FREQUENTLY ASKED QUESTIONS:
Approach Before making a decision: I would like more information before starting my research.
As stated in our section ‘Why live in Portugal’, the advantages that make this country the investment par excellence in recent years, whether as a holiday destination or to spend one's retirement, are undoubtedly:
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The climate: 300 days of sunshine a year in the Algarve, mild, dry winters and hot summers with a refreshing Atlantic breeze in the evenings.
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Taxation: Portugal has become a tax haven for retirees with a 10-year non-taxation on life insurance and pension income.
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Accessibility: easy access thanks to the development of low-cost airlines.
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An unparalleled quality of life: it is a country where you feel completely safe. What's more, the gastronomy is not to be outdone. The recipes are simple but delicious. From seafood to wild pig, fish caught off the coast, tasty fruit and vegetables and quality wine at a ridiculous price!
Add to this a high-quality property market at very reasonable but rising prices, which generates very good rental yields.
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Without a doubt!
The Global Peace Index is the world's leading ranking on peace. The report takes into account the degree of harmony or discord within a nation; ten indicators evaluated as describing safety and security in society are taken into account.
In this 2019 ranking, Portugal is ranked 7th in the world out of a total of 163 countries, just behind Iceland and New Zealand!
By way of comparison, Belgium is ranked 16th, Spain 23rd and France only 87th!
Also according to the Mipex index, Portugal is the second most welcoming country, well ahead of Spain and just behind Norway. It is very easy to integrate in Portugal, people are very welcoming.
Portugal is ranked 12th on the list of best healthcare systems in the latest WHO survey. With a system that operates in much the same way as ours, healthcare in Portugal is divided between the private and public sectors. The public sector offers good quality care and treatment, however, it requires waiting times that can vary according to the severity and priority of your condition. As a result, many people who can afford it opt for private consultations, which are not covered.
Rest assured that you will also continue to benefit from your rights in your country of origin.
This is one of Portugal's major assets. The country's minimum wage is only 870 euros in 2025. With a much higher income, expats live like kings there.
According to Numbéo (the largest database), Portugal is ranked 54th in the world in terms of cost of living. In comparison, Belgium ranks 18th, France 14th and Spain 41st.
Property in the Algarve has seen a sharp increase in prices over the last ten years, with a cumulative increase of more than 100% since 2015. In 2025, the average price per square metre reached €3,467, up 9.3% over one year.
The Western Algarve is seeing even higher prices, particularly in Lagos (€4,900/m²) and Portimão (€2,700/m²). This surge is fuelled by strong demand, limited supply and the attraction of foreign investors, who injected more than €2.5 billion in 2024. The market is expected to continue growing, with annual increases estimated at between 10% and 15% between now and 2026. The developing infrastructure and economic dynamism are reinforcing this trend.
Despite high prices, the Algarve remains a popular destination for second homes and rental investments. Its climate, quality of life and tax advantages are attracting more and more international buyers. Foreign demand, particularly from France and the UK, is supporting this rapidly expanding market. By way of comparison, Belgium ranks 18th and Spain 32nd.
It all depends on what you feel like doing and your lifestyle!
The Algarve is often considered the Florida of Europe. It has everything you need for a Portuguese version of the Dolce Vita. 300 days of sunshine a year and the mildest climate in Portugal, superb beaches, tranquillity (except in August, as everywhere around the Mediterranean!), magnificent golf courses, fresh produce from the ocean and a large French community.
Lisbon is a serene, gentle and very pleasant capital, full of shops, museums and great places to visit! Close to the sea and accessible by train, it is probably one of the most beautiful European capitals. It is the perfect place if you are still a city person at heart!
It is also a region where many French speakers have settled. In fact, the capital has a large expat community. The French lycée, associations and chambers of commerce are very active there.
It all depends on where you buy. Certain criteria are in high demand and will influence the profitability of your investment, particularly a sea view or proximity to a city centre.
