investors who want to take advantage of this residency program.
- Safety in the Azores: The Azores have a low crime rate, giving investors a sense of security and peace of mind. This safety factor makes it more appealing to invest in real estate in this area as a whole.
- Natural beauty: It’s impossible to say enough about how beautiful the Azores are in terms of their landscape and ocean views. The islands’ natural beauty makes life better for people who live there and adds more value to the properties.
- Untapped potential: Most investors in the past didn’t pay much attention to the Azores. Now that it’s becoming more popular, it’s a great time to invest in a region that hasn’t reached its full potential yet and could bring in a lot of money.
Property management in the Azores, Portugal
When you own property in the Azores, maintaining it in prime condition is essential. Choosing an Azores property management company is a crucial decision. Partner with a company in the Azores with an established reputation and numerous satisfied clients. Inquire about their client portfolio, business scale, and tenure in the Azores real estate market to ascertain their ability to manage your property effectively. Seeking advice from friends or other foreign residents in the Azores may direct you to the right property management company.
Work with a real estate agent in the Azores, Portugal
Financing and buying property in Azores can be complex, particularly if you’re seeking cheap property for sale in the Azores, Portugal. Buying land in the Azores is considerably more manageable if you engage a real estate agent who understands the local market dynamics, has a broad network, and understands Portuguese law. Ensure to choose a real estate agent with a strong reputation in the Azores.
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Frequently Asked Questions (FAQs)
Can foreigners buy property in the Azores?
Yes, foreigners can buy property in the Azores, including those outside the European Union. Non-EU citizens can also take advantage of Portugal’s attractive Golden Visa or D7 Visa programs, which grant residency in return for real estate investment or proof of sufficient passive income.
Are properties in the Azores expensive?
Property prices in the Azores can vary greatly depending on the property’s location, size, and condition. However, compared to many other European destinations, buying property in the Azores can be less expensive, making it an attractive proposition for many international buyers.
Where do most expats live in the Azores?
Most expats in the Azores tend to gravitate towards the larger towns and cities for their comprehensive amenities and vibrant communities. Ponta Delgada, the capital city of São Miguel, the biggest island in the Azores, is a popular choice due to its bustling cultural scene, excellent infrastructure, and a wide array of housing options.
Are the Azores a good place to retire to?
The Azores is an excellent place to retire to for those who enjoy a relaxed lifestyle, mild climate, and natural beauty. With its welcoming communities, low cost of living, and high standard of healthcare, the Azores is gaining popularity as a retirement destination for many expats.
How much does it cost to buy a home in the Azores?
The cost of buying a home in the Azores can vary greatly, with prices influenced by factors such as the property’s location, size, condition, and proximity to amenities. You could expect to pay anywhere from €150,483 ($159,512) to €436,667 ($462,867) when buying property in Azores, Portugal.