Guide du vendeur
In Portugal, legislation obliges real estate agents to enter into a "Real Estate Mediation Contract" and obtain the documentation concerning the property.
To ensure that we can sell your property without obstacles, we will analyze your documentation to make sure that everything is legal.
To sell your property you must provide copies of the following documents:
- ID and Taxpayer
- Certificate of Real Estate Registry
- Legal Description
- License for Use (or exemption in the case of a pre-1951 dwelling)
- Housing Technical Sheet (applicable for dwellings after 2004)
- Energy Certificate
- Floor Plan
Costs of selling a property in Portugal
The seller is responsible for paying the property sales fees to the real estate agent. He is also responsible for paying tax gains, which will be higher if he is not a Portuguese tax resident. If he is a Portuguese taxpayer, he will be exempt from 50% on the tax of 25% of the capital gains.
Guide de l'acheteur
Are you looking for your dream house? We present the steps to acquire your property.
1- Research and analysis process
Most buyers start their research via the Internet and visit several local mediators' websites to analyse the existing offer and get a sense of the prices between the preferential zone.
2 – Consult our website and choose your property
You will find some of the same properties on sale with several real estate agents and, to make your search process easier, click on the "Search for property" tab. We can also offer you a variety of properties through our network of partners, without having to contact several people and explain consecutively what your preferences are.
3 – Book your visit
After the process of research and analysis the next step is to visit the properties you have selected. If you do not live in Portugal it is advisable to book a trip of 3 to 7 days. We recommend that you limit your visits to a maximum of 5 to 7 per day and that you write down the qualities and defects that you pointed out in the visit to them. After you have found your property you will be ready for the next step of this process
4- Making an offer to buy
At that time, besides the purchase price, other important factors must be taken in consideration for your proposal to be accepted, such as the deadline for completion of the deal/deed, how much you will pay as a down payment when you sign the promissory contract, whether you will resort to financing or not, and if you will resort to financing if you have already obtained pre-qualification by your bank, if the purchase includes some furniture or not, if some improvement works will be carried out or not, etc.
The purchase process may take between a week and a few months, depending on how quickly the buyer and seller wish to proceed and whether all the necessary documentation is in order.
5 – Preparing the purchase
At this stage, we recommend you hire a lawyer / solicitor / legal representative, obtain a tax number and open a bank account if you do not have one. If you are not resident in Portugal and have to return to your home country and cannot be present to complete the purchase, everything can be handled by your legal representative, as long as you leave a Power of Attorney.
6 – Pre-contract agreement
This is a legally binding contract between the seller and the buyer, and includes the following information (identification of the parties / identification of the property / stages of payment / penalty clause / what is included in the purchase / date for the deed).
On the day this contract is signed, the buyer pays the seller the agreed down payment, usually between 10% and 20% of the purchase price. In turn, this contract protects the buyer and the seller, as if the seller terminates the contract he is obliged to return the double deposit to the buyer, while if the buyer terminates the contract, the seller has the right to retain the down payment. After this process the selected property is withdrawn from the market.
7- Marking and signing the deed
After the signing of the promissory contract any pending issues that have been agreed to be made before the deed will be concluded (financing, inspections and payment of tax for the transfer of the property). The deed process takes place at the notary's office in the most convenient location for those involved in the business. After the signature you will receive the keys to your new house and you are immediately the new official owner of the property.
The acquisition of a property in Portugal is subject to the payment of taxes and requires registration with the Tax Administration to obtain the respective Tax Identification Number.
Residents abroad, as well as residents in Portugal, if they are absent from Portugal for a period longer than six months, must, for tax purposes, appoint a representative residing in national territory. If you are resident in or absent from a member state of the European Union or the European Economic Area, the appointment of this representative is merely optional. The tax domicile is the place of usual residence, or in the case of citizens resident abroad, the tax domicile corresponds to that of the tax representative.
To finalize the purchase process of your house you must submit the following documents:
1. Land registry certificate (or content certificate)
Through the information provided by the land registry you will know what the composition of a certain building is, the legitimacy of who wants to sell the property and what types of charges may apply to it (mortgages, liens, etc.).
The land registration certificate, in paper or digital format, can be obtained:
- In person, at any Land Registry Office, which has the complete descriptions of the properties;
On this website it is possible to request a permanent land registry certificate and simplified land information.
2. Legal Description
This document can be requested from any Tax Office and there you can obtain information about the tax situation of the property and ascertain the entity responsible for fulfilling the tax obligations relating to it.
- In the Finance Portal, the owners can obtain the land registry of their property;
- In substitution of the legal description , it can be requested the certificate of content of the matricial article (valid for one year);
3. License of use
The License of Use aims to attest which use of the property is intended and that it is fit for its purpose. This license must be requested to the Municipality where the property is located. At the time of purchase and sale you may, however, only present proof of the application for the license, if it has not yet been issued.
4. Housing data sheet
It is a document describing the main technical and functional characteristics of the property. It should be requested directly to the City Hall of the municipality where the property is located.
5. Energy certificate
It must be presented by the owner at the time of purchase and sale.
6. Proof of prior payment of the Municipal Tax on Real Estate Transactions (IMT)
7. Photocopy of citizen's cards or if not portuguese (identity cards and taxpayer's card)
8. Proof of City Hall Resignation
It should be noted that there may be situations in which the so-called legal right of preference falls upon the property in question, which may be exercised by the City Council or the General Directorate of Cultural Heritage, in the event of the sale of classified or classified properties or properties located in protection zones.
In these situations, you must obtain proof of the waiver of the Municipal Council or the General Directorate of Cultural Heritage to the respective legal right of preference.
9. How to complete the process of buying and selling the property
- Notary's Office - Through the signing of a public deed, followed by mandatory submission for registration at a Land Registry Office
-"Balcão Casa Pronta" - This is a one-stop shop where it is possible to carry out all transactions relating to the purchase and sale of property. At this counter, it is possible to pay taxes, conclude the respective contracts, immediately perform all the registrations, request the exemption of payment of the Municipal Property Tax, request the change of the fiscal address, etc. You can consult on the website, the updated list of registry offices and services where the "Casa Pronta" counter is available.
- Other ways - using lawyers and solicitors.
There are several costs that you will have to consider, which in general add 5 to 10% to the value of the property. We point out that the rates have changed in recent years and that several rates are reviewed regularly.
A non-European resident who buys a property in Portugal needs a legal representative who is responsible for its tax treatment, who receives all the notifications and who is responsible for its annual IRS submission if the property has any income. Companies usually charge an annual fee, which will be in the range of 100 euros to 300 euros.
-Estate Agents' Committee
The commission is paid by the seller of the property.
Some lawyers and solicitors charge a fixed fee for their work, with a minimum of EUR 750 + VAT, while others charge a percentage of the purchase price, which can vary from 0.5 to 1.5% of the purchase value.
IMT (Municipal Tax on Expensive Real Estate Transfers)
This tax must be paid by the buyer before the conclusion of the process, that is, before the signing of the Deed. The amount to be paid varies according to the purchase price
IMT Calculator - To calculate your IMT click here
For more information we advise you to visit the Portal da Habitação