Information guides to buying property in Portugal
Our information guides are to here help anyone who is looking to either purchase or rent a property in Central Portugal or if you are intent on visiting the region for a holiday.We will be adding more information in the future, however if you need any assistance in the meantime please don’t hesitate to contact us, as we will be delighted to help in whatever way we can.Purchasing a property can be a daunting prospect, especially if it is in a foreign country. Not only do you face questions of where to look, where to stay and how to get here, there is the language barrier to overcome. However here at Chavetejo we hope to provide as much information for you to ensure you can make informed decisions.At Chavetejo Imobiliaria we realise how difficult it can be in trying to search for a property remotely. Therefore our property details are always written with you in mind. We aim to give as much information as possible, as well as numerous photographs of each property – from rustic plots of land through to luxury lakeside villas – to help you form the best mental picture of the property as possible.We believe there is a property in Central Portugal out there for everyone and therefore we do not use the usual ‘estate agent spiel’ to describe a property. We give honest, straightforward descriptions and let the property speak for itself, letting you make your own decisions, in your own time.
Buying a property in Portugal
Buying a property abroad can be a daunting prospect, but here at Chavetejo, our aim is to help you through the whole process with the minimum amount of fuss.When you are looking to purchase a property abroad, whether for the first time or the fifth, our advice is the same – ensure you are completely satisfied and happy to start the purchase procedure before you part with any money.The purchasing process here in Portugal is relatively straight forward and follows a set procedure. In Portugal all estate agents or imobilária are licensed and regulated by the government. By law all licensed agents must display their AMI number on all documents and property advertisements. The governing body which oversees all agencies in Portugal is Instituto da Construção e do Imobiliário INCI.However to purchase any property in Portugal you will need to have a ‘Numéro Fiscal de Contribuinte’ or tax card, which we here at Chavetejo will help you obtain.Once you have found the property you wish to purchase, simply make an offer to the owner. If this offer is accepted then the next step is to sign a ‘Contrato de Promessa de Compra e Venda, then the property is secured.A promessa contract is drawn up by an ‘advogada’ (or lawyer) and signed by both the sellers and the buyers and a deposit is handed over. Once all parties have signed, the lawyer registers this document online. A deposit is required to be given, usually around 10%, by the buyers at this stage. It is worthwhile to note the contract ensures you will not be gazumped and it will usually state the date for the ‘Escritura’ or completion.Prior to the escritura you will have to pay ‘Imposto Municipal Sobre as Transmissões’ or IMT tax, if relevant, at the local finanças office at least three days prior to the final signing. If you are taking out a mortgage to purchase your property, then this will have to be registered with the Conservatória do Registo Predial (land registry office) at least 15 days prior to the signing, however your appointed advogada will usually take care of this for you.Once you’ve completed the Escritura you will need to register your property at the Conservatória and at the local Finanças, to ensure the annual rates bills are received in your name. However if the property is to be your sole residence then you can apply for an exemption from ratesWhat you need to buy a houseBefore you purchase any property in Portugal is it essential to ensure you all the relevant documentation is up to date and present for the Escritura.Cardeneta Predial – supplied by ownerThis is a document (obtained from the Fiscal department of the Finanças) detailing the property’s size, location, boundaries and a brief description. In some cases there maybe a drawing outlining the plot size and buildings.Certidao de Teor – supplied by ownerIs a document showing if there are any outstanding debts on the property and if the property is registered in the seller’s name. some times it can take a while for debts to be logged and it is advisable to instruct your solicitor to check with the Conservatória do Registo Predial (land registry office) on the day of completion to ensure the property is free from debt.Proof of Payment of IMT – supplied by purchaserThis applies to resale properties valued over 85,500€.Identification documents – supplied by all partiesBoth the buyer and seller must be able to produce identification documents (identity card