Looking for a Second Home
Whether you want to buy a villa or an apartment in the Algarve or just rent a holiday home, Albufeira has a full range of specialist services able to meet your requirements. Estate agents, construction companies, travel agents or other local services will help you on your decision.Living in Portugal Website
How to buy a property
To buy a property in Portugal you will need a Fiscal Number from the Tax Office. However a Portuguese non-resident entity in order to buy a property in Portugal will need to designate a Portuguese Tax Representative. There are three options:
- Buy with cash a relatively easy option
- Re-mortgage the main property in the home country to raise the capital. Again a relatively easy process and one that does not have to deal with any Portuguese banks
- Get a mortgage from a local company, building society or bank at home specialising in international property transactions, or borrow the money from a Portuguese lender, bank or mortgage provider
The Costs of Buying a Property
Whether considering a cash purchase or to finance the property through mortgage borrowing, there are several costs which have to be met by the purchaser.
- The Deposit - usually between 10% and 20% of the purchase price
- The Portuguese Government Property Tax (Imposto Municipal sobre Transmissões). Generally speaking the government will take 5% of the value for a property in the countryside, 6.5% for an urban property, in case such urban property is designated exclusively for the residence of the buyer the local taxes varies at a rate up to 6% according to the property value, and 8% for a property purchased using an offshore account.
- The purchaser will also be liable to Notary Fees and Land & Property Registration Fees, which vary according to the purchase price of the property. A lawyer acting on the purchaser's behalf will usually sort this out but a list can be obtained from the local municipal or town council (Câmara Municipal). A useful place for information and advice on Notaries are the Citizens' Shops (Lojas do Cidadão)
- Stamp Duty (Imposto de Selo) generally 0.8% of the purchase price
- Estate Agency Fees These are normally around 5% and are included in the sale price
- The costs of the mortgage (Credito Habitação)