I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E

Portugal
Buyers Guide

www.idealhomesportugal.com
I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E

Contents
3 Welcome

LOCATIONS
4 Central Algarve
7 Western Algarve
10 Eastern Algarve

10
BUYING & LIVING IN PORTUGAL
13 Buying process
14 Ongoing costs
15 Care with currency
16 Managing a holiday let
17 Tax & Financial planning
18 Non-EU residency opons
19 Clien esmonials

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I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E
Olá
Welcome to Ideal Homes Portugal’s guide
to buying a property in the Algarve.
We hope this provides a useful
inroducon o he dieren
areas along this famous stretch
of coastline, and the key things
you need to consider to ensure a
successful holiday-home purchase
or a permanent move to this
fabulous part of the world.
So why the Algarve? It’s not by
chance it has become one of the
world’s most desirable lifestyle
desnaons, one ha caers as
well or he inernaonal je-se
as it does for fun-loving families
and rerees.
Blessed with a balmy year-round
climate and stunning 150-kilometre
www.idealhomesportugal.com
Alanc shoreline, i divides nealy
into three parts – Eastern, Central
and Wesern. All oer easy access
o Faro’s inernaonal airpor.
The Central Algarve, which
includes regional capital Faro,
together with perennial favourite
Albufeira, make up the most
developed and amenity-packed
secon. Se around bays beneah
he area’s disncve red clis,
friendly beach resorts that began
lie as shing villages – and reain
much o heir radional charm
- are ypical here. No orgetng
you’re never far from quality
gol, mos noably he prisne
3
championship courses of the
upmarket ‘Golden Triangle’ leisure
resorts, home to some of the
world’s nes coasal residences.
For a more radional liesyle
close o dramac naural scenery,
the Eastern Algarve is popular for
its barrier islands with their long,
unspoilt beaches while the furthest
corners of the Western Algarve
have a wilder exhilarang eel.
We hope this guide helps you
decide to go ahead and realise your
dream of buying in the Algarve
– or at least triggers an interest
and urher quesons. Eiher way,
please don’t hesitate to get in touch
with the Ideal Homes Portugal team
and we’ll be happy to help.
Happy reading and we look
forward to hearing from you. 
 PORTUGAL

