Buying a property in Portugal

Silver Holidays can help you find the ideal property and also help and guide you through the buying process.

When you start looking and making the initial contact be upfront and give as much information as possible on the type of property you’re looking for. The more information we have, the better chance we have of finding you a good match. 

 

Mortgages

When requiring a mortgage to help support your property purchase, we can also help if required and we have developed good working relations with banks that can lend to non-residents. Most Portuguese banks offer loans of up to 70–80% of the value of the property or its sale price (whichever is lower) to non-residents. Fiscal residents in Portugal can borrow up to 85–90% of the sale price in some cases.

If you would like to receive more information on mortgages or have any questions on this please contact us at 

info@silverholidays.com

 

Lawyers

We strongly recommend using a local lawyer when buying your property who will check all the relevant paperwork of the property and make the actual buying contracts and guide you through the buying process. We can recommend various lawyers that we have worked with over the past years.

 

Portuguese Fiscal number:

The first thing that you need to do is obtain a Portuguese Fiscal number, given by the finance department of Portugal and a Portuguese bank account. This gives you an identity in the country and Silver Holidays can obtain this for you or we can recommend if required a lawyer to take care of these procedures.

To obtain a Portuguese fiscal number is quite easy and when the paperwork is in order (residency/ID card or passport) this normally can be done within 48 hours after the application.

 

Promissory Contract:

Now it starts to get serious.

The promissory contract is a binding first contract between buyer and seller (prepared by the lawyer according to Portuguese law) explaining the full purchase details such as the price, agreed completion dates, inventories and any other items that have been agreed between the 2 parties. If the buyer backs out of the transaction, after he enters into the contract he will lose his deposit, whereas if the seller has a change of heart, he must return double the deposit amount to the buyer. If he refuses, the seller can be forced legally to complete the sale.

When signing this contract the buyer will need to pay a deposit of normally 10% of the total agreed purchase price and a date will be set for the deal to close and the purchase to be completed.

 

The Final Deed

Almost time to celebrate.

The final deed will always be signed in front of a Notary and prepared by both lawyers, and where you will pay the final balance of the purchase, after which the property will be considered sold.  Your lawyer will do the registration of the property in the Finance and Land registry and pay on your behalf the Transmission Land Tax and the Stamp Duty.

 

Calculations of Stamp Duty

 

Please see below the calculations for Stamp Duty,

If is for main residence:

Taxable Income	Tax	Deducted portion
Until 92.407,00 €	0%	0,00 €
More then 92.407,00 € to 126.403,00 €	2%	1.848,14 €
More then 126.403,00 € to 172.348,00 €	5%	5.640,23 €
More then 172.348,00 € to 287.213,00 €	7%	9.087,19 €
More then 287.213,00 € to 574.323,00 €	8%	11.959,32 €
More then 574.323,00 € to 1mill €	6%	0,00 €
More than 1mill €	7.5%	0,00 €

If is for secondary residence:

Taxable Income	Tax	Deducted portion
Until 92.407,00 €	1%	0,00 €
More then 92.407,00 € to 126.403,00 €	2%	924,07 €
More then 126.403,00 € to 172.348,00 €	5%	4.716,16 €
More then 172.348,00 € to 287.213,00 €	7%	8.163,12 €
More then 287.213,00 € to 550.836,00 €	8%	11.035,25 €
More then 550.836,00 € to €1mill	6%	0,00 €
More than €1mill	7.5%	0.00 €