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 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. This contract details the property, the price and describes how the deposit and balance of payment must be paid.
2) Once the buyer and /or their solicitor are happy with the content a 10% deposit is paid, usually done by international bank transfer. The signing of the contract and the paying of a deposit secures the sale.
3) 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 to sign and the solicitor will translate.
4) The registration of the property into the new owners name is the notary’s 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.
Documents needed to buy a property in Portugal:
a) You will need to obtain Portuguese Fiscal Number (cost approx Euros 7 each) to buy a property in Portugal. These are easily obtained from the town hall using an address in Portugal of either your new home (if you intend to live there permanently) or that of a friend (who becomes your tax representative). Sometimes the solicitor will organise them for you.
b) Current passport.
The buying fees:
These fees are the buyers responsibility and will include the following:
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 (buildings and land tax) payable and stamp duties.
These taxes are based on a sliding scale depending on the purchase cost of the property. It also varies depending on whether the property is to be a holiday home/second home or permanent residence.
3) The property registration fees.
4) The buyer’s solicitor fee. We are able to provide contact details for an independent English speaking solicitor based in Portugal.
There are many guide books available on buying a property in Portugal.