Housing

One of the reasons that changing countries is so challenging is because of housing. In fact, this challenge is so huge that it merits an article all its own. Portugal has a real housing crisis, and the condition of many homes is not aligned with western standards. This is challenging since it doesn't provide an environment very suitable for negotiating, and negotiating is absolutely necessary. The housing crisis, poverty, tax laws, demand, and greed have created a perfect storm that can land one under water even in a rental.

Ask for the Imposto de Selo

The first thing one must do before signing a contract, especially if one is seeking residency, is to make sure that the landlord has all of the necessary tax documents, namely an Imposto de Selo. If the landlord does not have this document at the time you sign, walk away from the property. If this document is absent from the signing, it is saying that the landlord has not notified the government that they are renting property and are not paying the monthly tax required by law. Why is this your business? Because their tax situation will prevent AIMA from recognising the lease agreement without an Imposto de Selo attached — and one of the first things AIMA asks for is proof of long-term housing. One cannot underscore the importance of this document enough.

Ask about outstanding bills

In Portugal, if the previous renter failed to pay for their utilities, the utility companies will not connect, reconnect, or leave connected the services to that address. What this means for the new lease holder is that you are left holding the figurative bag. Your options are to pay the other person's arrears to get services connected, or to ask the landlord to get the former tenant to settle the bills. The latter is a very bad plan, since many days may pass where you are rent-responsible without any services — and nothing happens here without an appointment. There could be weeks in a property without electricity, gas, water or internet. If the property has been vacant for a while, it is not safe to assume services are on, accounts are clear, and the apartment is “move-in ready”.

“Move-in ready” is a fluid concept

Some homes will be broom swept clean, others will be empty, but there is an overwhelming number of properties with old, dark, well-worn, musty furnishings throughout, and the landlord will insist they cannot be removed from the premises. So when properties are presented as “furnished”, understand that it is likely not suitable for use, and the expectation is for expats to live with the furniture as is. Properties are not professionally cleaned, painted, or flipped for the next renter. I have viewed properties with a realtor that still had the previous tenant's robe in the bathroom and her shampoo in the shower niche. If you are cringing, trust me, I understand — and it is the reason we feel very strongly that people must set their expectations, move forward informed, and know what to communicate before walking properties.

Security deposits for foreigners

Here, security deposits are called “cauções”. They work as they do in the US with one notable exception: when you are from another place and the landlord has hired a realtor, the caução is three months' rent. I have heard of people being charged up to six months. This price is negotiable, and we strongly suggest using the Expat Pals to negotiate in Portuguese, because pricing typically changes when English and other languages enter the conversation.

These are just a few examples of the “tiny little things” we wish someone would have shared with us prior to moving — things that fall outside the purview of your attorney and relocation specialist. There are a million other things to learn when getting settled, so let's talk again soon.