RN ALGARVE CENTRAL ALGARVE EASTERN

TAV
OS

LOULE
PORTIMÃO
FU
CARVOEIRO ALBUFEIRA
OLHÃO

FARO AIRPORT

Central Algarve

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I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E
› Family friendly beach resorts
› Championship golf courses
› World-class marinas and amenities
› International market for luxury homes
› Albufeira – old town & lively modern strip
› Quinta do Lago, Vale do Lobo & Vilamoura
Central Algarve
Heading wes rom Faro, he jewel
in the crown of the Central Algarve
is the upmarket Golden Triangle
area, home to some of the world’s
nes coasal homes. I includes
the famous golf and leisure resorts
of Vale do Lobo, Quinta do Lago
and Vilamoura.
The remainder of the Central
Algarve is characterised by
family-friendly resorts, typically
prey shing owns wih searon
promenades and sandy beaches
se beneah low clis.
Albufeira and Carvoeiro are two
o he mos popular desnaons,
boh oering a good choice
of homes near the beach and
resort centre, or within one of
the quality golf resorts in the
surrounding areas.
Albufeira
The largest and busiest beach
resort in the Algarve, cheerful
Albueira caers or jus abou
everyone and has a large year-
round expa populaon. Originally
a sleepy shing village, oday
Albufeira divides neatly into old
and new pars. The prey old own
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with its whitewashed streets and
shady squares is beer suied o
families and older people. Five
minutes east, the New Town with
is lively srip aracs younger
crowds who enjoy he bars and
nigh-me enerainmen. Albueira
has a marina, its own local beach
and nearby golf courses at Pine
Clis, Balaia and Salgados.
Golden Triangle
Vale do Lobo is the Algarve’s oldest
sel-conained residenal leisure
resort, as well as one of Portugal’s
largest. Its 450 hectares include
two golf courses and various
spors acilies, and many o is
1,500-plus residences are prime
beachfront and fairway villas.
Incorporang he easern
corner of the Ria Formosa park,
Quinta do Lago competes with
neighbouring Vale do Lobo to
be he Algarve’s agship resor.
It combines stunning natural
scenery with three championship
golf courses and has hosted the
Poruguese Open numerous mes.
Properes are primarily premium
plots and villas beside its fairways.
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Is Campus mul-spors hub oers
world-class ness and raining
acilies.
The larges residenal ouris
community in Europe, Vilamoura
boasts six golf courses, including
the regular venue for the Portugal
Masers. Complemenng is
oher leisure amenies is is
award-winning marina, the largest
in Portugal and popular for its
waterfront promenade lined with
bars and restaurants.
For a more radional setng,
Almancil is a small own jus 10
minutes’ drive inland from the buzz
of the Golden Triangle’s resorts.
Wih a rusc bijou eel, i’s popular
for its top-end restaurants and
bouques. Furher inland ino he
foothills is the old market town
of Loulé, where a quieter more
Poruguese liesyle is on oer.
Galé & Armação de Pêra
In contrast to bustling Albufeira,
four kilometres west is the cosy
resort of Galé. Tucked above small
outcrops and suited to people
who prefer a quieter resort, it
marks he sar o an unspoil ve-
I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E
kilometre golden beach, much of
i proeced and anked by sand
dunes. Sarng as Galé beach, i
becomes Grande Pêra beach then
Salgados beach before ending at
the modern resort of Armação de
Pêra, with its seafront promenade
lined with apartment blocks.
Along the way is the Salgados
Lagoon and Salgados golf club,
beside which is a small selecon
o bouque developmens.
Alcantarilha
Ten minutes inland of Armação
de Pêra is the municipality
of Alcantarilha, popular for
is radional village cenre
and proximity to a number of
aracons. All wihin ve minues
are the Amendoeira Golf Resort,
Aqualand Algarve water park,
Zoomarina Express marine
park and Algarve Shopping
mall at Guia.
Carvoeiro
Nesled beween sandsone clis
and wih a hilly backdrop, shing
village Carvoeiro is one of the
Algarve’s pretes resors. Se
within a horseshoe bay, its small
sandy beach is protected and
especially suited to families. From
the old white-washed centre,
low-rise low densiy communies
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spread in each direcon along he buyers looking to be set back
coast. Carvoeiro is popular for from the busier coastal areas. It’s
its coastal walks, its proximity to convenient for the golf courses
oher beaches, including Cenanes around Carvoeiro, as well as the
and Benagil and being the home of Slide and Splash water park.
the Pestana Golf Resort.
Ferragudo
Silves & Lagoa With its palm-lined riverfront and
Silves is a medieval town on the beauully preserved old own,
banks of the River Arade, 20-25 Ferragudo is he nal resor in
minutes’ drive from the coast the Central Algarve and a real
at Carvoeiro. The surrounding gem. It sits on an inlet in the River
countryside, typically a carpet to Arade estuary, directly opposite
citrus groves and cork trees, is Pormão’s world-class marina.
popular with year-round residents Highlights include its main square
who preer a peaceul rusc and winding srees, is sh
way of life. There is also a golf resaurans and he collecon
course there. of calm sandy beaches, ideal for
Nearby Lagoa is another water sports thanks to being in
radional own ha aracs the estuary. 
AVERAGE PRICE GUIDE
Golden Triangle
Modern 2/3-bed apartments - from €600,000
Modern townhouses – from €850,000
Modern detached villas – from €1,000,000
Rest of Central Algarve
Modern 2/3 bed apartments - from €300,000
Modern townhouses – from €450,000
Modern detached villas – from €500,000
Prices for older resales are typically lower
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 PORT

WESTERN ALGARVE CENTRAL

LAGOS

PORTIMÃO
CARVOEIRO ALBUFEIRA

SAGRES

Western Algarve

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I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E

› Unspoilt fshing villages

› Costa Vicentina Natural Park
› Trendy port cities Lagos and Portimão
› Wild untouched coastline
› Lots of culture & maritime history
› Penina, Boavista & Parque da Floresta golf resorts

Western Algarve
Ofen regarded as he mos scenic
part of the Algarve, the west is
special or is dramac coasline,
swee shing villages and hisoric
Lagos and Pormão. I’s popular
with people who prefer quieter
resors and hrill o a dramac
coasline, or hose who enjoy
the cosmopolitan buzz of its two
esuary cies, wih Lagos and is
environs being the busiest area. It
ends at Cape St Vincent, the most
souh-weserly poin in connenal
Europe. Even at this furthest end
of the Algarve, Faro Airport is no
more than 90 minutes away.
apartment blocks, it’s a trendy
resort in its own right. Notable
gol opons in he Pormão
area include the Penina Hotel &
Golf Resort
Alvor
A few kilometres west of Praia
da Rocha is he desirable shing
village of Alvor. In an idyllic
locaon, i has a small harbour in
the lagoon of the Alvor estuary as
well as is own srech o Alanc
beachfront.

