Getting Your Finances in Order Before Trying to Buy a Home in Portugal

If you are moving to Portugal to live and work or to retire you may be interested in purchasing a home in Portugal as opposed to renting a place for the entire time you will be living in the country. More than likely the preparation that you will need to take in Portugal will be a bit different than what you would normally need to do in your home country.

If you are living in Portugal and the income that will be sustaining your lifestyle is not paid to you in Euros but in another form of currency you will need to take into account devaluation when you are considering how much is enough for you to survive on comfortably. You will also need to take into account the potential rise in the cost of living, economic disasters like recessions, high dollar unexpected expenses like medical bills and anything else that could have a crippling effect on your standard of living. It is important not to underestimate the cost of living.

All foreign residents and non residents that have financial dealings in Portugal are required to have a tax card and a fiscal number.

In order to be able to purchase a home in Portugal you will have to have a tax card. To get your self a tax card you will need to visit the local tax office in the area where the home is that you would like to buy. You will fill out a form for the tax card there and provide them with a copy of the identification page of your passport.

When dealing with the Portuguese tax authorities you will need to use your fiscal number at all times. Initially your fiscal number is a temporary number as you do not get a permanent fiscal number until after you purchase property. You cannot open a bank account or register the title deed of a property without a fiscal number. You will also use your fiscal number to pay property taxes and in other transactions with the tax authorities.

Non residents that own a home in Portugal are required to have a local resident as their representative to receive all tax related communications on behalf of the non resident.