The process of buying a resale property in Portugal

According to a new law introduced by the Portuguese authorities in 2012, buying a home here worth more than 500,000 euros, the owner has the right to obtain a residence permit in the country. In Portugal, the process of buying a residential property is well established and relatively simple. To complete a sale and purchase transaction, foreigners need to issue an individual tax number and open an account with one of the banks in Portugal. When making a purchase through a real estate agency, the seller, not the buyer, pays for the agency's services. The procedure for buying a residential property First, the buyer examines the offers and selects the property he likes. Then the seller and the buyer agree on the terms and price of the transaction, after which the lawyers of both parties exchange phones. The preparation and verification of documents for the transaction is always handled by lawyers. When completing a transaction, it is recommended to contact a qualified independent lawyer. Preliminary contract Before signing the preliminary contract, it is necessary to check the property for legal purity, whether there are any promissory notes or any restrictions on the sale. Often real estate sales and purchases in Portugal are carried out without the participation of the buyer. In this case, the lawyer conducts the entire purchase process on behalf of the future owner on the basis of a general power of attorney. Prior to the conclusion of the transaction, foreigners receive a tax identification number (Nmero Fiscal de Contribuinte) from the tax authorities at the location of the purchased property. This nine-digit number will subsequently be used in all documents when making a purchase. The resulting taxpayer number will also be needed to open an account in one of the banks in Portugal, through which the purchase of real estate will be paid. If housing is acquired by a married couple, then both spouses must obtain a number. To obtain this number, you need to provide the local tax authorities with a passport, a certificate of employment, proof of residence in Russia (for example, bills for utility bills). It is recommended to have an extract from the house book taken from the passport office at the place of residence with you - a document with a seal is very valid. The list of documents for opening an account in a Portuguese bank varies depending on the bank. As a rule, foreigners must provide a passport, birth certificate and proof of residence in Russia. All documents must be translated into Portuguese, it is also recommended to certify the translation at the Portuguese Embassy. Sometimes banks request documents in this form. And if the documents are certified in advance, it will save time and money. The next stage is the signing of a preliminary purchase agreement between the seller and the buyer at a notary. It records the data of the parties, the state of the property, the method and terms of payment for the purchase. As a rule, at this stage it is necessary to pay a deposit to the property owner's account in the range of 10-20% of the cost of housing. In case of refusal from the buyer's side, the money is not returned to him, in turn, the seller, who refused the transaction, pays double the amount of the deposit. When attracting bank financing, it is necessary to assess the object. In addition, the transfer of ownership must be registered in advance in the cadastre. A copy of the pre-registration document must be provided when concluding the main contract. Basic agreement If the transaction is executed with the attraction of a mortgage loan, then from the moment of signing the preliminary and basic agreement, as a rule, one or two months pass. Without a loan, the purchase will be faster. The buyer pays the transfer tax before signing the main contract with the tax authorities at the location of the property. Here you need to get a receipt for payment of tax, which must be brought to a notary for signing the main contract. Then you need to pay the rest of the amount. Both contracts are drawn up in Portuguese, and the presence of an interpreter is required when signing contracts, which takes place at a notary office. The English version of both treaties is optional. At the final stage of the purchase, the title to the new owner is formalized in the land registry, for this you need to provide a copy of the main contract certified by a notary. This is what a lawyer does. It is necessary to check that the name of the new home owner is indicated on the registration document. Taxes and expenses The rate of the Imposto Municipal sobre as Transmissoes (Imposto Municipal sobre as Transmissoes) varies from 0 to 8% and depends on the purchase price. The buyer pays for it before concluding the main contract. There are two tax scales for the transfer of ownership, and the amount depends on whether you buy a home as a main home or a second home. As for the purchase of housing in the mainland of Portugal, the taxable amount for the purchase of a main house starts from 92 407 euros, when buying real estate in Madeira and the Azores - from 115 509 euros. The amount of tax rates in 2012 when buying a home on the Portuguese mainland (according to Property Portugal Experts): If you buy a home on the Portuguese mainland as a second home worth 150,000 euros, then the tax will be calculated as follows: 150,000x5% = 7,500 euros 7,500 - 4,716.16 euros = 2,783.84 euros For Madeira and the Azores, the taxable amount another: When registering real estate for an offshore company, the tax amount will be 15%. Often, the documents indicate an amount lower than the actual value of the property, therefore, the amount of tax may turn out to be less. Notary and registration fees are approximately 2.5% of the declared value of the property. Stamp duty - 0.8%. Translation services cost approximately 100-200 euros. In the case of a purchase through a real estate agency, the agent's services will be 3-5% of the purchase price. Commissions to the agency for the sale of real estate are paid exclusively by the seller. HomesOverseas