Welcome to the reallymoving forum
Got questions and need some advice? Our forums have answers on everything from choosing the right property, to renting and selling.
  • If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Announcement

Collapse
No announcement yet.

Portugal Property Buying Tips

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Portugal Property Buying Tips

    Anyone thinking of buying a property in Portugal and want to know your way around the paperwork, here are a few pointers that may help you avoid problems.


    In the old urban cardenetas(deeds) if it is a house for habitation it will be written Casa de Habitacao.
    If is a new type cardeneta (deeds) there is one part which says Afectacao: (Here will be written) Habitacao.

    If it is garage it will say garagem.
    If it is for storage building it will say Arrumos.
    If it is a warehouse it will say armazem.
    If it is for commercial use it will say comercial.
    If it is an old oil press factory it will say lagar.

    The most important thing on a deed, old or new, is if it doesnºt say casa de habitacao or habitacao then it is not a building for living in.

    it is possible to buy any of these types of properties and live in them should you choose to. However it will never be a legal house and if you came to sell it you would not be able to sell it as a house and any potential buyer would not be able to secure a mortgage on it. unless you carry out a project to allow change of use.

    Before you purchase any property in Portugal is it essential to ensure all the relevant documentation is up to date and present for the Escritura.
    Cardeneta Predial
    This is a document (obtained from the Fiscal department of the Finanças) detailing the property's size, location, boundaries and a brief description. In some cases there maybe a drawing outlining the plot size and buildings.

    Certidão de Teor
    Is a document showing if there are any outstanding debts on the property and if the property is registered in the seller's name. some times it can take a while for debts to be logged and it is advisable to instruct your solicitor to check with the Conservatória do Registo Predial (land registry office) on the day of completion to ensure the property is free from debt.

    Proof of Payment of IMT
    To complete a purchase of a property in Portugal you will need to provide proof of payment of IMT (for properties with a sale value above 87,500€) to the notary.

    Identification documents
    Both the buyer and seller must be able to produce identification documents (identity card and/or passport) as well as their tax numbers for the Escritura in Portugal.

    Licença de Habitação
    Any property constructed as a habitable dwellings after 17th August 1951 must have a Licença de Habitação (habitation licence). Properties intended as habitable dwellings constructed prior to 1951 must have a certificate from the local Câmara indicating this.

    Ficha Technica de Habitação
    Houses built or altered after 1 January 2003 in Portugal are required by law to have a Ficha Technica de Habitação. This document contains information about the property including builder details, materials used and so on.

    Energy Certificate
    A new requirment from Jan 09, a certificate that is prepared by an Engineer to give a detailed report on the property
    www.gekkoportugal.com
    A guide to buying property in Portugal
    www.chavetejo.com
    INCI Estate Agents, AMI 7856

  • #2
    A few tips to think about when looking for a property in Portugal.


    1 Take your time. Don’t rush into signing a promessa contract until you are sure the property and location are completely suitable for your needs.

    2 Take off the ‘rose coloured glasses’. Remember not to do anything you won’t back in the United Kingdom. If something seems a little out of the ordinary seek independent advice.

    3 Make a checklist of requirements you want from your property in Portugal. If you are looking to retire and live abroad take into consideration proximity of local amenities. If it a holiday house you are looking for – is an airport important?

    4 Ensure the legal owner is selling the property you wish to buy and that what is advertised is what is being sold.

    5 Ensure on the day you sign for the property the property is clear from any debt. Mortgages and debts are registered to a property in Portugal. Until you register the property in your name debt can be added and it is up to you to pay it off.

    6 If you like a property, talk to the locals. They are a great source of information and will be glad to assist.

    7 Visit the property more than once and at different times of the day. What looks great in the evening sun, may not first thing in a morning.

    8 Location of your property is important. If you are looking at a property close to water (river, lake, stream etc) please note it does rain in Portugal and water levels can rise dramatically within hours. Remember if you are viewing a property in the spring or summer, it does rain in Portugal during the autumn and winter. What looks like a cute rock garden, could turn out to be a dry river bed.

    9 Under declaring. When you are purchasing a property in Central Portugal beware of under declaring the property’s’ true value when signing at the Escritura. The practice is illegal and it could cost you dearly when, and if, you come to sell. You will be liable to pay tax on a property if you make a profit from its sale.

    10 Register your property and land as quickly as possible following the final signing. Until you register the property in your name previous owners can still lodge debt against the property.
    __________________
    www.gekkoportugal.com
    A guide to buying property in Portugal
    www.chavetejo.com
    INCI Estate Agents, AMI 7856

    Comment


    • #3
      When buying a property in Portugal you have to pay purchase taxes for properties over 89,700€. These are calculated on a per cent basis, which are on a sliding scale relating to the value of the property you wish to purchase.



