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The
buying process & fees
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Buying a Property in Portugal- the process
The properties advertised would be bought from Markus Bosch Soc. Unip. Lda (not a third party) which is registered as "compra e venda" (purchase and sale of properties). The houses & outbuildings are normally all registered to the correct dimensions, and the houses will include either a habitation license (for buildings older than 1951) or will be registered as habitation (for buildings pre 1951). There will be no debt outstanding on any property. We are not estate agents - we provide a far more comprehensive service than most estate agents as we buy the properties into our company first.
The buying procedure:
1) We use a promissory contract, which has been written by our solicitor and which is a legally binding contract which seals the deal at the agreed price. A 10% deposit needs to be paid, which is usually done by international bank transfer. This contract details the property, the price and describes how the deposit and balance of payment must be paid. It states that should a buyer drop out of the sale, the deposit will be lost, should the seller drop out of the sale, double the deposit is paid back.
We cannot consider a property sold until the full 10% deposit has been received or the bank issues a confirmation that the money has been sent.
2) We only advertise our properties once we have secured them, although we may still be in the process of organising the paperwork. Once we have completed the paperwork we can then organise the escritura (The Deed of Sale) at the Notary office for the new owners. Usually your solicitor will sign the papers at the escritura on your behalf with Power of Attorney or you will attend the escritura and the solicitor will translate.
3) You will need to obtain Portuguese Fiscal Numbers to buy a property in Portugal. These are easily obtained from the town hall using an address in Portugal of either your new home or that of a friend (who becomes your tax representative) or your solicitor will organise them for you.4) The registration of the property into the new owners name is the buyers responsibility and happens after you have completed the purchase at the escritura, and which is essential should you ever wish to re-sell a property. Your solicitor would organise the registration as part of their service.
The buying fees:
1) The notary & escritura fee. The notary is an independent body and is present at the signing of the papers at the Escritura.
2) Any IMT payable:
For holiday homes / second homes (i.e. not your permanent residence)
* 5% of the value allocated to the land PLUS
* Percentage calculated on a sliding scale of the value allocated to the buildings
Property value under Euros 85,500 - 1%
Property value Euros 85,500 to 117,200 - 2% (less Euros 865)
Property value Euros 117,200 to 159,800 - 5% (less Euros 4,371)
For a permanent residence
5% of the value allocated to the land PLUS
* Percentage calculated on a sliding scale of the value allocated to the buildings
Property value under Euros 85,500 - 0%
Property value Euros 85,500 to 117,200 - 2% (less Euros 1,710)
Property value Euros 117,200 to 159,800 - 5% (less Euros 5,226)
3) The property registration fees.
**Notary fees, registration fees and IMT taxes should be around Euros 1,500 - 2,500 for most of our properties**
4) The buyer's solicitor fee. We are able to provide contact details for an independent English speaking solicitor based in Portugal.
5) To buy a property in Portugal you need fiscal numbers (Portuguese tax numbers) which are obtained from the local town hall and which cost Euros 6.40 each.
For a useful guide and reference book to Portugal and the buying process in Portugal, we recommend the following: