Sell or rent your property!
Legal Proceedings
Legal Proceedings
Individual:
- Photocopy of ID card/citizen card;
- Photocopy of tax card (for all owners and their spouses).
Company: (if the seller is a company)
- Photocopy of the Commercial Certificate (valid for less than 6 months or the Permanent Certificate code);
- Identification of the person(s) authorised to sign.
Property:
- Property registration document issued by the tax office where the property is registered (dated less than 1 year ago);
- Property Use Licence issued by the City Council (not required if the building was built before 1951);
- Property plans;
- Informative copy from the Land Registry Office (dated less than 1 year ago);
- Energy Certificate;
- Technical Data Sheet (only for properties built after 2004).
How to advertise your property
How to advertise your property
The presentation of a property is extremely important for its sale.
The customer who is going to buy the property must feel comfortable inside it, this will increase their interest and prevent them from finding arguments to lower the price.
To achieve this, the owner must:
- Keep the property clean and tidy;
- Ensure there are no unpleasant odours;
- The property should be well ventilated, without being too cold or too hot;
- Keep the property well lit at all times: blinds up and lights on;
- Keep all doors open;
- Remove any objects that may reflect personal, moral, religious or political beliefs;
- Keep the number of people in the property to a minimum. A room with a good floor area will always seem smaller as the number of visitors increases.
Purchase Process
Mortgage
If you need to obtain a loan from the bank, you will need to prove your income. After obtaining pre-approval for the loan, the property will be assessed by a professional in order for the loan to be approved.
The documents that should be reviewed by your solicitor are: Land Registry Certificate; Property Logbook; Occupancy Licence; Housing Technical Specification; Property Plans; Energy Efficiency Certificate; Condominium Regulations; Proof of Property Tax Payments.
Analysis of Legal Documentation
If you would like a report on aspects relating to the structure of the property, its condition, defects, etc., you should contact an engineer for this purpose (costs to be agreed directly with the engineer).
Technical Inspection of the Property
Promissory Contract and Sale
The Promissory Contract serves as a guarantee for a future purchase/sale that must be signed after your lawyer verifies that all legal documentation is in order. At the time of signing the contract, a down payment usually between 10% and 30% of the property value is paid.
of the property value is paid.
The CPCV serves as a guarantee for a future purchase/sale and must be signed after your solicitor has verified that all legal documentation is in order. At the time of signing the contract, a deposit is paid, generally between 10% and 30% of the property value.
The purchase is finalized when the final deed is signed at the Notary and the land registration is carried out in the buyer's name. At this stage, the entire value of the property is paid.
Deed
Taxes
There are several taxes associated with the purchase of property, which are inherent to the purchase and ownership of property in Portugal:
1. IMT (Municipal Property Tax) and Stamp Duty
2. Notary and registration fees
3. Solicitor, estate agent and engineer fees
4. Loan/mortgage costs
5. IMI (Municipal Property Tax)
IMI
The IMI (Municipal Property Tax) is a tax that is levied on the tax value of rural and urban properties located in Portugal. The IMI came into force in 2003, replacing the Municipal Contribution, and reverts to the respective municipalities.
To the tax value (value registered in the real estate matrix) of the national real estate the following rates are applicable:
- Real Estate - 0.8%
- Urban real estate - between 0.3% and 0.5% (defined each year by each municipality)
- Real estate with tax domicile in "offshore" - 7.5% (regardless of the type of property).
They are exempt from the municipal property tax:
- Real estate for own and permanent housing whose taxable value of the building is up to 157 500 euros (6 years)
- Real estate for own and permanent housing whose tax value of the building exceeds 157 500 and less than 236 250 euros (3 years)
Note: The benefit must be requested up to 60 days after the six months destined to the assignment of the building to the respective ends.
The settlement of this tax is due to whoever owns the property on 31 December of the year to which the Tax relates.
Stamp Tax
Stamp duty, as the name implies, is a tax levied on acts and contracts. This tax must be paid in the deed of purchase and sale, and in the case of contracting housing loans (stamp duty on the deed of Mortgage with Mortgage).
Stamp duty is levied on the transaction value of the property or on the tax asset value. The higher of these two rates, the following rates apply:
- Deed of Purchase and Sale - 0,8%
The settlement of this tax must be made by the buyers and carried out before the acquisition of the property, in any distribution of Finance together with the IMT.
CPCV
The CPCV is a written agreement between seller and buyer that formalizes the commitment to transfer a property, also establishing the terms and conditions of the business. This agreement, which must be notarized, legally binds the intervening parties.
C.P.C.V. Includes the following information:
- Identification of the parties (buyer and seller);
- Identification of the property to be transacted;
- The maximum period for signing the deed and the counterparts;
- Transaction price, form of payment, signal value and Payment phases;
- What is included in the purchase, for example, furniture, in the form of an attached inventory list;
- Explicit indication that the good will be sold free of any charges and charges.
The Deed
The deed of purchase and sale is the official document where the transaction of the property is formalized, the contracting and credit conditions and the constitution of the mortgage.
After signing the deed, the property will be registered in the name of the buyer at the Land Registry, as well as all public service contracts of the previous owner (s). The endorsement of the acquisition in the Finance Department (Tax and Customs Authority) is done automatically by the notary.
How to advertise your property
How to advertise your property
