Algarve & Quinta Do Lago Mortgages

The Algarve is the most popular region for HNW foreign investors in Portugal. A combination of Portugal’s favourable Non-Habitual Tax Residency (NHTR) scheme and their ‘Golden Visa’ initiative has incentivised European migration.

Luxury villas in the region can exceed €10million, with nearby Faro airport providing easy access to the area. Following the financial crisis, local retail banks still lack an appetite for the interest-only mortgages which are so appealing to property investors, but private banks can help.

What you need to know

The NHTR scheme allows qualifying investors to enjoy nearly all income sources tax-free for the first ten years of being a resident.

A lack of strong local private banking institutions makes it difficult to find this sort of relationship. Fortunately, overseas private banks with more liquidity are happy to assist using combined security.

All estate agents must be registered with the regulator known as the “Associacao de Mediadores Imobiliarios” and hold a registration number.

Check your agent’s credentials by consulting the “Instituto da Construção e do Imobiliario” (the regulator in charge of construction and realty intermediaries).

Legal fees and taxes are between 6-10%.