Hey guys!
Welcome to my video, today I will be talking about the steps in how to purchase a property in Portugal!
As many of you probably know, I work as a real estate agent for Nest Seekers here in Portugal. We are an American based firm, and we also have offices here in Portugal. I work mostly in the Lisbon/Cascais region however I do represent buyers and properties in all of the country.
SO!
When purchasing a property in Portugal, one needs to consider the following:
1. Make sure your finances are in order BEFORE starting to look for a property. The Portuguese market right now has a low supply when it comes to housing, which means that once you find your house/apartment or investment, you need to be able to move quickly. If you are buying with a mortgage, because this is a sellers market, they will most likely not wait for your mortgage to go through. This might turn into a very stressful situation and a fear of loosing out. I always recommend my clients to get in touch with a mortgage broker, who will start the loan process early on, and so when you find your property, you are in a position to move forward.
2. Make sure your papers are in order. Have your NIF- number (which is your tax number) ready, as one cannot purchase or even rent a property without this number. And make sure you have your Portuguese bank-account already set up.
3. Do some research, ask around for recommendations- and pick a realtor to work with when finding you property. Good to know about the Portuguese real estate market is that if you are buying a property, you will not pay for the real estate agents assistance, this will be paid by the seller when a deal is made. Also, In Portugal, realtors work across markets and firms, and so if a property is listed with one specific agent, they will share the commission with the buyers broker. And so, you can have your own property assistant to make all the calls, set up all the meetings, negotiate the price and give you expert advise for free, and so I highly recommend going this route.
4. See a lot of properties! I always tell anyone looking for a property to make sure to visit plenty of properties before making up their minds. It’s a good way of learning what you can expect for your budget and to see different areas and properties. When it comes to prices and negotiation, I would say normally you can expect around 5% margin of negotiation. However this could differ depending on if the property is privately owned and how long it’s been on the market.
5. When you have found your property, agreed on a price and have your financials in order. It is time for the Promissory contract, the CPCV. This is the first initial contract to be signed, where all the details for the sale and purchase has been written down. Before signing the CPCV, it is good to have a lawyer do the due-diligence on the house. I ALWAYS recommend using legal advice at this point, to make sure the paperwork for the house is in order, and to look over the contract on your behalf, especially if you are a foreigner and this is your first time buying a property in Portugal and you don’t speak the language.At this phase, it is common for the buyer to pay 20% of the purchase price. However, this could usually be negotiated.
6. Between the CPCV and the Deed, this is the time to conduct a property inspection. This is a no brainer when buying a property in Portugal that is not a newly constructed property.
7. Then it’s the last step, the Deed signing. This will be done at a notary office, and all parties will attend. The notary is responsible for all the documentation and doing the new registry. If you are buying with a mortgage, a bank representative will also be there. Good to know is that you will need to be prepared to pay the taxes directly at the notary. The taxes to be paid is the IMT, which is the property transfer tax, the IMI which is the property tax and the stampduty. Check before hand with your lawyer regarding the exact amount you should be expected to pay. Usually one could calculate around 8% of the purchase price, that will be the total amount of taxes to be paid.
So that pretty much sums it up! If you are looking to purchase a property in Portugal,
I hope you found this information valuable. If you have any additional questions, feel free to reach out!.
Yared@nestseekers.com
+351 934083668 (WhatsApp)
yared.hagos.ns