Abreu Advogados
Can anyone (including foreigners) own and occupy real estate in your jurisdiction (including shares in property owning companies)? Are there any restrictions?
Yes, anyone can own and occupy real estate in Portugal. There are no restrictions.
Are there restrictions on lending for the purchase of real estate by foreign companies? If so briefly give an outline?
No.
Buying
Please provide a short summary of the fees and costs (including tax) relating to buying real estate in your jurisdiction.
The acquisition of the right of ownership over a property is subject to Municipal Property Transfer Tax (“IMT”). The acquisition of an “urban” property is taxed at a maximum rate of 7,5% over the tax value of the property or the value of the sale, whichever one is higher (depending on the value of the transaction the acquisition for housing purposes implies normally a lower applicable rate). The acquisition of a “non urban” property is taxed at a unique tax of 5% , of the property or the value of the sale as per. If the property is used for commercial or services activity is subject to IMT at a maximum rate of 6,5% over the tax value of the property or the value of the sale, whichever one is higher Stamp Duty (“IS”) is also payable on the transfer of property by the purchaser at a rate of 0.8% of the purchase price. Conveyancing fees (notary) and emoluments for the registration of the property are also due. These values can vary, but usually do not surpass € 1500 on a plain vanilla acquisition.
Owning
Are there taxes applicable to owning real estate and can the burden of the taxes be passed to someone else (e.g. a tenant or an occupier - not being the owner)?
The purchaser will be subject to Municipal Property Tax (“IMI”), at a rate varying between 0.3% and 0.5% over the taxable value of the property, in case of urban property, and at a rate of 0.8%, in case of rural property.
Tax Breaks
Are there tax breaks or other incentives for foreigners to buy real estate in your jurisdiction? If so what are they?
Yes.
Tax can be mitigated by using a tax efficient structure and will differ in case the owner is an individual, a company, resident or non-resident in Portugal.
Besides, in order to attract new foreign investment from nationals from outside the Economic European Space, Portugal created the so-called Golden Visa, a mechanism allowing nationals of non-EU Member Countries to obtain a residence visa in Portugal for investment purposes, which includes real estate acquisition.
How is the ownership of Real Estate evidenced in your jurisdiction?
Ownership is evidenced by the registry certificate issued by the Real Estate Registry. This is a public entity.
Is it possible to keep the identity of owners of real estate confidential in your jurisdiction?
No. The registry is public.