Steps Involved in Buying Property in Portugal

Officially known as the Portuguese Republic, Portugal is situated along the peninsula of Iberia. It is found in the southwestern part of Europe. Compared to the other countries within the continent, Portugal is among the warmest. The country has a Mediterranean climate and the temperature of the coastal areas can reach 40˚C during the summer. Summer and spring in the country are generally sunny and warm, while the autumn and winter can be windy and rainy.

Because of the wonderful weather along the coasts of Portugal, especially during summers, its waterfront properties are highly sought after. Property by the beach is in high demand. Both buyers and investors seek real estate in the country because of the obvious benefits the country provides. The main advantage of a coastal property is its warm climate all-year round.

If you opt for a renovated property, you should be able to buy at an affordable price. If you are buying waterfront real estate for investment purposes, you are guaranteed good profits because of the high demand for those coastal properties.

Property sales in Central Portugal have been good for several years. As with other countries worldwide, buyers have to follow specific steps during the process of buying real estate. The first thing you need to do is to execute the preliminary sale contract which is drawn up by a notary. This agreement legally sets the conditions for the sale. During the execution and signing of the binding contract, the property buyer is called to settle the transacted deposit. This means that you have to have a deposit amount before the preliminary contract is prepared for signing.

Central Portugal property sales usually require a deposit amount of between 10 and 12 percent of the total purchase price. When the seller of the Portuguese property decides to stop the sales process, the deposit paid will be forfeited. There are instances however where the buyer is entitled to stop the signing of the contract and not forego the return of his deposit. This is true especially if the property seller is not able to provide a clear and free title to the buyer. If this is the case, the purchaser has the right to cancel the contract. If he or she has already settled the payment of the deposit, he or she can get it back.

If you want to buy a property in Portugal, you are required to acquire a “Fiscal Number” from the local tax office. This is a requirement for foreign as well as local buyers. The application for a Fiscal Number during property sales in Central Portugal is fairly simple. You do not have to go through much hassle. All you have to do is fill out a form and submit it to the tax office.

Three or four weeks after the execution of the initial contract, the deed and the final contract are signed. This is when legal possession of the Portuguese property is transferred to the buyer. The last step for property sales in Central Portugal is settlement of the tax which is imposed on the transaction. The buyer should also register the deed within the Office of Land Registry.

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