For many, buying a home in Portugal may seem complicated. With our help and long experience, it becomes a fairly simple journey where we lead you through all the steps in the process. We give you advice and tips in hand to ensure a smooth and safe buying process of your dream home.

Guia de Compra em Portugal

How does the brokerage business in Portugal work?

Unlike some other countries, Portugal has an open market, which means that most of the properties are listed at several different brokers. Many times the information differs and it is therefore difficult to get fair overview of the market. It is therefore important to choose the Real Estate agency that you trust and who understand how it works locally.


The language is important for many, we dominate Swedish, Portuguese, English and French and in order to find the right property for our customers, we work with all properties for sale in virtually all of Portugal. You only need to tell us about your wishes and we will find your dream home.

 

Search and Display of Homes

The first step is to determine the area in Portugal and the type of residence you intend to buy. We provide you with a full range of homes and put up programs with private viewings for you. Our viewings aim at getting you to know the surroundings and the homes that are available on the market. You can also register for any of our viewing trips to Portugal.


To think about before you come to Portugal;


Plan your visit well in advance, the sooner you contact us, the more effective your trip will be.

Which areas appeal to me, quiet area or with more life? Where is the golf course, marina etc? Is it important to be close to the airport?


Wishes about the home, how many bedrooms do we need? Is sea view and pool important?


Set aside enough time, many times there are several areas to be visited and it takes time to get between them.

Discuss financing with us before the visit, if you will find the dream home during the visit, it is good to be prepared financially.


Renovation of the home, many homes are in need of refreshment, am I willing to go through such?

Ask us, many question marks can be sorted out before the visit.


Generally speaking, sellers in Portugal seldom prepare their homes before a viewing. Be sure to visit common areas such as garages, storages etc. and ask questions about what is included in the purchase. Usually all equipment is included like kitchen appliances, air conditioning, however, it varies greatly in terms of furniture.

In the case of new production, you often have a show home that is furnished, which facilitates to imagine the future property.

 

Mortgages and Loan promises in Portugal

You should plan the financing of your property purchase in good time. Mortgage in Portugal, in your home country or in a third country are all possible alternatives. We have a long experience I the matter and can advise on what opportunities are available on the market. It is important to collect personal documentation in good time, such as final tax assesment, bank statement, pension statements and other documents that prove your financial position.

Which is best, a loan in Portugal or in Sweden?

There is much that speaks for taking on a mortgage on the property where it is located and thus avoiding a currency risk if you are not in the € zone.

Is the loan process complicated in Portugal?

It is easy to get a mortgage loan in Portugal. The loan is given in Euro. We can in a very short time produce a loan simulation with a preliminary loan promise. The terms can vary, among other things, depending on the LTV (the size of the loan in relation to the purchase price) and the size of your income / pension. We assist you throughout the loan process and communicate with the local bank.

Keep in mind that the bank does not lend to down payments or to reinforced payments in the case of new production, these must be handled by yourself up until the final deed.

We can also recommend other financing options outside Portugal and are happy to answer your questions.

 

Negotiations and bidding

In Portugal, the advertised asking price of an existing property is usually the highest price at which the property is sold. It is therefore not uncommon with a negotiation between buyer and seller to agree upon price and other terms such as the size of the down payment, the date of entry and what is included in the purchase.

We assist and advise throughout the negotiation process.

In new constructions, asking prices are normally fixed prices.

 

How Much Are Asking Prices Negotiable?

It varies greatly depending on the seller's inclination to sell, how the starting price is set and how long an item has been out for sale.

Can I withdraw from my purchase?

According to Portuguese law, you are legally bound only after signing a purchase contract. This applies to both buyers and sellers.

Technical inspection

Against the background that the duty of investigation of a property for sale lies on the buyer, it is a good idea to order a technical inspection before signing a Promissory contract. There is no protection for the buyer regarding hidden faults and properties are sold in their existing condition. This is especially true if you intend to buy a villa or townhouse that may be a bit older. Even in the case of new construction, it may be good to have some technically knowledgeable who is involved in the final inspection of the property.

We are happy to tell you more about how a technical inspection works and can recommend surveyors who can protect your interests.

Legal platform

In Portugal, it is Portuguese legislation that applies and of course there will be several issues to address when buying a property and perhaps moving to another country. It is important to analyse things such as taxes, inheritance issues, wills, ownership relationships and others that you may feel important for the future.

We can recommend several competent lawyers who can help with both the buying process, taxes and other family law issues.

Tax number

To buy a property in Portugal you need a tax number, this is whether it is a permanent or leisure residence. We handle this for our customers.

Promissory contract and payment terms

After a completed negotiation, the next step in the buying process is to sign a Promissory contract. The buyer usually hires a lawyer as a legal representative. This draws up the purchase contract where, for example, price, payment terms and completion dates are stated.


When signing the purchase contract, the down payment is paid, typically being between 10-20% of the purchase price.


On the day of completion, buyers and sellers and / or their legal representatives meet with the notary for the preparation of the final contract. The task of the notary is, among other things, to check the identity of the buyer and seller and the legal documentation that forms the basis of the sale. In connection with the notarial deed, the buyer pays the taxes and fees that is due on the purchase and the final payment is paid to the seller.


The notary then registers the property in the new owner’s name, in the property register and in the tax register for properties.

Taxes and costs on a purchase

It is the responsibility of the buyer to pay the taxes on a purchase of a property, such as;

  • Stamp duty of 0.8% calculated on the purchase price
  • Transfer tax that varies between 0-6%, depending on the size of the purchase price
  • Registry fee € 250
  • Notary fee approximately € 600-1,000

The taxes are paid in connection with the final deed of the property.

Moving in

In connection with the final deed at the notary, you will get the keys to your new lovely home and can begin moving in. Keep in mind that it is not common in Portugal to have a thorough cleaning made before delivering the keys.

We will be assisting you even after moving in and help you with contacts to accounting services, rental companies, craftsmen, domestic help, gardeners and others so that life becomes easier. The service level is good in Portugal and relatively cheap to buy.

Property tax

All properties are taxed by the tax authority and annual real estate tax is paid based on the tax value. Most municipalities charge about 0.4% of the tax value in annual property tax. The tax value is usually lower than the market value, which is why the tax is not particularly burdensome.

For properties above a certain valuation value, an additional tax is payable. Please ask us about how your particular situation in this respect.

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