living in setubal

Sétubal, 13th Municipality more attractive in Portugal

Overall assessment – 13º no place ranking nacional
Affairs – 14Th place // Tourism – 24Th place // Live – 13Th place

According to a study of Bloom Consulting, which evaluates and ranks the effectiveness of 308 Portuguese municipalities based on the attractiveness in the areas of investment, tourism and quality of life, puts Setubal in 13th position at national level.

The “City Portugal Brand Ranking”, first held by Bloom Consulting, a consulting firm that analyzes annually more than 220 countries around the world, aims to map and understand the demand of each investor, tourist and citizen taking into account the attractiveness of a determined Portuguese municipality.

Setúbal appears in the 13th place in National Top 25, with Lisbon, in the first place and Castelo Branco in the 25th position. The study prepared on the basis of statistical data on the economy, tourism and demography, collected from the National Statistical Institute, the National Association of Portuguese Municipalities and Pordata portal, allows, based on the performance and effectiveness of the strategy in attracting investors, tourists and new residents, assess the “brand” (“branding”) of each municipality.

The methodology of “Bloom Consulting Portugal City Brand Ranking” is based on six dimensions, although the study now published focusing only three – Business (Investment), Visit (Tourism) and Living (Talent) dimensions, – those who are closer to the reality of 308 Portuguese municipalities. Other indicators within the three goals are the ratios of companies and overnights per capita and the number of inhabitants per healthcare centers and higher education institutions per 10 thousand inhabitants.

Positioned in the 13th place among the 308 municipalities, Setubal places in the 14th position with regard to the Area of Business, in 24th to Visit, and to live in the 13th position. On regional analysis, Setubal is in 5th place among the 18 municipalities of “Lisbon”, finishing third in Business (Management), 7th in the Visit (tourism) and 5th for Living (Talent).

Achieving the dream of buying property or living in Portugal

You dream to have your own house near to the beach, and enjoy sunny days ? It all starts by a first thought… Like any big project, it takes a vision and a succession of small steps that take you closer and closer to your goal. People who have successfully made the move to Portugal didn’t wake up one day and think, ‘It’s official, I’m moving overseas today!’ Instead, they started with a daydream– the thought of an apartment overlooking the Mediterranean or a villa with sun-soaked terrace on which to relax and enjoy one of the local wines.

From that initial daydream tiny steps can be taken, and with each one the vision becomes more and more achievable. Looking on the internet for properties on Monday could lead to emailing an estate agent in Sétubal or Tavira on Wednesday. A phone conversation with the estate agent may lead to research
on the buying process. A few hours on expat blogs over the following weeks gives you more information about the actualities of buying property and living in Portugal. The next step may be to visit a property
show and discover financial options that you never knew were available.
Why not make 2017 the year that you start taking action? Search the internet, go to an exhibition, book a visit to Portugal, buy a book or create a journal outlining, or simply contact Real Estate In Sétubal, everything you want. You have a choice – you can focus on continuing your life as it is, or you can focus on how great it will be to have your own place in Portugal, somewhere you can enjoy regular holidays and hopefully use to generate a bit of rental income, or somewhere to move to permanently and enjoy a completely new lifestyle.

Can you actually buy property in Portugal?

Nationals from European Union (EU) countries, including the UK, can buy property and live freely in Portugal. If however, your nationality falls outside the EU, while you may be able to buy property in Portugal there are likely to be restrictions on the length of time you can spend in the country each year, and your employment options might be restricted. One option that may be possible for non-EU citizens is the ‘Golden Visa’ – an investment visa which can be used to obtain residency.
You can find out all the information relevant to you by visiting the Portuguese Embassy website. We can also perform a free consultation to educate you on your options. Our estate agents and legal consultant specialise in foreign property buyers in Portugal, and will be able to help you understand local procedures and laws.

Money matters

The key fnancial points to consider are:
  • The total amount of money you have available to purchase a property.
  • If you buy with a mortgage, how much of a deposit you will need and how you will service the monthly repayments.
  • Whether you need to re-mortgage your actual home to release equity.
  • Costs that come with buying property (i.e. taxes and fees).
  • Your maximum purchase price (including taxes and fees).
  • The cost of maintaining the property and spending time there.

