009-E Buying & Selling a Property & Cost 2008
¨ The legal regulations are very specific when buying a property in
¨ It is also important to insure that any plans in the Town hall referring specifically to the property do physically agree with the existing construction. A property for living purposes must also have the following documentation.
1. A habitation licence for property constructed after 1951 or a certificate that the property was in existence from before 1951.
2. For properties which obtained a Habitation License after August 2004 also a F.T.H. (logbook specifying all details about the building) is required
3. A certified insertion in the records of the Land Conservatory
4. A detailed "Caderneta Urbana and/or Rústico" from the Tax Office
5. A set of certified plans from the local Town council.
6. Proof of payment of rates of the last 5 years.
Commercial and Industrial properties require:
1. A utilisation licence
2. A set of certified plans from the local Town council.
3. A certified insertion in the records of the Land Conservatory
4. A detailed "Caderneta Urbana" from the Tax Office
5. Proof of payment of rates of the last 5 years.
In the case of a rural property the following extra documentation is necessary.
1. A detailed "Caderneta Rústico" from the Tax Office
¨ Each Town hall and Tax Office tends to have local interpretations of the laws and regulations and these should be first checked. It is often very necessary to implement specific searches prior to acquiring a rural property.
¨ There are strict laws regulating Estate Agency practices and each must have a Licence granted by the State. The seller of a property normally pays commissions but it is not a controlled percentage and it is sometimes agreed upon by the leading Estate Agents in each area. On the other hand agents can of course also act on behalf of a potential buyer.
Here are the basic steps to help understand the procedures and legal acts that are involved in acquiring a property in
1. Only use a Government Licensed Estate Agent.
2. It is quite normal for both Parties to initially enter into a Promissory Contract detailing the conditions of
3. It is often convenient for the buyer to ask a third party who he trusts and speaks the language to act for them in the matter. A document called "Procuração Pública" is prepared with the necessary details and registered in the Notary. This can also be implemented in Portuguese Consul in a foreign country or by your local Notary after which translation into the Portuguese language can be done.
4. Every buyer is required to obtain from the Tax Office (Finanças), a fiscal number N.I.P. for individuals or N.I.P.C. for companies.
5. Prior to act of completion, the purchase may be subject to a payment I.M.T. (the old Sisa" to the Tax Office).
6. As from 2007 onwards the authorities now make a distinction between property for own and permanent living and other puchases like a foreigner buying a property for holiday purposes.
7. In the case of residential properties the new "Tabela de I.M.T. " is now in force.
|
From Euros |
Till Euros |
% to apply |
Amount to deduct |
Average |
|
Till |
Î 87.500, 00 |
0 % |
0 |
0 |
|
Î 87.500, 00 |
Î 119.700, 00 |
2, 00% |
€ 1.750, 00 |
0,5380 |
|
Î 119.700, 00 |
Î 163.200, 00 |
5, 00% |
|
1,7273 |
|
Î 163.200, 00 |
Î 272.000, 00 |
7, 00% |
|
3,8364 |
|
Î 272.000, 00 |
Î 543.900, 00 |
8, 00% |
|
|
|
Above |
Î 543.900, 00 |
6, 00% |
0 |
6,0000 |
|
|
|
|
|
|
An example:
Suppose a property will cost Î 200.000,00 multiply € 163.200 by 1, 7273% = Î 2918, 95 then add (€200.000- € 163.200) * 7% Total tax to be paid in this case Î 5.394, 96
8. In case the property is a second home or one not for permanent living to be used by the owner
|
From Euros |
Till Euros |
% to apply |
Amount to deduct |
Average |
|
Till |
Î 87.500, 00 |
1, 00 % |
0 |
1,0000 |
|
Î 87.500, 00 |
Î 119.700, 00 |
2, 00% |
€ 855, 00 |
1,2690 |
|
Î 119.700, 00 |
Î 163.200, 00 |
5, 00% |
€ 4.466, 00 |
2,2635 |
|
Î 163.200, 00 |
Î 272.000, 00 |
7, 00% |
€ 7.730, 00 |
4,1581 |
|
Î 272.000, 00 |
Î 543.900, 00 |
8, 00% |
€ 10,450, 00 |
|
|
Above |
Î 543.900, 00 |
6, 00% |
0 |
6,0000 |
|
|
|
|
|
|
An example:
In this case the same property will cost Î 200.000,00 (€163.200 * 2,2635%) + (€200.000 - € 163.200 * 7%) Total tax to be paid Î 6.270, 03
On rustic land one pays a