Investment in Vacation Home
Investment in Vacation Home
You are going to buy a property in Portugal. What’s next?
Once you have chosen the property you want to buy, the process of purchasing a property, for your own residence or for any other purpose, has a significant impact on the lives of both the seller and the buyer. This decision-making moment involves a sequence of steps that will
eventually lead to the completion of the process.
Before making a final decision, the buyer must carefully check all documentation pertaining to the property. Enlisting the help of a real estate agent allows you to swiftly access and check all related documents. Checking the following items is highly recommended:
- Updated certificate issued by the Real Estate Registry;
- Property Tax Document (Caderneta Predial);
- Copy of the Property’s License for Use;
- Property Data Sheet (for residential properties);
- Valid Energy Certification.
Checking these documents is not always easy for the common buyer, therefore, professional
help must be sought in the process, usually a lawyer or a solicitor.
The purchase may be legalised by means of a public deed or a private document. You can do this at any of the following:
- Public or private notary;
- Real Estate Registry Office;
- Lawyer’s/Solicitor’s office;
- Bank Agency.
Buying or Selling
Buyer Guide
Real estate taxes
Non-Habitual Resident
Visa Gold
Property Management
You are going to buy a property in Portugal. What’s next?
Once you have chosen the property you want to buy, the process of purchasing a property, for your own residence or for any other purpose, has a significant impact on the lives of both the seller and the buyer. This decision-making moment involves a sequence of steps that will
eventually lead to the completion of the process.
Before making a final decision, the buyer must carefully check all documentation pertaining to the property. Enlisting the help of a real estate agent allows you to swiftly access and check all related documents. Checking the following items is highly recommended:
- Updated certificate issued by the Real Estate Registry;
- Property Tax Document (Caderneta Predial);
- Copy of the Property’s License for Use;
- Property Data Sheet (for residential properties);
- Valid Energy Certification.
Checking these documents is not always easy for the common buyer, therefore, professional
help must be sought in the process, usually a lawyer or a solicitor.
The purchase may be legalised by means of a public deed or a private document. You can do this at any of the following:
- Public or private notary;
- Real Estate Registry Office;
- Lawyer’s/Solicitor’s office;
- Bank Agency.
Buying or Selling
Buyer Guide
Real estate taxes
Non-Habitual Resident
Visa Gold
Property Management
You are going to buy a property in Portugal. What’s next?
Once you have chosen the property you want to buy, the process of purchasing a property, for your own residence or for any other purpose, has a significant impact on the lives of both the seller and the buyer. This decision-making moment involves a sequence of steps that will
eventually lead to the completion of the process.
Before making a final decision, the buyer must carefully check all documentation pertaining to the property. Enlisting the help of a real estate agent allows you to swiftly access and check all related documents. Checking the following items is highly recommended:
- Updated certificate issued by the Real Estate Registry;
- Property Tax Document (Caderneta Predial);
- Copy of the Property’s License for Use;
- Property Data Sheet (for residential properties);
- Valid Energy Certification.
Checking these documents is not always easy for the common buyer, therefore, professional
help must be sought in the process, usually a lawyer or a solicitor.
The purchase may be legalised by means of a public deed or a private document. You can do this at any of the following:
- Public or private notary;
- Real Estate Registry Office;
- Lawyer’s/Solicitor’s office;
- Bank Agency.
Buying or Selling
Buyer Guide
Real estate taxes
Non-Habitual Resident
Visa Gold
Property Management
You are going to buy a property in Portugal. What’s next?
Once you have chosen the property you want to buy, the process of purchasing a property, for your own residence or for any other purpose, has a significant impact on the lives of both the seller and the buyer. This decision-making moment involves a sequence of steps that will
eventually lead to the completion of the process.
Before making a final decision, the buyer must carefully check all documentation pertaining to the property. Enlisting the help of a real estate agent allows you to swiftly access and check all related documents. Checking the following items is highly recommended:
- Updated certificate issued by the Real Estate Registry;
- Property Tax Document (Caderneta Predial);
- Copy of the Property’s License for Use;
- Property Data Sheet (for residential properties);
- Valid Energy Certification.
Checking these documents is not always easy for the common buyer, therefore, professional
help must be sought in the process, usually a lawyer or a solicitor.
The purchase may be legalised by means of a public deed or a private document. You can do this at any of the following:
- Public or private notary;
- Real Estate Registry Office;
- Lawyer’s/Solicitor’s office;
- Bank Agency.
Buying or Selling
Buyer Guide
Real estate taxes
Non-Habitual Resident
Visa Gold
Property Management
The purchase of a property for tourist exploitation has had a significant impact in the Algarve region for a long time, and more recently in cities like Lisbon and Porto.
The historical areas of Lisbon and Porto have undergone significant urban rehabilitation, with a large number of these houses entering the vacation rental market.
Short-term rental demand for an apartment in Lisbon is not the same as the demand for an apartment in Vilamoura. A city like Lisbon is commonly used for shorter stays, which naturally have a significant impact on operating costs but also offer other attractions.
In the Algarve, vacation rentals are more commonly used for breaks of at least one week, and sometimes longer.
The activity of vacation rentals is based on providing accommodation services in residential properties, including some additional services such as cleaning and towel changes, similar to traditional hotel establishments.
The legislation has undergone some changes, but since 2014, this activity has been based on commercial activity, with mandatory registration with the Tax Authority and obtaining a license to start operations. Licensing can be applied for by the property owner or by a third party or entity when the activity is carried out by them.
When the activity is carried out by the property owner, it is quite common to subcontract additional services such as cleaning, check-in, check-out, as well as paying commissions to platforms like Airbnb, Booking, and others. There is also the option to hire an agent who takes responsibility for managing the entire process from booking to check-out.
An individual or entity wishing to engage in this activity must follow the steps below:
Initiate the activity with the Tax Authority using the appropriate CAE code, typically 55201 or, in some cases, 55204. Submit a prior communication of the vacation rental activity to Turismo de Portugal in order to obtain the corresponding license. Only after receiving the license can the property be listed on platforms and/or on personal or agent websites. All advertising for the rental property must include the local accommodation registration number.
Vacation rentals have the same tax obligations as any other activity.