Buying property in Lagos, Portugal, is appealing for various reasons. Lagos is in the Portuguese Algarve, surrounded by stunning beaches and beautiful nature. The city has something for everyone, so many foreigners are interested in buying property in Lagos. This guide tells how to buy a house in Lagos, Portugal, and what to consider during the buying process.
Finding a property for sale in Lagos, Portugal
Buying property in Lagos, Portugal, starts with finding the house of your dreams. The city in the Portuguese Algarve offers many different property types. You will find cozy apartments, spacious family homes, luxurious villas, and pieces of land for sale. These real estate pieces are in the city center or near Lagos Beach.
It’s best to work with a local real estate agent when buying property in Lagos. These agents understand the local regulations and know the real estate market, so they can help you find the property that fits all your needs and wishes.
7 steps to buying property in Lagos as a foreigner
Step 1: Obtain Número de Identificação Fiscal (NIF)
The first step in buying a house in Portugal, particularly in Lagos, is obtaining a Número de Identificação Fiscal (NIF), your Portuguese tax number. This can be obtained at the tax office in Lagos, through email, or via a local representative.
Take the first step towards obtaining your Portuguese NIF by clicking the button below and completing the process online. For only $150, you can easily acquire your NIF and enjoy the benefits it offers.
Step 2: Open a bank account in Portugal
You’ll need to open a bank account in Portugal to facilitate buying property in Lagos. Several foreigners prefer banks such as Millennium BCP, Novo Banco, Banco Santander Totta, Banco BPI, or Caixa Geral de Depósitos.
You can open a bank account in Portugal through an online service, that allows you to open a bank account remotely (3 to 4 weeks) or in-person (1 to 2 weeks). Click the button below to get started.
Step 3: Engage a real estate agent and local notary in Lagos, Portugal
Hiring a Lagos-based real estate agent can provide foreigners with valuable local knowledge and guidance. These agents can help you find a wider variety of properties, such as a villa in Portugal or land for sale in Lagos, and can assist with contract reviews and compliance with regulations.
In Lagos, property rights must be legally transferred with the help of a lawyer. Ensure that the notary’s office in Lagos has the right licenses and has previously worked with foreigners to buy property in Lagos.
Step 4: Perform due diligence on Lagos properties
Before buying a property in Lagos, it’s essential to confirm ownership, inspect the property thoroughly, ensure government compliance, and carefully review all agreements. Experienced Lagos-based real estate agents or lawyers can assist with this due diligence process when buying property in Lagos.
Step 5: Sign the initial purchase agreement and pay a deposit
Once you’ve chosen a property in Lagos, sign a provisional purchase agreement with the seller and provide a deposit, typically 10% or more of the total price. After that, you sign the Deed of Purchase and Sale (Escritura de Compra e Venda), which formally transfers the ownership of the property to you in Lagos.
Step 6: Pay property taxes in Lagos
Upon purchasing property in Lagos, you must pay the IMT tax (Imposto Municipal sobre Transmissões Onerosas de Imóveis) within a month. The rate of this tax varies depending on the type of property. Additional taxes such as a wealth tax, stamp duty tax, annual property tax (IMI), and rent tax may also be applicable.
Step 7: Apply for a residency permit
After buying property in Lagos, non-EU citizens must apply for either a Golden Visa or a D7 Visa. The Golden Visa requires a minimum investment of €250,000 ($272,500) in Portuguese real estate, while the D7 Visa is granted based on evidence of sufficient passive income.
How can non-EU citizens reside in Portugal?
EU citizens don’t need a visa to live in Lagos, but people who aren’t from the EU do. There are two types of visas for people who want to buy property in Lagos and live here.
1. Golden Visa
The Golden Visa Program was started in 2012 and is an excellent chance for non-EU citizens who want to buy a home and live in Portugal, including Lagos. Foreigners and their families can get the right to live in Portugal if they invest at least €250,000 ($272,500) in the property. With the Golden Visa, you can live, work, and study in Portugal for up to five years. It also makes it easier to move around the Schengen Area.
2. D7 Visa
The D7 Visa, also called the ‘Passive Income Visa’ or ‘Retirement Visa,’ is another choice for non-EU citizens who want to live in Portugal. Unlike the Golden Visa Program, this visa does not require buying a house. Instead, it directs people to have a passive income of at least €9,120 ($9,941) a year. Especially people who want to retire in Portugal are interested in this type of visa.
If you don’t live in the EU, you might want to work with a Portuguese visa agent. They can help you through the process of applying for one of these residency visas.
Real estate prices in Lagos, Portugal
The average price for apartments in Lagos is €4,473 ($4,876) per square meter, with a +16% variation over the last 12 months. The average house price in Lagos is €4,225 ($4,605) per square meter, with a +3% variation in the previous 12 months. The table below gives an overview of the real estate prices in and around Lagos.
| Property type | Average price |
|---|---|
| Apartment studio | €316,500 ($344,985) |
| 2-room apartment | €500,300 ($545,327) |
| 3-room apartment | €595,000 ($648,550) |
| 4-room apartment | €623,333 ($679,433) |
| 5-room apartment | €790,000 ($861,100) |
| House with 4 rooms | €1.21 million ($1.32 million) |
| House with 5 rooms | €1.49 million ($1.63 million) |
| House with 6 rooms | €1.58 million ($1.73 million) |
| House with 7 rooms | €1.3 million ($1.42 million) |
| House with 8 rooms | €899,833 ($980,818) |
You can find several cheap houses in Lagos when searching for cheap houses in Portugal to buy. Even though the average real estate prices tend to be high, you will also find more affordable homes in Lagos. Real estate agents can help you find a house that fits your budget.
