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Step by step guide to buying property in Portugal

14 de March, 2019

Step by step guide to buying property in Portugal

Reading: 6 min

The dream of buying a property in Portugal involves relevant values and should be approached with great care. Buying abroad is always different, because it requires adaptation to local uses and customs and imposes time and travel restrictions that we usually do not face. While a resident may visit real estate in a disorderly manner in a long space of time, a foreign buyer usually needs to make an extra effort to prepare for a few days’ prospecting. To help you, we have created this Guide step by step to buy property in Portugal, follow below.

Step-by-step guide to buying a property in Portugal

Step 1. Develop your strategy

There are marked differences in price levels between the various options for buying real estate.

In our step-by-step guide to buying property in Portugal you will find that with the same money you can buy a huge house or a tiny apartment, depending on the location. A warm house or a real refrigerator. Under construction, clicking again or depreciated.

It’s easy to get in the way, opening up too much (or too little) of the search focus.

The solution is to separate the essential and non-negotiable points for you from those that are eventually dispensable.

  • The suggestion is to include an assessment of the following points:
  • Footage, housing capacity and bathrooms;
  • Balconies, terraces and gardens;
  • Access to transport and access routes;
  • Schools, hospitals and commerce;
  • Leisure and sports;
  • New, recent, old or old;
  • Ready or ready to retire;
  • Sun exposure and noise sources;
  • Finish;
  • Modern or ancient architecture;
  • Views and landscapes: countryside, river, sea or city;
  • Vertical position: high, medium or low;
  • Maintenance cost;
  • Privacy, control and security;
  • Energy efficiency;
  • Minimum machinery and equipment.

A good reflection on these points is halfway to invest in real estate in Portugal.

Attention to priorities

The list requires us to think, discuss and come to conclusions about what we really can’t lack, what it would be legal to have but what we can do without, and what is irrelevant.

We avoid wasting time on visits with something that does not meet the minimum requirements and also from spending too much just to have something unimportant. A major mistake in any purchase decision is to exaggerate or underestimate needs.

Anyone who buys a seven-seater car to transport their nephews once a year to the beach is spending money for nothing. Might as well rent a car especially for this event.

The step-by-step guide to buying a property in Portugal alerts you: first of all it is necessary to define your priorities and preferences.

Buying a house in Portugal: see prices and how to do the financing.

Step 2: Find a consultant

Like all foreign markets, the Portuguese market has peculiarities in construction, finishing, equipment, architecture and location and position preferences.

The Brazilian who will buy property in Portugal, for example, is impressed by the below average finishes. It does not evaluate essential issues of thermal and sound comfort and equipment efficiency.

That’s why our step-by-step guide to buying property in Portugal gives importance to hiring a reliable consultant, who can clearly point out the differences and make the bridge between the two realities.

If you want to hire a consultant and have support in buying your property, click here.

Step 3: Find a lawyer

The formal acquisition process takes several weeks and is not free of legal risks, and it is advisable to hire an independent lawyer for legal analysis.

Good legal support includes assessing risks, requesting documents, making independent checks, advising on the adequacy of contracts and clauses, assessing the reputation of counterparties and determining the adequacy of disbursements.

The foreign buyer usually has the pressure to complete trades in the time allocated within a trip, which hurts at the trading desk. A hasty buyer runs the risk of paying more.

Representation through a lawyer not only allows you to negotiate peace of mind, but also avoids the frequent problem of additional travel for simple signatures by means of a proxy representation.

Understand how the tax burden works in Portugal.

Step 4: organize the visit

The visits to buy property in Portugal take at least one week.

Our step-by-step guide to buying property in Portugal warns: organize in advance so as not to have any scheduling conflicts with owners and consultants.

  • Three weeks before the trip, it is the best time to ask the consultant(s) to submit suggestions for real estate that are within the outlined strategy;
  • One or two weeks in advance, send a list of selected properties, in order of preference, so that the consultant can prioritize the visits;
  • Ask the consultant to schedule a visit to the selected properties one or two weeks in advance.

Step 5: NIF, transfer of resources and funding

If you do not already have one, take advantage of the visit to provide a tax identification number (TIN), current account and financing proposals.

Portuguese banks are familiar with foreigners. Opening a bank account is simple and funding for non-residents is very common. The competition is great, so find out who is offering the best conditions for the particular case.

Find out which are the banks with no fees in Portugal and find out which one is more advantageous.

Step 6: booking

At the end of the negotiation, some sellers ask to subscribe to a reservation with the basic transaction data. They may require a symbolic sign or deposit check.

Step 7: checks and documentation

If you want to buy a property in Portugal, you should check, with the help of a lawyer, the regularity of the property in relation to the physical space, the veracity of the seller’s declarations, certificates and other documents, ensuring that:

  • The seller is the rightful owner;
  • The property is free of people and things;
  • There is no right of preference;
  • Outstanding debts have been resolved;
  • The licenses and certificates are up to date.

The list of items changes according to the particular case, so it is important to hire a consultant and ask a lawyer for help.

Is it worth taking out separate insurance?

The contracting of life insurance and real estate is mandatory for all property financing in Portugal, however what few know is that the choice of insurer suggested by the bank is optional.

If a bank offers the best spread conditions, but is the most expensive in life and property insurance, you can take out insurance from an independent financial institution.

Always ask the bank what the rate would be if you took out the separate insurance and see what the combination of spreads and insurance is that results in the lowest costs.

Properties in Portugal: where to find and what are the requirements to rent and buy.

Step 8: Sales contract

The next step is the signing of the contract of promise of purchase and sale (CPCV), which describes the property, equipment, suspension and termination clauses, deadlines for delivery of documents and completion of the deed.

It is expected the payment of a down payment, negotiated between the parties, which will be between a few thousand euros up to 20% or 30% of the acquisition value.

Be aware that, according to the law, there is no obligation to return the amounts in case of withdrawal, except for conditions provided for in the contract.

Step 9: Writing and registration

The deed transforms the purchase of property in Portugal into a fait accompli. It will be signed in the presence of a solicitor appointed by the banks, when financed, or by the parties, when not financed.

Prior to signing, the solicitor will require a series of documents to process the transaction.

On the same day, any remaining amount is paid by cashier’s check, in addition to Municipal Transfer Tax (IMT), Stamp Duty, registration fees and solicitor’s fees.

Understand how property taxes and duties work in Portugal.

It is usually when you receive the key and possession of the property.

The solicitor will then arrange for the registration at the registry office (notary’s office) and at the Finance Department, which can be followed up on the Internet.

Enjoy your property

Congratulations! After following all our step by step guide to buying a property in Portugal is the time to enjoy the excellent quality of life that the purchase of a property in the country provides.

Article published on the Euro Tips website: https://www.eurodicas.com.br/guia-passo-a-passo-para-comprar-imovel-em-portugal/

Author: Marcio Fenelon
Real Estate Investment

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