and/or passport) as well as their tax numbers for the Escritura in Portugal.Ficha Technica de Habitação – supplied by ownerHouses built or altered after 1 January 2003 in Portugal are required by law to have a Ficha Technica de Habitação. This document contains information about the property including builder details, materials used and so on.Top 10 tips on buying a house1 Take your time. Don’t rush into signing a promessa contract until you are sure the property and location are completely suitable for your needs.2 Take off the ‘rose coloured glasses’. Remember not to do anything you won’t back in the United Kingdom. If something seems a little out of the ordinary seek independent advice.3 Make a checklist of requirements you want from your property in Central Portugal. If you are looking to retire and live abroad take into consideration proximity of local amenities. If it a holiday house you are looking for – is an airport important?4 Ensure the legal owner is selling the property you wish to buy and that what is advertised is what is being sold.5 Ensure on the day you sign for the property the property is clear from any debt. Mortgages and debts are registered to a property in Portugal. Until you register the property in your name debt can be added and it is up to you to pay it off.6 If you like a property, talk to the locals. They are a great source of information and will be glad to assist.7 Visit the property more than once and at different times of the day. What looks great in the evening sun, may not first thing in a morning.8 Location of your property is important. If you are looking at a property close to water (river, lake, stream etc) please note it does rain in Portugal and water levels can rise dramatically within hours. Remember if you are viewing a property in the spring or summer, it does rain in Portugal during the autumn and winter. What looks like a cute rock garden, could turn out to be a dry river bed.9 Under declaring. When you are purchasing a property in Central Portugal beware of under declaring the property’s’ true value when signing at the Escritura. The practice is illegal and it could cost you dearly when, and if, you come to sell. You will be liable to pay tax on a property if you make a profit from its sale.10 Register your property and land as quickly as possible following the final signing. Until you register the property in your name previous owners can still lodge debt against the property.Fees and chargesAs well as the purchase price of your property there are additional costs which you are entailed when you buy a place in Portugal.Here at Chavetejo we can help give you an idea of the costs involved on top of the purchase price of your dream home before you spend any money. If you are interested in purchasing a property we will clearly identify the additional costs involved to enable you to make an informed decisionNotario Fees are set by the government and are based on a sliding scale according to the value of the property. These are between 1.25% and 1.5%.Land Registry Fees 0.75% to 1%SolicitorIn the past lawyers charged a percentage of the purchase price, however today most good lawyers will charge between 450-650€ to convey a property though this figure may increase depending upon the level of work involved.Paying for your property in PortugalLike any property deal it is best to have your finances in order before you decide to purchase in Portugal. All payments must be made in Euros. If you have the funds in the United Kingdom to pay for your property purchase you can either:Banker’s DraftObtain a Banker’s draft in Euros from your UK bank and give this to the Notário. However you will have to be sure of the exact amount needed to cover all charges as well as the purchase price.ORBank TransferTransferring cash from the UK bank account, converted into Euros using interbank transfer. You will need to know your bank details, including the IBAN number (Inter Bank Account Number) to do this. you will most likely have to open a bank account in Portugal to complete this process.If you are intending to take out a mortgage for pay for your property it may be easier to apply for to a Portuguese lender.Opening a Bank AccountOpening a bank account in Portugal is simple and may, in the long run, be advantageous. With a Portuguese account you can set up direct debits for tax and utility bills.In order to open account in Portugal you will need to provide:– Proof of identification– A Numéro de Fiscal de ContribuinteOnce you have opened a bank account you will be able to SWIFT funds from your UK bank directly into your new account, then write out a cheque or draft for the purchase amount.Mortgage Portuguese mortgage lenders usually require a deposit of around 25% of the purchase price. In addition a mortgage from a Portuguese bank only covers the property itself not the legal fees incurred buying it.
