Portugal Property Algarve FAQ

Purchasing in Portugal - Your Questions Answered.

Can I buy for less elsewhere?

No. We offer you your new home at the lowest list price. Because of our purchasing power and expertise we negotiate the lowest prices for you.

What other costs can I expect to pay in Portugal?

1. Notarial and registration fees – 1.5% of purchase price.
2. IMT – up to 6.5%.
3. Lawyer’s and surveyor’s fees (negotiable)

Do I need permission to purchase property in Portugal?

Not usually but where necessary a lawyer can do the paperwork for you.

Do I have to be in Portugal to complete the transaction?

If you can’t be present to sign the promissory contract, the “escritura�, you can grant your lawyer power of attorney.

Can I transfer money in and out of Portugal?

Yes.

In who’s name should I purchase the property?

There are choices:

1. In your name or joint names.
2. In the names of your children or persons who will eventually inherit the property.
3. In the name of a UK or Irish limited company.

Should I make a will in Portugal?

Yes – make a will covering your Portuguese assets.

Is there Inheritance Tax in Portugal?

Subject to the submission of appropriate documentation to the tax authorities, there will be no inheritance tax due between husband and wife or parents and children. Inheritance tax is known as Stamp Tax in Portugal.

What are the legal steps to purchasing property in Portugal?

1) Surveying the property – especially if it is a resale. 2) Property Searches – Searches should be carried out in at least one of these public departments. Conservatoria do Registro Predial (land registry) for ownership, description, mortgages, encumbrances & charges. Reparticao de Financas (Finance Dept) for description and taxes, namely predial tax “contribuicao autarquica. Camara Municipal (City Council) for planning permissions, building licences and habitation licences. 3) Promissory Contract – “contrato promessa de compra e venda� stating all the conditions of sale and completion date. A deposit is payable with signature and you will need to decide the names on the contract. 4) Notarial deed of purchase and sale – Completion or “escritura publica de compra e venda�. All property documents and proof of payment of IMT or Municipal Transfer Tax to be witnessed by the Notary and the balance of monies paid over on the completion date. 5) Registration – with the Land Registry which grants full security of ownership. 6) Wills – strongly advisable to make a will at this Portuguese will at this stage.

Will I get freehold title to my Property in Portugal?

Yes.

What deposit will I need to buy a property in Portugal?

Usually between 30% and 50%.

5,000 euro’s will usually reserve a property at an agreed price until contracts are drawn up. Credit cards are best for this. Cheques are not acceptable as it can take over a month for a personal cheque to clear.

Are mortgages easily available in Portugal?

Yes. However, you will be required to provide proof of financial status, earnings or ability to repay the loan. A company buying the property will have to submit full accounts showing its ability to service the loan.

Mortgages are usually to 75% of valuation.

Stage Payments.

Applicable to ‘off plan’ properties. These will be described in the contract you sign usually 4 weeks after paying the reservation fee.

Existing resale properties will require the total price to be paid usually within 30 days of signing the contracts.

Should I use a UK or Irish solicitor when buying in Portugal?

Not necessary unless they are experienced in Portuguese law. We will recommend a Portuguese lawyer or help you find one of your own.

What happens with regular bills to be paid?

Your lawyer will help you open a Portuguese bank account from which all bills can be paid.

What if I want to become resident in Portugal?

Portuguese law requires that if you live in the country for more than 183 days a year you should have official residency. This entitles you to an official tax number (your lawyer can apply for this) and non residents also need this if they have any connection with the Portuguese tax system by virtue of owning a property, buying a car, opening a bank account, etc.

What is the cost of living in Portugal Like?

It is lower than in the UK or Ireland. Excluding mortgage payments £200 a week will provide a high standard of living for a couple.

Can I receive my pension in Portugal?

Yes, your pension can be paid directly into your Portuguese bank account.

UK www.dss.gov.uk

ROI www.welfare.ie

Should I learn the Portuguese language.

Yes if you want to integrate or find work in the country.

Can I work in Portugal?

Yes – the Single European Act 1993 gives you the same rights as Portuguese citizens.

Can I take my pets to Portugal?

Yes – You need a health certificate from the vet for your pets 15 days before departure including a certificate of vaccination against rabies. Also, a certificate declaring that the animals have been kept in an area free from animal diseases. These certificates must be stamped and legalised by the Portuguese embassy or consulate. The pets must be micro-chipped.

What is driving like in Portugal?

They drive on the right.

You can use your UK or Irish car in Portugal if you are spending less than 183 days a year in the country.

Portuguese residents cannot drive a car on foreign plates.

Right hand drive vehicles can be re registered in Portugal.

What is the Healthcare like in Portugal?

Healthcare is very efficient and available to all EU citizens. Remember to get your E1-11 or E128 forms or the Irish equivalents.

Private healthcare is also available.

What about the electricity in Portugal?

The electricity supply is 220 volts AC, frequency 50 Hz. Adaptors can be used but it is cheaper and easier to buy new appliances.

Can I rent out my property in Portugal?

Yes- There is a well developed property rental sector. We can introduce you to reputable agents and property managers.

What are the annual running costs for property in Portugal?

An average for Utilities and Taxes would be sterling £1,500.

How can I furnish my property?

You can take your existing furniture with you or you can buy new in Portugal. There are many quality furniture stores with reasonably prices and we can organise furniture packs for you. We also have an interior design and fit service available at no extra charge.