Procedures for a real estate purchase in Portugal

Procedures for a real estate purchase in Portugal

Procedures for a real estate purchase in Portugal

What are the procedures for a real estate purchase in Portugal ?

What are the procedures for a real estate purchase in Portugal ?

What are the procedures for a real estate purchase in Portugal ?

Procedures for the purchase of real estate in Portugal

Tax registration and bank account in Portugal

Before starting any project to buy in Portugal, you must have a tax identification number (taxpayer - NIF number), which will be essential for the purchase of properties, for opening a bank account or for placing water, electricity, gas meter , in its name.

You should go to a finance office to do your tax information number (NIF). If you prefer we can handle this for you.

You should also consider opening a bank account in Portugal. This is a relatively simple process and we can start it before your arrival; Documents related to your account, including your credit card, will be provided to you directly when you sign your account open. For this procedure, we also have the possibility to provide the details of a bank branch, where it will be received by a bilingual account manager.

Like this,

The procedure for buying a property in Portugal usually occurs in three stages, as in France: the reservation, the preliminary agreement or commitment to buy and sell and the definitive deed of sale.

Reservation

Found the property that was looking for, have to make an offer to buy. In return, the seller can make a counter-proposal by starting the negotiation process that will end with an agreement on the purchase price.

If the agreement is reached, it will validate your decision in the form of a reservation, ie the signing of a promise to buy and sell.

The promise to buy - sell

As in France, a promise of buying and selling will have to be worked out before a sale is made to a notary.

The promise of buying and selling recalls the rights and obligations of both parties, the terms of the agreement during the transitional period (before final signature) and provides for payment of part of the amount (often set at 10% of the minimum purchase price ). In order for the contract to be enforceable, it is necessary to go to the "Property Registry Office" (costs about 260 euros).

A second additional deposit must be paid to the seller in order to reach approximately 15-20% of the total purchase price, which will therefore correspond to the minimum contribution required (see conditions for obtaining credit).

 

A second additional deposit must be paid to the seller in order to reach approximately 15-20% of the total purchase price, which will therefore correspond to the minimum contribution required (see conditions for obtaining credit).

For signing the deed of sale the following legal documents are required:

The certificate of property registration (access code to the land registry certificate)

The certified property registration in Portugal is computerized, and is accessed online through the access code to verify if the seller is the legitimate owner of the property, if no one else has these rights and if the property is free of charges and mortgages . The registration certificate describes the history and proof of legal ownership of the property. It is necessary for the deed

The property tax identification document (building permit)

The property register is obtained from the distribution of finances. Certifies property registration for tax purposes, describes property and provides property tax number. The official tax document indicates the value of the reference tax on which the property tax will be calculated. If the property is new, a temporary certificate will be issued.

The housing permit

For residential real estate, you will need a housing permit, which confirms that the city council has inspected the property and that the planning and regulation of the building are in compliance. Non-residential licenses must provide appropriate commercial or industrial use.

Attention!

In Portugal, the suspensive clause on obtaining credit does not exist. In the case of financing through a bank, we advise you to agree on a minimum term for signing the deed by signing the promise of a purchase agreement.

The signature of the deed

The property is transferred only with the signature of the deed, which can be completed at the Notary (public or private notary) or through a lawyer (certified private document). All court documents are verified by the notary before the final contract is signed and read aloud, and finally signed by both parties. The contract must be read and translated into French or English.

Before the final signature in front of the notary and according to the choice of the lending institution, you must open an account at your bank directly in Portugal, in an agency of the same network, the choice of geographical location is at your discretion. The funds will be transferred a few days before the sale.

Administrative record and taxation

After the execution of the act, the property must be registered by the notary, on behalf of the new owner, in the land register of the property area.

Finally, it is up to the buyer to pay the tax on real estate transmissions called IMT (Tax on Real Estate Transmission). This tax is a percentage based on the highest value between the sale price or the equity value of the property assessed by the tax authorities. After calculating the corresponding percentage, the Portuguese State applies a deduction. This tax depends on the location and end use of the property (primary or secondary residence).

