Buying a property in the Algarve can seem daunting to a foreigner, but with the right support, things can be simplified. Accessing a mortgage can boost your property budget and maximize your investment.
What’s the property market in the Algarve?
Buying property in the Algarve is a wise investment. Its popularity as a tourist destination ensures rental solid income potential and consistent property value appreciation.
In May 2024, the average property price per m² in the Algarve was €3,355. This represents an average increase of 0.6% compared to the previous month.
Can foreigners buy property in the Algarve?
Yes, foreigners can buy property in the Algarve. Portugal's real estate market is open to international buyers, including EU and non-EU citizens.
With a mortgage, you can afford a more expensive property than you could with cash alone. Low interest rates make this option even more attractive.
Mortgage options
Popular banks in Portugal, such as Novobanco, Santander, UCI, and Bankinter, offer mortgages to those who meet their eligibility criteria and provide the necessary documents.
Eligibility criteria
- A maximum debt-to-income level of 35%
- LTV ratio of 75%-80%
- 20-50% deposit
Documentation
To get a mortgage in Portugal as a foreigner, you need to provide:
- Passport or photo ID card
- Portuguese Tax Number (NIF)
- Proof of income and liabilities (tax forms, credit report, and most recent tax return)
Homevest can help you secure the best deal for your property in Algarve
Buying a property abroad is a significant change, and navigating the system in a new country can be challenging. Luckily, Homevest makes purchasing your dream house in Portugal much more manageable.
Homevest is a digital platform that simplifies the mortgage application process from abroad. By partnering with Reorganiza, Homevest offers access to more banks and expert advice from top mortgage and insurance brokers.
This partnership ensures better interest rates and faster service for customers.
Whether you're seeking a vacation home, retirement spot, or investment property, the Algarve offers a variety of options to suit your needs.
Consider factors like walkability and the structural quality of buildings. To ensure everything goes smoothly, consult professionals for legal and financial guidance.
