Investing in Portuguese Real Estate
Easy and Understandable Legal Guidance on How to Buy Property in Portugal
Are you considering purchasing a property in Portugal?
As far as investments are concerned, the Portuguese Real Estate Market is attracting more and more international attention. Unlike stocks or bonds, real estate is tangible and in Portugal that means a place in the sun. But aside from vision, Portugal offers rule of law, integration with the European Union with visa-free travel throughout the bloc, linguistic and cultural connections with South America and Africa, stable yields and an undersupply of properties.
There’s also safety, freedom, gastronomy and a lower per square meter cost than in other European nations. When combined, these factors create a predictable investment climate with long-term growth for this asset.
Our real estate lawyers will guide you through the process step-by-step.
How can a lawyer help me?
Before agreeing to invest in real estate in a new and unfamiliar market, it’s crucial to search for the right type of property. This means not only researching different locations and analyse the marketplace but whether it’s a city apartment, beach villa, a business or even rural land.
Identifying the property you’d like to own is an important first step. However, it’s also essential to ensure that the property matches your expectations and is without issue. This includes checking that the documentation is authentic, such as purchase/sale contracts and, where necessary, mortgages. Furthermore, to ensure that there are no unexpected surprises, a strong lawyer will even assess the build quality.
At Lexidy, our Real Estate lawyers have extensive knowledge and experience in all types of procedures and services related to investing in property.
As a first step, we recommend appointing the right legal advice before considering a purchase in Portugal.
Make sure your property purchase is risk-free with us!
¨We will be with you each step of the journey.¨
How can I buy a Property?
Every investor in Portugal’s real estate market requires a Portuguese Tax ID number, or NIF. This type of ID is required for virtually all transactions or essential activities in the country. These documents are quite common throughout the European Union.
Your NIF is needed to open a Portuguese bank account and appears on all the paperwork that you sign or receive when buying property, such as completing the final deed.
Our team of real estate lawyers at Lexidy LegalTech Boutique are here to help you with the process of purchasing property in Portugal. From obtaining a NIF and opening a bank account to performing due diligence on the property and protecting your rights.
What’s the Process of purchasing a property?
For most investors, the procedures follows the steps below:
1. Tax and Budget planning:
Taxes and fees are mostly paid by the buyer and vary throughout Portugal’s regions. They typically include the following:
- Property transfer tax that varies from 1% to 8%, depending on the purchase price
- Stamp duty of 0.8%
- Notary costs, title deed tax and land registration fee of 1% to 2.5%
2. Obtain a NIF
Obtaining your Portuguese Tax ID Number and opening a local bank account will simplify much of the process.
3. Search for properties
Our Real Estate lawyers are familiar with the local marketplace and will help you identify the property that you’re looking for.
4. Mortgage terms
If you’re considering applying for a mortgage, only those that are 30 years old or younger can negotiate a 40-year mortgage.
5. Reservation agreement and Letter of Intent
This agreement grants you total control when purchasing the property. For example, it can prevent the seller from continuing to list the property. Our lawyers will draft a Letter of Intent that protects your rights should your’s or the seller’s circumstances change.
6. Perform Due Diligence
An experienced real estate lawyer will make it their priority to ensure the purchase is flawless. They will investigate things like hidden debts, the asset’s quality and explore tax relief. This step also allows for negotiation of the price and other terms.
7. Sign a Promissory Agreement
Make a down payment as a guarantee for both parties.
8. Sign a Purchase Deed
The parties meet to sign the property’s purchase deed at the Public Notary’s Office.
9. Taxes and fees
Once the property is purchased, it’s essential to register the property with the tax authorities, settle all necessary taxes, contract utility bill companies and obtain insurance.
Our team of Real Estate Lawyers have decades of experience across property law and are well-versed in the process and intricacies of investing in this asset class. Our English-speaking team is here to help you.
We are a department formed by qualified legal experts who have been trained in the field of real estate law. We work on these requests every day and it’s our passion. For us, Lexidy is a way of life and what excites us the most is to be able to deliver the happiness and satisfaction of a successful real estate process. We want to help you achieve your goals and dreams.
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