Buying Commercial Property to Start a Business in the Algarve
Have you ever dreamed about running your own commercial business in the Algarve? Are you looking for a chance to start something of your own in the sunshine capital of Europe?
If so, there are certain things you will need to know before you begin your journey. Fortunately, we have all the local information that can help you buy a commercial property and achieve your business ideas in Algarve today.
Why Live and Work in the Algarve Portugal?
There are plenty of commercial properties available for sale in the Algarve region to suit all types of company setups, from shop units to holiday home rentals and offices for those who need their own space to work close to the family home. The Algarve has a wealth of properties perfect for business needs and the locations are stunning.
To understand why the Algarve is an excellent choice for budding entrepreneurs, how to find the perfect property, finance help, get a mortgage, and how to buy it we have laid out the steps we feel are important.
How To Buy Commercial Property For Portugal’s Golden Visa
If you are planning to invest in Portugal, one of the best places to do it is the commercial property sector. This has been a top priority for both foreign investors and domestic buyers since Portugal joined the European Union (EU), since then around 25,000 foreigners have acquired a Golden Visa through the scheme.
The government of Portugal has recently announced new Golden Visa changes in 2022 and 2023 before that foreigners could buy property anywhere within Portugal as long as it was priced at €500,000 or more (or as little as €280,000 provided certain requirements were met).
Currently, there are areas of Portugal where any form of property (residential or commercial) is acceptable, and there are areas where only commercial property is allowed.
As the government is still debating the situation as concerns the Algarve we await the outcome. However, you can still apply for the new digital nomad visa that allows investment as part of the new scheme.
Residential & Commercial: What Is The Difference?
- Residential property is rather simple to comprehend because it is used mostly as a dwelling. Although it need not be your permanent residence—it could be a second home—it will be regarded as residential property if that was the major purpose of the purchase.
- Contrarily, commercial or business property is classified as non-residential property. The most popular types of commercial property for individuals investing in the golden visa are hotels or real estate that are used mainly for tourism, however, it is also possible to invest in office space or retail establishments.
The two categories of real estate that appeal to most applicants for a golden visa are hotel investment plans and rental properties.
How To Buy Property In Portugal, Algarve?
If you are looking to buy commercial property in Algarve Portugal there are many options available to you. Below we will explain how to buy commercial property in Portugal, Algarve, and what you need to do before buying a property in the Algarve.
You could read our Portuguese Visa and Document Jargon Buster article if you are unsure or would like more information.
Research the market/ property investigation
To find out about the current market prices, you need to do some research on different websites that provide this information. You can also contact real estate companies who will be able to provide you with relevant information on the current market prices.
Prepare Your Papers & Documents
Make sure you have all the required paperwork in place before you start your property search. This includes your passport, tax ID number (Número de contribuinte), and any financial records needed to apply for a mortgage or make a cash payment.
Deposit for Reservation of Property
Before signing a contract, you must pay the stamp duty and the reservation fee for the property. This will be subtracted from the total sum owed at closing and is normally 10% of the purchase price if you are resident in the Algarve, if not that would rise to 30% for foreigners.
Find a Well Versed Local Commercial Lawyer
Employing a trustworthy lawyer with Portugal’s commercial real estate transaction experience is crucial. Your lawyer will assist you in completing the required paperwork and making sure everything is in order.
Paying Taxes and Duties for the Property
Many taxes and fees will be due when you buy commercial real estate in Portugal. They include notary and lawyer expenses, as well as a transfer tax. Your lawyer can explain and determine the overall cost involved for you.
Completing the Property Purchase
Once all the paperwork is in order and the necessary fees have been paid, you may finalize the purchase of your Algarve commercial property. This entails approving the agreed deal and giving the seller the outstanding funds.
Buying a commercial property in the Algarve can be pretty straightforward as long as you have an experienced team to rely on. Here at Gatehouse International we are well-versed in the process and are here to help with any queries you may have. Drop us a line and will be happy to assist.
Another option to run a business in the Algarve would be to use your home as your office, this offers a more tranquil and relaxed lifestyle, giving you the freedom to live to the full with your family on hand. If you are searching for your perfect Algarve property check out our huge selection on the site.
We hope this guide has cleared most of your doubts of yours if you are planning to buy any property in Algarve, Portugal. We have complied with most of the important rules and regulations along with important information to buy a commercial property in Algarve, however, should you require any further information please do let us know.
Google Local Guide for the Algarve. Been living in the Algarve for over 20 years and loving the experience. Now writing about and photographing the Algarve experience to share with others. Contributor to all that is Algarve on Wikipedia