      Resales properties - including ruins, land, old houses - are subject to Imposto Municipal Sobre as Transmissões (IMT) tax. This must be paid up to three days prior to Escritura. The level of tax levied is on a sliding scale and is a percentage of the purchase price.



      If the property is your sole residence then the taxes are levied as follows:

      under 89,700€ 0%
      89,700€ - 122,700€ 2% minus 1,794€
      122.700€ - 167,300€ 5% minus 5,475€
      167,300€ - 278,800€ 7% minus 8,821€
      278,800€ - 557,500 € 8% minus 11,609€
      Over 557,500€ 6%
      If the property you are purchasing is a second property such as a holiday home then the taxes are calculated as follows:
      under 89,700€ 1%
      89,700€ - 122,700€ 2% minus 897€
      122.700€ - 167,300€ 5% minus 4,578€
      167,300€ - 278,800€ 7% minus 7,924€
      278,800€ - 557,500 € 8% minus 10.712€
      Over 557,500€ 6%
      Agricultural and building land is charged at the flat rate of 5%.

      If you are unsure how much the IVA or IMT will be, it is advisable to check with the local Financas before you enter into a Promessa Contract.

      The above figures were current as of January 2009.
      www.gekkoportugal.com
      A guide to buying property in Portugal
      www.chavetejo.com
      INCI Estate Agents, AMI 7856

      Comment


      • #4
        Just a little extra information for anyone looking at buying a property in Portugal.

        If you want to find a registered estate agent, take a look at the INCI website, you can search for registered agents under the location, or if you have found an agent you can check the details of the agent by putting the agents AMI number into the website and search for them, the results will tell you if the agent is legal, registered and has upto date insurance, as well as giving you contact details and thier address. The AMI number for the agent can be found on thier website, advert etc, it has to be displayed on all the agents publications.

        This link will take you to the correct page to check an agents details,
        Consulta

        this picture shows you what to expect and what to do to check.

        www.gekkoportugal.com
        A guide to buying property in Portugal
        www.chavetejo.com
        INCI Estate Agents, AMI 7856

        Comment


        • #5
          Getting mains electricity connected to a property in Portugal can be a straight forward procedure, though it can also be a minefield if you do not do the correct research before buying a property without a mains electricity supply.

          Like some other European countries Portugal has differing categories of electricity supply, each with differing rules governing the connection - Agricultural Electricity; Building Work Electricity; Domestic Electricity and Commercial Electricity.

          Unfortunately getting a mains electricity supply connected is not as simple as making a telephone call, as some websites and estate agents will tell you. Many people have fallen into this trap of purchasing a property without a mains electricity supply on the word of the agent ensuring them it is easy to get connected, only to find two years later they still have no electricity supply.

          The Portuguese government, in conjunction with EDP, (Energias de Portugal), have implemented rules governing the new connections of mains electricity to private, habitations as well as commercial properties to ensure all safety regulations are met.

          If a property (habitation) has never had a mains electricity supply and is deemed to be in a sub habitable condition, then the electricity supply will not be connected until the property matches the correct criteria.

          In the case of ruins and ruined property, this will mean submitting a planning application to the local council to make the structural repairs necessary bringing the property up to a habitable condition. This includes a full new electrical system, installation of water inlet and egress pipes, creation of a septic tank, wiring for telephone and broadband capabilities and installation of pipe work for mains gas as well as any structural work which needs to be carried out.

          All of which collectively must meet the building regulations standard laid down by the government. Only after all of this is done, the work approved and the electricity system has been installed and signed off by a registered electrician will the electric company give a connection with a definitive electric metre.

          Another key point to take into consideration is the distance the nearest electrical post is from the property as this can be prove costly. Electrical posts are at most sited 100 metres apart and although you can get the electric metre sited at the edge of your boundary bringing the supply to it can be expensive. To have a post installed by the electric company will cost around 1,000 euros per post. If the nearest post is on the opposite side of the road from your property you will have to have a new post installed to ensure there is enough clearance room beneath for high sided vehicles to pass beneath.

          However if a property has already had an electrical supply then the procedure is much less involved although can sometimes mean the installation of a new consumer unit by a registered electrician.