Portimão & Praia da Rocha

The second largest city in the
Algarve and largest in the
wes, Pormão’s shipbuilding
and sardine heriage connues
oday. Suied o hose who enjoy
something busier and more
urban o a small shing own, i
boass a hisoric cenre, anasc
market, lively waterfront and
inernaonally acclaimed marina.
Around its estuary mouth is the
1.5-kilometre long Praia da Rocha
beach. Fringed wih amenies and

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I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E
Lagos & Porto do Mos
West of the Alvor estuary is
Meia Praia, one of the Algarve’s
longest beaches which runs
around the bay as far as Lagos.
Wih a seaaring radion,
Lagos’ world-class marina and
shing por remain a ocal poin.
Other highlights are its busy
waterfront and maze-like old
town and colourful night spots.
Properes around he edge o
Lagos within a short drive of
the centre are popular with
foreign buyers.
Golf in the Lagos area includes
the Boavista Golf and Spa
resort, set around a championship
course.
Praia da Luz
Just west of Lagos is the relaxed
family resort of Praia da Luz,
complete with its own beach.
Buil around he original shing
village, the resort has grown into
a collecon o low-rise complexes
and residences with access to a
range o leisure amenies.
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Burgau & Salema Sagres
Marking the start of the Southwest The most westerly town next to
Alenejo and Cosa Vicenna Cape St Vincent, Sagres has an
Natural Park, Burgau is where end-of-the-world feel, thanks to
the coastline really starts to get is remoe locaon surrounded by
wild, even more so ve minues he Alanc. Seeped in marime
further west at Salema. Both are history, it has a harbour and
radional shing villages where a marina. Condions sui aquac
typical day revolves what the local thrill-seekers – especially surfers
shing boas land or dinner! Five and kite-surfers. 
minutes inland is the upmarket
Parque da Floresta golf resort.
AVERAGE PRICE GUIDE
Portmão area
Modern 2/3-bed apartments - from €375,000
Modern townhouses – from €450,000
Modern detached villas – from €500,000
Lagos area
Modern 2/3-bed apartments - €500,000
Modern townhouses – from €650,000
Modern detached villas – from €900,000
Prices for older resales are typically lower
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RTUGAL SPAIN

RAL ALGARVE EASTERN ALGARVE

TAVIRA

LOULE

FUSETA
EIRA
OLHÃO

FARO AIRPORT

Eastern Algarve

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I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E
› Unspoilt lagoon beaches
› Ria Formosa Natural Park
› Authentic fshing village vibe
› Less developed and more affordable
› Tavira – charming riverside town
› Monte Rei and Castro Marim golf resorts
Eastern Algarve
Stretching eastwards from Faro
as far as the Spanish border,
the Eastern Algarve is less
developed than other parts of the
Algarve. Historically popular with
Portuguese second homeowners,
today increasing numbers of
overseas buyers are araced by
is radional liesyle, aordable
prices and stunning beaches.
A highlight is the Ria Formosa
Natural Park with its lagoon and
virgin barrier islands. World-class
golf is available at the resorts of
Castro Marim, Quinta do Vale and
award-winning Monte Rei. Typical
transfers to Faro Airport are 30-
40 minutes.
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Fuseta
The old shing own o Fusea
(or Fuzeta) is the closest resort to
Faro Airport (30 mins). Located
on the Ria Formosa lagoon, its
busy shing harbour is a gaeway
via water taxi to beaches on Ilha
da Armona island. Fuseta also
has a local beach next to the
harbour. Popular for its excellent
sh resaurans and picuresque
old town, Fuseta comes alive in
summer.
Tavira & Luz de Tavira
A cultural gem suited to year-
round living, Tavira is a charming
white town on the River Gilão.
Highlights include its cobbled
streets, main square, food market
and picturesque river frontage.
Three kilometres down the river
and connected to the town by
water taxi is the 11-kilometre
island Ilha de Tavira, ofen ranked
Porugal’s nes beach.
Abou ve kilomeres wes is
Luz de Tavira, a small radional
own wih amenies, where new
homes are increasingly popular.
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I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E

Cabanas (de Tavira)

& Santa Luzia
On opposite sides of Tavira’s
esuary are he small shing
villages of Cabanas and Santa
Luzia. With harbours on the
lagoon, boh oer access via erry
boat to beaches on the barrier
islands. Santa Luzia, famous for
its locally caught octopus, has a
prey promenade and a small old
town. There is also a bridge to
Ilha de Tavira, crossable on foot or
tourist train.
Larger and more developed
Cabanas has a prey old own
and promenade with boardwalk.
New ouris properes now link AVERAGE PRICE GUIDE
it with the neighbouring village
of Conceicão, home to Benamor Average price guide
golf club. Modern 2/3-bed apartments - from €250,000
Modern townhouses – from €350,000
Manta Rota Modern detached villas – from €450,000
& Monte Gordo Prices for older resales are typically lower
These wo resors oer direc
access to 22 kilometres of Blue
Flag beaches. Manta Rota, which
is an extension of the town of
Vila Nova de Cacela, has low-rise
holiday homes set back from the
sand dunes. Meanwhile, former
shing beach Mone Gordo is
today the most commercial tourist
resort in the Eastern Algarve, as
well as closest to the Spanish
border. Its wide sandy beach is
overlooked by apartment blocks
and hoels. Tradional Porugal
is jus ve minues away a Vila
Real de Santo António, a charming
white border town on the River
Guadiana. 

