Buying property in Portugal
The sun is still shining here in Portugal with temperatures in the late 20’s – so why not come over and look for your dream home! Let us tell you a little about the buying procedure and costs.
With buying costs, it’s a very simple equation as you can work it out as a percentage of the property price, ranging from 6 - 10%, depending on the purchase price.
So on a property with a value of €350,000, you should be budgeting around 8% - €28,000 - and this includes lawyers’ fees, transfer taxes, notary and registration fees and the stamp duty.
The buying procedure is normally done in 3 stages - Reservation, Promissory and Final Deed. On average this can take between 1 and 3 months in total.
Reservation – once you have found your perfect property and agreed a price both parties are happy with, you will be asked to put down a reservation fee of €6,000 - €10,000. This is fully refundable and stays in your lawyer’s account, not with the vendor.
This shows the vendor that you are serious about the purchase and he will normally agree to remove the property from the market for 2 - 4 weeks so that your lawyers can carry out legal checks on the property, its documentation etc.
Promissory Contract – this is the first legal contract signing. At this point, the purchase/sale is legally binding for both parties. A 30