          If the electric supply is current then it is simply a matter of visiting the main office of EDP (Energias de Portugal) to sign up to a new contract. You will need your identity documents and your fiscal card as well as some proof you are the new owner of the property (ideally a copy of the Escritura). Then the staff within the office will create a new contract for you with a start date for the electricity supply to be changed into your name. When visiting EDP it is advisable to read the existing metre as this will speed up the process.

          Once you have signed the contract you can elect whether to have the electricity bills paid by direct debit with the bills being sent to your Portuguese address. However EDP have also introduced an online billing procedure which can be useful if your property is a holiday home.

          read more
          How-To-Get-Connected-To-Mains-Electricity-in-Portugal
          www.gekkoportugal.com
          A guide to buying property in Portugal
          www.chavetejo.com
          INCI Estate Agents, AMI 7856

          Comment


          • #6
            Having a property designed and built specific to your needs is one way to ensure you get the home of your dreams in Central Portugal.

            There are many advantages to designing and building your own place in the sun here in Central Portugal.
            It can be more cost effective than purchasing an existing villa or house. You benefit from having the property designed specific to your needs and the finish tailored to your requirements.
            However anyone contemplating building a property in Portugal should be aware the planning process is not a speedy affair. Unlike the United Kingdom, where a planning application can be submitted and approved in eight weeks, in some cases planning applications in Portugal can take up to two years' to be approved depending upon their location and the proposed size of build. One thing is for certain, there is no shortage of building plots for sale in Central Portugal. However, caution should be taken when considering purchasing land in Portugal as there are many confusing laws governing the use of land.
            As in the United Kingdom, land in Portugal is divided into categories and priced accordingly. There are five different classifications of land types in Portugal - Reserve Ecological, Rustic, Agro-Florestal, Urban and Commercial. This classification directly affects the use of the land and the overall selling price. For example a rustic plot measuring 1,500 square metres can be purchased for as little as 5,000€, whereas the same sized plot with an Urban classification could cost up to 250,000€ or more.


            read more
            A guide on how to build a house in Portugal
            www.gekkoportugal.com
            A guide to buying property in Portugal
            www.chavetejo.com
            INCI Estate Agents, AMI 7856

            Comment


            • #7
              If you are considering purchasing a plot of land in Portugal for any reason - to build your dream home, to extend your garden, a place to located log cabins, somewhere to park your motor home or caravan or just somewhere to enjoy the peace and tranquillity the country offers - make sure you know the exact land classification you are buying before you part with any money.
              There are five different types of land classifications in Portugal - Reserve, Rustic, Agro-Florestal, Urban and Commercial. The price of a plot does depend upon the classification of the land type, the size and the area in which it is located.
              Every plot and parcel of land throughout the Portugal has a classification and this will be stated on the property's Cardeneta (deeds). The PDM (Plano Municipal Director), which governs this classification, is updated regularly and gives clear definitions of changes of classifications in areas.

              In some cases, where the land has been in a family for generations, a Cardeneta may need up dating with the local Câmara prior to it being offered for sale.
              If you are looking to purchase a plot of land on a time-restrictive visit don't be pushed into a sale until you or your lawyer have had time to double check the credentials of the plot with the Câmara.

              Five Land Classifications in Portugal

              Reserve /Ecological: The term reserve in this instance loosely translated means protected. If you are considering purchasing a plot which is situated within a reserve area you are more than likely unable to construct on it. If you think you will be able to persuade the council on the merits of your project, if you are thinking of a reserve plot, be disheartened. It is HIGHLY UNLIKELY you will gain planning permission.
              A reserve classification means natural reserve and although you may persuade the local, elected officials you will also have to battle with the environmental bodies and the governments' own environmental department in charge of rural development.
              Rustic Land: As the title denotes land which is designated rustic is used for rural pursuits. Whether this is growing vegetables, farming fruit, grazing animals or as meadow land, it is VERY rare to be given planning approval on a parcel of rustic land. Planning laws in Portugal are very strict and adhere to tight guidelines. As you will appreciate with only 10 million the demand to construct new houses is not as
              Agro-Florestal: The term Agro-florestal relates to property which is contained within or is bounding land which has forest or woodland on it. This term is loosely applied and often means land which has previously been classified as rustic.
              New, stricter fire prevention laws, which were introduced in the summer of 2007 have played a serious role in the valuation of land in Portugal. The most of which still have to be acted out. The new decree, reduces the the involvement of local government in the decision to approve permission for construction on land within rural areas.
              Although in the UK this would be seen as a loss of rites by the local council (Câmara), in Portugal it means a more centralised and uniform decision making process. Something which can only be good for everyone in Portugal.
              Commercial Land: Commercial land is land which has been designated or is within an industrial zone and pre-defined for more industrial use. The land surround any plot, which is designated 'commercial' usually has a higher percentage of through traffic, a better infrastructure to deal with larger, industrial vehicles such as articulated lorries. Commercial land is often located within an industrial zone, an area of town with good access links or in a village with the same criteria.

