Buying a house in Portugal

Buying a property in Portugal is a safe procedure and an excellent opportunity, whether for investment purposes, permanent residence or holidays.

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First of all, it is essential to check the legal status of the property to ensure that there are no legal issues associated with it. This includes:

• Property Registry Certificate: Document that confirms the ownership, the description of the property and any charges (mortgages, liens, etc.).
• Use License: This confirms that the property is in conformity with urban norms.
• Tax Authority Certificate: Registers tax information about the property, such as its asset value and purpose.
• Energy Certificate: The energy certificate is a secure digital document issued by authorised technicians and relates to the property's various energy characteristics.

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Most transactions in Portugal begin with a Promissory Sale and Purchase Agreement (CPCV). This contract sets out the terms of the deal, such as price, payment details, deadlines and any penalties in the event of cancellation.

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If you need financing to buy the property, you will need to request a mortgage loan from a Portuguese bank or a credit intermediary beforehand. A credit analysis is then made, which will assess your ability to pay, the value of the property and other factors.

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Once the CPCV is signed, the next stage is the public deed of the property. The deed is a formal act, held at a notary's office, in which the purchase is officially consummated.

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Buying a property in Portugal requires the payment of some taxes:

• Property Transfer Tax (I.M.T.): Calculated according to the purchase price, with different taxes depending on the value of the property and its purpose (housing or not).
• Stamp Duty: 0.8% of the purchase price.
• Municipal Tax on Property Transfer (I.M.I.): Annual tax on the value of the property. Depending on the location and the type of property, this may vary.

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At Over the Sea (OTS), we have a team of experts specialised in real estate and tax law. We are available to assist you in the process of buying property in Portugal and provide you with tailored solutions to meet your needs.