Guide to Buying in Portugal

Buying Property in Portugal with Alva Property

Buying property in Portugal is one of the safest methods in Europe. The signing of the deeds (Escritura) takes place in a government office in front of a government official (the Notary) and is then registered in your name and held in the Registry Office.

If you find a property that you wish to buy we can put you in contact with one of the local, English speaking lawyers who will help guide you through the whole buying process. Fees for this are typically approx. €1,750 and covers the work that is involved in buying a property.

You will need a Fiscal Number from the Finance Office before you can buy any property in Portugal. This number puts you onto the national computer and can be arranged by your lawyer; it normally costs in the region of €15.

Buying Property in Portugal with Alva Property

A Power of Attorney can be given to your lawyer to enable him to sign any legal documents on your behalf and also deal with any paperwork to do with the council. This is not necessary but does mean that you do not have to keep coming backwards and forwards and is not an expensive procedure, usually costing less than €50.

It is usual to put down a minimum 10% deposit on a property and at this stage the Deposit Contract (Compra e Venda) becomes a legal commitment by both the buyer and the seller. This means that should you then decide to pull out of the deal you will lose your deposit and should the seller pull out he pays you twice the sum of the deposit ensuring that the whole process will go forward to completion.

There is a Property Transfer Tax (IMT) on both land and houses. The tax for land is 5% and is for the total price of the land. The tax for a house is nothing up to €85,500 and is banded from 2-8% thereafter, depending on the value of your home whether the property you are purchasing is your primary home and/or you are a resident.

Guide to Buying Property in Portugal with Alva Property

Guide to Buying Property in Portugal with Alva Property

Once all of the documents required have been gathered and checked by the lawyer and any taxes have been paid the Escritura takes place this will cost you anything from €100 to over €1,000 depending on the price of the house and once signed the property becomes yours.

After the Escritura the property needs to be registered in your name, this is something that your lawyer should do, and will cost you typically between €200 and €500.

We can also put you in touch with various architects and trustworthy builders in the area. We also provide a service that will oversee any works that you require and help you see through the completion of any projects.

Central Portugal is an ideal place to spend a holiday. A number of buyers are realising this and are investing in overseas properties to let. We can help owners rent out their properties for holidays and to provide income for their upkeep. Please see our site at Alva Property Rentals.