Information and advice on buying a property in Portugal.
Visiting an Estate Agency.
To search for a property, deal at all times with licensed estate agents. Do not decide to buy a property without having some idea about the market, visiting at least 3 different agents in the area. This will help you gain a perspective on different properties available and the respective prices. Give preference to estate agents that have been in the business for a long time, those agents have a better knowledge of values and therefore fewer chances of you buying an overpriced property.
Deciding on a property.
To decide on a property, you must have as much information as possible from the estate agency. Depending on each case, ask for important details such as building regulations, costs on the purchase, building and architect. When you decide which property to buy, you will present an offer to the estate agency detailing the amount of the down payment, usually 10%, and also the time for completion and if there is any obligation that the contract would be subject to.
Appointing a representative.
When the estate agency informs you that your offer has been verbally accepted, this is the time for you to choose someone to represent you. This lawyer or solicitor will deal with all legal aspects of the purchase and give you all information. It is advisable to choose a representative who works within the area of the chosen property. You should contact more than one representative to ask for their fees before you decide who to use.
Costs involved when buying a property in Portugal
Costs involved when buying a property in Portugal
I.M.T.
This is what we could compare to stamp duty in the UK. It is paid one time only every time you buy a property. In fiscal terms there are 3 different types of property and each one of them has a different rate. To calculate the amount of the tax payable please see the IMT list .
Deed
On completion day you or your lawyer/solicitor in your representation, together with the sellers will have to sign the deed. This deed is usually and advisedly done in a notary (Notário). This is the document that gives you the ownership of the property you are buying, this is the moment that you will pay the remaining money to the sellers of the property and you will receive the keys of the property and the right of possession. The cost of this document, which is paid to the notary, is around 0.8 % of the price of the property and for this payment you will have a receipt from the notary issued in your name.
Registration
After the deed been signed, your lawyer/solicitor will have to register the acquisition of the property with the deed in the Registration Property Department (Conservatória do Registo Predial). For this act and assuming there is a straight and simple acquisition, the cost will be below 200.00 €.
Representation
The amount of the fees (Honorários), will be given to you by the lawyer/solicitor you choose. You should ask what work is covered by this amount. Each case is different, but in a normal representation of purchasing a property the work done by a lawyer/solicitor includes legal advising, the obtaining of all necessary documents, preparation of the promissory contract, deed, updating information in Finances Department and finally the registration of the acquisition in the registration property department.
Mortgages
Portuguese Bank
To obtain a loan from a Portuguese bank you need to present personal and property documentation. The banks decision is mainly depending on the relation between the amount requested and the value of the property and this factor is very important to determinate the rate of the loan. The second factor is the income of the person who asks the loan. We advise and help all our clients on the process to obtain a mortgage.
English Bank
Should you choose an English bank to obtain a mortgage on the property, request your Portuguese Estate Agent to obtain an alternative quotation from a Portuguese bank for comparative purposes so that you can choose the best option.
|
