First Steps to buying in Portugal
In order to make the process of buying your property as painless as possible, we have identified a number of professional service companies that in our opinion offer excellent levels of customer care. We are keen to ensure that you receive the best possible legal and financial advice as soon as you have found your new property and we hope that you will find the experience of dealing with our associate firms a pleasant one.
If buying new, having identified the development that fulfils your requirements, you will need to choose a plot or unit. If you are buying new, or a re-sale, each buyer will have different criteria for their own personal requirements; for example, if you have young children you will probably prefer a ground-floor plot with easy access to the pool. If your priority is to enjoy spectacular views, you will probably prefer a top floor apartment with a large sun terrace. For those seeking a villa, your choices are even more wide-ranging.
You should ensure that you have sufficient funds available for the full deposit and purchase fees that will be payable on signing of the Promissory Contract approximately four to six weeks after you have agreed to the purchase. If required you should contact your Independent Financial Adviser to make an application to your mortgage lender, if you are raising the deposit against a UK residence.
At this stage you will need to instruct a Portuguese Law Firm to act as your legal representative and conveyancer. A lawyer’s fees will typically be between 1.0% and 2% of the purchase price of the property. You can choose to appoint a firm of your own choice or alternatively we can suggest a number of English speaking lawyers who have acted for our clients previously. Since the relationships we have with our preferred lawyers are long-standing, they will often offer our clients discounted legal fees.
Under Portuguese law it is also obligatory for non-residents to appoint a Fiscal Representative when purchasing a property in Portugal. see Fiscal Representative and Fiscal number
You should obtain copies of your Passports and one other proof of address such as your Driving Licence or a utility bill that is less than 3 months old. These should be verified as true copies by a solicitor, bank or Independent Financial Adviser.
The four stages of your purchase.
(new, off-plan and re-sale)
Stage 1 - Is when you have identified the property that you wish to purchase and will be asked to sign a Reservation Agreement and at the same time pay a deposit of around €5000, which is usually refundable.
Stage 2 -Is when the property has been legally identified in the Land Registry, has no outstanding charges against it and a price has been agreed with the vendor. Both parties will then sign a Promissory Contract and a deposit of typically 10% to 30% of the purchase price will be paid. This deposit will be forfeited if the buyer does not proceed but if the vendor withdraws, the purchaser has the right to ask for twice the deposit back.
Stage 3 -Is when the building is completed, the property is ready for occupation and the habitational licence is granted. The balance of the purchase price and all fees will be then be paid to the Notary (a government appointed official who acts on behalf of both buyer and seller) and both parties will sign the Deed of Purchase, the definitive contract equivalent to the Deeds of the property.
Stage 4 -Is when the property is registered in your name, this can take up to 6 months to finalise.
If you do join us for an inspection visit, we are able to provide you with a written illustration of the purchase costs, for any property that you identify during your tour.