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I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E
Buying process,
legal & costs
Preparation
Portugal has a notarised
conveyancing system. This means
a propery ransacon can only be
completed legally in the presence
of a notary (notário).
Beore you even make an oer
on a property, you should appoint
an independent bi-lingual lawyer,
not only to oversee all legal
procedures but to protect your
interests throughout the buying
process.
Your lawyer can advise on
property law and buying costs,
apply or your ax ideny number
(known as ‘NIF’ or ‘Número de
Contribuinte’) and open a
Portuguese bank account for you.
It is common to grant them power
o aorney, so hey can represen
you throughout the purchase.
Reservation stage
Once you’ve made a successful
oer, a reservaon agreemen
should be signed with the property
vendor sang he agreed
purchase price and how long
the property will be reserved for
you. Typically, these agreements
require buyers to pay a refundable
reservaon ee, usually €3,000 -
€6,000, which is proeced in an
escrow account.
Your lawyer can now do some
key due diligence before moving
on to the formal contract stage.
This includes checking that: the
property’s licences and building
plans on le a he own hall
are all correct; the property is
registered correctly with the
Poruguese ax oce; he propery
has no debts or charges against
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i; he propery’s documenaon
at Portugal’s Land Registry is
sasacory.
Your lawyer will revert back to
you wih any inormaon hey
consider important and check you
are happy to proceed with the
purchase. Typically, this part of
the process can take a couple of
weeks. Up unl his poin you are
free to pull out of the purchase
without penalty.
The promissory contract
Your lawyer can now prepare
the ‘promissory contract’, which
must be approved and signed by
both the vendor and buyer. This
is a legally binding agreement
prepared in Portuguese and
English that will include the terms
and condions o he sale and
an agreed compleon dae. On
signing, you will be required to pay
a deposit, which is decided by the
vendor and will be between 10
per cent and 30 per cent of the
purchase price (he reservaon ee
will go towards this).
A buyer that pulls out of a sale
afer signing a promissory conrac
should expect to lose their deposit.
If a vendor defaults, usually they
are required to repay the buyer
double the value of the deposit.
Completion
Promissory contract signed, the
nal sep is compleon, which
should happen between one and
two months later. All being well,
you shouldn’t expect to hear from
your lawyer unl a week or wo
beore he agreed compleon
date, when they will ask you to
13
organise the transfer of funds
needed or compleon. Your
lawyer will advise you on the
outstanding balance and organise
the payment of all taxes and fees
in me or compleon day.
When that day comes, you
or your lawyer mus aend he
noary’s oce, ogeher wih he
vendor or heir represenave,
where boh pares will sign
he nal deed o sale (Escriura
Publica de Compra e Venda).
Aferwards, your lawyer will
ensure you are registered at the
Land Registry and Portuguese tax
oce as he new owner.
Buying costs
In Portugal, buyers should budget
an addional 7-8 per cen o he
agreed price – depending on the
property’s value and use - to cover
the buying costs that come with a
purchase. Most of these costs are
transfer tax (IMT), which is levied
on a complicated sliding scale of
1-6 per cen, wih a higher rae (10
per cen) or oshore/ company
owners and some exempon or
primary residences.
The remainder is made up of
samp duy (0.8 per cen), lawyer’s
fees (1-2 per cent), notary fees
(0.2-0.5 per cent) and other small
disbursements.
If buying with a mortgage, add
an exra 1-2 per cen (or valuaon
and applicaon ees). 
I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E
Property in Portugal
- Ongoing Costs
A vital part of planning
for a property purchase is
understanding what your ongoing
costs will be once you are the
registered owner. Not checking
these could leave you with a nasty
surprise if unexpected bills start
arriving.
The good news is that Portugal
is not an expensive country to be
a homeowner. For an idea of what
outlays a property generates, start
by asking your Ideal Homes agent.
Speaking o owners o properes
in the same resort or local area
can also be useful. For taxes, your
lawyer will also be able to advise.
Here are the key costs to consider,
as owner of a holiday home or
primary residence.
Utilities
Typical of most countries, you’ll
need conracs wih ulies
companies for the provision of
elecriciy, gas, waer, elephone/
internet and - if required -
Satellite. Your lawyer should help
get these set up. Monthly bills for
each are usually paid by auomac
bank ranser. Older or more rusc
properes may no have mains
gas, but increasing numbers are
using solar energy or heang and
even electricity. Depending on
occupancy levels, air condioning
will bump up your electricity bills
in the summer, as will running a
private pool.
Condominium fees
If your property is part of a block,
complex or leisure resort, it is likely
you will have to contribute to the
upkeep of any communal areas and
www.idealhomesportugal.com
acilies. This is done hrough he Fiscal representation
payment of condominium fees (also Non-resident property-owners
called service charge). Typically, from outside the European Union,
he larger and more sophiscaed such as UK cizens, mus have a
gated resorts, such as those with scal represenave in Porugal
pools, a recepon area, gym/Spa – your Portuguese lawyer should
and children’s play areas, will arac do this for a small fee. Foreign
higher charges, while the fees for residens mus le an annual
a simple apartment block, perhaps tax return.
with gardens and parking, will be
minimal. Wealth tax
See Tax & Financial Planning
Insurance secon
Buildings and contents insurance
is recommended (obligatory if you Tax on rentals
have a mortgage), especially if your If you let your property to
propery will be lef or vacan holidaymakers or long-term
for periods. Annual cover can be residents, the rental income will
provided locally in Portugal or be subjec o income ax a a
hrough an inernaonal specialis. rae o 28 per cen. Mainenance
If you intend to do holiday lets, expenses and IMI are tax
ensure you have suitable cover that deducble. For non-residens,
includes public liability insurance. double axaon reaes should
prevent you from paying tax again
Key-holding/ maintenance in your country of tax residency,
Non-resident holiday homeowners including the UK. 
ofen appoin a local managemen
agency to hold a key for their
property and take care of general
maintenance, such as upkeep of
the pool and garden. Ideal Homes
can assist with this also.
Council tax
Portugal’s council tax is called
‘Imposto Municipal sobre
Imóveis’ (IMI). Payable by the
owner annually and based on
rateable values (‘Valor Patrimonial
Tributável’ or VPT), rates vary
depending on a property’s
classicaon, municipaliy and age,
but a rate of 0.3-0.45 per cent is
sandard or urban properes and
0.8 per cen or rural properes.
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I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E