A- Tax stamp of 0.8% on the price of the property.

B- IMT (Real Estate Tax)

Main residence

Amount below € 92,407 1% without lump sum deduction

Amount between € 92,407 and € 126,403 fixed deduction of 2% of € 1,848

Amount between € 126,403 and € 172,348 fixed deduction of 5% of € 5,640

Amount between € 172,348 and € 287,213 total deduction of 7% of € 9,087

Amount between € 287,213 and € 550,836 8% fixed deduction of € 11,959

More than € 550,836 6% No deduction

Example

Main residence sold € 200,000: € 200,000 x 7% - € 9,087 = € 4,913 payable (IMT)

Second home

Amount less than € 92,407 1%

Amount between € 92,407 and € 126,403 fixed deduction of 2% € 924

Amount between € 126,403 and € 172,348 fixed deduction of 5% of € 4,716

Amount between € 172,348 and € 287,213 7% fixed deduction of € 8,163

Amount between € 287,213 and € 550,836 8% fixed deduction of € 11,035

More than € 550,836 6% No deduction

Example

Second home sold 200 000 €: 200,000 € X 7% - 8,163 € = 5,837 € tax payable (IMT)

C -Notary

About 1000 €

It is possible for a buyer to waive the signature of a purchase promise and immediately sign a sales contract.

- In this case, the authentic act (deed) will be done before the Notary Public (Notarial Office).

In Portugal this profession is strictly supervised (see the website of the Order of Notaries: www.notarios.pt).

- If you ask for an embezzlement, the notary will have to write a mortgage on behalf of the Bank. This act costs € 142. On the other hand, the cost of a deed of sale will be 175 €

Request for exemption from payment of the IMI tax: the new owner has a period of 60 days to request an exemption from the payment of the tax in his distribution of Finances. You will be exempt from paying taxes for X years, depending on the equity value of the property.

- Value of the tax assets ......... Period of exemption

- Up to 150,000 euros ................................... 6 years

- Up to 225,000 euros ................................... 3 years

* Do not forget to raise the mortgages that fall on your property as you pay off your home loans. Your bank will issue a document called "distracted from the mortgage" in which it declares that its debt will be extinguished and that it must be delivered to the "Land Registry".

Taxes, insurance and signatures after purchase:

It will also be responsible for the IMI (municipal property tax): the property tax payable once a year and whose tax rate varies between 0,3% and 0,8% of the value of the property tax, in accordance with the counties.

Obviously, you will have to guarantee your new acquisition of real estate and hire different services (water, electricity, gas ...). Steps we can take for you.

NB: All steps, procedures and values ​​indicated are only informative and will have to be checked during the purchase process.

Procedures for the purchase of real estate in Portugal

Tax registration and bank account in Portugal

Before starting any project to buy in Portugal, you must have a tax identification number (taxpayer - NIF number), which will be essential for the purchase of properties, for opening a bank account or for placing water, electricity, gas meter , in its name.

You should go to a finance office to do your tax information number (NIF). If you prefer we can handle this for you.

You should also consider opening a bank account in Portugal. This is a relatively simple process and we can start it before your arrival; Documents related to your account, including your credit card, will be provided to you directly when you sign your account open. For this procedure, we also have the possibility to provide the details of a bank branch, where it will be received by a bilingual account manager.

Like this,

The procedure for buying a property in Portugal usually occurs in three stages, as in France: the reservation, the preliminary agreement or commitment to buy and sell and the definitive deed of sale.

Reservation

Found the property that was looking for, have to make an offer to buy. In return, the seller can make a counter-proposal by starting the negotiation process that will end with an agreement on the purchase price.

If the agreement is reached, it will validate your decision in the form of a reservation, ie the signing of a promise to buy and sell.

