Buying

Your search for your home

Often the search for a property starts on websites. But of course, you can also give us a call so that we can schedule a meeting, personally or through Whatsapp. Based on your criteria we will come up with proposals that, in consultation with you, will lead to a shortlist of interesting properties that we will then visit.

Making an offer

When you have found your dream house, you can make an offer. An offer consists of the price for the property and eventually the price for the movable goods, the conditions and the desired delivery period. One of the conditions can be that a technical survey will be carried out for you.
It is our challenge to bring you and the seller together and to align mutual interests. If this is successful, we have reached a moral agreement, but not yet a legally valid one. This is only the case when both parties have signed the promissory contract of purchase and sale (contrato de promessa de compra e venda – in short CPCV) and when the deposit has also been paid.

Use of a lawyer

We always advise buyers to engage their own lawyer. Preferably a lawyer who is familiar with the area where you want to live, who can communicate well with you both verbally and in writing and who has time for you. Although we already screen the property documents, one of the lawyer’s tasks is to analyse these documents and investigate possible complexities. This includes investigating possible encumbrances, obligations and taxes on the property, and any other issues that may be of influence on your purchase.
Usually, your lawyer will draw up the promissory contract of purchase and sale and coordinate the timely payments related to the purchase. If you cannot be present at the signing of the promissory contract of purchase and sale and/or the conveyance deed, you can give your lawyer power of attorney to act on your behalf. Your lawyer will guide you through the entire legal purchase process and ensure that your new property is registered with the various authorities involved. Most lawyers will also apply for a Portuguese tax number and arrange for utilities such as electricity and water to be transferred to your name after the conveyance.

The promissory purchase and sales contract (CPCV)

With the signing of the CPCV by both the buyer and the seller and the payment of the deposit, the purchase is binding for both parties. In the CPCV, which is usually drawn up by the purchaser’s lawyer, the agreed price, the date of the final handover and the conditions that must be met during the process are described, among other things. If furniture is also taken over, an inventory list will be attached.
The down payment is generally 10% of the agreed price. If after the signing of the CPCV the selling party does not deliver the property, the seller is usually obliged to pay twice the deposit to the buyer. If the buyer does not want to or is unable to purchase the property after signing the CPCV, the buyer loses the deposit.
The remaining 90% must be paid at the time of conveyance. If you are buying a new property that is still under construction, generally a different payment schedule will be applicable.

The public deeds

The conveyance takes place officially at a notary´s office, or an office to which the notary function has been granted. Unlike in many other countries, the notary in Portugal only has a checking role whether the legal requirements have been met. Prior to the conveyance deeds, we inspect the property, preferably together with you, whether the house is delivered as agreed in the CPCV. We will also record the meter readings for water, electricity and eventually gas.
The remainder of the purchase price is usually paid into the clients’ account of the buyer´s lawyer, who will ensure that a guaranteed bank cheque is presented to the seller at the time of transfer. The transfer tax (IMT) and stamp duty (IS) must also be paid by the buyer before the deeds are signed. The document is read out loud and if necessary, translated for you by a translator, after which the seller, the buyer and the notary sign. The keys are handed over. You are now officially the owner of your new home.
The costs for the notary and the registration in your name in the land registry are not fixed and vary from office to office, whereby a mortgage is also a factor increasing costs.

Purchase costs

The purchase costs consist of the transfer tax (IMT), stamp duty (IS) of 0.8% for the government, costs for the notary and registration in the land registry.
The transfer tax and stamp duty are charged on the purchase price of the property (excluding any movable goods) as stated in the deeds. However, in the rare situation that the currently registered fiscal value (Valor Patrimonial) is higher than the purchase price, then the IMT is calculated over the fiscal value.
Tables are established annually for the IMT taxation. There are small differences between the taxation of a property purchased as a main residence and a second residence. Because in most cases the buyer still has another property and usually makes the choice of which will be the main residence only later, we present below the table for the purchase of a second home.

Table IMT for real estate as second home

Example calculation:
As shown in the table, a house with a purchase price of € 500.000 is taxed at 8%, which amounts to € 40.000. From this, € 12.170,97 is deducted. The IMT charge thus amounts to € 27.829,03 (€ 40.000 – € 12.170,97).