Algarve Hot Properties
Monday, June 26, 2006
Property:Four seafront units
Here’s a great deal! Four apartments on the seafront, with at least 25%return on the spot, guaranteed. How?
First, let me just mention the average price for a two bedroom apartment, on the sea front, in Quarteira: From 400.000€ if brand new and never less than 250.000€ for an old apartment (no lift, no parking), in need of some repairs.
Located on a third floor(top of the building), these are two bedroom apartments with one kitchen, one bathroom, one living room and one extra small room (can be an office, a child’s room, etc.) and two balconies, one facing the ocean, and the other in the back of the building with laundry area.
These apartments are in need of severe repairing.
Asking price for these apartments: 165.000€ as they are, or 199.000€ total repaired, featuring:
Total repairing of walls and ceiling with plaster and repainting.
Completely new doors, frames and wardrobes in solid wood.
New windows with electric shutters.
New floor
New Bathroom
New kitchen with furniture and totally equipped
Pre-installation of air conditioning.
New piping featuring PEX technology
New electricity wiring
New gas piping
Etc
If in a rush to sell, one can very reasonably get 50.000€ in return, per apartment.
If adding the potential for renting and the appreciation over the years, the return on this investment is very attractive.
Read more! ¶ 1:16 PM 0 comments
Here’s a great deal! Four apartments on the seafront, with at least 25%return on the spot, guaranteed. How?
First, let me just mention the average price for a two bedroom apartment, on the sea front, in Quarteira: From 400.000€ if brand new and never less than 250.000€ for an old apartment (no lift, no parking), in need of some repairs.
Located on a third floor(top of the building), these are two bedroom apartments with one kitchen, one bathroom, one living room and one extra small room (can be an office, a child’s room, etc.) and two balconies, one facing the ocean, and the other in the back of the building with laundry area.
These apartments are in need of severe repairing.
Asking price for these apartments: 165.000€ as they are, or 199.000€ total repaired, featuring:
Total repairing of walls and ceiling with plaster and repainting.
Completely new doors, frames and wardrobes in solid wood.
New windows with electric shutters.
New floor
New Bathroom
New kitchen with furniture and totally equipped
Pre-installation of air conditioning.
New piping featuring PEX technology
New electricity wiring
New gas piping
Etc
If in a rush to sell, one can very reasonably get 50.000€ in return, per apartment.
If adding the potential for renting and the appreciation over the years, the return on this investment is very attractive.
Read more! ¶ 1:16 PM 0 comments
Tuesday, June 20, 2006
Property: Off Plan Villas in Praia da Luz
We've all heard the old adage that real estate is all about 'Location, Location, Location' and ‘Moradias do Mar’ is a gleaming example..
Located in the heart of the Western Algarve in the beautiful and wild coast of ‘Praia da luz, this modern 4 bedroom, semidetached villas offer panoramic views of the Atlantic ocean.
With great attention to interior architectural detail, deluxe features offer residence amenities that include state of the art appliances and security features, gourmet kitchens, sumptuous baths, and much more. All designed to perform beyond your greatest expectations and enhance your uncompromising lifestyle.
Read more! ¶ 6:10 PM 0 comments
We've all heard the old adage that real estate is all about 'Location, Location, Location' and ‘Moradias do Mar’ is a gleaming example..
Located in the heart of the Western Algarve in the beautiful and wild coast of ‘Praia da luz, this modern 4 bedroom, semidetached villas offer panoramic views of the Atlantic ocean.
With great attention to interior architectural detail, deluxe features offer residence amenities that include state of the art appliances and security features, gourmet kitchens, sumptuous baths, and much more. All designed to perform beyond your greatest expectations and enhance your uncompromising lifestyle.
Read more! ¶ 6:10 PM 0 comments
Tuesday, June 13, 2006
Property: Remaining piece of Paradise in Algarve
Plot of land with 1655m2, situated in the area of Albufeira. Located about 100m from the beach, this property is all about location, location, location. And it gets better...this plot of land is sold with construction project already approved, with the following characteristics:
5 bedrooms ( each with 30m2), all with bathroom and clothing room, living room with 70m2 and dinning room with 30m2.
Total ground floor area: 400m2
Basement (garage): 400m2
Total area of the house: 800m2
According to the license, there’s also the possibility to build another 50m2 in the first floor.
