In recent years, purchasing property in Europe to obtain a green card has become a new choice for many high-net-worth individuals for investment immigration.
For many Chinese people, the primary appeal of buying property in Europe is the acquisition of residency status, yet there is often a lack of understanding regarding the corresponding real estate laws and policies of these countries. In fact, beyond obtaining a green card, Europe’s strong protections for private property and respect for private domains are also significant advantages of acquiring European real estate.
Under Portuguese law, there are four main areas concerning real estate, including the protection of property and private domains, the interpretation of shared areas in residential buildings, and the regulations governing modifications to properties.
I. Private Property is Protected by Law; Expropriation Requires Compensation
1. In Western nations, there is a strong emphasis on the respect for private property. For homebuyers, the purchased property is definitively owned by the individual, including both the house and the land. Should the government wish to expropriate the land, substantial compensation must be provided. Article 62, Section 1, Chapter III of the Constitution of the Portuguese Republic guarantees the right to private property for every individual, along with the right to transfer private property during their lifetime or upon death.
2. The expropriation or requisition of private property for public interest shall only be carried out under the circumstances stipulated by law and shall be subject to fair compensation.
II. Private Residences are Protected by Law; Entry Without Consent is Prohibited
In Portugal, the security of a private residence is strictly protected by law. As long as it is your own property, no one may enter without the owner's permission. Article 34, Section 1, Chapter II of the Constitution of the Portuguese Republic states that the home and communications are inviolable.
1. The privacy of an individual's home, communications, and other means of private correspondence is inviolable.
2. Entry into a citizen's home against their will may only occur in legally specified cases, following legal procedures, and with authorization from a competent judicial authority.
3. No one shall enter the residence of another at night without their permission. However, exceptions are made for instances of flagrant offenses or judicial authorizations concerning particularly serious acts of violence or highly organized crimes (including terrorism, human trafficking, arms trafficking, and drug trafficking).
4. Public authorities are prohibited from interfering in any way with communications, telecommunications, or other means of correspondence, except in cases stipulated by law within criminal proceedings.
III. Shared Elements of Apartment Buildings
Unlike purchasing a villa, an apartment owner does not possess the entire building. According to relevant Portuguese law, parts of the apartment structure, corridors, etc., are considered common elements.
Article 1421 of the Portuguese Civil Code: Common Elements of Apartments
1. The land, foundations, columns, pillars, main walls, and all other structures supporting the real estate;
2. The roof or terrace, even if designated for the use of one or more specific users at the time of purchase, remains a common element;
3. Entrances, porches, staircases, and corridors used or accessed by the owners of two or more levels of the stratified building;
4. Installations for water, electricity, heating, air conditioning, gas, telecommunications, and similar equipment.
IV. Villas Allow External Modifications; Apartment Modifications Require a Vote
If you purchase a villa in Portugal, both the villa and the associated land belong to the buyer. Therefore, if the owner wishes to do so and obtains the consent of neighbors, they may reconstruct their residence, including changing the exterior or tearing it down and rebuilding. However, for apartments, relevant laws prevent individuals from arbitrarily changing the appearance or usage. If a change is desired, it must be decided by a vote of the owners of the stratified apartments or their representatives. If the owners voting in favor represent at least two-thirds of the total value of the apartment building, the appearance or usage may be changed.
Article 1422: Restrictions on the Exercise of Rights in Condominiums
1. In general, each apartment owner must, in their mutual relationships, comply with the restrictions established for owners and co-owners regarding their exclusive units and the common elements.
2. Specifically, apartment owners must not:
A. Damage the security, structural lines, or the aesthetic appearance of the building with any new objects, renovations, etc.
B. Use their specific units—the individual apartment they own—for activities that violate good customs (behavior intolerable to the moral standards of society) or for illegal acts.
C. Use their unit for purposes inconsistent with its established designation.
D. Perform acts or activities prohibited by the founding statutes or decisions passed unanimously by subsequent general meetings of the partitioned owners. ("Founding statutes" refer to the rules set at the property's inception in accordance with the law; the general meeting of owners functions similarly to an owners' association.)
3. Construction work that alters the architectural lines or aesthetic appearance of the building may only be performed with prior permission granted by a vote of the building owners representing at least two-thirds of the total value of the building. (Alterations to architectural lines—such as changing a square feature to a round one, or other works affecting the facade—require the approval of owners representing two-thirds of the total value of the building. For example, if a building is owned by three people, but one owns property worth 10 million and the others own 3 million combined, the consent of the owner of the 10-million-unit is sufficient.)
4. Whenever the founding statutes do not specify the usage of each independent unit, any change to that usage requires the permission of the building owners representing at least two-thirds of the total value of the building. (If the purpose was determined by law or the rules at the time of construction—for example, if the contract at purchase did not state that pets were allowed—any subsequent change requires the consent of owners representing at least two-thirds of the total value of the property.)
