Financial advice in Portugal
Latest articles about Financial advice in Portugal
2020 started with good news for those who applied for a mortgage, but this month, the scenario looks like it is changing, but only slightly for the time being.
February is still one of the coldest months of the year and for many people living in Portugal, winter is synonymous with discomfort at home or high energy bills.
Everything indicates, except in the case of unexpected surprises, that the Portuguese will benefit in 2020 from an increase in purchasing power, thanks to improved economic conditions and falling unemployment, together with an expected rise in wages, on average, above inflation.
Every year, municipalities have to determine and communicate to the Finance Department by December 31st, the amount of Municipal Property Tax (IMI) for real estate they intend to charge owners in their respective municipalities.
Do you want to buy a house at a lower price than those on the market? Then maybe properties pawned and sold at auction are a good option for you.
Renew the credit agreement
But what does this mean?
Natural gas prices in Portugal will drop from 1st October 2019. Rates will drop by 2.2% for the 277,000 consumers that remain in the regulated market, which represents about 3% of the total national consumption.
At a time in which banks seems to be more open to loaning money to buy properties, there are some nearly incomprehensible terms in the wording of mortgage loans which need to be decoded.
House prices in Portugal continue to rise, albeit at a slower pace. The International Monetary Fund (IMF) is aware of this, of course, but rejects suggestions that the government need intervene – at least for now – since "most real estate transactions have not been financed with mortgages".
If you have a second house in Portugal, it may often necessary to send money there to pay for bills, taxes and other living expenses, but it’s sometimes difficult to know how to do it, whether with banks or with money transfer companies.
Home loans (and other types of loans) are becoming more and more complex, with contracts written in excessively technical language that seems like it’s deliberately difficult for the consumer to understand, so you can’t make a truly informed decision between different banks and compare their mortgag
The difference between buying a house in Portugal being a resident or not depends on the purpose of the house. If you buy a house to live in Portugal, you are buying a permanent home and are a resident, but if you do not live in Portugal and you buy property there it will count as a second home.