Top 8 scams and traps to avoid in Portugal
When moving to a new country, it is unfortunately not uncommon to be a little too naive and trust everyone. It is said that after moving abroad, the word "pigeon" will be visible in the middle of your forehead. Whether it's in real estate, restaurants or other areas, Portugal, like other countries, has some well-honed scams that can cost you dearly. To help you avoid the pitfalls and not get caught out I am Lisbob, the expat assistant, and I reveal my top 8 scams in Portugal.
A little clarification before we get into the nitty-gritty. The aim is not to tarnish the image of Portugal or the Portuguese. There are scams and scammers all over the world, and this article only aims to show the most common forms of scams found in Portugal.
In restaurants
Portugal's restaurants are popular with gourmets around the world. Cheap and with fresh products, eating out in Portugal is a real treat.
However, it is not uncommon for foreigners to be "offered" many starters before they have even ordered!
Cheese, bread, olives: it's a veritable farandole of flavours that are presented to you.
But beware, this is not a gift from home! On the contrary, these snacks are not free and the simple fact of touching them will increase the bill. Some restaurants take advantage of foreigners who don't know the rule, which can inflate the bill.
If you don't want the snacks, politely refuse them when the waiter offers them.
Taxi
Whether you are a tourist or a new expat in Portugal, you will find that taxis are generally cheaper than in other countries.
In general, however, Portuguese taxis have a bad reputation, and for good reason. From non-existent luggage surcharges to the "wrong" meter, taxis compete with each other when it comes to milking tourists and expats.
Another well-known scam is to drop you off "by mistake" in a place far from where you have to go, adding a diversion and therefore euros to the meter in order to reach your final destination.
My advice is to book your taxi in advance or use online platforms.
Real estate
Real estate is a sector that has helped Portugal recover from the 2008 crisis. Prices have skyrocketed and Portugal offers prices as high or higher than in other European countries.
Many unscrupulous agents, notaries and landlords have taken advantage of this and still do by abusing the naivety of foreigners looking for a new life.
I could tell you dozens of unfortunate stories and anecdotes of people who have bought properties that were ultimately unusable, or attached to mortgages without being told.
The pandemic seems to have accelerated the process with more and more people buying properties with simple video-conference visits, giving total confidence to the estate agent.
If a deal looks too good on paper, then surely you should be wary. My advice is to be accompanied by professionals who speak your language. On a subject as important as real estate, it is essential to understand and be understood.
You can fill in my property search form: my hand-picked partners will do their utmost to find the ideal property and accompany you in the best conditions.
Drugs
Portugal is a country that has decriminalised drug use, but some tourists and new arrivals think that cannabis is legal for example. This is not the case but many street vendors take advantage of this urban legend.
In downtown Lisbon, whether you are young, old, alone or with your family, you cannot avoid being accosted by these drug sellers in the middle of the street.
Of course what they sell is not real drugs: cannabis is actually a mix of dried herbs, hashish is a kind of earthy-tasting carambar and cocaine is plaster. So of course drugs are bad, but being tricked like a beginner is even worse.
Renting without a contract
This is an unfortunately common scam when you move to Portugal. You are looking for a place to rent, and you find that the rent is exorbitant or that the landlord asks for a 6-month deposit.
You don't pay attention and you end up paying for a place without a contract. Although the 'pirate' aspect may have its attractions, it is still illegal and can get you into serious trouble. It simply allows the landlord to avoid declaring the rent received.
Firstly, without a contract you will not be able to prove your residence at that address. Secondly, the landlord can decide to throw you out of the house overnight without any reason and without any way for you to defend yourself, as you have no contract. Finally, you also lose money because when the contract is declared and the rent is recorded, you can get some of it back on your tax return.
To ensure that you have a real contract and that your landlord is in order, check that your NIF and the landlord's NIF appear on the lease.
Movers
When moving abroad there is a good chance that you will have to move house, and the things that fill our homes and suitcases are an integral part of our lives. There are many transporters available on the internet, and expat groups are full of ads from people offering their services.
Beware, however, as many transporters are not professional movers and do not hesitate to play on words to inflate their quotes. Packing, unpacking, protection: it is important to check that all possible and necessary options are included in the quote.
Also, some unscrupulous transporters charge you for insurance for your goods, without actually taking out insurance. My advice is to go through recognised companies that are established in the market, and to compare different quotes in order to make the right choice.
To live in Portugal with peace of mind, you have to be careful with all these scams
To live in Portugal with peace of mind, you have to be careful with all these scams
Expatriation assistance
As Portugal has become more popular with expats from all over the world, many relocation agencies have sprung up throughout the country. From obtaining a NIF to RNH status to car registration, there are many services you will need for a smooth move.
The problem is that many agencies take advantage of this and charge exorbitant prices. 3,000 for a feasibility study on RNH status, 2,000 for a house visit, or charging for contracts when they are paid by the suppliers themselves.
My team and I have been helping expatriates from all over the world to settle abroad for over 6 years now and make it a point to help you in a caring way. Whether it's for the tax issue or to prepare your project, you can visit the "Services" page to find out how we can help you throughout your expatriation. You can also read our Trustpilot reviews, even if everything is not perfect all our reviews are real, and they are pretty good!
Car rental
This is an area where scams abound, whether in Portugal or elsewhere: car rental agencies. Even more so when you don't speak the language, some agencies take advantage of our naivety to inflate the final bill.
When you make your reservation, make sure you check the various options included, such as comprehensive insurance, empty/full tank and motorway tolls.
Also, most agencies will ask you to present a credit card in the driver's name when you collect the vehicle. Some agencies abuse this and offer to add drivers for a surcharge.
Finally, don't skimp on the inspection of the vehicle before driving it, as you may have to pay for it when you return it.
I have presented my top 8 scams to avoid in Portugal. There are others, and again this article is not intended to tarnish the image of the country or the Portuguese: they take care of themselves well enough.
Don't forget that if you have a dispute with a trader you can simply ask for the Livro de Reclamações, the complaints book.
I hope I have helped you to avoid some of the typical Portuguese pitfalls and to enjoy this beautiful country in peace.