Buyers Guide - Portugal
Why Buy in Portugal?
Portugal has always been a popular destination for the British buyers. With beautiful beaches stretching along the Atlantic and Mediterranean coastlines that have yet to be discovered there is still plent of scope for a shrewd buy. For those buying on the Algarve, there is a vast selection of low cost flights available to Faro through out the year from most UK airports. There is also plenty of scheduled flights to Lisbon and Porto through airlines such as BA and TAP.
Fees and taxes
- Transfer tax can be anything up to 8% depending on the property value. This needs to be paid before the final documents are signed.
- Legal fees are approx. 2%.
- Agent fees can vary betwen 1 - 10%, however the average is around 3%.
- Notary and land registration fees will be approx. 2.5%.
- You also need to allow up to 0.8% for the annual local taxes.
- Fees and taxes can depend upon the municipality so ensure your lawyer checks the relevant legislation thoroughly.
The Buying Process
The first step is usually a verbal agreement between buyer and seller, after this the buyers lawyer will carry out all necessary checks (i.e title and building licence etc...).
A preliminary contract is then signed which lays out the terms of the sale including the completion date. At this point a 10% (approx.) deposit is paid. If the seller should withdraw they must pay the buyer double the value of the deposit. If the buyer withdraws from the sale they will lose their deposit.
On completion both parties will sign the deeds (Escritura) in front of a Notary and the ownership is then transferred. The balance of the purschase price plu sall fees and taxes must be paid before the Escritura can be signed.
As soon as the deeds are signed, the transfer of title should be logged in both the land registry and the local tax office.
If buying off-plan a smaller deposit is requested. Followed by stage payments. This will depend upon the developers requests.
Buying a re-sale property, ensure a survey is carried out in addition to any other checks you perform.
Health
The standard of healthcare can vary greatly from region to region in Portugal. For minor complaints the standard public system will suffice but for specialist treatment, operations or chronic illness it is advisable to go private.
Property Costs
1 Bed Apartment - £110,000
2 Bed Apartment - £170,000
3 Bed Villa - £272,000
4 Bed Villa - £340,000
Useful Links
www.portugal.embassyhompage.com
