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Type of property:
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City:
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Area:
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Bedrooms:
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Living area:
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Price:
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Apartment - Praia da Rocha
Apartment, - (94 m² living area), 03 bedrooms, 03bathrooms, 01 living rooms
Price: € 133,000.00
Apartment - Alvor
Apartment (20x20m), - (204 m² living area), 04 bedrooms, 02bathrooms, 01 living rooms
Price: € 430,000.00
Apartment - Alvor
Apartment (20x20m), - (131 m² living area), 03 bedrooms, 02bathrooms, 01 living rooms
Price: From € 261,000.00
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Purchasing
Once you have found your new property, the next step is to engage the
services of a local lawyer to represent you in the purchase. It is also
a good idea to familiarise yourself with the basic legal and tax issues involved.
Power of Attorney
Your Portuguese lawyer will need a power of attorney (Procuração) to
be able to act on your behalf. If you are staying in Portugal, this can be registered at
the Notary Office. Otherwise, it can be prepared by the Portuguese Consulate in your
country of residence, or by a local notary. In this case it must be accompanied by a
Notary Certificate of Apostille of the Hague Convention and translated into Portuguese.
If you are buying through an offshore company, then the offshore administrators
should provide the requisite power of attorney.
Fiscal Number
All buyers, whether individual or corporate, must obtain a fiscal number from the Tax
Office (Finanças).
Search
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All urban properties have a Caderneta Urbana from the Tax Office (Finanças).
The caderneta is like an identity card for the property. It gives the article number,
size and location of the plot; it defines the borders of the plot, and gives a rateable
value for the property. This “valor patrimonial” is the property value on
which the annual rate (contribuição autárquica) is based. This
value is normally much lower than the real value of the property. Generally, when
purchasing a property, it is advisable to do a search in Finanças as well as
in the Conservatória, as there may be actions pending against the property not
yet advised to the Conservatória.
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All residences must also have a Habitation Licence (Licença de Habitação)
issued by the local Town Hall (Câmara Municipal).
Promissory contract
The next step is for both parties to enter into a Promissory Contract of Purchase and Sale
(Contrato de Promessa de Compra e Venda), which is legalized at the Notary Office. The buyer
will pay a percentage of the total purchase price and the parties will agree with the Notary
to record a date for completion of the purchase.
If the seller withdraws from the sale, the seller is then required by law to repay twice the
deposit. Likewise, if the buyer fails to complete the purchase, then the buyer forfeits the
total of the deposit.
IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis)
Prior to completion, the purchaser is required to pay a property transfer tax “IMT”
previous known as “sisa tax” to the local Inland Revenue “Finanças”.
From 1 January 2004 this has been reduced from 10% to 6%, thus reducing overall purchase expenses.
This tax is charged on a sliding scale up to the value of 510.000 Euros, and thereafter on a flat
rate of 6%.
Deed of Purchase and Sale
Once other formalities are completed, the sale can proceed with the Deed of Purchase and
Sale (Escritura Pública de Compra e Venda), which is executed before a Notary and
officially recorded. At the same time the balance of the purchase price is paid according
to the terms of the Promissory Contract.
Registering ownership
Upon presenting proof of the “escritura” to the “Conservatória do
Registo Predial”, the property can then be registered in the name of the new owner.
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