It is the obligation of the owners and the real estate agent to make sure that the documentation of the property to be sold is in order. In general terms, these are the mandatory documents:

• License of Use or Declaration of Exemption (City Hall)
• Housing Data Technical Sheet (City Hall)
• Permanent Land Certificate ( Land Registry Office )
• Urban Land Registry (Finance)
• Energetic certificate

Documentation depends on the type of property and the legal situation of the owners, so specific documentation may be required for each case.

You can count on our experience to help with this process!

1. Work with a real estate agent you trust.
   • Not being an obligation, it is certain that it will bring you benefits.
   • Whether due to lack of time and/or lack of experience, or simply because you trust the opinion and analysis of your real estate consultant, he will contribute to: the security of your choice, the security of the business, time savings, experience and business control, among many other factors. After all, this is the day-to-day of the real estate consultant.
2. Set your budget.
   • If you need to take out a mortgage, you must ask for a bank pre-approval so that you know, at the outset, the maximum amount that the bank will lend you.
   • You can resort, at no cost, to our credit intermediary partner and rely on their experience to select the bank with the best credit proposal, and conduct the entire process until the deed.
3. Choose your property and present your proposal.
   • You will enter into negotiation, where the business details can make the difference between closing or rejecting the deal.
4. Proposal accepted, make sure that the documentation is in order (through your real estate consultant or use the solicitor/lawyer) and sign the CPCV (promise contract of purchase and sale).
   • In this document, conditions, values ​​and terms of the deal will be stipulated.
   • This document is an intermediate step that assures you of the terms of the deal, as it is rarely possible to make a deed immediately. For example, with this document signed and stipulating a reasonable deadline for the deed, you can finish your mortgage with peace of mind.
5. If you resort a mortgage/construction loan:
   • Choose the most suitable bank.
   • Request a valuation of the property.
   • Handle all bank paperwork and get final approval.
6. The deed
   • If you work with a real estate consultant, he will arrange with the parties involved (owners, buyers, bank) all the procedures and documents necessary for the deed. You can also count on him to inform you, in advance, of the costs to be borne (more information in FAQ).
   • If you have done a private business, rely on the entity where you signed the deed (solicitor/lawyer/notary) to inform you of the documents, formalities and costs necessary for the act.

Before starting the search for a property, it is recommended to understand the amount you can spend. The charges for a mortgage should not exceed 30% of total income, but you should also consider having a minimum available capital of around 10% to 30% , cost and associated taxes. At the same time, you will also want to compare proposals and select the most suitable bank.

Well, this process can be exhausting but it can make a difference with the savings of several thousand euros in housing credit costs. For this reason, we work in partnership with a credit intermediary that will handle, at no cost to you, the process of contracting a mortage.

The process involves the following steps:

1. Collection of all necessary documentation;
2. Pre-qualification by requesting simulations from several banking;
3. Analysis, comparison and negotiation of conditions and obtaining pre-approval from the most suitable bank;
4. Banking assessment;
5. Formalization of credit approval;
6. The deed

Here are the advantages of using a credit intermediary:

• Lower rates

Considering that credit intermediaries interact daily with credit institutions, presenting several processes every day, they are able to negotiate more advantageous conditions for their loan. Thus, as a rule, credit intermediaries obtain lower rates than those charged by banks to customers who contact them alone.

• Exclusive process manager

Using a credit intermediary, you will enjoy exclusive and dedicated monitoring by a process manager, who will put all his experience at your disposal in the treatment of your process, supporting you in obtaining the best agreement for you and in all steps your process so you don’t have any doubts about your loan.

• Ease, speed and transparency in the process

The extensive professional experience of the credit intermediaries will ensure that all bureaucracy and negotiations are resolved quickly, efficiently and practically, helping to obtain an advantageous agreement for you.

Life insurance for home loans is not mandatory, but it won’t be easy to find a bank that gives you that choice. Taking out life insurance when taking out a loan is so common that many people assume that it is mandatory. However, according to the law, the only really mandatory insurance is fire insurance, often contracted as multi-risk.

If life insurance for loans is not mandatory, what explains why it is so common?

The very nature of this insurance helps to understand.

It is seen by banks as a way of ensuring that the mortgage is paid in the event of the customer’s death or disability. For those who hire, it also turns out to be a way of ensuring that, in one of these situations, the debt is paid off and the family does not lose the house.

Yes, foreigners can purchase a property in Portugal. The process of buying and selling a property located in Portugal when the buyer is a foreigner is, in almost everything, similar to what would take place if the buyer were a national citizen.

One of the essential requirements, either for the definitive acquisition of a property or for the signing of a promissory contract of purchase and sale is the obtainment of the Portuguese NIF (Portuguese Tax Identification Number) by the foreign citizen.

It is also important to point out that a foreign citizen may apply for the NIF as a resident or non-resident. A foreign citizen who wants to apply for a NIF as a resident must present an identification document or his passport and a residence permit document (if you are an EU citizen, you are exempt from the residence permit, and the Certificate of Registration of Citizen of the European Union, issued by the City Council of the area of residence is sufficient). A foreign citizen who wants to apply for the NIF as a non-resident, if he declares residence abroad, in a third country, that is, one not belonging to the EU or European Economic Area (Norway, Iceland and Liechtenstein), must appoint a tax representative with tax domicile in Portugal (natural or legal person).

The figure of the tax representative will be important for foreign citizens who do not wish to become residents in Portugal since, in practice, he will be the formal link between the Tax and Customs Authority and the taxpayer.

Finally, if the buyer is not in Portugal, it will be advisable for himto appoint a representative, namely a lawyer who represents and advises him during the purchase process and can represent him in the signing of contracts and other acts necessary for the acquisition of the property. If a power of attorney is granted for the buyer’s representative to represent him in the act of acquiring the property, the document must be drawn up with an authentication term.

Main taxes on real estate acquisitions:

1. The Municipal Tax on Onerous Property Transfers (IMT) It is a municipal tax that is paid only once to the State and varies according to the acquisition value of the property or the taxable patrimonial value (it is considered the highest). The rate can range from 1% to 8%, depending on the value of the property and its purpose. The rate applicable may vary depending on the type of housing, whether it is urban or rural, whether it is a permanent or secondary home and if the buyer lives in the Autonomous Regions or on the Mainland. You can run a simulation using this link.
2. Stamp Duty is calculated at the rate of 0.8% of the deed value.

Other future expenses:

1. The Municipal Property Tax (IMI) is a fee charged every year, by the Municipal Councils, to property owners located in Portugal. The value is calculated based on the taxable equity value (VPT) and the value of a property for the Finance Department. Its calculation is based on several factors ranging from the characteristics of the property itself to the characteristics of the surrounding area. But as a rule, this value is lower than the acquisition value of the property. The IMI rate is defined annually by each municipality based on the limits established by the Government:
   1. Urban Buildings – from 0.3% to 0.45% (or up to 0.5% in exceptional cases);
   2. Rustic Buildings  – up to 0.8%.
2. The condominium its purpose is to manage the common areas of the building. Thus, this expense will only happen in the acquisition of, for example, an apartment. The condominium fee is an amount charged monthly to the owners to defray expenses of the common areas of the building, such as: electricity, security, water, maintenance, cleaning and works.