Purchase a Property in Portugal

 

If you buy land in Portugal or own a parcel, you must have your title recorded at the Land Registry in Portugal. Every activity related to property titles must be recorded in the Land Registry that has jurisdiction over the area where the property is located. Once the transaction has been recorded at the Land Registry in Portugal, it becomes binding on third persons. This means that other people have to respect your right over the property. Our lawyers in Portugal can help you with the registration process.

 

 

There will be instances when two or more persons have claims over a property. This usually happens in cases of double sales. To complicate things even more, both parties might even have registered their rights. The Portuguese Land Registry observes the principle of priority wherein whoever has recorded his/her rights first has a better claim over the property than the one who came after. Have your rights recorded right away through our attorneys in Portugal. Our experts can help you buy land in Portugal.

 

 

When there is an application for registration, all the facts surrounding the property are carefully checked. The applicable laws are considered, documents are verified, and previous entries concerning the property are noted. The identity of the owner is also checked, as well as that of the parties, their legal capacity to enter into the transaction, and the validity of their titles. This is why when applying to have your rights registered, you should be sure that everything is in order.

 

Our law firm in Portugal can help you prepare the necessary documents for your registration with the Portuguese Land Registry. Dealing with land is a very sensitive matter. To avoid any conflict, make sure that you verify the title over the land. The records found in the Land Registry in Portugal are public which means the information is open to the public. Contact us for more details about how to buy land in Portugal.

 

The following video presentation contains information about how to buy a house in Portugal:

 

 

How can I purchase a property in Portugal?

The advantages of buying land in Azores

• Attractive climate and friendly people: Portugal has a mild warm climate. It is also a good destination for tourists because it has beautiful beaches and high mountains as well.
• Reasonable prices: Compared to other countries from Europe, Portugal has lower real estate prices. Thus making it a good option for buying a home as well as for investment opportunities.
• Steady Real Estate market: the relatively balanced economy reflects itself on the property market as well. Thus investments become more attractive to both local and foreign investors.
• Government incentives: The Portuguese government supports foreign investors that are looking to buy property in Azores for example, offering incentives and certain tax exemptions. If you are interested in how you can benefit from these tax advantages, one of our experienced attorneys in Portugal can advise you.
• Special visa program (Golden): Portugal offers a fast ticket to obtaining a residency permit that can lead to obtaining a citizenship. It is important to note that only non-EU citizens can benefit from the Golden visa programme.
• Rental opportunities: Due to the fact that Portugal is a popular tourist destination, the rental income is almost guaranteed. And if we are talking about a popular location, the AIRBNB type of rental can be a very profitable option.
• Lifestyle: If you are looking for a new home in a warm place, with a strong cultural and historical background, that is quiet and calm at the same time and has a very friendly population, then Portugal is the ideal choice.

What are the steps of buying property in Portugal?
 

• Market Research: Before buying land in Algarve, it's important to research the market. You have to be informed and see the big picture before committing to a decision. You have to take into account your expectations, the budget, the locations in which you afford buying property in Portugal and your needs.
• Hire a law firm in Portugal : It's recommended to hire an experienced lawyer that can verify if the property is registered and if there are certain debts or other legal problems related to it. Furthermore, a native Portuguese lawyer can offer local insight and advice related to your purchase.
• Obtain a NIF: In order to buy land in Azores, you need to apply at the Portuguese Tax Authority for a Número de Identificação Fiscal .
• Sign a contrato de promessa de compra e venda: Once you have found the ideal property, you will need to sign a preliminary contract.
• Pay a deposit: In general the deposit is around 10% of the total sum.
• Apply for a credit (if needed):
• Pay the remaining purchase price: The property is officially yours only after this step is completed.
• Register the property.
• Pay taxes: These taxes must be paid annually.

The Golden Visa Program in Portugal

Real estate due diligence in Portugal

• the documents of the property are verified to see if the establishment has a certificate issued by the Land Registry in Portugal;
• the previous ownerships are analyzed through the real estate due diligence;
• if there are any problems with the tax payments, the real estate due diligence can reveal these;
• the construction permit, the insurance, the previous sale contracts and the capability of the owners to sell the property are verified before the property is acquired. 

