A Must know before you buy a Home in Portugal

BUYING IN PORTUGAL: TIPS & ADVICE

Purchasing property in Portugal is a relatively straightforward process. Below, we outline the key points to consider. Feel free to ask if you need further clarification or assistance.

Important Rule.

Always deal with a government-licensed agent. Every licensed agent must display their license number in their office and on all advertising materials. For example, our license number is **AMI 5717 (you will always see "AMI" followed by a series of numbers).  

Licensed agents provide professional insurance, guarantees, and accountability for their actions.  

Caution: 

If you deal with an unlicensed agent, you will have no legal protection in case of disputes or issues.

FIRST STEPS

We offer a wide variety of property types, sizes, and ages in the Algarve. To help us select the right properties for you, please provide as much information as possible regarding your requirements, such as:  

- Desired location  

• Type of property: attached/detached villa, apartment, farmhouse, land/ruin (with approved project/with ruin/agricultural).
• - Number of bedrooms  

- Condition: needing refurbishment or ready to move in.  

- Pool requirements: whether a pool is needed or if space for a pool is essential  

- Preferred plot size  

- Purpose: holiday home or permanent residence  

- Payment method: cash purchase or financing (in Portugal, offshore, or no EU)  

- Timescales for buying (including dates of your next visit to Portugal)  

- Budget range  

- Any specific dislikes to avoid (e.g., age of property, proximity to neighbours)  

Note: Arranging viewings can sometimes be challenging—especially with non-resident owners or during holiday seasons. Flexibility with viewing times increases the likelihood of seeing more properties.

MAKING AN OFFER

Once you've found your dream property, the next step is making an offer. To strengthen your offer and improve its chances of acceptance, consider providing positive information to the vendor, such as:  

- How quickly you wish to complete the purchase  

- Whether financing is required,  

- The deposit amount you're prepared to pay (constructors may offer discounts for larger deposits)  

• Whether you wish to purchase any fixtures and fittings.
• Verify  that the property is legal and documents states all information.

Discuss your offer with us—we often know the vendor well and can assist in negotiating a mutually agreeable deal.

CONTRACTS

Once a price has been agreed upon, your lawyer will review all relevant documents related to the property and draft a "Contrato Promessa de Compra e Venda" (Promissory Contract). This contract specifies:  

1. Identification details of the buyer and seller  

2. Identification and description of the property  

3. Agreement by the vendor to sell and the buyer to purchase  

4. Deposit amount (typically 10–20% of the purchase price) payable upon signing the contract  

5. Timelines for completing the purchase (signing of the "Escritura" or deeds)  

6. Any additional relevant details (e.g., inventory of property contents)  

The contract is signed by both parties—usually in front of a notary—and becomes binding upon signature.  

Key Points: 

- If the seller fails to sell, they must compensate the buyer by paying double the deposit amount.  

- If the buyer fails to complete the purchase, they lose their deposit.  

Typically, promissory contracts are signed within 30/60 days after agreeing on an offer.

COSTS

The following costs are associated with purchasing property in Portugal:  

1. Legal Fees: Expect fees around 1.5–2% of the purchase price. (Not mandatory but suggested),

2. Notary and Registration Fees: These vary depending on factors such as whether there is a mortgage on the property; fees typically range from 1.5–3% of the purchase price.  

3. IMT Tax: This property transfer tax depends on several factors such as age, location, area, price, etc. We can assist you in calculating this tax for specific properties.

Disclaimer

This information serves as general guidelines only and should not be considered a substitute for professional legal advice. Imobipera Lda assumes no liability for errors or omissions herein or any subsequent issues arising from reliance on this text.

All text reproduced under authorisation from Imobipera Lda.

Michael Bianchi