              Commercial land can be a lot more expensive than any other type of land to purchase, due to the expenses a local council and/or local government has had to invest to enable it to be called commercial. There are extra stresses on local amenities (rubbish collections, road usage, traffic management systems, water and power supply.
              Urban Land: If a plot is designated as urban, then you will, most of the time be allowed to construct a property. Most urban plots are located within the boundaries for a village or a town.
              However, just to make the rules regarding land urban land sales a little bit more complex in Portugal the government designated a three tier programme which relates to a percentile rule.
              It is this three tier system which makes it difficult for the lay person to clarify an urban plot. Even professional constructors and architects sometimes have difficulty identifying what can and cannot not be constructed and consult directly with the council.
              (This urban classification is not be to be confused with the urban classification of a building situated on a plot which may or may not be rustic, ago-Florestal, reserve or commercial).
              One of the most important aspects of purchasing land in Portugal for you, as a buyer, is to have all documentation handed over to your lawyer (solicitor) prior to a promissory contract being signed to ensure the land is viable for the use you intend to purchase it for.



              read more
              Definitions of land types in Portugal: Different Land Types in Portugal
              www.gekkoportugal.com
              A guide to buying property in Portugal
              www.chavetejo.com
              INCI Estate Agents, AMI 7856

              Comment


              • #8
                Owning a property in a property in Portugal is a dream many people harbour, however there are aspects of being a home owner in Portugal which can be overlooked.

                A few of the most important aspects of owning a property in Portugal are highlighted below to help you ensure you can enjoy the delights your property in Portugal has to offer. These points are mainly highlighting property purchased in Portugal as a second or holiday home.

                Firstly if your property is not to be your permanent residence then you will have to appoint a Fiscal representative to communicate on your behalf with the local tax office to ensure your annual council tax (Imposto do Municipal Sobre Imoveis IMI) are paid promptly.
                Ensuring your property is properly protected with house insurance is also another key aspect which can get ignored during the heady rush of purchasing fixtures and fittings for your new home. However insuring your property against natural disasters, fires and accidents is important to protect your investment.

                read more


                Owning a Property in Portugal
                www.gekkoportugal.com
                A guide to buying property in Portugal
                www.chavetejo.com
                INCI Estate Agents, AMI 7856

                Comment


                • #9
                  Hi - many thanks for the great tips.

                  You said:


                  "The most important thing on a deed, old or new, is if it doesnºt say casa de habitacao or habitacao then it is not a building for living in.

                  it is possible to buy any of these types of properties and live in them should you choose to. However it will never be a legal house and if you came to sell it you would not be able to sell it as a house and any potential buyer would not be able to secure a mortgage on it. unless you carry out a project to allow change of use."

                  Are there any other problems with living in these types of properties.

                  If the storage was built pre-1951 is it a simpler process to get the use changed to habitation?

                  Many thanks

                  Comment


                  • #10
                    Hi and welcome to the forum,

                    It makes no difference when the building was built, only what the building was built for, is important, if it was not a house then you need full planning consent to change it to be a building for living in, this requires an Architect, Engineer to prepare a planning application, waiting sometimes upto one year for the planning to be passed, then you need to convert the building into a house bringing it up to current building regs, the council could ask you to things like disabled access, disabled toilets etc. if they consider it to be a new build. you also do need to employ a registered builder who has an Alvara, to do the work, as building work under a planning project cant be done by non registered builder.

                    Also something to be careful of, sometimes the council DONT allow these types of buildings to be rebuilt, converted etc.

                    If you are thinking about buying this type of building be careful about what you are getting into, it could work out more expensive than buying a house.

                    If you already live in one of these buildings, the good news is, although it is an illegal house and would be very hard to sell on, the council are unlikely to ask you to move out. they may tell you you cant live there, but i have not heard of anyone being forced to stop living in one of these types of buildings.
                    www.gekkoportugal.com
                    A guide to buying property in Portugal
                    www.chavetejo.com
                    INCI Estate Agents, AMI 7856

                    Comment


                    • #11
                      Hi Colin, No problem, happy to share info if its of help to fellow forum members.
                      www.gekkoportugal.com
                      A guide to buying property in Portugal
                      www.chavetejo.com
                      INCI Estate Agents, AMI 7856

                      Comment

                      Working...
                      X