Ready to buy property in Portugal?
With most restrictions easing, you may now be planning for a more exciting future featuring owning your own dream home in sunny Portugal.
Investing in property here is quite a straightforward process – this is what you need to know about the buying costs and what is involved once you’ve fallen in love with your perfect Portuguese home!
The buying costs typically work out to be a percentage of the property price. So on a property with a value of around €350,000 you should be budgeting 7.6% in addition to the price of the property - this includes transfer taxes, lawyers’ fees, 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 dream home in the sun and agreed on a price both parties are happy with, you will be asked to put down a reservation fee of around €6,000 - €10,000. This is fully refundable and stays in your lawyer’s account, not with the vendor.
This fee 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 the lawyers can carry out legal checks on the property, its documentation etc…
Promissory Contract is the second stage and the first legal contract signing. At this point, the purchase/sale is legally binding for both parties. A 30