Buying a property in Portugal has become very popular. The country offers a stunning climate, rolling countryside, idyllic sandy beaches and some of the most renowned golf courses in the world. Given the apparent benefits it is no wonder families, retirees and property investors choose Portugal over many of its EU counterparts. Not only this the Portuguese government has imposed strict planning regulations and invested billions, with help from the EU, into its transport infrastructure and actively promotes and supports tourism on a global scale.
All of these factors combined have been noticed by savvy investors and even after the recent global economic downturn interest continues to increase. Finding property for sale in Portugal can result in many choices. The country has something for everyone from quaint fishing villages and tranquil rural havens, to bustling beach resorts and stunning golf courses. Property in Portugal comes in many forms you can find plush beach front apartments, spacious villas and traditional country houses.
Buying property in Portugal has become popular with second home seekers and retirees since the 1960s. Its climate and the fact it is just over 2 and half hours by plane from London make it particularly attractive to people from the UK. And with a population of just over 10 million it makes for a perfect weekend retreat from a busy city.
Buying Property in Portugal
Thankfully, in principle the process of buying a property in Portugal is not too dis-similar from that of the UK. First of all a verbal agreement is usually reached with the seller. Next the buyer's solicitor conducts all the necessary checks such as title, building license etc.
The purpose of the contract is to describe the terms of sale along with a completion date. Once the terms have been agreed a deposit is paid to the buyer, which is usually 10%. If the buyer withdraws from the sale after this point the deposit is non-refundable. Upon completion all the remaining funds, fees and taxes are paid and both parties sign the deeds before a notary at which point ownership is transferred. When the deeds are signed the transfer of title should be notified to the land registry and local tax office.
When buying a property in Portugal there are two different taxes that need to be paid. The first is stamp duty which is levied at 0.8% on the purchase price. The second tax is called transfer tax and is levied using a sliding scale ranging from 1% to 6%. In addition, solicitor's fees can range from 0.5% - 1%. Notary and registry fees are generally less than 1,000 Euros.
Portugal's property market offers a delightful array of opportunities as an investment and continues to attract interest with many award winning developments. If you are looking for your dream property you should take an inspection trip, these are usually heavily subsidised by companies and they allow you to view lots of properties and ask questions. You can also meet likeminded people on the trip to share your thoughts on the subject of investing in Portugal property.