How a Tel Aviv Family Found Their Second Home in Cascais

From Tel Aviv to the Atlantic Coast

Two years ago, the Aviram family started dreaming about Portugal. Not because they were after a cheap house, but for the breathing space Portugal promised. With both parents working, and their own two teenagers in the mix, the family has for years been squashed into a tiny apartment in central Tel Aviv. Like many Israelis, they wondered whether life could be calmer elsewhere in Europe.

Swedish couple Pelle and Malin chose the Portuguese coastal town of Cascais some 30 kilometres west of Lisbon as their new home. They bought the house without an agent, or broker, and without having purchased and later regretted a property. Here they share their positive approach to finding and buying a home abroad.

Why Cascais, and Not Lisbon Itself

Like many first-time buyers from abroad, the Avirams started their housing hunt in Lisbon’s city centre, famously trendy hotspots like Chiado, Principe Real and Alfama. There they admired box-like apartments with sleek surfaces and modern amenities, with prices suggesting they were merely standard issue real estate. In fact, going by current listings, a 50-square-metre apartment in an “average” Lisbon neighbourhood would cost about €3,300 per square metre - and that’s for basic property. Renovated homes in neighbourhoods frequented by tourists like Alfama or the Rossio would command a premium price of around €5,500 per square metre.

We also looked at a couple of properties in Cascais. Beautiful coastal town, about 40 minutes by train from downtown Lisbon, with many international schools, many great doctors and a decent number of families from all over Europe, Israel and North America. It was certainly pricey, but these were all lifestyle square metres, not investment square metres. We’re considering spending part of the year in Portugal in this house.

The First Mistake They Almost Made

The first real offer came on a 140 sq m apartment, just a couple of minutes walk from the beach front in Cascais. Priced at €780,000, the agent framed this as some kind of Golden Visa opportunity. However, what he didn’t share with the couple is that the Portuguese Golden Visa rules, in place since 2018, specifically preclude residential investment in real estate located in metropolitan coastal areas, and places like Cascais are considered off-limits for foreign buyers seeking a Golden Visa residence permit.

Avirams arrived well-prepared over the weekend and read the new Golden Visa guidelines carefully and also diligently consulted the IMT tax calculator. Their conclusion was that this apartment would not deliver residency - the apparent main selling point of the listing. They were wise to decline the offer and saved approximately €60,000 plus purchase costs on an offer that was not delivering the benefit they required.

What They Actually Bought

For their new home, my husband and I decided on a 165 square metre townhouse in a quiet residential neighbourhood called Birre, in the central part of town about a 10 minute walk from the ocean and a 5 minute walk from the international school our younger child will be attending in a few years. The house took six weeks to finish, and the purchase price was €690,000. As a rough estimate, the IMT (municipal transfer tax) would be approximately €42,000 (based on the tiers listed above). Additional costs, including legal fees, notary, stamp duty and registration were approximately 10.8% of the purchase price.

The purchase was paid for in part with cash and part with a bank loan from a Portuguese bank. It took about 10 weeks from application to approval. Their lawyer identified two small issues during due diligence but the seller was able to fix those before closing.

Three Lessons Other Buyers Can Use

Avirams and his wife also did the tax calculation themselves using an online IMT calculator, which gave them some very surprising numbers (since IMT is based on a stepped schedule and varies depending on the property value, location, and whether or not the property is a principal residence). They used the numbers to shape their offers.

The Avirams did not buy a vacation home for investment returns. Their investment potential was not a consideration. What did matter was where they could spend weekends, holidays and vacations - perhaps even retire one day. Once they realized this, the Golden Visa question became irrelevant and their options much clearer.

Thirdly, familiarise yourself with the legal structure prior to viewing any property. Portuguese property law is sensible and relatively buyer friendly. Before you are overwhelmed into purchase by the pressure of a motivated seller, ensure that you have a good handle on the nuances surrounding foreign ownership, capital gains tax, the non-habitual resident regime and rules governing inheritance. These will be much easier to assimilate when you are relaxed.

What Happens Next

Cascais-based expats Neil and Sharon Avirams have been spending approximately four months a year in the town. The rest of the time their house is empty except when it is left to the mercy of the elements or to a neighbour who keeps an eye on things. However, the couple is under no pressure to either rent out the property or turn a profit on it. In fact, they have no plans to sell.

That is what independent buying looks like: slow, meticulous, and scrupulous. It is reading agreements, having questions answered, and being unwilling to sign a page you don’t fully understand.