Buying a home In Portugal? What the Portuguese Real Estate Buying Procedure Looks Like.

Buying a home in Portugal? Find out what steps you will have to go through. The procedure for buying Portuguese real estate.

Portugal is a pleasant and in every sense comfortable country to live in. American experts of the publication International Living at the end of 2020 put it in first place in the world in their list of "overall quality of life". Therefore, it should not come as a surprise that many foreigners, including citizens of Russia and other post-Soviet countries, show a keen interest in Portugal, seeking to acquire housing here in one way or another.

How it can be done, and what specific steps will have to make a foreigner who decides to buy Portuguese real estate - this is the subject of our article.

Housing in Portugal can buy everyone!

Our site GARANT.in much and discussed in detail the options for buying housing in Portugal for investors participating in the program "Golden Visa", as well as receiving a residence permit as a financially independent person. But we want to emphasize at once that Portugal, unlike other EU countries, has one important feature. Foreigners, non-EU citizens, can buy real estate in this country with virtually the same rights and conditions as the Portuguese themselves. In other words, do not think that you can buy housing here only in the framework of registration of a residence permit or Golden visa. All you need for such a transaction - is legal funds and a few further steps, which we will tell you about.
Before proceeding to the description of specific stages, we note that such a transaction is best done with the help of professional assistants. We are convinced of this from our own experience because the specialists of the company GARANT estate engaged in the sale of real estate in this country for many years. Given the mentality of the locals, as well as the peculiarities of the law, Portugal can not do without close ties with local real estate agencies and law firms.

Key stages of realization of the sale and purchase transaction

Selection of real estate

Of course, the best option is if you already know in advance what you are going to buy. Perhaps this choice helped you to acquaintances or friends living in Portugal, or you have looked at a suitable object, being in Portugal on vacation, as a guest. If there is no clear understanding - it is useful to talk to a consultant, thoroughly versed in the peculiarities of the local market.

You can find accommodation either remotely, or with a real trip "on the ground". Usually, according to our experience, the selection procedure takes from three days to a week.

Checking homes for debts or bans

According to local laws, the seller of the property must have all the complete information. It contains not only the technical characteristics of the object, but also includes:

• information on utility debts (or proof of their absence);
• certificates from the municipality stating that there are no bans or arrests;
• an "energy certificate" confirming that the dwelling complies with nationally accepted energy-saving standards;
• if the dwelling is old - a certificate from the local architectural services on the permissibility and extent of repair work.

Signing a preliminary contract

This contract is an absolute necessity under Portuguese law. It is a legal confirmation of the seriousness of the intentions of both the seller and the buyer. The contract, certified by a notary, may contain various clauses. But among them there are mandatory, having the character of universal:

1. The buyer must deposit for the purchase. As a rule, its size ranges from 15 to 30% of the full cost of housing.
2. The exact terms of the final payment of the housing are specified.
3. The obligation of the seller to return the deposit in double the amount, in case of refusal from the transaction.
4. The buyer's agreement that the deposit will remain with the seller if the buyer refuses the transaction.

Obtaining a foreigner NIF - tax identification number

This stage is usually performed in parallel with the previous one. NIF is an analog of the familiar TIN. It is required for any transaction where a tax-registered object is acquired. Obtaining a NIF requires the personal presence of the client. You will also need the presence of a guarantor. It can be the seller of the property (most often this is the case), or any other person who already has a valid Portuguese NIF.

In addition, you will need a passport and a document confirming your residence registration. This document must be translated into Portuguese and notarized in advance.

Opening a bank account in Portugal

This is possible as soon as you receive your NIF. Without your account, you will not be able to carry out any financial operation related to the sale and purchase transaction. After all, according to local laws, all such transactions are made only by wire transfer.

Bank account you will need as the owner of Portuguese real estate, and in the future. For example, you will be able to remotely, in Russia or Ukraine, to pay current utility bills, to carry out financial transactions in case you decide to rent out your home.

Unlike most EU countries, it is quite easy to open a bank account in Portugal. To do this will not be requested, as, for example, in Spain, a voluminous package of documents. It is enough to provide your NIF.
Attention! Do not choose foreign banks, of which there are many in Portugal, to open an account. They may have their corporate peculiarities that complicate the rules for foreigners. And service in such banks is often more expensive. From Portuguese banks, we also advise excluding Caixa Geral de Depósitos. It has the status of a state-owned bank, and therefore will also require a more extensive package of documents.

To open an account in most banks, an amount of 50-100 euros is enough. But if you plan to create a deposit of more than 10 thousand euros, you will need additional documents proving the legality of the origin of this money. However, in the case of Portugal, it is often enough to fill out a declaration, in which you will verbally indicate the source of funds (for example, sold an apartment at home). But be warned: this information may be checked in the future!

The final signing of the sale and purchase agreement

The procedure is carried out in the presence of both parties (or their official representatives), a notary, and an interpreter. At the moment of signing, the seller receives a bank check or confirmation of the transfer of the remaining amount to his account. The buyer must have a certificate of payment of stamp duty (0.8% of the transaction amount), and proof of payment of transfer tax.

For reference. The amount of transfer tax can vary from 0.8% to 10%, but most often it is around 5-7%. Its value depends on several factors, the main ones being whether the area is urban or rural, and whether the buyer will personally live in the house or rent it out.

The contract is always signed by one person - the owner of the home, but he can specify in the document other family members who will be considered official co-owners of the property. At the same time, they may not be present at the transaction.

Stage of registration of ownership of housing

Having paid for the property and having received the contract of purchase, it is necessary to register your purchase. This procedure costs 250 euros and is done in the real estate registration department of the municipality. In exchange, the owner receives a title deed from a notary. It takes a maximum of 3 months to complete.

Thus, it is from this moment the foreign buyer becomes the full owner of the property in Portugal. He only has to reissue contracts with various public utilities, although this issue can be handled by a trusted person. The cost of re-registration procedures varies from 100 to 200 euros, depending on the municipality.