This plot is on the edge of the government protected area, so, you can rest assure no more construction will be allowed anywhere close to this plot (let alone in front).
Great opportunity to get your own house on the beach, or acquire an investment with a huge return.
Want to know more? alvarojustino@gmail.com
Read more! ¶ 11:17 AM 0 comments
Plot of land with 1655m2, situated in the area of Albufeira. Located about 100m from the beach, this property is all about location, location, location. And it gets better...this plot of land is sold with construction project already approved, with the following characteristics:
5 bedrooms ( each with 30m2), all with bathroom and clothing room, living room with 70m2 and dinning room with 30m2.
Total ground floor area: 400m2
Basement (garage): 400m2
Total area of the house: 800m2
According to the license, there’s also the possibility to build another 50m2 in the first floor.
This plot is on the edge of the government protected area, so, you can rest assure no more construction will be allowed anywhere close to this plot (let alone in front).
Great opportunity to get your own house on the beach, or acquire an investment with a huge return.
Want to know more? alvarojustino@gmail.com
Read more! ¶ 11:17 AM 0 comments
Thursday, June 08, 2006
Real Estate Guide: Selling a Property in Portugal
The following tips are given in the hope they will prove to be of some assistance to sellers, especially when selling a property in which you have enjoyed for many years.
Resale property is viewed by a potential buyer and in the back of his mind will always be the question - "Why is the property for sale?” The Agent will need a realistic answer.
Most sellers have a pre-conceived idea of the figure they wish to receive for their property. As there are many other factors, which affect the value a more realistic view is to obtain some valuations from chosen Real Estate Agents. A good Agent, will take into consideration the sellers point-of-view, plus their professional local knowledge of similar properties and the current market trends. Discuss with your Agent the policy to use in regard to pricing.
The seller should always bear in mind that a buyer is only interested in paying what they consider to be a reasonable price in relation to what they have been shown elsewhere. Instructing the Agent to market the property at a price determined only by the seller often becomes an obstacle in achieving a sale.
Choose your Real Estate Agent carefully, and we recommend that you do not use more than three, as the buyers tend to think negatively about a property that is being handled by "everyone"! Agents often specialize in certain segments of the market, and these should be considered in relation to the selling potential of a property. It is strongly recommended that you have the same market price for all Agents to avoid possible manipulation by prospective buyers.
Prepare a sales package for your real estate Agent.
Arrange for access to the property to be made as easy as possible. The buyers are normally viewing during a short visit to the Algarve and sales are often lost because of limitations created by the seller.
We strongly recommend that a seller carefully thinks about the risks involved before considering handing the property to sell to any individual who is not a Real Estate Agent. If anything later goes wrong these individuals have no legal responsibility in your sale and you may have involved a in serious legal problems.
Many properties in the past were purchased through an Offshore Company. This method places a property in the ownership of a Company that is registered outside Portugal through a Share Purchase Agreement. If the property is already in an Offshore Company it is safe to assume that the buyers lawyer will explain to his client the advantages and disadvantages about this type of ownership may recommend to dispense with the Offshore ownership.
The legal regulations relating to selling a property in Portugal are relatively uncomplicated and the movement of the resulting funds is unrestricted.
If selling is the intention of the owner then it makes very good sense to make sure that the property is placed where it will be best exposed to the potential market.
Firstly, there is the considerable convenience to owners in using a licensed Real Estate Agent - especially owners that are often tend to be absent.
Most Agents spend serious money in marketing their list of products in foreign markets.
Established Agents also enjoy many referrals from past contacts and clients.
Agents will use their professional skill in presenting a property to potential buyers which in turn increases the chance of a sale being achieved.
As most foreign buyers have little or no real knowledge of the Algarve an Agent has to invest considerable time to achieve each sale.
The market system in the Algarve is that a commission related by a percentage of the actual sales value is paid by the seller to the Real Estate Agent. It is not the normal practice for any commission to be paid by the buyer.
Agents will request a seller to sign a legally binding "Contrato de Mediação" which is a document required under law stating the terms of agreement, the details of the property, the price sought, and the commission that is to be paid to the Agent. In Portugal there are occasional agreements between the various Real Estate Agents. The usual position is that a commission is paid by the seller to the Agent that is chosen by the buyer. This is regardless of the possibility of other Agents being involved in the sale.
