Sunday, January 13, 2008

Financial & buying process information

Here are some tips and information about the process for a buying a property in Portugal

Use a Portuguese licensed estate agent like Pedras D'Agua

We will arange your fiscal number free of charge for resident owners, non resident owners need fiscal representation, however, allways ask for a quote as some companies charge a high fee.

Find a regulated qualified solicitor or use our selected solicitor and we will pay the his fee.

Make a reservation offer to take the property off the market. This is normally refundable, held by your solicitor and made on the basis that a 'Promissory Contract' will be drawn up in the next 30 days.

As we check all the house documents in advance of showing to clients we simply give copies to your solicitor for him to check everything is in order.

If you are applying for a Portuguese mortgage it is advisable that you get an offer from the bank before the Promissory Contract is made.

The Promissory Contract is drawn up by your solicitor and signed by the seller and the buyer. The conditions are negotiable, if you are taking finance it is reccommended that the contract is made for 90 days until the deed of purchase.

Provisional Registration is only made when a mortgage is being used for financing the purchase. This means that the bank will make their first legal charge on the property at the local notary.

Property Transfer Tax (IMT): this tax is paid normally by the lawyer on your behalf a few days before the final deed.

The Final Deed is made at the local notary and the seller and buyer (or the lawyer with a power of attorney) are present along with a bank representative (only when there is a mortgage).

Property Taxes

Property Transfer Tax (IMT)
>85,500 1%............0
85,500 – 117,200 2%............855
117,200 – 159,800 5%............4,371
159,800 – 266,400 7%............7,567
266,400 – 511,000 8%............10,231
511,000 + 6%............0

Example: Property price is €200,000 therfore....
200,000 x 7% = 14,000
14,000 - 7,567 = €6433

Stamp duty = 0.8% x purchase price

Mortgage stamp duty = 0.6% x loan amount

Legal Fees

Provisional Registration (notary & registration of banks first legal charge, mortgage only) €650 approx.)

Final Deed Registration (notary & registration of final deed) - €750 (approx.)

Lawyers Fees 1% - 1.5% or paid by us if you use our designated solicitor

Bank Fees (applicable for mortgages only)........
Valuation & arrangement fee €300 (approx.) We do not charge an arrangment fee, otherwise known as Broker fee's. Bank legal fee €250 (approx.)

Some examples of costs

Property value from€100,000 - €150,000 5% Buying costs (including mortgage)
Property values from €150,000 - €200,000 5.5% - 6%buyingcosts (incl. mortgage)
Property Values from €200,000 -€250,000 6.5% - 7% buying costs (incl. mortgage)
Property valuesfrom€250,000 - €350,000 7.5% - 8% buying costs (incl. mortgage costs)
Propertyvalues from €350,000 - €500,000 8% - 10% buying costs (incl. mortgage)

Friday, January 11, 2008

Further to our aims, today we have secured plots of land with views over the atlantic near Peniche with construction plans aproved for 35,000 euros, or have the constructor build you a 3 bed house all inclusive price of 150,000 keys in hand!! contact me for more details, 10 units remaining!

Also a fantastic 3 bed cottage style house, brand new with swimming pool, double glazed, fireplace and the spectacular views of the mountain range, Serra Candeeiros for 135,000 euros, incredible value.

We also have some investment projects, an opportunity to build a 4 star hotel next to the historic circa 1400's spa baths in Caldas da Rainha, in a beautiful zone well known for world class ceramics producers.

Thursday, January 10, 2008

starting up

If you are looking for properties for sale in Portugal you have come to the right place. At we offer a fully comprehensive sales and aftersales service. As the premier agency on the Silver Coast we offer unrivelled service and special offers which will save you thousands of euros. Including arranging fiscal numbers for free, normally as much as 400 euros, solicitors bills paid if you use our selected licenced solicitor and mortgages arranged with no brokers fee's.

We strive to offer the best properties at competative prices, usually under market value (UMV)whether its a luxury villa or a seaside apartment, familly home for relocation or a retirment package. Our extensive knowledge of the Silver Coast property market, Portuguese rules, regulations and laws, help with becoming a resident or advice on owning a property in Portugal as a non-resident.

We also offer a full aftersales service, help setting up bank accounts, utility accounts, even advice on the best supermarkets to keep your living expenses under control.

Check back soon for more advice and information or check our website for properties available.

See our English site at