Thinking of buying or selling a property in Porto Portugal? Here are some things to consider.
Can a non-Portuguese national purchase a home there? Is there a limit?
Buying Portuguese real estate is open to anybody from anywhere in the world. Those seeking Portugal’s Golden Visa, however, are limited in their choice of real estate investment areas. You must invest at least the minimum amount.
The cheap cost of living and inexpensive property prices in this nation attracts a lot of foreign purchasers. It has all the makings of a popular vacation spot, making it an excellent choice for a second home or investment property.
How does the purchase procedure work for non-Americans or overseas buyers?
A tax identification number is required for international purchases and may be obtained in about three business days.
We begin by drafting the promissory note and going through the necessary paperwork with you (passport, proof of purchase, etc.). After reaching an agreement and finalizing the contract with the seller’s attorneys, the client will make the contract payment to the seller.
In the event of a buyer’s withdrawal after the promissory contract has been executed, the deposit and any other expenses paid would be forfeited. If the seller cancels the sale, however, they are responsible for returning double the amount of the initial payment.
The remaining sum is due upon the property’s completion and delivery. After that, the title deed is generated and sent to the customer for final approval. A certificate of ownership will be issued by the Land Registry Office when the paperwork is signed and submitted. This certification should arrive within 10 days.
Do I have to go to Portugal in order to purchase a house there?
Buyers from outside of Portugal may sign, submit, and examine paperwork remotely, saving them the trouble of flying to Portugal only to do so. All of this may be accomplished digitally. For this reason, we always suggest that our customers do a thorough inspection of the property.
Benoit Properties may connect you with local property management firms to find tenants, provide furnishings, oversee the tenancy, and provide monthly and annual accounts for your records.
Need a Portuguese bank account?
Opening a bank account in Portugal might shorten the time it takes to acquire ownership and save money on foreign transaction fees. It’s also helpful for keeping track of rent and other rental-related expenses.
However, a Portuguese bank account is not required to buy real estate in Portugal. Therefore, you are free to utilize foreign bank accounts if that is your preference.
In the case of a Golden Visa application, however, the buyer must use money from a Portuguese bank account to purchase an eligible property.
What kinds of paperwork am I going to need?
When purchasing real estate in Portugal, the buyer must provide the following documents: a valid passport, utility bills, evidence of profession (such as a payslip), and bank statements.
Must all paperwork be translated?
English is used for all emailed papers for your perusal and signature.
All Golden Visa applications require applicants to provide regularized versions of supporting papers, such as investment receipts. This necessitates having them translated into Portuguese, but don’t worry; your attorney will see to it.
Your paperwork do not need to be translated into Portuguese if you are not applying for a Golden Visa but making a standard foreign investment.
When acquiring a home, what are the associated closing costs, taxes, and other fees?
The buyer will also have to pay some additional closing charges in addition to the purchase price. Some examples in Portugal are:
- The current rate of stamp duty is 0.8% of your home’s purchase price.
- The Imposto Municipal Sobre Transmisses (IMT) or property transfer tax is normally between 5% and 7% of the purchase price.
- Amounts paid to a notary
- The cost of signing up.