Take Care with

Your Currency
Mos Brish, US and oher non- understand the purchase process in contract. This allows you to agree
European buyers will need to Porugal and he ypical mescales and x an exchange rae ha can
exchange funds into euros for and payments involved, so can applied to payments at a future
onward transfer to Portugal when address your requirements on an date, such as paying a deposit for
they purchase a property. individual basis. For peace of mind, a property purchase or the balance
Sadly, oo many people give lile currency specialists should be a compleon. In eec, his gives
thought to this important part of authorised and regulated by the FCA you he power o x he cos o a
the purchase process and leave it in the UK. This means they must Portuguese property in pounds, or
to the last minute – our advice is adhere to strict compliance rules any other currency, at the point of
o plan ahead! and any money you transfer through agreeing a purchase price in euros.
Thinking about your currency hem is proeced a all mes in a For he duraon o he purchase
ransers beore you nd a ring-fenced bank account. process, you then have peace of
property will not only save you Once signed up with a currency mind knowing exactly how much
me and money, bu could also specialist, consider pre-funding your he ransacon will cos you in boh
help you o budge eecvely. accoun beore viewing properes. currencies, regardless of what the
Why? The nature of currency In a compeve marke, such as exchange rae is on compleon day.
markets means exchange rates, the Algarve, being able to move Once you have the keys to your
such as €/£ or €/$, never sop fast and pay a deposit, could make new home, a currency specialist can
ucuang. As a resul, while he he dierence beween securing assist with all types of day-to-day
agreed price of a Portuguese your perfect property or losing it. ransers. These include one-o
propery will remain xed in euros, The alernave is having o make and regular payments to and from
its cost in another currency, such unplanned bank transfers from your Portugal, such as transferring your
as pounds, changes constantly in UK bank account while in Portugal, pension or sending euros to cover
line with exchange rates. As an which can throw up compliance mortgage payments and bills. You
overseas buyer with source funds issues such as daily limits. can also use a forward contract
in a foreign currency, not giving Among he soluons oered to guarantee how much a regular
careful thought to transfers means by currency specialists, one that payment will be each month, which
you have no control over the cost is especially useful is the forward can help wih budgeng. 
of your property.
Your rs sep should be o
speak to a currency transfer
specialist, such as Ideal Homes’
partner, Moving Currency.
Oering a personalised service,
they are experts at exchanging
and transferring large amounts
of money for overseas property-
buyers, as well as servicing their
ongoing needs as a holiday home-
owner or Portuguese resident.
Compared to typical high street
banks, hey oer more compeve
exchange raes and a beer all-
round service - plus they don’t
charge transfer fees.
Crucially, currency specialists