When an owner decides to sell a property it is necessary to check that they have all the necessary documentation and that it is up-to-date. It is advisable to have this package of documents ready to be given to each of the Real Estate Agents they have selected to represent their interests.
In the case of an Urban property the necessary documentation is as follows:
a) A photocopy of the Habitation License for property constructed after 1951 (Other documents may be required).
b) A photocopy of the Certificate of the insertion in the records of the Land Conservatory.
c) A photocopy of the detailed "Caderneta Urbana" from the Tax Office.
d) A photocopy of the "Escritura" when they originally purchased the property.
e) A photocopy of the Plans of the property.
f) A photocopy of any maintenance agreement, any regulations related to the re-sale or restrictions imposed by a developer.
g) A photocopy of the last payment of the "Contribuição Autárquica".
f) A photocopy of the ID and their "Contribuição Fiscal" from the Tax office for each of the owners named in the "Escritura" document.
In the case of a rural property an extra document is necessary which is a detailed description of the rural part of the property. This is named a "Caderneta Rústica" and it is issued by the local Tax Office.
Promissory Contract - In order to secure the Deal, it is advisable and usual in Portugal to sign a Promissory Contract of Purchase and Sale "contrato promessa de compra e venda", whereby all conditions, for the Sale agreed between the Vendor and the Buyer will be stated including completion date. A deposit is payable at the signature of the said contract and its amount subject to agreement between the parties. This promissory contract is also signed by both the vendor and the buyer and an agreed deposit is paid by the buyer to the vendor (normally 10% of the value of the property). This contract safeguards both parties; should the vendor not complete the sale, he is required by law to repay twice the amount of the deposit to the buyer. Should the buyer not complete the purchase, the vendor is entitled to retain the deposit paid.
Notarial deeds of Purchase and Sale completion is known in Portugal as "Escritura Pública de Compra e Venda" whereby ONLY THEN the ownership of the property is transferred to the Buyer. All the property documents must be submitted to the notary, together with the proof of payment of tax on the transfer of the property known as Municipal Transfer Tax (MTT) whenever applicable. This "escritura" is signed at a Notary's book on the date you have agreed to close the deal. At this same time the balance of the purchase price is paid to the vendor.
Read more! ¶ 12:17 PM 0 comments
Resale property is viewed by a potential buyer and in the back of his mind will always be the question - "Why is the property for sale?” The Agent will need a realistic answer.
Most sellers have a pre-conceived idea of the figure they wish to receive for their property. As there are many other factors, which affect the value a more realistic view is to obtain some valuations from chosen Real Estate Agents. A good Agent, will take into consideration the sellers point-of-view, plus their professional local knowledge of similar properties and the current market trends. Discuss with your Agent the policy to use in regard to pricing.
The seller should always bear in mind that a buyer is only interested in paying what they consider to be a reasonable price in relation to what they have been shown elsewhere. Instructing the Agent to market the property at a price determined only by the seller often becomes an obstacle in achieving a sale.
Choose your Real Estate Agent carefully, and we recommend that you do not use more than three, as the buyers tend to think negatively about a property that is being handled by "everyone"! Agents often specialize in certain segments of the market, and these should be considered in relation to the selling potential of a property. It is strongly recommended that you have the same market price for all Agents to avoid possible manipulation by prospective buyers.
Prepare a sales package for your real estate Agent.
Arrange for access to the property to be made as easy as possible. The buyers are normally viewing during a short visit to the Algarve and sales are often lost because of limitations created by the seller.
We strongly recommend that a seller carefully thinks about the risks involved before considering handing the property to sell to any individual who is not a Real Estate Agent. If anything later goes wrong these individuals have no legal responsibility in your sale and you may have involved a in serious legal problems.
Many properties in the past were purchased through an Offshore Company. This method places a property in the ownership of a Company that is registered outside Portugal through a Share Purchase Agreement. If the property is already in an Offshore Company it is safe to assume that the buyers lawyer will explain to his client the advantages and disadvantages about this type of ownership may recommend to dispense with the Offshore ownership.
The legal regulations relating to selling a property in Portugal are relatively uncomplicated and the movement of the resulting funds is unrestricted.
If selling is the intention of the owner then it makes very good sense to make sure that the property is placed where it will be best exposed to the potential market.
