PURCHASE AND SALE OF REAL ESTATE IN PORTUGAL
Foreign citizens, regardless of their nationality, can acquire properties in Portugal. For this acquisition to be carried out, there are a few steps that must be observed before and during the process of purchasing and selling real estate.
Relevant information of the purchaser
- Marital status
- Matrimonial property system
The purchaser must hold a valid passport and Portuguese fiscal number (NIF).
If married, though in the regime of separation of property, the spouse of the purchaser will also have to obtain a Portuguese fiscal number (NIF).
To obtain the Portuguese NIF the applicant shall appoint and introduce a tax representative that, in this case, can be provided by the firm.
After the agreed price for the purchase of the property
The seller/property owner must provide the following documents:
– valid permanent certificate to be issued by the Land Registry Office;
– property tax document;
– user license;
– energy certificate;
– technical file (when applicable).
PROMISSORY AGREEMENT OF PURCHASE AND SALE
It is usual to sign a promissory agreement before the final deed.
This agreement is a commitment of sale and purchase between the CONTRACTING PARTIES that in a defined future, will be awarded the respective deed of sale and purchase in a notary.
The agreement must be signed by the purchaser or by his/her’s legal representative by means of a Power-of-attorney.
With the signing of the promissory agreement there must be paid an amount on account of the agreed price, which usually amounts to 10% (ten percent), but that is freely negotiated between the parties.
This value, named down payment or deposit, is then discounted in the final price at the time of signature of the final deed of sale.
DEED OF SALE
Before the signing of the final deed of sale, the buyer shall be liable to payment of the following costs:
– Tax on onerous transfers of real estate (IMT) whose amounts differ depending on the price and the fate of the property (personal and permanent residence or secondary housing);
– Stamp duty always equivalent to 0.8% of the price.
At the time of the deed, the fees of the notary must be paid, having into consideration that they depend on the price and the table of each notary, as well as the value of €225 for the registration of the property.
After the signing of the deed, purchase records are made in favour of the new owners, either at the tax office, or in the Land Registry Office.
The homeowners are subject to the annual payment of Property Tax, whose rates depend on each municipality, ranging from 0.30% to 0.45% of the equity value of each property.