While many people dream of having a second home in sunny Spain, Portugal has also become a very popular place for people to buy property in, with the Algarve region of southern Portugal proving to be increasingly popular with buyers from across Europe, and also buyers from other parts of Portugal.
But if you don't live in Portugal, and are looking to buy, or invest in property in the country, how do you begin looking for the right property, and how does the buying process differ from the buying process in your own country? Here is a quick three-step guide to buying Portugal property.
The Portuguese Property Buying Process
In Portugal, there are two stages to the property buying process: the promissory contract and the final deed.
The promissory contact, or as it's known in Portuguese - contracto de promessa de compra e venda - is a contract between the buyer and the seller, which is dependent on the condition of the property. This contract is signed in front of the notary, or notorio. In Portugal, a deposit must be paid by the buyer during this process, which is usually between 10%-25% of the final property price. After the deposit has been paid, the buyer's lawyer conducts searches and checks for encumbrances or outstanding mortgages on the property.
The final deed, or escritura de compra e venda, is the second part of the process, and this is when the property ownership is transferred from the seller to the buyer, as with the first stage of the buying process, this is also signed in front of the notary or notario. Once this has been signed, the final contract is then sent to the land registry.
Property Taxes and Other Costs
After the price of the property, the biggest cost to the buyer is the property transfer tac or IMT, which must be paid on properties over €92,407, and this tax is on a sliding scale, so you'll pay anything from 2%-8% on the price of your property. In addition to this tax, there are also notary, admin and registration fees, which will cost between 1%-2% of the purchase price. Some buyers may also notice that estate agent fees are mentioned in the documents, however, these are the seller's responsibility, not the buyer's.
Other Important Information
As with buying any property in any country, buyers must be aware of all the checks and reports that must be carried out by law prior to the sale going through. Once you've found a suitable property, make sure that your lawyer thoroughly checks the original plans of the property, which will be held by the local authorities in Portugal.
These plans will show whether the property, in its current state, is as the original plans stated. Find out if the seller carried out any building work to the property -including extensions, and ask your lawyer to find out if the property has any existing charges placed on it - these charges must be removed before the completion of the sale.
Also, if you are planning to make any improvements to your home, including plans that will involve building work, check what the planning permission rules are like in the area before making an offer on the property.
While the thought of buying a home in Portugal may sound a little unnerving, this guide reveals that it can really be very straightforward - as long as you follow the rules, and know what questions to ask, when to ask them and have a deposit ready. Owning Portugal property can really be quite an experience, so don't dream it - do it.
No comments:
Post a Comment