Here is an outline guide to buying a property in Portugal. It is a very straightforward process providing you understand and follow the correct procedures.

You will need a good legal representative who speaks your language. We can recommend suitable advisors who have worked very successfully with other clients.

These are the basic procedures:

1. Before handing over any money or signing any Promissory Contract, a legally binding contract, you should instruct your legal representative to undertake thorough pre-contract enquiries.

2. When your legal representative has completed all the searches and the documentation required is satisfactory, they will draw up the Promissory Contract to be signed by you and the vendor. Usually a deposit of 10% of the agreed price is paid to the seller.

3.The Final Deeds are signed at the Notary's office, normally 30 to 60 days later. The balance of the purchase price is then paid and you can take possession of the property.

Costs

Legal fees usually represent 1.0% to 2.5% of the agreed purchase price
Notarial and Registration fees will be approximately 2% to 2.5% of the purchase price
A property transfer tax (IMT) is payable register value of the property – we can advise on the exact amount.
Estate agent fees are paid by the seller in Portugal – usually between 3% and 7% of the agreed purchase price

Mortgages

We can advise on mortgages available from Portuguese banks and the offshore arms of UK banks

Using off-shore ownership

In Portugal, the use of offshore companies for the ownership of property is very popular amongst expatriate owners. It enables the owner to defer or avoid taxes on income and capital gains and ultimately avoid inheritance taxes that would otherwise be payable if the asset was owned directly.

We can advise you before you purchase so you can decide whether off-shore ownership is right and cost-effective for you. Your legal representative can also advise you.