Getting to Portugal
You can get to mainland Portugal a number of ways, probably the easiest and quickest is to fly. Flights from the United Kingdom to Portugal take on average about two and half hours, though this depends on your destination airport.Portugal by Air: The country has three international airports: Faro in the Algarve; Lisbon in Central Portugal and Oporto, to the north. All three airports are operated by ANA Aeroportos de Portugal, a state owned authority.Lisbon Portela is the busiest airport in Portugal, with both passenger and cargo levels increasing rapidly. Although schemes are in place to increase Portela’s capacity, the Portuguese government are investing in the construction of a new airport to eventually replace it. The government chose the site for this new airport in 1999 to be at Ota, a district 50 kilometres north of the capital.Completion of this airport is projected to be around 2017 and it isexpected it will be able to accommodate Boeing 747s and possibly the Airbus A380. The Portuguese TGV high speed train will have a stop at Ota with connections to the rest of the country. Ota Airport will connect to the A1, which is the major north/south road and has connections to other principal highways.Portugal by TrainEurostar has made it possible to get to Portugal on a train if you are travelling from the United Kingdom. For more details and prices consult Rail Europe’s website.The railway system in Portugal is quite extensive and is inexpensive to use. The Alfa Pendular trains offer a fast rail link from Lisbon to the Algarve and to the North – Porto, Braga and Guimarães. There is a vast network of regional, inter-regional and suburban trains covering the country.Portugal by CarIf you are planning to drive to Portugal, taking a car ferry from the UK to northern Spain is a leisurely option. P & O Ferries sail from Portsmouth to Bilbao in around 30-36 hours, twice a week. Brittany Ferries sail from Plymouth to Santander in about 21 hours twice weekly. Once docked in Northern Spain there are good road links to Portugal. To reach central Portugal takes approximately seven to eight hours by car from Bilbao.If you are moving to Portugal, or just coming for a visit and you are thinking of driving there are a few things to take into consideration. When driving in Portugal it is law to carry the following items: warning triangle, a reflector jacket and all documents ie. registration, tax, insurance and driving licence. If you don’t you are liable to an instant fine.
Accommodation in Central Portugal
Portugal has an enormous range of accommodation to suit everyone’s budget from campsites through to luxury manor houses and castles. Portugal has a vast array of pensions (pensãos), hotels, boarding houses and historic manor houses. Prices can range from 20€ a night for a basic pension up to over 200€.As well as hotels and pensions Portugal has over 40 Pousadas, government run hotels which have been converted from monasteries, castles, manor houses. Most are traditionally furnished with elegant features and some have swimming pools and tennis courts. Often you will see signs for an ‘Estalagem’, which simply means an inn. Other forms of accommodation which are becoming increasingly popular in Portugal are ‘Espaço Rural’ and ‘Turismo Rurals’.The Portuguese tourist board is keen to promote these establishments, which are generally privately owned manor houses and working farms. You can always find ‘rooms to let’ in most towns, villages and cities. Watch out for ‘aluga’ or ‘quartos para aluga’.There are many villas, private houses and cottages for rent throughout Portugal, with prices ranging from 250€ per week through to a couple of thousand.Portugal has a large network or government run and privately owned campsites throughout the country, with many providing excellent facilities for very little cost. Away from the coast and tourist resorts it is always best to double check opening times with individual campsites if you planning to travel out of season. However camping outside of official sites is legal in Portugal. Though there are a few restrictions including no parking in urban areas or close to protected water sources.There are also a large network of youth hostels (Pousadas de juventude). Most of which remain open all year round.If you are looking for accommodation for a longer term, check out properties for rent in Central Portugal, or email us at info@chavetejo.com .