Firstly, there is the considerable convenience to owners in using a licensed Real Estate Agent - especially owners that are often tend to be absent.
Most Agents spend serious money in marketing their list of products in foreign markets.
Established Agents also enjoy many referrals from past contacts and clients.
Agents will use their professional skill in presenting a property to potential buyers which in turn increases the chance of a sale being achieved.
As most foreign buyers have little or no real knowledge of the Algarve an Agent has to invest considerable time to achieve each sale.
The market system in the Algarve is that a commission related by a percentage of the actual sales value is paid by the seller to the Real Estate Agent. It is not the normal practice for any commission to be paid by the buyer.
Agents will request a seller to sign a legally binding "Contrato de Mediação" which is a document required under law stating the terms of agreement, the details of the property, the price sought, and the commission that is to be paid to the Agent. In Portugal there are occasional agreements between the various Real Estate Agents. The usual position is that a commission is paid by the seller to the Agent that is chosen by the buyer. This is regardless of the possibility of other Agents being involved in the sale.
When an owner decides to sell a property it is necessary to check that they have all the necessary documentation and that it is up-to-date. It is advisable to have this package of documents ready to be given to each of the Real Estate Agents they have selected to represent their interests.
In the case of an Urban property the necessary documentation is as follows:
a) A photocopy of the Habitation License for property constructed after 1951 (Other documents may be required).
b) A photocopy of the Certificate of the insertion in the records of the Land Conservatory.
c) A photocopy of the detailed "Caderneta Urbana" from the Tax Office.
d) A photocopy of the "Escritura" when they originally purchased the property.
e) A photocopy of the Plans of the property.
f) A photocopy of any maintenance agreement, any regulations related to the re-sale or restrictions imposed by a developer.
g) A photocopy of the last payment of the "Contribuição Autárquica".
f) A photocopy of the ID and their "Contribuição Fiscal" from the Tax office for each of the owners named in the "Escritura" document.
In the case of a rural property an extra document is necessary which is a detailed description of the rural part of the property. This is named a "Caderneta Rústica" and it is issued by the local Tax Office.
Promissory Contract - In order to secure the Deal, it is advisable and usual in Portugal to sign a Promissory Contract of Purchase and Sale "contrato promessa de compra e venda", whereby all conditions, for the Sale agreed between the Vendor and the Buyer will be stated including completion date. A deposit is payable at the signature of the said contract and its amount subject to agreement between the parties. This promissory contract is also signed by both the vendor and the buyer and an agreed deposit is paid by the buyer to the vendor (normally 10% of the value of the property). This contract safeguards both parties; should the vendor not complete the sale, he is required by law to repay twice the amount of the deposit to the buyer. Should the buyer not complete the purchase, the vendor is entitled to retain the deposit paid.
Notarial deeds of Purchase and Sale completion is known in Portugal as "Escritura Pública de Compra e Venda" whereby ONLY THEN the ownership of the property is transferred to the Buyer. All the property documents must be submitted to the notary, together with the proof of payment of tax on the transfer of the property known as Municipal Transfer Tax (MTT) whenever applicable. This "escritura" is signed at a Notary's book on the date you have agreed to close the deal. At this same time the balance of the purchase price is paid to the vendor.
Read more! ¶ 12:17 PM 0 comments
Saturday, June 03, 2006
Real Estate Guide: Buying a Property in Portugal
Q. Who sets the price of the property in the Algarve?
Q. Do I need a fiscal number?
Q. Is there any condominium costs for the property?
Q. What additional costs are there to living in the Algarve?
Q. Do I need permission to purchase a holiday property in the Algarve?
Q. Do I have to be in the Algarve to complete the transaction?
Q. Can I take money in and out of the Algarve freely?
Q. In whose name should I purchase the holiday property in Algarve?
Q. Should I make a Will for my holiday property in the Algarve?
Q. What are the legal steps required to purchase a holiday property in the Algarve Portugal?
Q. Is there Inheritance Tax in Portugal?
Q. Who sets the price of the property?
A. If you are purchasing a holiday property on a new development in the Algarve, it will have been set by the developers/management company. Regardless of agent's commissions, you should still pay the same price whoever you purchase through ... whether you go direct or through a third party. Resale properties in the Algarve are usually handled by Government licensed Real Estate agents.