The promise to buy - sell

As in France, a promise of buying and selling will have to be worked out before a sale is made to a notary.

The promise of buying and selling recalls the rights and obligations of both parties, the terms of the agreement during the transitional period (before final signature) and provides for payment of part of the amount (often set at 10% of the minimum purchase price ). In order for the contract to be enforceable, it is necessary to go to the "Property Registry Office" (costs about 260 euros).

A second additional deposit must be paid to the seller in order to reach approximately 15-20% of the total purchase price, which will therefore correspond to the minimum contribution required (see conditions for obtaining credit).

 

A second additional deposit must be paid to the seller in order to reach approximately 15-20% of the total purchase price, which will therefore correspond to the minimum contribution required (see conditions for obtaining credit).

For signing the deed of sale the following legal documents are required:

The certificate of property registration (access code to the land registry certificate)

The certified property registration in Portugal is computerized, and is accessed online through the access code to verify if the seller is the legitimate owner of the property, if no one else has these rights and if the property is free of charges and mortgages . The registration certificate describes the history and proof of legal ownership of the property. It is necessary for the deed

The property tax identification document (building permit)

The property register is obtained from the distribution of finances. Certifies property registration for tax purposes, describes property and provides property tax number. The official tax document indicates the value of the reference tax on which the property tax will be calculated. If the property is new, a temporary certificate will be issued.

The housing permit

For residential real estate, you will need a housing permit, which confirms that the city council has inspected the property and that the planning and regulation of the building are in compliance. Non-residential licenses must provide appropriate commercial or industrial use.

Attention!

In Portugal, the suspensive clause on obtaining credit does not exist. In the case of financing through a bank, we advise you to agree on a minimum term for signing the deed by signing the promise of a purchase agreement.

The signature of the deed

The property is transferred only with the signature of the deed, which can be completed at the Notary (public or private notary) or through a lawyer (certified private document). All court documents are verified by the notary before the final contract is signed and read aloud, and finally signed by both parties. The contract must be read and translated into French or English.

Before the final signature in front of the notary and according to the choice of the lending institution, you must open an account at your bank directly in Portugal, in an agency of the same network, the choice of geographical location is at your discretion. The funds will be transferred a few days before the sale.

Administrative record and taxation

After the execution of the act, the property must be registered by the notary, on behalf of the new owner, in the land register of the property area.

Finally, it is up to the buyer to pay the tax on real estate transmissions called IMT (Tax on Real Estate Transmission). This tax is a percentage based on the highest value between the sale price or the equity value of the property assessed by the tax authorities. After calculating the corresponding percentage, the Portuguese State applies a deduction. This tax depends on the location and end use of the property (primary or secondary residence).

A- Tax stamp of 0.8% on the price of the property.

B- IMT (Real Estate Tax)

Main residence

Amount below € 92,407 1% without lump sum deduction

Amount between € 92,407 and € 126,403 fixed deduction of 2% of € 1,848

Amount between € 126,403 and € 172,348 fixed deduction of 5% of € 5,640

Amount between € 172,348 and € 287,213 total deduction of 7% of € 9,087

Amount between € 287,213 and € 550,836 8% fixed deduction of € 11,959

More than € 550,836 6% No deduction

Example

Main residence sold € 200,000: € 200,000 x 7% - € 9,087 = € 4,913 payable (IMT)

Second home

Amount less than € 92,407 1%

Amount between € 92,407 and € 126,403 fixed deduction of 2% € 924

Amount between € 126,403 and € 172,348 fixed deduction of 5% of € 4,716

Amount between € 172,348 and € 287,213 7% fixed deduction of € 8,163

Amount between € 287,213 and € 550,836 8% fixed deduction of € 11,035

More than € 550,836 6% No deduction

Example

Second home sold 200 000 €: 200,000 € X 7% - 8,163 € = 5,837 € tax payable (IMT)

C -Notary

About 1000 €

It is possible for a buyer to waive the signature of a purchase promise and immediately sign a sales contract.

