Portugal is becoming one of the most sought after European countries for real estate investment. Boosted by tourism and ease of access to Golden Visas, this particular market has been growing at a rapid pace appealing to new, national and foreign, investors who bring back the youth to some of the oldest Portuguese cities.
However, real estate acquisitions are often perceived as complex and bureaucratic. Thus, in order to demystify and to provide more awareness on this subject, Real Estate Boutique presents in this publication the three most relevant aspects to consider when buying a property in Portugal.
1 – REQUIREMENTS AND PERSONAL DOCUMENTS
Tax Number - The buyer needs a Portuguese Tax Identification Number (NIF) - obtained through a local service of Finanças or through a tax representative;
Identification Document – Portuguese Citizen Card or Passport;
Legal Representative - The buyer must appoint an attorney or solicitor to monitor and legitimize the process;
Bank Account - The opening of a portuguese bank account is recommended to facilitate transactions. To do so, foreign citizens need a portuguese NIF.
2 – PROCEDURE
1º - The buyer and the seller negotiate the conditions of the transaction, which usually results in a Reserve Agreement (Contrato de Promessa) and the delivery of a reserve amount (check deposit or bank transfer);
2º - Once the necessary conditions for agreement are met, the Contrato de Promessa de Compra e Venda (CPCV) is signed and a prepayment of part of the total purchase price is made;
3º - When all the requirements for the sale are fulfilled the Escritura (Deed) is made, where in the presence of a notary, the transfer of the property right is concluded and the property is registered in the name of the new owner.
3 – COSTS
IMT - Tax calculated on the purchase price or on the property value, whichever the highest may be;
Imposto de Selo (Stamp Duty) - 0.8% of the purchase price;
Fees - Expenses related to the hiring of lawyers, solicitors or other experts;
Real Estate Agent Fees - These are usually included in the sale price and paid by the buyer.
If you are considering buying a property and would like more information, you can contact any of our TEAM
members. We will be at your disposal to schedule a meeting in one of our offices in Lisbon or Porto.