A. Going through a licensed company has several advantages: You will get to see a wide range of properties that suit your requirements; you will have the benefit of our many years experience, as well as fully staffed offices to support you in the all of the bureaucracy of the paper work. It will eliminate any possible language problems and it helps take away the stress and strain associated with purchasing a holiday home in the Algarve.
Q. Do I need a fiscal number?
A. Yes you need a fiscal number: an application has to be made to obtain a fiscal number. Without this fiscal number document, a buyer will not be able to complete the deed of purchase.
Q. is there any condominium costs for the property?
A. When buying a property in a condominium there are condominium costs. This condominium costs cover the maintenance of the condominium, example: garden, pool…. communal areas. Average charged prices per year: one bedroom apartment € 500, two bedroom apartment € 700.Independent villas don’t pay condominium.
Q. What additional costs are there?
A. You may be looking into your budget to purchase a property in the Algarve. You should be aware of the following costs (estimated)Notaries and registration fees - 1.5% of the purchase priceIMT transfer tax, as similar to UK stamp duty - up to 8% (depending on the type of property and price).
Real Estate Agent's fees (PAID BY THE SELLER ONLY, NOT BY THE BUYER) are usually subject to agreement.
We can recommend you a lawyer or solicitor (normal charge, 1% of the price of the property).
Q. Do I need permission to purchase a property in the Algarve?
A. Generally, no. Where necessary, a lawyer can apply for the permission for you.
Q. Do I have to be in the Algarve to complete the transaction?
A. In the event that you will not be able to attend the signature of the promissory contract and the "escritura", your lawyer will provide you with a power of attorney and advise you of the necessary formalities for this document to be prepared abroad and accepted in Portugal.
Q. Can I take money in and out of the Algarve freely?
A. Yes.
Q. In whose name should I purchase the holiday property?
A.There are a number of ways to purchase the property in the Algarve: In your own name, in the joint names of you and your partner, or co-purchaser(s), in the names of your adult children, or in the name of somebody who will eventually inherit the property from you, or In the name of your Company.
Q. Should I make a Will for my property in Portugal?
A. It is strongly recommended that once you have purchased a property in the Algarve Portugal in your own name, you instruct your lawyer to prepare a Will. You are allowed to have a Will for your Portuguese assets only, without replacing the main Will you may have in your own country. The most common type of Wills is also signed at the Portuguese Notary's books and is strictly private and confidential. With the right people assisting you, purchasing an overseas property can be an enjoyable and rewarding experience ... If you still have questions having read this section, please don't hesitate to contact me!
Q. What are the legal steps required to purchase a holiday property in the Algarve?
Step 1 - Property searches: we would call this phase the essence of buying a property in the Algarve. In order to make sure that the property you are willing to buy has a good clean title searches must be carried out, at least, in the following public departments: (Conservatória do Registo Predial) - Land Registry Department. This is a department where you will find information about property, i.e. ownership, description, mortgages, encumbrances and charges.( Repartição de Finanças) - Finance Department. You will also find in this department information about properties - their description and taxes, namely predial tax "IMI". Câmara Municipal - City Council. In this department you will find information about planning permission, possibility of construction in country areas, rules applicable to certain developments, approval of projects, building licences and habitation licences.
Step 2 - Promissory contract In order to secure the deal, it is advisable and usual in Portugal to sign a promissory contract "contrato promessa de compra e venda", whereby all conditions for the sale agreed with the vendor will be stated including completion date. A deposit is payable at the signature of the said contract and its amount subject to agreement between the parties. This promissory contract is also signed by both the vendor and the buyer and an agreed deposit is paid by the buyer to the vendor (normally 10% of the value of the property). This contract safeguards both parties; should the vendor not complete the sale, he is required by law to repay twice the amount of the deposit to the buyer. Should the buyer not complete the purchase, the vendor is entitled to retain the deposit paid.
At this stage you will need to decide whether you purchase the property in your name or you follow a different route. Nowadays with the changes in the law affecting offshore ownership companies this is no longer a route often chosen. A tax efficient way to purchase properties must be looked into case by case.
Step 3 - Notarial deed of purchase and sale completion is known in Portugal as "Escritura Pública de Compra e Venda" whereby the ownership of the property is transferred to you. All the property documents must be submitted to the notary, together with the proof of payment of tax on the transfer of the property known as Municipal Transfer Tax (MTT) whenever applicable. This "escritura" is signed at a Notary's book on the date you have agreed to close the deal. At this same time the balance of the purchase price is paid to the vendor.