- In this case, the authentic act (deed) will be done before the Notary Public (Notarial Office).

In Portugal this profession is strictly supervised (see the website of the Order of Notaries: www.notarios.pt).

- If you ask for an embezzlement, the notary will have to write a mortgage on behalf of the Bank. This act costs € 142. On the other hand, the cost of a deed of sale will be 175 €

Request for exemption from payment of the IMI tax: the new owner has a period of 60 days to request an exemption from the payment of the tax in his distribution of Finances. You will be exempt from paying taxes for X years, depending on the equity value of the property.

- Value of the tax assets ......... Period of exemption

- Up to 150,000 euros ................................... 6 years

- Up to 225,000 euros ................................... 3 years

* Do not forget to raise the mortgages that fall on your property as you pay off your home loans. Your bank will issue a document called "distracted from the mortgage" in which it declares that its debt will be extinguished and that it must be delivered to the "Land Registry".

Taxes, insurance and signatures after purchase:

It will also be responsible for the IMI (municipal property tax): the property tax payable once a year and whose tax rate varies between 0,3% and 0,8% of the value of the property tax, in accordance with the counties.

Obviously, you will have to guarantee your new acquisition of real estate and hire different services (water, electricity, gas ...). Steps we can take for you.

NB: All steps, procedures and values ​​indicated are only informative and will have to be checked during the purchase process.

Procedures for the purchase of real estate in Portugal

Tax registration and bank account in Portugal

Before starting any project to buy in Portugal, you must have a tax identification number (taxpayer - NIF number), which will be essential for the purchase of properties, for opening a bank account or for placing water, electricity, gas meter , in its name.

You should go to a finance office to do your tax information number (NIF). If you prefer we can handle this for you.

You should also consider opening a bank account in Portugal. This is a relatively simple process and we can start it before your arrival; Documents related to your account, including your credit card, will be provided to you directly when you sign your account open. For this procedure, we also have the possibility to provide the details of a bank branch, where it will be received by a bilingual account manager.

Like this,

The procedure for buying a property in Portugal usually occurs in three stages, as in France: the reservation, the preliminary agreement or commitment to buy and sell and the definitive deed of sale.

Reservation

Found the property that was looking for, have to make an offer to buy. In return, the seller can make a counter-proposal by starting the negotiation process that will end with an agreement on the purchase price.

If the agreement is reached, it will validate your decision in the form of a reservation, ie the signing of a promise to buy and sell.

The promise to buy - sell

As in France, a promise of buying and selling will have to be worked out before a sale is made to a notary.

The promise of buying and selling recalls the rights and obligations of both parties, the terms of the agreement during the transitional period (before final signature) and provides for payment of part of the amount (often set at 10% of the minimum purchase price ). In order for the contract to be enforceable, it is necessary to go to the "Property Registry Office" (costs about 260 euros).

A second additional deposit must be paid to the seller in order to reach approximately 15-20% of the total purchase price, which will therefore correspond to the minimum contribution required (see conditions for obtaining credit).

 

A second additional deposit must be paid to the seller in order to reach approximately 15-20% of the total purchase price, which will therefore correspond to the minimum contribution required (see conditions for obtaining credit).

For signing the deed of sale the following legal documents are required:

The certificate of property registration (access code to the land registry certificate)

The certified property registration in Portugal is computerized, and is accessed online through the access code to verify if the seller is the legitimate owner of the property, if no one else has these rights and if the property is free of charges and mortgages . The registration certificate describes the history and proof of legal ownership of the property. It is necessary for the deed

The property tax identification document (building permit)

The property register is obtained from the distribution of finances. Certifies property registration for tax purposes, describes property and provides property tax number. The official tax document indicates the value of the reference tax on which the property tax will be calculated. If the property is new, a temporary certificate will be issued.