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I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E
Letting your
Property
Renng ou a propery o
holidaymakers is a popular way to
generate income, which at the very
least should cover running costs
and leave the owner with some
welcome spending money.
Portugal’s Algarve is one of the
most desirable tourist areas in
Europe, making it an ideal place
for short-term lets. Thanks to its
balmy year-round climate, demand
or accommodaon is srong, no
only in peak summerme bu also
spring and the later months of the
year. A real asset in the region are
the numerous championship golf
courses that help to maintain high
occupancy levels – golfers tend to
avoid he hoes monhs!
If a good rental return is a priority
when choosing your Portuguese
home, be sure to pick an area that
delivers this – your Ideal Homes
agent will be able to guide you. You
also need to think about Portugal’s
regulaons or holiday renals and
how you will manage your property
and guests. Here are some pointers
to get your started.
www.idealhomesportugal.com
• It’s a legal requirement in
Porugal or all properes rened
out short-term, including holiday
les, o have a valid Alojameno
Local (AL) licence. These are
obtained from the local council
(Câmara Municipal). To obtain
one, your property will need
o be in good condion and
mee specied compliance
requirements, including health
and safety. AL licences are
usually obtained through a local
law or accounancy rm,
otherwise speak to Ideal
Homes or your chosen
management agency.
• I you decide o adverse your
property and manage bookings
yourself, research the best
portals to use. Compare similar
properes in your area, o help
you decide on appropriate
pricing. Use high quality photos
in your lisng and where
possible include a video tour.
In the content, sell the local
area and is amenies as well
as the actual property.
• Make your property stand out
from the crowd by adding
personal touches that enhance
your guests’ experiences.
This could be simple things like
welcoming new guests with
a small noe and resh owers
and making sure there are basic
groceries and local treats in the
kichen and a bole o zz in
he ridge! Include bookles
and inormaon abou local
aracons and amenies,
as well as a list of your
own recommendaons or
16
eang ou, shopping and
favourite beaches.
• At the start of each year, plan
when you want to have the
propery lef ree or your own
use. You’ll earn more from
rentals in the peak summer
months when both your weekly
rate and occupancy levels will
be highes, so avoid his me i
you wish to maximise your
annual rental yield.
• Rental income generated from
your property should be
declared to the Portuguese tax
oce. A local accounan or
lawyer can assist with a tax
return to do this. Provided your
country of residence has a
double tax treaty with Portugal,
such as the UK, you won’t pay
the same tax twice.
Most non-resident holiday
homeowners hire a management
agency o look afer heir propery
and rentals. If you are based
overseas and have a busy life, it
makes sense o pay a local rm
a small fee to take care of things
for you. Typically, their service will
range from simple key-holding with
propery inspecons and cleaning
to a comprehensive package that
covers all aspects of maintenance
and letngs, including adversing/
bookings and managing guests.
Ideal Homes Portugal has an
experienced property management
eam, oering a comprehensive
service that ranges from key-
holding to the full rental package,
including maintenance, bookings
and changeovers.
I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E
Tax & Financial
Planning
Moving o Porugal ull-me
means becoming a Portuguese
tax resident with your income and
asses subjec o he counry’s
tax regime. It is likely the rules
surrounding savings, income,
pensions and other assets will be
dieren o hose in your ormer
country of residency. This makes
getng proessional advice rom
nancial advisors and cross-border
tax specialists before you relocate
advisable. By not doing so you
risk losing ou nancially. In ac,
proper planning will no jus bring
peace of mind but could mean you
have more money in your pocket in
Portugal. Here are some key points
to consider.
183-day rule
New arrivals are considered
tax resident by the Portuguese
Tax Auhories (Finanças) afer
spending 183 days or more wihin
a 12-month period. If you move
to a home in Portugal that is your
new permanent residence, you
could be regarded tax resident
beore 183 days have passed.
When working ou he bes me
to move, consider how being a
Poruguese residen migh aec
any capial gains ax implicaons
if you’re planning to sell certain
assets in your former country of
residence, especially property.
Portugal uses the calendar year
for its tax year. Foreign residents
mus le an annual ax reurn,
which can be done hrough a scal
represenave.
Wealth Tax
Owners of property with a rateable
value (VPT) in excess o €600,000