Step 4 – Registration: Even though you have become the owner of the property, when you signed the "escritura", it is the registration of the property in your name, at the Land Registry Department, which grants you full security of ownership, as it will protect against claims by third parties.
Step 5 – Installation of water, gas and electricity—Applications for installation of water, gas and electricity where appropriate, are made to the authorities concerned, after the deeds have been affected.
Q. Is there Inheritance Tax in Portugal?
A. Inheritance Tax in respect of property has been abolished for persons with Portuguese residency - those with tax residency elsewhere will be liable (or not) under that jurisdiction.
A Will, It is highly recommended that once you have purchased a property in Portugal, in your own name, you have a Will for your Portuguese assets only.
We hope that the above summary will help you through the procedures of buying your home in the Algarve Portugal.
Read more! ¶ 11:50 AM 0 comments
Q. Do I need a fiscal number?
Q. Is there any condominium costs for the property?
Q. What additional costs are there to living in the Algarve?
Q. Do I need permission to purchase a holiday property in the Algarve?
Q. Do I have to be in the Algarve to complete the transaction?
Q. Can I take money in and out of the Algarve freely?
Q. In whose name should I purchase the holiday property in Algarve?
Q. Should I make a Will for my holiday property in the Algarve?
Q. What are the legal steps required to purchase a holiday property in the Algarve Portugal?
Q. Is there Inheritance Tax in Portugal?
Q. Who sets the price of the property?
A. If you are purchasing a holiday property on a new development in the Algarve, it will have been set by the developers/management company. Regardless of agent's commissions, you should still pay the same price whoever you purchase through ... whether you go direct or through a third party. Resale properties in the Algarve are usually handled by Government licensed Real Estate agents.
A. Going through a licensed company has several advantages: You will get to see a wide range of properties that suit your requirements; you will have the benefit of our many years experience, as well as fully staffed offices to support you in the all of the bureaucracy of the paper work. It will eliminate any possible language problems and it helps take away the stress and strain associated with purchasing a holiday home in the Algarve.
Q. Do I need a fiscal number?
A. Yes you need a fiscal number: an application has to be made to obtain a fiscal number. Without this fiscal number document, a buyer will not be able to complete the deed of purchase.
Q. is there any condominium costs for the property?
A. When buying a property in a condominium there are condominium costs. This condominium costs cover the maintenance of the condominium, example: garden, pool…. communal areas. Average charged prices per year: one bedroom apartment € 500, two bedroom apartment € 700.Independent villas don’t pay condominium.
Q. What additional costs are there?
A. You may be looking into your budget to purchase a property in the Algarve. You should be aware of the following costs (estimated)Notaries and registration fees - 1.5% of the purchase priceIMT transfer tax, as similar to UK stamp duty - up to 8% (depending on the type of property and price).
Real Estate Agent's fees (PAID BY THE SELLER ONLY, NOT BY THE BUYER) are usually subject to agreement.
We can recommend you a lawyer or solicitor (normal charge, 1% of the price of the property).
Q. Do I need permission to purchase a property in the Algarve?
A. Generally, no. Where necessary, a lawyer can apply for the permission for you.
Q. Do I have to be in the Algarve to complete the transaction?
A. In the event that you will not be able to attend the signature of the promissory contract and the "escritura", your lawyer will provide you with a power of attorney and advise you of the necessary formalities for this document to be prepared abroad and accepted in Portugal.
Q. Can I take money in and out of the Algarve freely?
A. Yes.
Q. In whose name should I purchase the holiday property?
A.There are a number of ways to purchase the property in the Algarve: In your own name, in the joint names of you and your partner, or co-purchaser(s), in the names of your adult children, or in the name of somebody who will eventually inherit the property from you, or In the name of your Company.
Q. Should I make a Will for my property in Portugal?
A. It is strongly recommended that once you have purchased a property in the Algarve Portugal in your own name, you instruct your lawyer to prepare a Will. You are allowed to have a Will for your Portuguese assets only, without replacing the main Will you may have in your own country. The most common type of Wills is also signed at the Portuguese Notary's books and is strictly private and confidential. With the right people assisting you, purchasing an overseas property can be an enjoyable and rewarding experience ... If you still have questions having read this section, please don't hesitate to contact me!