The housing permit

For residential real estate, you will need a housing permit, which confirms that the city council has inspected the property and that the planning and regulation of the building are in compliance. Non-residential licenses must provide appropriate commercial or industrial use.

Attention!

In Portugal, the suspensive clause on obtaining credit does not exist. In the case of financing through a bank, we advise you to agree on a minimum term for signing the deed by signing the promise of a purchase agreement.

The signature of the deed

The property is transferred only with the signature of the deed, which can be completed at the Notary (public or private notary) or through a lawyer (certified private document). All court documents are verified by the notary before the final contract is signed and read aloud, and finally signed by both parties. The contract must be read and translated into French or English.

Before the final signature in front of the notary and according to the choice of the lending institution, you must open an account at your bank directly in Portugal, in an agency of the same network, the choice of geographical location is at your discretion. The funds will be transferred a few days before the sale.

Administrative record and taxation

After the execution of the act, the property must be registered by the notary, on behalf of the new owner, in the land register of the property area.

Finally, it is up to the buyer to pay the tax on real estate transmissions called IMT (Tax on Real Estate Transmission). This tax is a percentage based on the highest value between the sale price or the equity value of the property assessed by the tax authorities. After calculating the corresponding percentage, the Portuguese State applies a deduction. This tax depends on the location and end use of the property (primary or secondary residence).

A- Tax stamp of 0.8% on the price of the property.

B- IMT (Real Estate Tax)

Main residence

Amount below € 92,407 1% without lump sum deduction

Amount between € 92,407 and € 126,403 fixed deduction of 2% of € 1,848

Amount between € 126,403 and € 172,348 fixed deduction of 5% of € 5,640

Amount between € 172,348 and € 287,213 total deduction of 7% of € 9,087

Amount between € 287,213 and € 550,836 8% fixed deduction of € 11,959

More than € 550,836 6% No deduction

Example

Main residence sold € 200,000: € 200,000 x 7% - € 9,087 = € 4,913 payable (IMT)

Second home

Amount less than € 92,407 1%

Amount between € 92,407 and € 126,403 fixed deduction of 2% € 924

Amount between € 126,403 and € 172,348 fixed deduction of 5% of € 4,716

Amount between € 172,348 and € 287,213 7% fixed deduction of € 8,163

Amount between € 287,213 and € 550,836 8% fixed deduction of € 11,035

More than € 550,836 6% No deduction

Example

Second home sold 200 000 €: 200,000 € X 7% - 8,163 € = 5,837 € tax payable (IMT)

C -Notary

About 1000 €

It is possible for a buyer to waive the signature of a purchase promise and immediately sign a sales contract.

- In this case, the authentic act (deed) will be done before the Notary Public (Notarial Office).

In Portugal this profession is strictly supervised (see the website of the Order of Notaries: www.notarios.pt).

- If you ask for an embezzlement, the notary will have to write a mortgage on behalf of the Bank. This act costs € 142. On the other hand, the cost of a deed of sale will be 175 €

Request for exemption from payment of the IMI tax: the new owner has a period of 60 days to request an exemption from the payment of the tax in his distribution of Finances. You will be exempt from paying taxes for X years, depending on the equity value of the property.

- Value of the tax assets ......... Period of exemption

- Up to 150,000 euros ................................... 6 years

- Up to 225,000 euros ................................... 3 years

* Do not forget to raise the mortgages that fall on your property as you pay off your home loans. Your bank will issue a document called "distracted from the mortgage" in which it declares that its debt will be extinguished and that it must be delivered to the "Land Registry".

Taxes, insurance and signatures after purchase:

It will also be responsible for the IMI (municipal property tax): the property tax payable once a year and whose tax rate varies between 0,3% and 0,8% of the value of the property tax, in accordance with the counties.

Obviously, you will have to guarantee your new acquisition of real estate and hire different services (water, electricity, gas ...). Steps we can take for you.

NB: All steps, procedures and values ​​indicated are only informative and will have to be checked during the purchase process.

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