Interview of Elena Bykovets with Oksana Balaban. Part 4
Mortgages, cost of living and benefits
— Does having a baby in Portugal grant residency to the whole family?
— That’s an interesting question. There’s no direct rule like that, but theoretically, yes, it can create that possibility. If you’ve been living in Portugal for more than a year and then your child is born here, that could positively affect your legal status. But timing is important — I always tell clients that residency should be seen as a tool.
Once you have a residence permit, many doors open. Even opening a bank account can be difficult without it. It’s good that Ukrainians with temporary protection are treated as residents, so they can access banking services. After that, a mortgage becomes an option. With residency, you can get a mortgage and save money compared to paying rent. Instead of paying for something you’ll never own, you invest in property. Portugal’s real estate market is still growing — maybe a bit slower, but in the right locations, it’s still a smart investment. And if you leave in a few years, you can sell your property.
Regarding residency through a child’s birth — yes, it is possible, but both parents must be officially employed and show proof of income. That’s a key requirement.
— Speaking of mortgages, I remember there was a law offering better conditions for people under 35. Have any of your clients used this program?
— Yes, and I actually follow your Telegram channel — you’re doing a great job! You’ve mentioned tax breaks, and it’s true — the law has been passed. One of our clients already benefited from it and saved money.
— Let’s clarify the conditions for those who may not be familiar.
— Residents under 35 can buy a home with special terms — no down payment and no stamp duty. But there’s a catch: these benefits apply only to loans up to €316,000. In real-life cases, property can cost more, like €500,000, but the mortgage amount must not exceed €316,000. So, if you have €200,000 of your own, you can use this program.
About the down payment — in practice, it’s not completely waived. You still need to put down at least 10%.
— That’s actually the second time I’ve heard that the down payment is still required.
— I think so too. We don’t work directly with Portuguese citizens, and this law is really aimed at locals. Same goes for the new tax relief for young professionals — it’s meant for Portuguese residents. Only locals with citizenship and family history here can likely get a mortgage without a down payment. For our clients, I wouldn’t count on that. It’s best to plan for at least 10%.
— How much does the stamp duty save?
— Stamp duty is 0.8% of the property value. This law can save someone around €2,500. But you can save even more on another tax — IMT, the property transfer tax. Depending on the type and value of the property, it ranges from 2% to 8%, which can be €6,000 to €25,000 in Cascais for homes within the €316,777 price range.
— What about additional benefits for young people?
— As of February 2025, the proposal is still under review but I’m 90% sure it will pass. It’s a youth-driven initiative that’s been in discussion for a while.
Under this law, there would be a 100% IRS (income tax) exemption in the first year, followed by benefits over 10 years. The income cap is €28,000 per year, about €2,300 per month — a decent amount for a comfortable life in Portugal.
Although the law refers to the 2025 tax year, in practice, it will apply from 2026. So I believe it will be approved by the end of 2025.
— Does it apply to freelancers?
— Yes, it does. Freelancers also issue invoices to companies and qualify, as long as they meet the age (under 35) and income (under €28,000/year) requirements.
— Could you say more about the cost of living in Portugal?
— A comfortable lifestyle in Portugal generally requires about €2,300 per month. Of course, “comfortable” means different things to different people.
Groceries cost around €300–400 per month if you cook at home. Eating out is affordable — a full lunch menu is €10–13.
A monthly public transport pass is €40, which covers most transit systems.
Beauty services are priced similarly to those in Ukraine — I’ve compared with friends.
For rent: if you live with a partner, it’s easier to split the cost. If you live alone, rent starts at €800 and can go up to €1,500 depending on the city and neighborhood. In Lisbon it’s pricier, but in Porto, for example, clients rent one- or two-bedroom apartments for €800–900.
One of the great things about Portugal is how much you can do for free — ocean, parks, outdoor events. Plus, there are more than 300 sunny days a year. For active people, there are plenty of sports options too — many of them free.
