Personal Finance: Solutions to ensure liquidity in retirement
Homeowners in retirement can access liquidity by selling the bare ownership of their property while retaining lifetime residency, though this prevents inheritance and leaves the owner responsible for IMI, condo fees, and mandatory insurance. Alternatively, traditional mortgages provide cash but create a debt for heirs, while 'sale & leaseback' arrangements offer immediate funds in exchange for becoming a tenant. Partial rental strategies, including renting out rooms or registering as Local Accommodation, provide additional income, although Local Accommodation requires significant regulatory compliance and municipal licensing. Reverse mortgages, which accumulate debt until the owner's death without monthly payments, remain currently unregulated under Portuguese law.
