# Property purchase tax



## rubytwo (Jun 22, 2015)

Hello,

We have been told by an estate agent that (when purchasing a home) we need to pay the increased level of tax for a secondary home purchase even though we don't own another property anywhere and this will be our primary residence. She said that to be eligible for the lower tax rate of a primary residence we need to already have a home in Portugal. That doesn't make a lot of sense to me. Can anyone confirm there experience when buying here in Portugal?

Thankyou


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## RichardHenshall (Jul 26, 2009)

To be eligible this would need to be your new principal residence, ie where you live and pay your taxes. This new property can't be your principal residence without you being (or immediately becoming) a Portuguese (tax-)resident. It is irrelevant whether you own or rent where-ever you live now, it's where it is that matters.


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## rubytwo (Jun 22, 2015)

RichardHenshall said:


> To be eligible this would need to be your new principal residence, ie where you live and pay your taxes. This new property can't be your principal residence without you being (or immediately becoming) a Portuguese (tax-)resident. It is irrelevant whether you own or rent where-ever you live now, it's where it is that matters.


 Thanks for the response Richard. As soon as we have made the purchase we are applying for residency and the house will be our main residence. Isn't that sufficient?


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## RichardHenshall (Jul 26, 2009)

I don't know for sure but if you're going to apply for residency anyway, why not apply in advance of purchase to be 100% certain? Maybe that's why you were advised that you needed to already 'have a home' in Portugal (for 'have a home', read 'be resident')?


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## rubytwo (Jun 22, 2015)

RichardHenshall said:


> I don't know for sure but if you're going to apply for residency anyway, why not apply in advance of purchase to be 100% certain? Maybe that's why you were advised that you needed to already 'have a home' in Portugal (for 'have a home', read 'be resident')?


 I thought that I had to have an address in Portugal to apply for residency?


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## RichardHenshall (Jul 26, 2009)

It's obviously more difficult if you're not in Portugal until after you've bought but if you're coming to Portugal to sign for the property you could use the address of where you are staying. I'm sure there must be a legitimate way of doing the registration as a resident and purchase as a resident that your advogado could recommend.


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## rubytwo (Jun 22, 2015)

Thank you!


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