Buyer's Guide
Are you feeling overwhelmed by the wealth of information available online about buying property in Portugal? Look no further!
The Lagos Homes Buyer's Guide is your ultimate, simplified resource for all your real estate needs. We specialize in helping you buy property in Portugal, and our guide is here to assist you every step of the way. From understanding the legal procedures to exploring financing options and uncovering the purchasing costs, it is thoughtfully designed to provide clarity and ensure a stress-free property-buying journey in Portugal.
1.Requirements
Are you considering investing in the picturesque landscapes of Portugal? Acquiring real estate in this beautiful country can be a rewarding experience. However, the process may seem complex, especially if you're unfamiliar with the local procedures. That's where Lagos Homes comes in, offering expert assistance to make your dream property purchase a breeze. Let's explore the requirements of buying real estate in Portugal and how Lagos Homes can help you every step of the way.
NIF
In Portugal, securing the local tax ID NIF (Número de Identificação Fiscal) is crucial for any property transaction. Lagos Homes offers two convenient options: we can assist clients in obtaining their NIF online independently, or our partnered lawyer can manage the NIF application at no extra cost as part of the property purchase process.
Bank Account
Setting up a bank account is essential for efficiently handling property transactions and related finances, such as payments and utilities. It's advisable to equip your lawyer with Power of Attorney (POA) to facilitate this process, ensuring smooth management of all property-related financial matters.
Solicitor
To efficiently handle property transactions and related payments such as utilities, setting up a bank account is essential. It's advisable to equip your lawyer with a Power of Attorney (POA) to facilitate this process, ensuring smooth management of all property-related legal matters.
2.Finance
Whether you're seeking a vacation retreat or a permanent residence, financing your dream property in Portugal can be a seamless effort with the right guidance. At Lagos Homes, we are here to help you navigate this exciting journey. Here's a step-by-step guide to financing property in Portugal, along with information on the extra purchase costs you should be aware of.
Budget
Determine your budget considering your resources, income, and long-term goals. Do you need a mortgage to finance your property purchase in Portugal? Lagos Homes can assist you in assessing your budget and finding the perfect property.
Mortgage
Lagos Homes has partnered with trusted professional mortgage brokers to ensure you get the best mortgage deals. Portuguese banks typically offer mortgages to non-residents, with loan-to-value ratios ranging from 60% to 80%.
Costs
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​IMT (Property Transfer Tax): 0% to 8%, depending on the property's value
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Stamp duty: 0.8% of the property purchase price
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Solicitor: Usually 1% of the property purchase price (Our partners can offer a flat fee)
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Notary & Registration Fees: Approx. 1000€
Market Research
Equipped with full market access to both on-market and exclusive off-market listings, Lagos Homes conducts thorough market research across all agencies. We will identify properties that meet your criteria, including location, size, price, and investment potential, and provide you with a tailored selection of properties that perfectly match your preferences.
Property Tour
As your single point of contact, Lagos Homes simplifies the viewing process. We handle all communication with listing agents and meticulously plan an efficient itinerary for your property tours. This approach ensures a seamless experience, allowing you to focus on evaluating each home while we manage the logistics and scheduling.
Viewing Assistance
During each property viewing, we'll be by your side, asking the right questions and identifying any potential issues. Our focus will be on scrutinizing the finer details, ensuring you have all the necessary information to make a well-informed decision about your potential new home.
4. Promissory Contract
When buying property in Portugal, understanding the role of promissory contracts is vital. These contracts, known as "Contrato de Promessa de Compra e Venda" in Portuguese, serve as preliminary agreements that outline the terms and conditions of a property sale. Usually, a downpayment of 10% is agreed upon.
Legal Protection
Promissory contracts offer vital legal protection. By clearly outlining the terms and conditions of the property sale, they reduce the risk of disputes and provide a legal framework for both buyers and sellers to follow.
Financial Commitment
Requiring an initial deposit upon signing the promissory contract signifies the buyer's genuine commitment to the purchase. This discourages speculative or insincere offers, ensuring that only serious buyers proceed.
Due Diligence
Promissory contracts provide a defined period for due diligence. During this time, buyers can conduct property inspections, secure financing, and fulfill any other necessary conditions without undue pressure.
Binding Agreement
​Once signed, a promissory contract is legally binding. This means that if either party fails to meet their obligations, the other party has a clear legal basis for seeking remedies, enhancing the security of the transaction for both sides.