On average, the net return is between 3 and 4% for seasonal rentals. This average is calculated by deducting expenses such as building charges, utility bills, annual property tax, agency fees and cleaning costs.
Similarly, there is a very high demand for long-term rentals in quality properties. This type of rental requires less work and ensures less wear and tear on the property in question.
If you couple the rental yield, the long-term price increase (also between 3 to 4% per year), and a pied-à-terre for your next holiday, what are you waiting for to invest in it!
Very advantageous! Portugal offers an attractive tax system, particularly for expatriates and pensioners.
Non-Habitual Resident (NHR) status
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This scheme, valid for 10 years, allows new residents to benefit from tax advantages.
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Income from foreign sources (such as private retirement pensions) was tax-exempt until 2020. Since then, a flat rate of 10% has applied to pensions.
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For high value-added professions, a reduced rate of 20% on income from activity in Portugal is applied instead of the standard progressive rate.
But the country has other tax attractions: no taxes on large fortunes, very low property taxes (generally around €400/year for an apartment and €800 for a villa), no social security contributions for the first 18 months of your activity as a self-employed person.
In this regard, I can provide you with a file containing the conditions of access and the benefits granted.
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No! Portugal does not apply inheritance tax on spouses and children who are heirs. A new European convention, which came into force in 2015, reverses the current system in inheritance matters. It stipulates that the law of the heir's country of residence applies, and no longer that of the deceased's country of residence, i.e. 0% if you reside there.
Unlike France and Spain, and just like in Belgium, Portugal levies a single property tax if you do not rent out your property, the IMI. It is similar to the property tax (France) or the property tax deduction (Belgium).
It generally varies according to the type of property, its size and date of construction, and ranges from €400 to €800/year. In relation to rentals, declared income is subject to taxation.
There are two main scenarios; either you are resident in another country; in which case, and upon application for a rental licence (alojamiento local), you can benefit from the simplified regime.
The tax base is 35% of the generated turnover. In fact, you get a deduction of 65% considered as a flat rate for expenses (building charges, electricity, cleaning, etc.).
Tax rate for a non-resident: 28%.
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Formalities: tax declaration at the start of the economic activity of operating furnished accommodation for tourists (before starting the activity), form 3 declaration - appendix B, in May of the following year.
Either you are resident in Portugal
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The tax base is 35% of the generated turnover. You get a deduction of 65%, considered as a flat rate for expenses (building charges, electricity, cleaning, etc.).
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Tax rate for a resident: between 14.5% and 48% according to the progressivity mechanism (therefore between 14.5% and 48% x 35%).
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Formalities: tax declaration at the start of the economic activity of operating furnished accommodation for tourists (before starting the activity), form 3 declaration - appendix B, in May of the following year.
This income is completely tax-exempt in your country, but, due to the progressivity reserve mechanism, it may slightly increase the tax burden on other income in your country of declaration.
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Approach: You've convinced me! I want to buy in Portugal
For service and choice! Key Portugal is not just another estate agency. The objective of developing my business is simply to respond to demand, guiding clients towards making an intelligent purchase. By working with a very large network of agencies throughout the Algarve, as well as banks and developers, my aim is to offer all the products that may be of interest to French speakers. Having worked for three years as a real estate agent in the region, I have been able to build a very useful network for buyers. Key Portugal has an approach centred on listening to the customer and guiding you in your purchase. If, despite everything, you do not find the property that suits you on the site, we will carry out searches to find the one that best corresponds to your needs.
You can count on us to make the learning phase of Portugal easier for you. From understanding the property market, planning visits, guidance and support in your choice, right through to finalising the purchase, we are here for you.
Specifically, we will proceed as follows:
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Initial contact with Key Portugal: we will arrange a Skype or telephone appointment to better understand your needs
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We will discuss your objectives with you: do you want to make your property profitable, move to Portugal or use it as a pied-à-terre? Which region would suit you best according to your expectations and the type of property you are looking for? We will then send you a selection of properties.