Paying a property in Portugal

Finding a property in Portugal

 

 

 

Portugal is quite appealing when it comes to purchasing a property. There is a wide variety of choices, from remote villages surrounded by fascinating landscapes, a place overlooking the ocean or in the vicinity of the rich vineyards, or cities bursting with culture and history. When considering buying a property in Portugal, the first recommended step generally consists of selecting an independent qualified lawyer; in this regard, our Portuguese lawyers are available with complete legal advice and assistance throughout the whole process, in order to help you make the proper decision and a safe investment. After identifying the desired property, our lawyers in Portugal are ready to represent you throughout the entire process, as well as give guiding advice at any point. 

 

 

 

The next step in the process would then be the sale and acquisition agreement, a promissory contract in Portugal, detailing the conditions involved in the transaction, as well as any related agreements regarding the transfer of property. Upon the sale agreement being signed and notarized, all parties involved will be legally bound to the completion of the transaction. The notary acts as an official representative of the state and will generally charge the buyer approximately 1-2% rate from the property price for the official certification of documents. In addition to this fee, you should be prepared to cover other costs involved in the notary supervision, the necessary documents for the procurement of a mortgage, for example, mentioning that our lawyers in Portugal will take care to inform you of in advance. 

 

 

Afterward, the buyer will have to take care of the payment of the property tax (IMT) which may vary between 0% and 8% of the declared value of the property. For instance, if the property in Portugal is approximately EUR 570,000, the IMT will be imposed at an 8% rate. In dealing with this particular tax, the help of our attorneys in Portugal will make a great difference for you, due to the complexities involved in the system of calculation.The final deed is obtained at the time the entire property transaction is concluded. Let our Portuguese lawyers legally assist you when deciding on purchasing a property in Portugal.

 

 

Both local and foreigners can acquire properties in Portugal, without any particular restrictions in this sense, as long as these are not state-owned assets. More than that, foreign investors can apply for the Golden Visa scheme and purchase properties in Portugal, under different conditions which can be entirely explained by our team of lawyers in Portugal.

 

 

The Golden Visa in Portugal scheme is a governmental program meant to attract as many investors as possible by allowing them to purchase properties in this country, under certain conditions. Below we have gathered the main requirements for obtaining the Golden Visa in Portugal:

 

• the Golden Visa can be obtained by investors who purchase properties worth at least EUR 250,000.
• the application for the Golden Visa permit might take up to 6 months from the date the investments were made.
• the health insurance, the criminal record certificate, the valid passport and proof of the legal entry are among the needed documents for Golden Visas applications.
• a Golden Visa can also be obtained if investments of approximately EUR 500,000 are made in small and medium companies in the country.

 

Legal advice and assistance are recommended for Golden Visa applications in Portugal, so do not hesitate to get in touch with one of our local attorneys in Portugal.

 

 

Foreigners living in Portugal and wanting to buy a property in this country can apply for a credit loan which can cover approximately 75% from the sale price. On the other hand, there is also the possibility for fiscal residents to obtain a credit loan that can cover around 90% of the sale price of the property, but a complete financial review is mandatory before making any step in this sense. It is important to know that banks or lenders cannot accept debts that jump over 35% of the monthly salary of a resident in Portugal. An estimated mortgage rate per month can be solicited to banks or other types of creditors, and many of them have cost estimators which can be helpful if you need to know how much money you can pay for buying a property in Portugal with the help of bank credit. In addition, you can also request the legal advice of our lawyers in Portugal and find out more about the conditions for obtaining a mortgage in Portugal as a foreign citizen. For instance, you can solicit support for drafting the needed documents, among which, the proof of incomes in Portugal, documents attesting the existing domicile, the pre-contract of the property you want to purchase, bank statements showing if there are any debts or mortgages involved.

 

Types of properties in Portugal

1. Residential properties – villas, apartments, condominiums, resort properties, and townhouses can be found in Portugal. In most cases, foreigners choose villas or apartments found in residential areas, with gardens and pools, but not limited to these facilities. Buying a property in Lisbon is quite simple.
2. Commercial properties refer to offices, hotels, shopping centers, and malls, to give some examples. The prices depend on the size, zones and facilities offered. You can talk to our agents if you are interested in Portugal property investment.
3. Industrial properties include warehouses, manufacturing buildings, storage, and more. The classification of industrial properties is made based on facilities and zoning, and the prices are in accordance.
4. Lands in Portugal might also be in the attention of foreign entrepreneurs. If they aren’t state-owned, lands in Portugal can be purchased by anyone. Developed or undeveloped lands can be purchased by investors in Portugal.

