Information
Property purchase in Portugal
The process of purchasing a property in Portugal is quite simple, primarily because there are no restrictions on foreign property ownership.
Once you’ve found the right property for your purposes, your next step should be hiring the services of a local lawyer, who will guide, represent and assist you during the whole purchase process.
Your lawyer will start the process of checking the property’s ownership title, in order to assure that the property has no legal issues that could arise after completion. Searches will be carried out by your lawyer to check the property documentation, namely Land Registry certificate and Tax Office certificate (Caderneta Predial) to confirm that all documents are in order and no debts lies upon the property.
A Portuguese fiscal number will have to be applied for, as it is necessary for almost every transactions held in Portugal. Your lawyer will also assist you in obtaining this.
A promissory contract of purchase and sale will then be drawn up to include all details, conditions of sale, price, deposit and date for completion, namely signature of final deeds of purchase and sale, which is made on a Notarial Office and is officially recorded.
When purchasing a property, there are certain taxes that need to be paid. The Property Transfer Tax (IMT) is paid by the buyer before completion and the tax percentage applied varies depending of the value of the purchase. Stamp Duty is another tax to be paid and is charged at a rate of 0.8% of the declared value of the purchase.
After completion, your lawyer will deal with the registration of the property into your names before the Land Registry Office and Tax Department.
What you only have to do is enjoy the property you’ve just acquired.