Buying in Portugal
Guide to buying property in Portugal
Our consultants have many years' experience operating within the Portuguese Property market.
In order to be eligible to purchase Portuguese real estate, an investor requires simply a Fiscal Number and a valid passport.
Like many countries, there are some complexities involved with the property purchase process in Portugal, but it is relatively straight forward compared to other European jurisdictions and with the assistance of Castle Gallois Properties and our established professional network of connections, it is certainly manageable and can be reasonably hassle-free.
Finding a good Portuguese lawyer (“advogado”)
You will need to appoint an advogado to assist with your property purchase and Castle Gallois Properties can help by putting you in touch with recommended firms from our network of connections.
Non-residents buying property in Portugal need to obtain a Fiscal Number from the local tax office. To obtain your Fiscal Number, you'll need a valid passport and an address, either in Portugal or your home country and we would recommend that you engage the support of a local tax expert/fiscal representative to guide you through the process. In fact, if you are a non-EU resident, then the appointment of such an advisor is a requirement.
The representative must be a Portuguese national, a holder of a Portuguese Residency Permit, or a Portuguese company set up for this purpose. They will receive all correspondence from the local tax authority relating to tax on your property, and take on the liability for ensuring the payment of any tax relating to the property and the registered owners of the property. Castle Gallois Properties can introduce you to an appropriate representative operating in the area where you are purchasing the property, so if you have any needs in this area please contact us.
Costs to consider when buying property in Portugal
When budgeting for your purchase, there are a number of costs that you'll need to take into consideration. A lot of the levies applied are subject to change and as such, always ensure to get up-to-date information from your lawyer or fiscal representative. The main considerations on purchase are as follows:
- Fiscal representation: €100 to €300
- Estate Agent's Fees: These are paid by the vendor.
- Legal Fees: 1- 2% of the purchase price, plus Portuguese Sales Tax
- IMT – A purchase tax, payable by the buyer when a property's title changes ownership. IMT varies considerably depending on the type of property, so check with your professional advisor.
- Land Registry Fees: 0.5% of the purchase price.
- Property registration fee varies dependent on type of property.
- Stamp Duty (Imposto de Selo): 0.8% of the purchase price.
The Portuguese property buying process from offer to completion
The length of the property purchase process varies in each transaction. Once you reach the point of having an offer accepted, both parties sign a promissory contract and pay a non-refundable deposit of 10-20% of the purchase price, at which point both parties are bound to the process and risk financial penalty should they withdraw from the process.
The time scale for completion is then agreed between both parties, culminating in the completion of the process and the legal transfer of the deeds of the property from vendor to purchaser.
At Castle Gallois Properties we have been through this process many times and our expertise combined with those of our trusted partners, mean that we are well-placed to help you through it.
In order to help, we need to know what you want. So please get in touch - we'd love to talk to you!