www.idealhomesportugal.com
are subjec o an annual wealh
tax, known as ‘Adicional Imposto
Municipal sobre Imóveis’ (AIMI).
The rate levied for individual
owners is 0.7 per cen on he
VPT amoun above €600,000,
rising to 1 per cent on the value
over €1million and 1.5 per cen
upwards o €2millon. Two parners
who joinly own a propery can
combine their tax-free allowance
so that AIMI is only applicable from
€1.2million.
Non-Habitual Residence
(NHR)
Portugal’s Non-Habitual Residence
regime is a special tax scheme
designed o oer very avourable
ax raes, ofen exempon, or
new foreign residents. Once
gained, NHR status lasts for 10
years, provided that the qualifying
individual meets the criteria as a
ax residen each consecuve year. beore hey make heir applicaon,
The key benes apply o any which should be done through a
income sourced from outside tax specialist or lawyer. NHR status
of Portugal. Foreign pension can gained in conjuncon wih a
income is axed a jus 10 per D7 visa or Golden Visa.
cent (or exempt if taxed in the
source country), while UK rental Wealth planning
income, capital gains on real Reviewing the structure of all your
estate, interest, dividends and investments, including pensions
non-Portuguese employment and savings, with a professional
income could be exempt from all when you move to Portugal is
tax so long as the income may always worthwhile. They will assess
be eligible for tax in the country your porolio and overall nancial
of its source. NHR also applies a siuaon, including your long-erm
reduced a rae o income ax goals, income requirements and
(20 per cen insead o 48 per risk prole, and may oer soluons
cent) to individuals employed in ha oer urher ax benes.
acviy in Porugal deemed ‘high Inheritance tax in Portugal in
value-added’. To be eligible for minimal. Spouses and descendants
NHR status, applicants must not are exempt and it is charged on
have been registered as resident assets located in Portugal with a
in Porugal or a leas ve years ax rae o jus 10 per cen. 
17
I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E
Visas &
Residency
Moving to Portugal and becoming
a residen is an opon open o all
overseas naonals. To be permied
to do this, you need to have formal
residency status, which you get
auomacally depending on your
cizenship and amily connecons
or through obtaining a suitable
visa. Having residency also brings
enlemen o he Poruguese
healthcare system and other social
securiy benes.
EU citizens
All cizens o Member Saes o
the European Union (EU), EEA
and Swizerland have auomac
enlemen o reside in any EU
State, such as Portugal. This
extends to family members.
No visa process is required,
but anyone intending to live
in Portugal should apply for a
regisraon cercae ormalising
their residency. A new arrival
should ideally register within
heir rs hree monhs o being
in Portugal and no later than 30
days afer his period. Non-EU
cizens who are accompanying
a family member who is an EU
cizen can apply or a specic
type of residence permit.
Visiting non-EU citizens
Non-EU cizens (whose ocial
country of residency is also outside
he EU/Schengen) can spend up o
six monhs accumulavely in any
one year in Portugal. This must be
done according to the Schengen
90/180 rule, which means
spending no more than 90 days
in any rolling 180-day period. In
pracce, his means Brish holiday
homeowners can spend up to
www.idealhomesportugal.com
three months in a six-month period The D3 is a specialist visa for
at their Portuguese home. professionals with advanced skills
or qualicaons.
The D7 Visa
For mos Brish and oher non-EU The Golden Visa
cizens wishing o rere or live in Anoher visa opon suied o
Porugal wihou working, he D7 high-worh oreigners, parcularly
visa is usually the best route for mobile entrepreneurs who don’t
obaining residency – i is ofen inend o spend much me in
called he Reremen Visa or Portugal, is the Golden Visa.
Passive Income Visa. Holders of a Obtaining this requires capital
D7 visa may no be employed in investment, including the purchase
Portugal. of property in designated areas
Key to eligibility is having an worh a minimum o €500,000, or
income from outside of Portugal €350,000 or a resoraon projec
(such as pension or rental income, (less for each in low-density areas).
investments or even working Extendable to the main applicant’s
remotely for a foreign company) family members, the visa is
that is equal to or more than the renewable or up o ve years,
Portuguese minimum wage (approx. afer which permanen residency
€700-€750). Add a urher 50 per can be applied for. Holders are
cent of the minimum wage for an required o spend jus seven days
accompanying spouse or adult in Porugal in heir rs year and
dependent. Applicants must also 14 days in each of the following
have an approved level of private two-year periods. 
medical insurance valid for a year.
The process for gaining residency
is in two stages. First is the visa