Where should I buy property in Lagos, Portugal?
Lagos is located in the Algarve area and is known for its stunning beaches, vibrant nightlife, and lively local culture. Where to buy property in Lagos, Portugal, depends on your wants, lifestyle, and personal taste. Here are the five best neighborhoods in Lagos to purchase real estate:
- Marina de Lagos: This part is known for its luxurious apartments and villas. There are restaurants, shops, and beautiful views of the marina right outside your door. It is close to Meia Praia, one of the biggest bays in the Algarve, which makes it a good place to buy a home.
- Meia Praia: This place is excellent for people who want to live near the beach. Meia Praia is famous for its many houses and flats for sale in Lagos with beautiful sea views.
- Porto de Mós: This neighborhood is another area that people want to live in because it has a beautiful beach and both expensive houses and condos. It is quieter than the town center, but all the town’s services are just a short drive away.
- Historic Town Center: The Historic Town Center is a unique mix of old and new for people who like the busyness of city life. It’s a great place for people who want to live in smaller, traditional Portuguese houses or flats. Many shops and restaurants are within walking distance.
- Albardeira: This area is close to the town center but still has a quiet neighborhood feel. It has a variety of homes, from modern flats to bigger houses. It’s close to shops and beaches, making it a good choice for many buyers.
Lagos has a neighborhood for everyone, whether you like a busy city hub, a quiet area, or a place surrounded by nature. Local real estate agents can help to find property for sale in Lagos that meet all your wishes.
Reasons to invest in Lagos real estate
There are many reasons for buying property in Lagos, Portugal:
- Tourist destination: Many tourists visit Lagos as the city is famous for its stunning beaches, nice restaurants, and wide range of holiday homes. Real estate investors can earn a great return on investment by renting out properties to tourists.
- Growing real estate market: The real estate market in Lagos, Portugal, increased over the last few years. More and more people are looking for property for sale in Lagos. Property in Lagos tends to keep its value and may increase over time, which makes buying property here a great investment.
- Beautiful beaches: The beaches of Lagos are one of the main reasons tourists come to this beautiful city. Living here is by no means a punishment.
- Close to other villages: Lagos is located in the Algarve and close to other popular towns and cities, such as Albufeira, Sagres, Portimão, and Vilamoura, which makes it easy to visit different places. Owning a house in Lagos lets you enjoy all the Algarve area offers.
Property management in Lagos, Portugal
When searching for a property management firm in Lagos, it’s crucial to remember several factors to ensure your property is effectively managed. Choose a local company in Lagos that is well-known in the region and has several happy clients. Confirm their capability to handle your specific type of property by inquiring about their existing client base, the scale of operations, and the duration of their presence in the property market. Asking for recommendations from friends or fellow expats in Lagos could help find a reliable property management company.
Work with a real estate agent in Lagos, Portugal
Finding property for sale in Lagos, Portugal, can take much time. That’s not to mention the completion of the real estate transaction. Working with a real estate agent can speed up buying property in Lagos. These agents know the real estate market, have a broad network, and understand Portuguese laws and regulations.
Buy property in Lagos with Own Property Abroad
Do you want to buy property in Lagos? Own Property Abroad can assist you and ensure a seamless and hassle-free property journey, whether selling or buying real estate in Portugal. Thanks to our knowledge and experience in the local market, we can help with legal requirements, finding suitable properties, negotiating the best deals, and conducting due diligence.
With our expert team, you won’t have to navigate the complexities of the Portuguese real estate market alone. For further information on how we can assist you, kindly drop your details below or email us at [email protected]. Let’s start working on your property success story today!
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Frequently Asked Questions (FAQs)
Is Lagos, Portugal, expensive to live in?
Lagos, Portugal, offers a generally lower cost of living than many other European destinations. The price can be considered slightly higher compared to other parts of Portugal. The cost of living includes housing, groceries, dining, and utilities.
Is Lagos, Portugal, a good place to live?
Lagos, Portugal, is often considered a good place to live owing to its vibrant culture, beautiful beaches, and pleasant weather. Its safe environment, friendly local community, and many outdoor activities offer a good quality of life.
How much are apartments in Lagos, Portugal?
The cost of apartments in Lagos, Portugal, varies greatly depending on location, size, and amenities. You can expect to pay anywhere from €150,000 ($163,500) for a small apartment to over €500,000 ($545,000) for a luxury apartment with sea views. Prices may have changed, and it’s always best to check with a local real estate agency for the most current information.
Can foreigners buy property in Lagos?
Yes, foreigners can buy property in Lagos, Portugal. There are no legal restrictions on property ownership for non-Portuguese citizens. Buying a property can be advantageous for those seeking a Golden Visa. This visa grants residency to non-EU citizens who invest in Portuguese real estate.