What other costs are involved in buying a Portuguese property?

There are a number of additional costs involved in purchasing a property in Portugal, and these will vary depending on the price of the property. As a general rule of thumb, you should allow around 8% of the purchase price to cover all taxes and fees, including:
  • Transfer Tax (IMT- Imposto Municipal sobre Transmissões) – most of your extra costs will go towards this. If the property will be your primary residence then no transfer tax is payable on thefirst €92,407 of the purchase price (or tax rateable value, if higher). After this amount, IMT is levied on a scaled rating system, but typically works out at around 4-5%. If your purchase is a holiday home, then IMT of 1% is levied on the first €92,407 in addition to the higher amount. IMT payment will usually take place a few days before completion at the notary’s office.
  • Stamp Duty (Imposto do Selo) which is calculated as 0.8% of the purchase price.
  • Notary and Land Registry fees, totalling around €500.
  • Independent lawyer’s fees, which can be 1-3% of the purchase price, depending on the work involved and value of the property.
  • Bank processing fee, valuation fee and further notary and registration fees for the loan and stamp tax duty (if buying with a mortgage).
To buy property – as well as to open a bank account and to connect to utilities– in Portugal you will need a Portuguese Fiscal Number (Numero de Contribuinte), which can be obtained from the local tax office (Serviço de Finanças). Our independent lawyer should acquire this on your behalf.

How can you finance a property in Portugal?

There are a variety of ways that you can pay for a property in Portugal. As well as paying cash, you can fund your property through a variety of loan options; these should be considered before you start to look for a property or select an estate agent to assist you in your purchase. In Portugal, your options for home loans, particularly as a non-resident owner, are unlikely to be as extensive as those on offer if buying in your resident country. Lending conditions have also become particularly more stringent since the financial crisis.
Mortgage offers change on a daily basis, so it’s best to contact us as overseas mortgage broker to determine what the current offers are. You will also need an understanding of how much cash (your deposit) is needed in relation to the mortgage amount. Currently, as a non-Portuguese national you will be asked for a deposit of between 20-40 %, depending on the type of loan and the borrower’s circumstances.
When applying for your mortgage you will need to provide proof of income and identity, and details of your bank account and credit cards.
You will need to ensure you have a full understanding of interest rates, loan terms and the typical criteria used to determine loan-to-value amounts. Both interest-only and repayment mortgages can be arranged in Portugal, on a variable or fixed-rate basis, or a combination of both. Terms will usually be from 10 to 30 years, although loans must be repaid by the age of 80.
Whatever way you decide to go, always make sure that you have included any mortgage fees into your proposed budget. Choosing the wrong budget could lead to difficulties and it’s really important that you don’t stretch yourself financially.

What is the biggest financial mistake made by those buying property in Portugal ?

The biggest mistake you can make is failing to realise the impact of exchange rates on your final purchase price. When you agree to buy a property in euros, you are agreeing without knowing the exact price in dollars or sterling– although of course you may already have enough euros in Portugal to pay for it. The exchange rate you receive when you transfer your money into euros will directly impact the final cost of your property – you can either save or lose a lot of money throughout this often-overlooked process.
The price of currency fluctuates second by second as it gets traded on the currency market. As a ‘live’ market, the exchange rate you can achieve in the morning will be different by the afternoon. Over the course of days, weeks and months, exchange rates fluctuate, sometimes drastically.
What many overseas property buyers don’t realise is that they can ‘fix’ an exchange rate today for a purchase later – effectively ‘fixing’ the purchase price of their Portuguese property in pounds, as well as euros.
We advise that as soon as you know that you’re going to purchase a Portuguese property, contact us to help you save money to fix the price of your property in pounds as well as euros! With our currency exchange partner we help overseas property buyers save money and avoid currency fluctuations and risks. As we focus on finding your new home, money transfers for property, as well as people emigrating, the entire process is efficient, easy and very cost effective.