Because we want to provide a service of excellence, this section was designed to provide all the information about the "modus operandi" of the process of buying and selling in Portugal, namely associated costs and the necessary documents for this purpose.
Never dispense with the consultation of the Barra Prime executive team, we advise you to follow up with a good lawyer, experienced in the field, to check all the legal elements of a property before the purchase. Your lawyer will consult all relevant information in the various competent organisms, such as the Land Registry Office, the Finance Department and the City Council.
For owner registration, you need to check the log files as well as the tax files. We also suggest consulting an independent expert to ascertain the condition of the building structure.
Stages of the Purchase Process
1st Letter of Intent and Appointment of a Lawyer
Once you have found the property that you want to buy, the commercial consultant who negotiated the agreement on your behalf will write a "Letter of Intent to Purchase." This document will include the agreed dates, as well as values and what should be included in the business. On the other hand, the lawyer will send this document as a reference to the agreed terms.
2nd Contract Celebration
Once your lawyer assures you that the seller does not have any outstanding charges on the property, the lawyer will proceed to the preparation of the Promissory Contract of Purchase and Sale. This is a legal contract between the buyer and the seller, both of which sign in the presence of a notary / lawyer. This document will include all the identification details of the seller and buyer, as well as those of the property, the planning of the payments and dates, as well as the explicit indication that the property will be sold free of burdens and charges.
The signature of the contract by both parties requires the payment of the signal of 10% of the total value of the purchase by the buyer to the seller. It should be noted that under Portuguese law, if the seller does not comply with the contractual obligations, he is obliged to reimburse the double sign value to the buyer. On the other hand, if the buyer does not comply with the law, the deposit is non-refundable.
3rd Public Deed
The process is concluded by both parties when the remaining value of the purchase is transferred to the seller, and it is a common procedure for the transfer of these amounts to be made through the clients account of the lawyers.
To understand the associated costs it is necessary to take into account two types of payments:
1. Provision of Professional Services
These services usually correspond to the hiring of a lawyer, an appraiser and sometimes a specialist consultant in the tax area or an asset management consultant. In most cases lawyers charge about 1% of the agreed purchase price on the property. Regarding the appraiser's fee, this will depend on the size and type of property to evaluate, however a normal valuation will cost between € 400 and € 700. Lastly, the cost of an asset management consultant will depend on the very amount of assets to manage.
It is a tax that is levied on the tax value of rural and urban properties located in Portugal. To the tax value of national real estate the following rates are applicable:
- Rustic Properties - 0.8%
- Urban Properties - between 0.3% and 0.5% (all anis is defined by each municipality)
- Offshore properties - 7.5% (regardless of type of property)
This tax is levied on acts and contracts and must be paid by the buyer before the deed of purchase and sale, and in the case of contracting mortgage loans. The tax has an impact on the value of the transaction of the property or on the tax net worth. The higher of these two amounts are applicable rates up to 0.8% - Deed of Purchase and Sale.
The IMT is a municipal tax levied on onerous transmissions of real estate located in Portuguese territory. This is levied on the Tax Patrimonial Value or on the value declared in the deed of the property, being chosen the larger of these two. In addition, a portion corresponding to the rate to be applied shall also be subtracted.
In the Finance Portal it is possible to find the IMT table with this information, and the rate to apply can be up to 8%.
For the calculation of this tax are considered three characteristics of housing: the type - whether it is urban or rustic; the location - whether it is in the Mainland or in the Autonomous Regions; and the purpose - whether it is a Permanent or Secondary Home.
In the case of you are property owner in Portugal and considering selling it, due to the quantity of the existing supply, the entire bureaucracy involved and the management of personal expectations itself, this becomes an exhausting process that often requires the help of real estate brokerage firms.
In this sense the department of our company will guarantee you all the information necessary for the process, as well as the description and confidentiality required by you. At the same time, our business consultants, who explore the terrain on a daily basis, have a network of potential buyers and investors, which can materialize in the solution for your business.
It should also be noted that our company has marketing professionals with skills in image design, strategic communication and photography, which can make your property even more attractive to potential buyers.
Documents required for sale
- Copy of the Identification Document;
- Copy of the Tax Identification Number (NIF) of all owners and their spouses.
- Copy of the Commercial Certificate (valid for less than 6 months or the code of the Permanent Certificate);
- Identification of the person (s) who have the power to sign.
- Land Register issued by the finance department where the property is registered (less than 1 year);
- License of Use of the property issued by the City Hall (in case the building is prior to 1951 this license is waived, however a certificate from the City Hall proving the building's antiquity);
- Plants of the property;
- Copy of the Registry of the Land Register (less than 1 year);
- Energetic certificate;
- Technical sheet (only for properties after 2004).