English | русский                              Call Us Free UK: 0808 160 0670 IR: 1800 932 514

Daily Bulletin:

TV property expert predicts UK property market recovery | Banks under pressure to cut rates | Olympian plumps for Brazil | Annual property show will put spotlight on Russian market

Purchase Process in Portugal

Below is the standard purchase process in Portugal and issues that may affect that purchase:

• The Contrato Prome; de Compra e Venda (Promissory Contract) details the conditions of sale. Signed by both parties, it is legally binding and registered by an independent notary. If the seller withdraws, the law stipulates that double the deposit amount must be paid back. If the buyer withdraws, they lose the entire deposit paid. A deposit is normally between 10% to 20% of the purchase price.
• A Numero Fiscal de Contribuinte is required by every property owner, and is obtained at the local tax office, or automatically generated upon opening of a local bank account.
• The completion date is set upon signing of the initial contract, normally three to four weeks later. Prior to completion, the purchase is usually subject to a CEMI state payment to the local tax office. The tax rate varies and in some cases may not apply.
• The Act of Sale is usually carried out in a Notary's office, and is known as the Escritura de Compra e Venda. The notary checks all documentation is present and correct before payment is made. Once completed, the owner's name should be registered on the property.

Costs of a standard property purchase in Portugal include the following:

• Capital gains tax (CGT) is payable at 25% of the gain, for non-residents selling Portuguese property.
• The standard rate of VAT is 21%. VAT registration is compulsory.
• Stamp tax of 0.8% of the fiscal value is payable upon transfer of real estate.
• Rental income earned by non-residents without permanent establishment in Portugal is subject to a 15% tax.

The Obelisk Advantage:

As Obelisk approaches its projects purely from an investment perspective, its priority is to deliver each real estate product with an emphasis on simplicity and transparency throughout the purchase process. Therefore, Obelisk has already identified the purchase procedure for its clients as a simple, four step process:

1. The client chooses and reserves the unit that best suits their investment requirements, and Obelisk takes the client through a compliance procedure.
2. An independent lawyer, sourced and appointed for the client by Obelisk, will have already carried out full due diligence on the real estate product. They will issue all purchase contracts and paperwork to the client.
3. On receipt of this contract, the client will sign and make the first payment. The lawyer will notify the client of all further payments when required.
4. The appointed lawyer will also represent the client in all aspects legally required within the country of purchase, ensuring that clients of Obelisk enjoy the benefits of simple and hassle-free real estate investment.