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How to buy a property in Portugal as a foreigner?


Though I've always been an innovator and entrepreneur, I spent much of my time in the Netherlands dealing with tedious bureaucratic tasks. My recent divorce and my exhaustion and anxiety led me to book a one-way flight to Portugal.

In search of freedom…

In 2018, I flew to Algarve, where my mother (interior designer) was busy renovating a property for Airbnb. On the beach of Praia Verde, I could exhale again. The beach was empty; it was fantastic weather with 20 degrees and no one around. I sat in the sun, and I felt completely free.

I never wanted to lose that taste of freedom again. I told my mother that I would like to move to Algarve because I no longer wanted to be part of the Dutch stress society. She then told me she saw an apartment for sale that she thought was fantastic. After the all-you-can-eat-sushi lunch for 12.50 euros p.p. we went to the broker, and we could look at the apartment right away.

5 minutes walking from the beach

It was in Monte Gordo, five minutes from the beach, in a pale yellow apartment building where hundreds of swallows flitted around. There was plenty of parking (which you don't come across in the Netherlands anymore), parking was free (impossible in the Netherlands), and you could park everywhere, even on the sidewalk (!). The scene felt light and peaceful.

As soon as I walked in, I took note of the living room's wealth of natural light thanks to the many large windows. When the agent pulled open the balcony doors, the chirping of swallows could be heard throughout the home. We were impressed by how well-lit and roomy the apartment was. Every four bedrooms were spacious, bright, and outfitted with custom closets. Additionally, the massive kitchen had recently undergone a renovation. The price tag on the property was set at €139.000.

"Divorciada"

A thousand things had gone through my head; I had a life and a business in the Netherlands, and I divorced my ex-husband just recently. Should I just leave everything behind and buy a house in a foreign country? Because I was a foreigner and a "divorced woman" - as stated in all documents later - it was less easy to get a mortgage than if I were a Portuguese man. Yes, feminism is still on the rise here in Portugal.


Paperwork

I decided to give it a try! First, I had to choose a bank (I chose Santander) and send them:

  • three salary slips;

  • my annual income tax return;

  • an employment letter (which I signed myself because I was my employer);

  • and my bank statement.

We agreed with the seller on €133.000, and I had to make a down payment of 30% because I was a foreigner. Locals paid only 10%.


The lowest mortgage ever

Exactly 30 days later, I received the mortgage for 30 years with a monthly mortgage amount of €240. Again: a mortgage of two hundred and forty euros. I could not believe this. My rent in the Netherlands was €1200.

Next: Airbnb

There I was, all by myself, single and fabulous (exclamation mark), with the power to unlock my freedom. A beautiful four-bedroom apartment on Portugal's coast now belonged to me. The next step is? Rent it out on Airbnb after staging! And that's precisely what we did, with the most baffling results on my investment.

Curious to know what happens next? Read my next blog!

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