Lisbon

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Real Estate Services

Sections

Real Estate Services in Lisbon, Portugal

1. Overview of the Market

Lisbon's real estate market has seen significant growth, driven by tourism, expatriates, and foreign investment. The city offers a mix of historic charm and modern amenities, making it attractive for both renters and buyers.

2. Renting Property

  • Average Costs:
    • One-bedroom apartments in the city center: €1,200 - €2,000/month.
    • One-bedroom apartments outside the city center: €800 - €1,200/month.
  • Lease Terms: Standard leases are typically one year, with the option to renew.
  • Deposit: Usually one to two months' rent.
  • Utilities: Often not included in rent; budget an additional €100 - €200/month.

3. Buying Property

  • Average Costs:
    • City center apartments: €3,000 - €5,000/m².
    • Suburban areas: €2,000 - €3,000/m².
  • Financing:
    • Mortgages available for non-residents, typically covering up to 70% of the property value.
    • Interest rates range from 1.5% to 3.5%.
  • Legal Procedures:
    • Obtain a Portuguese tax number (NIF).
    • Hire a lawyer to conduct due diligence and draft contracts.
    • Sign a promissory contract (Contrato de Promessa de Compra e Venda) and pay a deposit (usually 10%).
    • Finalize the sale at a notary, where the deed (Escritura) is signed.

4. Taxes and Fees

  • Property Transfer Tax (IMT): Ranges from 1% to 8% based on property value.
  • Stamp Duty: 0.8% of the purchase price.
  • Annual Property Tax (IMI): 0.3% to 0.8% of the property value, depending on the municipality.
  • Legal Fees: Approximately 1% to 2% of the property price.

5. Local Service Providers

  • Real Estate Agents:
    • Look for licensed agents (mediadores imobiliários) with good reviews.
    • Popular agencies include Remax, Century 21, and local firms like Portugal Homes.
  • Legal Services:
    • Seek a lawyer specializing in real estate transactions.
  • Property Management:
    • Consider services like Bproperty or Lisbon Property Management for rental properties.

6. Cultural Considerations

  • Language: Portuguese is the official language; English is commonly spoken in tourist areas and among real estate professionals.
  • Negotiation: Haggling is less common in real estate; prices are often fixed.
  • Community: Engage with local communities and expat groups for insights and support.

7. Practical Tips

  • Research Neighborhoods: Explore areas like Alfama, Bairro Alto, and Chiado for vibrant culture, or consider suburbs like Cascais for family-friendly environments.
  • Visit Properties: Always visit in person if possible; online listings may not reflect the true condition.
  • Understand the Market: Be aware of seasonal fluctuations; summer months may see higher rental prices due to tourism.

8. Conclusion

Navigating the real estate market in Lisbon requires understanding local practices, legal requirements, and financial implications. Engaging with local professionals and conducting thorough research will facilitate a smoother experience, whether renting or buying.