buyer's Guide
buyer Guide
The country has a lot to offer: great climate, beautiful landscapes, great food, great culture. But one of the key factors for many buyers is the political stability and security the country offers. So beyond the quality of life you will find here, you will be investing in a safe country.
Surround yourself with the right people on this journey and you will be set for success. From lawyers to surveyors, mortgage brokers, insurers, FX companies contractors etc. we have built a network of professionals over the years. We choose them solely on their professional ability and reputation.They are at our clients’ disposal when needed to make the process as smooth as possible. Their expertise is invaluable in navigating all the various aspects of a property purchase. Experienced real estate professionals provide advice and support so you can make informed decisions.
Property management is also key to maximize returns and minimize the stress of property ownership. This includes maintenance, tenant screening and rent collection.
The process is simple as long as you are informed and prepared.
The country has a lot to offer: a great climate, picturesque landscapes, great food, and great culture. However, one of the deciding factors for many buyers is the politically stability and security the country has to offer. So beyond the quality of life you will find here, you will be investing in a safe country.
Surrounding yourself with the right partners on this journey is key to success. From legal representation to surveyors, mortgage brokers, insurers, FX companies contractors, etc., we have built a network of professionals over the years. We chose them solely based on their professional ability and reputation.
They are at our clients’ disposal when needed to make the process as stress-free as possible. Their expertise is invaluable in navigating all the various aspects of a property purchase.
The purchasing process is fairly simple, as long as you are well-informed and prepared.
When looking at your budget, you must keep in mind the purchase costs of the property and the real estate transaction costs. The purchase cost includes:
Lawyer’s fee
IMT (“Imposto Municipal Sobre as Transmissões”). This tax is based on the purchase price and ranges from 0% to 10%. The percentage is based on property price, type and intended use and is due before completion.
Notary fees
Transfer fees
Mortgage stamp dutyWe recommend budgeting 8-10% of the purchase price for these costs. If you need financing we advise to approach a local mortgage broker. By doing so you can compare interest rates, terms and conditions to get the best mortgage for your needs. It’s also a good idea to start this process as soon as possible as it can take some time. A real estate agent can be very helpful in guiding the buyer through the financing process and make sure all documents are in order.
When looking at your budget, it is key to keep in mind the purchasing costs of the property. The purchasing cost includes the following:
We recommend budgeting between 8-10% of the property price for these expenses. If you need financing, it is advisable to explore mortgage options with a reputable local mortgage broker. By doing so, you can compare interest rates, terms, and conditions to secure the best mortgage for your needs. It is also a good idea to initiate this process as early as possible, as it can be time-consuming.
Property viewings can be exciting and disappointing. Our job is to do thorough research before hand to filter through the listings and find the suitable properties for our clients. This includes researching the property location (e.g. near a noisy road, overall condition of the neighbourhood, future developments) and any potential issues (e.g. registration status of part of the property).
When you find the property you like, our buyer’s agent will help you to make a strong offer and get it for you.
If the offer is accepted and the property passes due diligence, you’ll sign the promissory contract (“Contrato Promessa de Compra e Venda”), also known as a CPCV. Understanding the legal aspect of this contract is crucial in real estate transactions as it makes the purchase legally binding. Until this point both parties can walk away. This contract outlines the terms of the sale, including the purchase price, payment schedule and closing date. You’ll need to pay a deposit, usually between 10 to 30% of the full asking price.
The last step of the purchase is the signature of the deed, known as “escritura” in Portugal. This takes place at the notary office and both the buyer and seller must be present unless they give power of attorney to their legal representative. At this stage all fees must be paid and the remaining balance to the seller. Once finalized the property is transferred to the buyer. A buyer’s agent can be very helpful in making the property ownership experience smooth by offering personalized support, legal guidance and negotiation expertise.
