When life changes, your finances often do the same. We know what applies legally if you own a home in Portugal. Here you will find answers to some common questions. If you need more assistance, we are happy to help you get in touch with a specialist.
Q: If I have a will that was drawn up in my home country, does it also cover my property and my assets in Portugal?
A: Yes it does. However, for it to be valid, it must be translated, registered, etc., which can be expensive and time consuming. Legislation on cross-border property inheritance matters came into effect in August 2015, which has gone some way to improving the situation by granting property owners the right to bequeath under the law of their country of nationality or “habitual residence.” To be entirely clear and to spare your surviving relatives a lot of difficulties, it is best to have a lawyer in Portugal prepare a supplementary will for you.
Q: How much can I borrow?
A: There is no legally stipulated loan ceiling. Mortgages of 60–80% of the property value are most common, depending on the bank chosen.
Q: I will be moving to Portugal with my spouse. What happens if we later divorce?
A: Once you have lived in a different country for two years, you are subject to the laws of that country if you divorce. So it is important to talk to a legal specialist to establish what rules apply under Portuguese law and what position you would be in.
Q: Will I have to pay property tax in Portugal?
A: In Portugal you pay an annual municipal property tax of a maximum 0,5% of the assessed value, depending of the county.
Q: How will I be taxed when I sell my property in Portugal?
A: Capital gains are taxed in Portugal 25%.