Buying property in Portugal

Seabrease27 · 2023-07-05T21:50:02+00:00

Posting for traffic. We are in the process of buying an apartment in a condominium in Algarve/Cabanas de Tavira. New development. Our main concern is that we are able to rent it either as holiday rental or permanent until we are able to move there in a few years as we are getting a mortgage and want to covert some of the costs. I believe we need to get an AL license to rent it, is this guaranteed or can the council decline it? We are using Ideal Homes and they say they can apply on our behalf. What other things do we need to consider? Taxes? We will get an agent to look after it. thank you

Capturetotalelotion · 05/07/2023 23:11

You need to appoint a proper fiscal representative to manage all this for you on an ongoing basis. Google is your friend here, there is plenty of detailed info out there.

Original poster

Seabrease27 · 06/07/2023 06:16

Thank you; yes we will appoint a solicitor. We are purchasing through Ideal Homes

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Hellokittymania · 06/07/2023 06:23

Hi there, I just bought a property in Greece back in March, I don’t plan on renting it out, maybe in the future but not right now. Some considerations though, I’m not sure about Portugal but in Greece, when you rent out a property the contract is three years minimum. And there are no controls like in the UK, so finding good people to rent to can be a bit of an issue, which is partly why I am not interested in renting my place. Something you might want to consider though, and make sure you know of the local laws when it comes to renting to somebody. There were laws here that I was completely unaware of, even previously when I was renting.

also, I would make sure the management company you have is a reputable one and can also point you in the direction of where to get repairs easily, and in a timely manner. Again, that is some thing I have run into from first-hand experience it Greece. Not the same country, but again, it’s something you may need to know about. If the boiler breaks, I need to get it fixed quite quickly, like I did, it’s good to know where to go and how to do it and how much it will cost you.

enjoy your adventure, I’m sure you will learn a lot, I know I certainly have.

TheLeadbetterLife · 06/07/2023 06:37

You might not be able to get an AL licence at the moment, so if you’re relying on it being a holiday let be cautious.

the government suspended all new licence applications earlier this year while they review new housing law proposals.

Condominiums have additional rules when it comes to getting licences anyway, as you need permission from the building management as well as the council.

It’s definitely not the relatively simple procedure it used to be, and they are talking about hiking up taxes on AL rentals too. This is all due to housing shortages for residents.

TheLeadbetterLife · 06/07/2023 06:41

The AL licence is for short term holiday lets by the way. I’m not sure what licence you need for a long term let, but there are tax incentives either being proposed or already available for offering long term accommodation.

Original poster

Seabrease27 · 06/07/2023 07:02

Thank you; the agency said they can apply on our behalf and it is up to each council now but we do want to make sure we are able to get it. They said it takes 3 months. Need to investigate this more as everything is possible for them as they are interested in the sale

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Original poster

Seabrease27 · 06/07/2023 07:25

Hellokittymania · 06/07/2023 06:23

Hi there, I just bought a property in Greece back in March, I don’t plan on renting it out, maybe in the future but not right now. Some considerations though, I’m not sure about Portugal but in Greece, when you rent out a property the contract is three years minimum. And there are no controls like in the UK, so finding good people to rent to can be a bit of an issue, which is partly why I am not interested in renting my place. Something you might want to consider though, and make sure you know of the local laws when it comes to renting to somebody. There were laws here that I was completely unaware of, even previously when I was renting.

also, I would make sure the management company you have is a reputable one and can also point you in the direction of where to get repairs easily, and in a timely manner. Again, that is some thing I have run into from first-hand experience it Greece. Not the same country, but again, it’s something you may need to know about. If the boiler breaks, I need to get it fixed quite quickly, like I did, it’s good to know where to go and how to do it and how much it will cost you.

enjoy your adventure, I’m sure you will learn a lot, I know I certainly have.

Thank you. I am going to call another agency to get more information reg rentals

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