Living in Central Portugal
In 2006 the office of national statistics in the United Kingdom recorded record levels of Britons leaving the country permanently to live abroad. In 2006 alone over 380,000 people migrated to find places in the sun and the trend is growing.Already there are over 50,000 Britons living in Portugal full-time, however the majority of those are based on the Algarve. Though the number discovering and moving to Central Portugal is growing. It is little wonder, the cost ofliving is cheaper than both the UK and the Algarve, the scenery is unspoilt and house prices are still good value for money and the people are very hospitable.Adapting to the way of life in Central Portugal may take some time. Away from the big cities, life is slower paced than that of Britain. You may find things, such as paperwork, take longer to achieve when dealing with authorities. The people in Central Portugal are friendly and there is a real sense of community.Before Before coming to Portugal it is definitely an advantage to try learn a few words of the language, even if it’s just enough to say hello to your neighbours or to order your lunch. You will have fun learning the language and this will help you feel at home quicker. The majority of the younger generation learn English as school and are happy to practise their language skills.Portuguese take gastronomy seriously. In the Central region there are many excellent restaurants and cafes, which serve a variety of regional traditional dishes including roasted kid and bacalhau com natas (cod with cream) with superb locally produced wines. Eating out in Central Portugal is inexpensive and it is not unusual for a restaurant to offer a three course lunch with wine for 6€. If you have a sweet tooth you will enjoy the large selection of regional cakes and desserts available.ClimateThe climate in Portugal varies considerably from one region to another and is influenced by the relief, latitude and proximity to the sea, which offers mild winters, especially in the Algarve.In the Porto, the North area and Beiras region, particularly inland, nearer Spain, the winters are colder, although the temperatures are still mild when compared to the rest of Europe. There is some snowfall. This occurs most in the Serra da Estrela mountains, where we find the highest point in mainland Portugal (1,991 m) and where it is sometimes possible to ski.The summers are hot and dry, especially in the inland areas (Trás-os-Montes in north-eastern Portugal and Alentejo). Temperatures are slightly lower in the coastal areas, because of the influence of the sea.There are often warm, sunny days in autumn. Nice weather at the beginning of November is often called “St. Martin’s Summer” as this saint’s day is on 11 November.Jan Mar May Jul Sept DecLisbonMin 8 10 13 17 16 12Max 14 18 22 32 25 17Rainfall 111 109 44 3 33 93Temperatures in Centigrade. Rainfall in mmCost of living in PortugalThe cost of living in Portugal has risen over the last decade or so, mainly due to its inclusion in the European Union. However compared to other European countries it is still comparatively cheap to live.It is difficult to calculate an average cost of living as it depends upon individual lifestyles. However we have listed a few of the basic items to give a rough overview.Household costsGas* 25.00€ per 12.5 Kg bottleElectric* From 20€ per monthWater* From 8 € per monthTelephone 15 € per month line rentalRates* From 60€ per year*figures are based on two people living in a three-bedroom property.Car CostsCar Tax* 8.10€MOT (IPO)* 26€Insurance* 150€Petrol 1.53€Diesel 1.31€*figures are based on a Ford FiestaFood & DrinkChicken 1,20€ per kiloMilk 0.55€ a litreBeer from 0.40€ a 33cl bottleWine from 0.89€ a bottleEating & Drinking OutBeer from 1€ a 33cl bottleWine from ) 0.50€ a glassMeal from 6 € (3 course)Sandwich from 1.20€Public holidaysPublic holidays, or Bank Holidays, are far more frequent in Portugal than they are in the United Kingdom. It is useful to note apart from supermarkets, cafes and services stations most commercial businesses do not operate on these days.If you are considering a viewing trip, or are already living in Portugal, take a note of these dates as it would be unlikely as you may save yourself time, money and effort visiting companies, which are ‘fechado’.Date (2014) Event1 January New Year’s Day18 April Good Friday20 April Easter25 April Revolution Day1 May Labour Day10 June National Day15 August Assumption Day8 December Immaculate Conception of our Lady25 December Christmas DayNote: 26 December, or Boxing Day, is not a holiday. Moveable Feasts: Good Friday and Corp Christi, which is usually in June. Public holidays falling on a weekend are not moved forwards to the following Monday. Banks, post offices, offices and shops are all closed on Public Holidays. Each town and region also has its own special holidays in addition to those given aboveInheritance lawUntil recently the rules on inheritance tax were very complicated in Portugal, with rates varying according to the value of the inheritance and how you were related to the beneficiary. However recently they have been overhauled and they are now much simpler to understand.You can now leave your property to a spouse, child or parent without them incurring any inheritance tax. If you leave it to a third party, they will have to pay a fixed rate stamp duty (Imposto de Selo) of 10%.Portuguese WillsIt is advisable you make a Portuguese will. Under UK law any overseas assets must be disposed of according to the law of the land, and under Portuguese law, if there is no local will, your estate may be divided between your children and spouse.Banking in Portugal
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