applicaon, which ypically is done
through the Portuguese Consulate
in your country of origin. Once the
D7 has been graned, he applican
can travel to Portugal where they
must apply for their residency
permit within four months of
arriving. Residency hrough a D7
visa is renewable and afer ve
consecuve years holders can apply
for permanent residency.
D2 & D3 Visas
Portugal also has visas for
non-EU cizens who wish o be
economically acve. The D2 is or
entrepreneurs who set up small
and medium sized companies.
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I D E A L H O M E S P O RT U G A L ● P O RT U G A L B U Y E R S G U I D E
Testimonials
Carl, Hayley, Hugh & Miles – moved from the UK
Carl Delo, 47, his parner Hayley, 40, and heir eenage
sons, Hugh and Miles, couldn’ be happier wih heir lie in
he Algarve, where hey live in a villa bough hrough Ideal
Homes Porugal.
Occupying a peaceul hillside spo jus inland o
Vilamoura, heir quina-syle propery has glorious
views to the sea at the front while the back looks across
undulatng counryside. The beaches and world-class
leisure amenites o he amous Golden Triangle are 10
minues’ drive away.
“I was one o he frs propertes ha Ideal Homes
showed us,” said Carl. “We looked a a ew ohers, bu or
Hayley i was a clear winner. We loved he locaton, on
he edge o he village o Porela-Sao Faustno, and he
ac i had been ully renovaed no long beore, so was
like brand new. I was unoccupied and as we were cash-
buyers, rentng on a emporary basis in nearby Loulé, we
were able o move as. Wih Ideal Homes’ assisance we
compleed and had he keys o i wihin a ew weeks.”
The single-sorey propery includes hree bedrooms, wo
bahrooms, an open-plan living/ dining area conneced
o he kichen and a glazed amily/sun room. There is
also an independen one-bedroom annexe. The ouside
space includes a swimming pool, errace and an oudoor
kichen-BBQ area wih a bar, which Carl added o pass
tme during lockdown!
“Things have worked ou well,” said Carl. “The boys seled
easily ino he inernatonal school, where initally we
made hem ollow he Poruguese syllabus o help hem
wih he language. The Algarve is a very social place
and we spend a lo o tme eneraining or visitng oher
expas’ homes. We ge on really wih Chris a Ideal Homes
and his eam, so much so hey’re like amily now.
www.idealhomesportugal.com
Joe and Terri Eley – moved from the USA
Americans Joe and Terri Eley are loving lie since hey
decided o head across he Alantc or heir retremen.
The couple go he keys and moved ino heir brand-new
aparmen in Lagos in Augus 2021, having arrived in
Porugal rom Seale a monh earlier.
Ideal Homes had inroduced hem o heir propery
remoely a year earlier. Liking wha hey saw, hey agreed
o he purchase price o €450,000, paid a deposi and
waited for the development to be completed before
swapping he norh-wes coas o he US or he sunny
Algarve.
“Sasha a Ideal Homes was incredible a communicatng
and saying in ouch, including via Zoom” said Joe. “He did
a grea job guiding us and maching our requiremens wih
he wesern Algarve and our chosen propery. Wihou his
help, or sure we wouldn’ be where we are oday.”
Fas orward a year and he Eleys, who moved o Porugal
on a D7 visa, have no regres hey chose Lagos or heir
retremen years.
“The locaton tcks all he boxes,” contnued Joe, who
checked he developmen on Google Earh beore
buying. “Our aparmen is jus 12-15 minues’ walk
rom he old own, fve minues rom he marina and
resaurans and even less rom he medical clinic. Lagos
isel is no oo big and is a perec mix o old and new. I
has every ameniy you could need in a modern ciy. The
climae is jus righ oo, warm bu no humid.”
The couple enjoy exploring ouside he ciy and already
have visied he wider Algarve, Lisbon and Silver Coas.
They’ve me los o oher expas oo, mainly American
and Britsh, and say i’s years since hey had such a busy
social lie.
19
 AS SEEN
ON CHANNE
L4
– SUN, SEA
& SELLING
HOUSES

€340,000 €460,000 €525,000

2-bed apartment, Tavira 2+1 bed villa, Loulé 2-bed apartment, Lagos

€550,000 €650,000 €840,000

1+1-bed apartment, Vilamoura 3-bed villa, Paderne 3-bed villa, Porches

€930,000 €1,750,000 €2,250,000

4-bed villa, Albufeira 4-bed villa, Olhos de Água 3+1 bed villa, Porto de Mós

At Ideal Homes, we’re passionate about Portugal. The white sand beaches stretching
for miles, the relaxing lifestyle, the fabulous cuisine. We’ve helped hundreds of
happy customers find their dream home since we first opened in 2012. We now have
branches in Lagos and Vila Sol, and more than 300 properties for sale across the Algarve.
Put your trust in us, and we’ll help you find your perfect place in the sun.

Contact us
+351 289 513 434 • UK Freephone 0800 133 7644
info@idealhomesportugal.com Offices in Lagos & Vila Sol
SCAN ME

www.idealhomesportugal.com AMI Nº - 9540

 Portugal
Buyers Guide

Contact us
+351 289 513 434 • UK Freephone 0800 133 7644
info@idealhomesportugal.com Ofces in Lagos & Vila Sol

www.idealhomesportugal.com