Guide to Buying Property in Portugal

Editorial Lifestyle

by Vendici Properties

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Guide to buying property in Portugal, from initial search to completing the transaction – the escritura. While the process is the same regardless of where in the country you buy, successful completion of a transaction is greatly facilitated by working with the right agent. Having current and accurate information on market conditions, tax and residency, owner costs and potential rental income helps you make right decision.

Buying property is a big undertaking. Buying property in the Algarve, where you are perhaps not totally familiar with the language, laws and ways of doing business, even more so. You owe it to yourself to learn as much about the process and steps involved as you can, so that you can plan and budget based on realistic information.

Working with a professional and trustworthy local real estate agent can give you access to the information you need. Not just about the specific property you are interested in, but the bigger picture too – what the surrounding area is like, if there are any tax incentives that are applicable to your circumstances, potential rental income and owner costs, about schools and healthcare in the area, etc.

Vendici Properties is a successful real estate company, operating in the area known as the Golden Triangle of the Algarve – Quinta do Lago, Vale do Lobo and Vilamoura. They are hyper-local agents with outstanding in-depth knowledge of this area, the developments, the history of projects and properties, and opportunities that are coming to market. The information they provide to potential buyers is current and realistic, both essential factors in achieving successful outcomes for buyers and sellers.

VENDICI PROPERTIES BUYERS GUIDE
See the original Buyers Guide

The bureaucratic steps to buying property in Portugal are the same for all properties and for all areas of the country. However, it is the steps taken beforehand, and the information garnered then, that makes all difference in achieving a successful outcome.

Property Search
Any property buying journey begins with the search for the right property. Vendici works closely with their clients to understand their wish list, their budget and to match this information with available properties. With a very specific focus on the Algarve’s Golden Triangle, Vendici know exactly what properties are on the market, what a fair valuation is, and what potential opportunities are due to arise.

Local Area Guides
Within Vale do Lobo and Quinta do Lago there are many different areas and developments. Vendici has created detailed Local Area Guides that help their clients gain a better understanding of each specific area, the facilities and infrastructure there, the current market value and potential rental income of properties in the area. There are Vendici guides to Dunas Douradas, Martinhal Quinta, Vale do Lobo, Varandas do Lago and several more.
See the Vendici Local Area Guides

Vendici Factsheets
In addition to the Local Area Guides, Vendici has a series of Factsheets available covering topics such as:

purchasing costs
local services contacts (legal, financial)
running costs projections
rental yield projections
private ownership and corporate ownership
property tax and tax incentives

See the Vendici Factsheets

The Buying Process
Having found the perfect property, these are the next steps:

Agree the purchase price, terms and conditions
Price and currency
Contents less any specified personal items
Target Date for Deposit payment
Target date for completion
Is financing required, i.e. Mortgage
Vendici will provide a deal sheet to buyer and seller
Request that the property is taken off the market

Due Dilligence and Legal Services

Obtain Portuguese tax idendifier number (NIF) and open Portuguese bank account
Appoint a fiscal representative
Survey property
Lawyer reports on proposed transaction, correct title, free of debt, legal owner etc.
Habitation licence
Decide if you wish to appoint lawyer as legal power of attorney, helpful if you cannot travel easily to Portugal

Promissary contract

Deposit paid (normally 10%), non refundable, legally binding
If buyer pulls out they forfeit deposit, if Vendor pulls out they pay 2 times the deposit as compensation to
buyer
KYC documents completed for Money Laundering compliance under Portuguese Law
Date agreed for completion
Inventory agreed as to contents and any value for same in contract
Consider any currency conversion that is needed
Position funds ready for transfer on completion

Transaction Completion - Escritura de Compra e Venda