Buying through Goldentree

Buying or selling a property is a big deal. Financially and emotionally. You want people you can trust to handle it properly. That’s why we strongly believe being an estate agent is a huge responsibility.

We at Goldentree are a team of professionals who given our intimate local market knowledge, are prepared to offer you an exceptional service in your quest for the right property.

We have the advantage of concentrating all our expertise and resources in the Algarve property market. Our focus is only concentrated in this region of the country.

We offer you a wide choice of properties, guiding you through the whole buying process and providing continuous support, this way minimising the usual stress associated with finding a property.

Buying a property is also a great option. There are a lot of reasons for investing in Portugal:

• Stability: Portugal offers a stable and ever growing market, making you feel safe in your investment. It has a consistent governmental structure and is governed by civil law.

• Cost of living: If you intend to spend extended periods of time in your Portuguese property, you can expect your money to go further due to the lower cost of living.

• The Weather: An annual average of 3000 hours of sunshine means that you can enjoy more sun than in Florida!

• Property Standards: Generally, the standard of building and size of properties in Portugal exceed that of neighbouring countries.

• Golf: With 28 golf courses to choose from throughout the Algarve, you can enjoy a round at world famous courses at any time of the year.

• Easy Access: With so many low-cost airlines and short journey times, Portugal is within easy reach for weekend breaks or longer stays, giving you more playtime than travel time.

• The People and Culture: The Portuguese are known for being gentle and easy going. The national crime and violence rate is very low compared to other European countries.

• Rental potential: For all these reasons, Portugal is one of the leading tourism destinations, specially the Algarve region. Letting your property will be quite easy and a good income source.

 

Purchase a property in Portugal – legal procedure

After having chosen the property you wish to purchase in Portugal and before you pay any deposit to the vendor you should assure that the legalities of the purchase are correctly dealt and that you are not purchasing problems instead of a pleasant second home.

After your offer has been accepted your first big step should be appoint a lawyer to deal with the legal proceeding of the purchase. Your lawyer should receive from the vendor’s lawyer the full details of the property, as well as identification of the agent involved and special conditions that you may have agreed with the vendor.

After receiving the property documentation your lawyer should make the appropriate searches at the various departments, namely:

Land registry Department – Here you will find information relating to the property from its beginning, i.e. description, ownership, mortgages and other charges;

Tax Office Department – Here you will find information relating to the property from a tax point of view, i.e. tax number of property, ownership and its rateable value. Here you can also get a search in respect to debts relating the property and its property owner.

Local Council – Another department where you can find information in respect to the property, however in this department you will find information in respect to planning permission and its habitation licence.

Your lawyer should prepare a report in respect to the searches made at this various departments. Please note that the lawyers normally do not know physically the properties, therefore it is vital that after receiving your lawyer’s report you should verify if it corresponds with the property you are willing to purchase.

After receiving the report from your lawyer, if you have any doubts in respect to the construction or if you just wish to know the condition of the property it is always possible to ask an independent surveyor to make a survey on the property. Either the real estate agent or your lawyer can recommend a surveyor to you.

Once the searches have been completed a contract is drawn up by your lawyer and sent to the vendor’s lawyer for confirmation.

The contract depends if the ownership is a corporate entity or if the ownership is in the name of an individual.

Being the ownership a company and if you are keeping the same company your lawyer will have to do searches on the company and then will prepare a Share Purchase Agreement. This agreement will reflect the agreement between the vendor and purchaser and will outline the terms and conditions of the transaction. A deposit, previous agreed between the parties, is usually paid at the signing of this Agreement.

Being the ownership in the name of an individual, the Promissory contract is drawn up also by the purchaser’s lawyer and will also reflect all the terms and conditions agreed between the parties. A deposit, previous agreed between the parties, is usually paid at the signing of this Contract.

Once signed the Share Purchase Agreement or the Promissory contract the vendor is complied to sell and the purchaser is complied to purchase the property.

Completion of a transaction in Portugal is concluded by the signing of a deed at the notary’s office. This is the time when ownership of property is transferred to you. All the property documentation need to be updated and have to be submitted to the Notary, together with the proof of payment of transfer tax, called IMT – Imposto Municipal sobre Transmissões -. At this stage the balance of the purchase price is paid to the vendor and the purchaser takes possession of the new property.

Although you have become the owner of the property when you signed the deed, it is the registration of the property in your name at the Land Registry Department, which grants you full security of ownership.

Your ownership has also to be reported to the tax department within 60 days after completion of purchase.

If you purchase the property in the name of an individual you will be liable for payment of IMT – Transfer tax – which can go from 1% to 6,5% of the purchase price, depending on the type of property and its value. Furthermore stamp duty (0,8% of purchase price) is also payable on signing of the deed. On top of this you also have to pay notary costs.

When you sell a property you will be liable for the payment of Capital Gains Tax, which for non residents is 25% over the difference between the purchase price and the sale price.

Properties are also subject to IMI – Imposto Municipal sobre Imóveis – payment in two instalments (April and September) and this tax is a percentage based on the rateable value of the property and the location of it.

It is advisable that once you have purchased a property in Portugal in your own name, you have a Portuguese Will in respect to your assets in Portugal only.

After the all proceeding is finalised you should ask your lawyer for copies of all documentation in respect of the property for your own records.

Completing this you just have to enjoy your new property as well as all facilities Portugal can allow you.