Any prospective Portuguese property buyer must first apply for and receive a Fiscal Number from the “FINANAS” (Tax Department). In addition to using your fiscal number to establish a bank account, purchase a car, etc. in Portugal, you’ll also need a valid passport or another official Portuguese form of identification.
How much will it cost to buy a house in Madeira?
(Imposto Municipal sobre Transmisses, or “IMT” for short, translates to “Municipal Property Transfer Tax.”)
Property purchases and other transactions involving the transfer of immovable assets in Portugal are subject to IMT. Before a property may be transferred, IMT must be paid to the relevant tax authority.
The IMT must be paid in whole and accurately prior to the final deed, and this responsibility falls on the buyer or his lawyer (when acting as his agent). The amount of IMT due changes based on the kind and market value of the property.
Foreign-owned real estate is exempt from this tax
(Imposto de Selo, or Stamp Duty)
In Portugal, 8% of the purchase price is subject to “Imposto de Selo” (Stamp Duty). A further 0.8% over the mortgage value is due when financing the purchase.
Cost of a Notary Public and Registration Fees
After the final conveyance document is signed, the buyer is responsible for these charges, which are around €950. Additional fees may be incurred if a mortgage is required for the purchase or if the buyer requires additional notarial services.
(Comission for the placement service.)
The seller foots the bill for the intermediary.
Expenses Per Year
There is an annual council tax that all Portuguese property owners must pay.
(Council Tax on Property; IMI or Imposto Municipal sobre Imóveis)
The “Câmara Municipal” (City Hall) of the municipality in which the property is situated collects this tax, the rate of which is determined as a percentage of the property’s fiscal worth. However, Portugal is currently re-evaluating the fiscal value of properties in order to bring them more in line with the actual market value, so while this value may not be accurate, it should be closer to the actual market value than it was in the past because this register was only updated when a public deed had occurred.
(Note that this is for reference purposes only, and we assume no responsibility for any inaccuracies or omissions. Due to the dynamic nature of the law, we advocate always seeking professional advice before entering into any financial or business arrangement.
What further paperwork must be presented in order to complete the purchase?
(Seller-supplied paperwork)
Property tax and financial registration cadaster = cadaster predial.
The “FINANAS” (Tax Department) issues this certificate, which details the property’s financial registration and the rates and taxes owed to the local council. The “Caderneta Rstica” is also necessary for a rural property.
Certificate of Real Estate Registration (in Spanish) or “Registo Predial”
Details the property’s built area, plot size, etc., and reveals the property’s registered owner and any outstanding debts or mortgages. The Presidency’s Conservatory (or “Conservatória do Registo Predial”) has it (Land registry Office ).
License to use or build = Permit to live in or build a home. (Necessary for any homes constructed after 1951)
A document indicating that the property has been constructed in accordance with city ordinances and is fit for human occupancy, issued by the “Câmara Municipal” (City Hall). In the absence of this, the sale of any property will fall through.
Spanish for “Technical File”; Ficha técnica
The ‘Constructor’ (Developer/Builder) has given this document. This is a relatively recent need (2004) and it refers to the detailed file (ID) of the property’s construction; suppliers, materials utilised, and all technical details of the building process.
License for the use of energy resources
The new legislation mandates that all for-sale properties have their own energy certificate prior to listing.
(Sale Documents Needed to be Filled Out)
Sale and Purchase Agreement with Guarantees
Legally binding Title Document 4) Not a Member of the European Union In order to purchase real estate in Madeira Island, what documentation is required?
Because of its ease of use, adaptability, and rewards, Madeira, Portugal’s Golden Visa Program has become the most popular programme in all of Europe. The Golden Visa is a fast route to getting a residency visa in Madeira, Portugal, and is intended to attract investors from outside the European Union.
1) Spending 500,000 Euros on a freehold property in Madeira, Portugal.
- Investing 350,000 Euros in a free-rental house in Madeira, Portugal (reduced version according to certain criteria).
Third, establishing a business and a new position on Portugal’s Madeira
We can help you with the financial and legal elements of this, and they have more precise and complete information to provide.
Whom should I consult for advice on legal terminology?
LEGAL COUNSEL SUGGESTIONS
We recommend hiring legal counsel before purchasing real estate on Madeira. If you’re hiring a lawyer to defend your interests as a buyer, he or she will do it legally.
Since the notary’s position in Madeira is restricted, we strongly advise you to retain legal counsel. The notary does not store or disburse monies on behalf of the buyer or seller. Because of this, the attorney has the burden of legal obligation on your behalf as a purchaser; for your own protection, you should seriously consider this advice.
LAWYER FOR ACCOUNTABILITY
Given that every dwelling must have a valid building permit, it is the lawyer’s duty to ensure that all necessary paperwork is in order. In addition to verifying the identity of the seller(s), the lawyer will also look into whether or not the property is subject to any liens, such as a mortgage or tax obligation. Lawyers may easily access all of these registries online, so they have instantaneous access to the most current data whenever they need it. The legal counsel will also draught the promissory note and prepare the title document. A lawyer representing a buyer in a condominium transaction should also review the association’s minutes and financial documents; a lawyer representing a buyer in a new construction transaction should review the seller’s building licence and financial soundness.
AUTHORITY TO REPRESENT
In unusual circumstances, such as when you cannot go to Portugal, you may be allowed to provide your attorney power of attorney while you are there. If you can’t travel back within two to three weeks following a verbal agreement on the purchase, this power of attorney will allow your lawyer to execute the promissory note on your behalf. You may also have your attorney sign the title deed on your behalf.
This kind of power of attorney is tailored to the acquisition of real estate, and of course your lawyer won’t be able to make the purchase unless he also has access to the cash necessary to do so. Therefore, the lawyer cannot take any action until you have seen and approved the final contract.
Once you’ve closed on the purchase, your attorney can use the power of attorney to take care of things like getting utilities hooked up to your new home. Contact us today to buy or sell property in Portugal fast online
