Selling property in Portugal?

Selling your Property :

When selling a property in Portugal most of the work is done by the lawyers of the buyer, it’s not mandatory for you to have a lawyer when selling however it is advisable.

The first part is listing your property with a selling agent, you will need to make sure all your documents are up to date and that any alterations that have been made are registered with the municipality.

The documents Villasalbufeira.pt requires to list your property are as follows;

Certidao De Registo Predial (Land Registry Certificate)

Certidao Das Financas or Canderneta Predial (Tax Card/Certificate)

Licenca De Utilizacao or Declaration if prior to 1951 (Habitation Licence)

Certificado Energetico – Compulsory for all properties for sale since 2013 (Energy Certificate)

ID’s and Fiscal Numbers of Proprietors (passport or ID card and Portuguese Tax number)

Ficha Tecnica for all properties built after 2004

Along with these documents our agent will take pictures and write a description for your property and enter it on to our network of websites, then you can sit back, relax and leave the rest to us.

 

Taxes when buying property

Taxes

Here is our quick guide to taxes in Portugal when buying a property, for the full comprehensive list of all the taxes associated not only when buying but after purchase including rentals and income tax. For further information  please fill out our contact form, so we can contact you for more assistance.

IMT

The biggest tax here in Portugal when you buy a property is called IMT (Imposto Municipal Sobre Transamissoes) it is payable when you do the deeds and is calculated as a percentage of your purchase price, there is a variable discount against your percentage that is also dependent on your purchase price, don’t worry if it’s confusing we can explain it much clearer for you in person.

The range is from 2% up to 6% on residential purchases and is a flat rate of 6.5% on Commercial, Properties under 92,000 are exempt, This government fee is Payable at the Deeds

Stamp Duty

0.8% of the agreed Purchase Price Payable at the Deeds

Lawyers’ Fees

Usually paid either in advance or 50/50 dependent on the lawyer and the work involved at the beginning, Lawyers fees are broken it to lots of different sectors such as, Conveyancing, Fiscal Representation, Golden Visa Acquisition and Non- Habitual Residence Application.

Notary and Land Registry Fees

These are also payable at or just after the deeds and usually total around 1,000€

As your taxes payable will be dependent on your purchase price, it is difficult for us to put a number on it until you have chosen a property of interest so as a rule if you allow 8% above your purchase to cover everything you shouldn’t be far away.

If you would like a full breakdown of all your taxes when buying and renting in Portugal, for further information  please fill out our contact form, so we can contact you for more assistance.

Buying costs in Portugal

Buying costs in Portugal are moderate

 

How high are realtors’ and lawyers’ fees in Portugal? What about other property purchase costs?

Transaction Costs

Who Pays?
Real Estate Transfer Tax 10.00% buyer
Legal fees 1% – 2% buyer
Registration fees 0.20% – 1.20% buyer
Stamp Duty 0.80% buyer
Real estate agent´s fee 3% – 5% (+23% VAT) seller
Costs paid by buyer 2.00% – 14.00%
Costs paid by seller 3.69% – 6.15%
ROUNDTRIP TRANSACTION COSTS 5.69% – 20.15%
See Footnotes
Source: Global Property Guide

How difficult is the property purchase process in Portugal?

There are no restrictions on foreign property ownership.

The process of property purchase in Portugal is quite straightforward. Once a buyer has found a suitable property the next thing to do is to hire the services of a lawyer who will guide and assist the buyer through the process.

A lawyer’s task usually involve drawing up contracts and initiating the process of inspecting the property’s title insuring that no legal snarls will come up after the transfer. A search will be made to check the land registry (Conservatoria de Registo Predial) title at the local municipality and another search at the Inland Revenue (Repartição de Finanças) to ensure the tax registration on the property and that there are no unpaid charges. A fiscal number (Numero de Contribuinte) will be acquired for you through the local tax office as this will be necessary for most transactions in Portugal.

If the buyer is satisfied with the property and decides to buy a promissory contract (Contrato de Promessa de Compra e Venda), details of the conditions of sale and other agreements regarding the transfer will then be drawn. Once this has been signed and notarized, both parties become legally bound to see the transfer through. A deposit 10% to 30% of the purchase price is usually lodged at this stage and the parties will agree with the notary to record a date for the completion of the purchase. The buyer’s next task is to pay the municipal property tax or Imposto Municipal Sobre Transamissões-IMT.

The transaction ends with the execution of the Deed of Purchase and Sale (Escritura Publica de Compra e Venda) which is signed before a notary and officially recorded. At the same time the balance of the purchase price is paid according to the provisions of the Promissory Contract. The property will next be registered in the new owner’s name at the Conservatoria de Registo Predial. After which the transfer is complete.


Footnotes to Transaction Costs Table

The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.

Property Transfer Tax
Property transfer tax is levied at varying rates, depending on the property classification. The tax base is the selling price of the property or current market value of the property, whichever is higher.

Property transfer tax is levied at a flat rate of 6.5% for urban properties, and 5% for agricultural properties. The tax rate is from 0% to 6% if the property will be used as the buyer´s residence. However, if the property buyer resides in a low-tax jurisdiction place, then the applicable rate is 10%.

Registration Fee
Registration fees, including the notary fees, are around 0.20% to 1.20% of the property value.

Stamp Duty
Stamp duty is levied at a flat rate of 0.80%. The tax base is the selling price of the property or current market value of the property, whichever is higher.