Opening a real estate company in Portugal

Buying property in Portugal as a foreigner

Is buying a property in Portugal a great investment?

 

 

The most common question among Portuguese citizens or foreigners living in this country refers to whether to buy or rent a property in this country, considering the ups and downs of the real estate market in the past decade. Fortunately, the things have changed in a large percentage, and both locals and foreigners can purchase properties in Portugal at attractive prices and low-interest rates if these are acquired with the help of a mortgage loan. In many cases, buying a house in Portugal instead of renting one might be quite appealing and that because the monthly rates can be lower than the rental price. Also, foreigners can decide on buying lands and build houses in Portugal, or residential homes, if the business is involved. In any case, one should weigh both possibilities and choose in accordance with their needs or affairs in Portugal. You might also find interesting information about the real estate sector in Portugal:

 

 

 

 

The real estate market in Portugal is quite appealing to both local and foreign investors. From beautiful apartments to luxurious villas, foreigners can choose just the type of property they are interested in. There are several online platforms registered in the real estate sector from which you can choose if interested in purchasing a property in Lisbon. Also, a real estate agent can be an optimal solution if you are interested in buying a property in Portugal and need someone you can trust. Such specialists are registered with the Associacao de Mediadores Imobiliarios in Portugal. The same goes for our Portuguese lawyers who can be your partners at the time you decide on buying a property. Instead of dealing with the requirements for purchasing a house in Portugal, it would be best to receive the support of a specialized team of lawyers in Portugal who have experience in this field and who know the applicable legislation. This way, you can be protected against pitfalls and scams that might arise in the real estate sector.

 

 

Besides the general rules mentioned in this article, it is important to note that the notary plays a major role in the acquisition of a property in Portugal. The verification with the Land Registry and the Inland Revenue is made at the point the property is about to be sold. This kind of verification is also made with real estate due diligence in order to see if the property can be legally sold and if there aren’t any legal problems.

 

Also, the sale and purchase contract enters the attention of the notary who will be a witness at the time both parties sign the agreement. One of our property lawyers in Portugal will oversee the entire procedure, so all the aspects related to the purchase of property respect the legislation. You can discuss all the terms for buying a property in Lisbon with one of our specialists who can give you legal advice.

 

Legal services for real estate transactions

• Real estate due diligence - Checks every deed of the property to be purchased. At this stage, the seller must provide the entire history of the house or home, and then the lawyer will analyze in detail and report if there are hidden disputes.
• Title and deed - Check the title and deed. Only after the lawyer agrees with him can the sale-purchase transaction take place.
• Area analysis - It is recommended that a zonal analysis be done before purchasing a property. Here comes into discussion the average prices for properties in the area, crime rates, school rankings, property taxes, insurance.
• General building inspection - Checking the structure, drainage, foundation, roof, flood zone verification, water, and septic inspection, among others.

Specialists recommend financial due diligence

• It is checked if the property taxes to be bought have been paid on time or if there are delays and penalties.
• Invoices and/or other documents will be required for recent home renovations.
• Check for ongoing litigation or unregistered warranties of the workers of the property.
• Information on existing service contracts is required, such as the layout of the building space and the management of the property.

Preparation of notary documents

 

 

Our attorneys are well informed regarding the Portuguese legal system and can put their knowledge at your disposal, offering tips and advice at every step. Thus, our specialists will guide you regarding the applicable property taxes in Portugal. Whether you are looking for Portuguese properties through online services or relying on a real estate agent, acquiring property in Portugal is a rather straightforward process. Nevertheless, we recommend using the services of our lawyers in order to skip the worries about the language barrier or costs misunderstandings; moreover, our attorneys in Portugal can be helpful by ensuring that there are no hidden problems with the property, such as making certain there are no outstanding debts on the property.

 

What you need to consider when buying a property in the Azores

Who can buy property in the Azores?

 

FAQ about property purchase in Portugal

 

We cordially invite you to contact our law firm in Portugal to assist you in the process of buying or selling properties in Portugal.