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Once the flights have been booked, we will meet you on site to confirm the programme of visits
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I will accompany you on personalised visits to the properties and give you my professional opinion
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It is easier to obtain financing in Portugal in 2016 than it was a few years ago. In general and based on income, banks agree to finance foreigners up to a maximum of 75% after the property has been valued. In the case of a bank repossession, the bank may agree to lend up to 100% of the value and at more favourable rates.
However, you should be aware that Portuguese banks lend almost exclusively at variable rates indexed to the 12-month Euribor. There are a few fixed-rate offers, but they are very high. On average, borrowing rates will be around 1.2% + Euribor or around 3.5% for a fixed rate, which is more than in France or Belgium.
Another possibility, which in my opinion is more interesting, is to finance your property in your own country. They will only do this if you can put up a mortgage-free property in your country or if you can offer them financial investments in your country in return.
CREDIT IN Belgium/FRANCE VS CREDIT IN PORTUGAL
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BE/FR Collateral in your country / Mortgage-free property or Possibility of using group insurance as collateral (maturity at 65 years of age)
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PT: Guarantee / mortgage taken on the property in Portugal
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BE/FR 100% financing possible
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PT: 70% maximum financing, or 100% in the case where the bank is the owner of the property
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BE/FR Relatively low rate
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PT: Higher variable rates + insurance for the outstanding balance in the event of premature death
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Yes! However, and contrary to our usual practice, it is the lawyer of your choice who will manage the entire procedure. They will check all the documents to avoid any surprises (plans of the property, verification that the property is not subject to a mortgage, verification of payment of the condominium charges, etc.). The lawyer is at your side in all procedures; from your request for a tax number (necessary for a purchase) to the changing of meters in your name. In this regard, Key Portugal can put you in touch with a French-speaking law firm that will ensure the security of the property transaction so that you can make a purchase with complete peace of mind.
Purchase costs are relatively low. You will have to pay two taxes: IMT and stamp duty, which is fixed at 0.8%. To this must be added the fees of a lawyer (generally 1% of the purchase value + VAT), the notary (between €350 and €500) and registration (€250). Let's take the example of a purchase for €200,000
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1. IMT (Imposto Municipal sobre a Transmissão):
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Example: (Value of the property x tax rate - Amount to be deducted)
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€200,000.00 x 7% - €8,163.12 = IMT = €5,836.88
2. Stamp duty (imposto de Selo)
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In the case of property acquisition, it is 0.8% of the value.
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Example: €200,000.00 x 0.8% = €1,600.
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Total: €5,836.88 + €1,600 + €2,460 + €600 = €10,496.88, or 5.25% all included
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Oui ! Cependant, et contrairement à notre pratique habituelle, c'est l'avocat de votre choix qui gérera l'ensemble de la procédure. Il vérifiera tous les documents pour éviter toute surprise (plans de la propriété, vérification que la propriété n'est pas soumise à une hypothèque, vérification du paiement des charges de copropriété, etc.). L'avocat vous accompagne dans toutes les démarches, de la demande de numéro fiscal (nécessaire pour un achat) au changement des compteurs à votre nom. À ce sujet, Key Portugal peut vous mettre en relation avec un cabinet d'avocats francophone qui assurera la sécurité de la transaction immobilière afin que vous puissiez réaliser un achat en toute sérénité.
Approach: Thanks to Key-Portugal, I will now become a homeowner in Portugal.
Once the property has been found, Key Portugal remains at your side and helps you:
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By putting you in touch with a French-speaking law firm to answer practical and inheritance questions, etc.
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By arranging an appointment with a rental manager if necessary
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By arranging other appointments if you wish to make changes to your new acquisition (various installations, furnishing, renovation work, interior decoration, etc.) if necessary
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And introduces you to the French-speaking community so that you can take part in all the events that take place there!
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