Q. What are the legal steps required to purchase a holiday property in the Algarve?
Step 1 - Property searches: we would call this phase the essence of buying a property in the Algarve. In order to make sure that the property you are willing to buy has a good clean title searches must be carried out, at least, in the following public departments: (Conservatória do Registo Predial) - Land Registry Department. This is a department where you will find information about property, i.e. ownership, description, mortgages, encumbrances and charges.( Repartição de Finanças) - Finance Department. You will also find in this department information about properties - their description and taxes, namely predial tax "IMI". Câmara Municipal - City Council. In this department you will find information about planning permission, possibility of construction in country areas, rules applicable to certain developments, approval of projects, building licences and habitation licences.
Step 2 - Promissory contract In order to secure the deal, it is advisable and usual in Portugal to sign a promissory contract "contrato promessa de compra e venda", whereby all conditions for the sale agreed with the vendor will be stated including completion date. A deposit is payable at the signature of the said contract and its amount subject to agreement between the parties. This promissory contract is also signed by both the vendor and the buyer and an agreed deposit is paid by the buyer to the vendor (normally 10% of the value of the property). This contract safeguards both parties; should the vendor not complete the sale, he is required by law to repay twice the amount of the deposit to the buyer. Should the buyer not complete the purchase, the vendor is entitled to retain the deposit paid.
At this stage you will need to decide whether you purchase the property in your name or you follow a different route. Nowadays with the changes in the law affecting offshore ownership companies this is no longer a route often chosen. A tax efficient way to purchase properties must be looked into case by case.
Step 3 - Notarial deed of purchase and sale completion is known in Portugal as "Escritura Pública de Compra e Venda" whereby the ownership of the property is transferred to you. All the property documents must be submitted to the notary, together with the proof of payment of tax on the transfer of the property known as Municipal Transfer Tax (MTT) whenever applicable. This "escritura" is signed at a Notary's book on the date you have agreed to close the deal. At this same time the balance of the purchase price is paid to the vendor.
Step 4 – Registration: Even though you have become the owner of the property, when you signed the "escritura", it is the registration of the property in your name, at the Land Registry Department, which grants you full security of ownership, as it will protect against claims by third parties.
Step 5 – Installation of water, gas and electricity—Applications for installation of water, gas and electricity where appropriate, are made to the authorities concerned, after the deeds have been affected.
Q. Is there Inheritance Tax in Portugal?
A. Inheritance Tax in respect of property has been abolished for persons with Portuguese residency - those with tax residency elsewhere will be liable (or not) under that jurisdiction.
A Will, It is highly recommended that once you have purchased a property in Portugal, in your own name, you have a Will for your Portuguese assets only.
We hope that the above summary will help you through the procedures of buying your home in the Algarve Portugal.
Read more! ¶ 11:50 AM 0 comments
Thursday, June 01, 2006
Why buy in the Algarve?
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With a Mediterranean climate, marked by the smell of the sea at low tide, the summers are never too hot and the winters never too cold. In fact, the climate can be so pleasant, that in any time of the year, it’s not unusual to find people lying down on glorious, golden beach beneath exhilarating azure skies.
The only things missing in Algarve that you can find in other sunny places of the world are... high crime rates, pollution, hurricanes…and stress!
The laid back culture and way of life will grow infectious the longer you stay here, has so many foreigners who decided to make the Algarve their Home, will confirm you.
Some of the best golf courses in the world and world class beaches! Lovely tradition and great sea food, the Algarve as it all!
Tourism has brought considerable prosperity and contributed to the overall economic strength.
The coast of living here is less than other European destinations.
The legal system gives foreign buyers and property owners the same rights and protection as those enjoyed by local citizens.
New legislation has even abolished inheritance tax for family members and house purchase taxes have been reduced.
With growing popularity and increasing property prices in the region, the returns to be made are very attractive. If you couple that with the great, all year round, rental potential, the question to make is not will you make money, is how much will you make.
In fact, on the channel fours program ‘A place in the Sun’, edition entitled 'the best 20 destinations to buy property in the sun', several destinations were ranked according to price, position and potential, with Algarve being voted as nº1, anywhere in the world.
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