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Know your house value?

Frequently Asked Questions

  • The initial step to buying a house is to contact an accredited and properly licensed real estate agency, such as Casas do Barlavento. From there, we seek to understand your needs and desires, presenting properties that match what you’re looking for. This encompasses property type (villa, apartment, land, etc.), number of bedrooms/bathrooms, exact location in the Western Algarve, budget, among others.

    At a later stage, you can decide which properties you want to visit to gather further information and additional details about each one.

  • A fully accredited real estate agent can streamline and simplify the entire process of buying or selling a property.

    They utilise their knowledge, experience, and extensive portfolio to help you find the ideal property or quickly sell the house. We’re here to answer any questions you may have, always prioritizing confidentiality.

  • The mandatory documents for selling a property are:

    • Owners’ identification documents;
    • Energy Performance Certificate of the property;
    • Tax Department Certificate;
    • Usage License;
    • Land Registry Certificate;
    • Housing Technical Datasheet;
    • Legal Right of First Refusal;
    • Condominium Charges Declaration.

    The non-mandatory documents include:

    • Property plan;
    • Invoices for property renovations;
    • Tax Invoices;
    • Condominium payment receipts.

  • If you do not reside in Portugal, it is necessary to have a legal representative to assist with some procedures on your behalf, such as signing documents for the purchase or sale of a house.

  • Yes, foreign citizens are allowed to freely purchase property in Portugal. There are no restrictions, and it is possible to acquire real estate for permanent residence, holiday use, or investment purposes.

  • The initial requirement is to obtain a NIF (Número de Identificação Fiscal), which is essential for entering into contracts and, for instance, opening a bank account in Portugal. Where mortgage finance is required, applicants may seek lending by submitting documentation such as a passport, NIF, and evidence of income.
    This is followed by the execution of the CPCV (Contrato-Promessa de Compra e Venda), which serves to formalise the transaction by establishing the agreed terms, including timeframes, the purchase price, and the deposit (down payment).
    The process concludes with the completion of the public deed of sale, which may be carried out at a notary’s office, through the “Casa Pronta” service, or in the presence of a solicitor or legal representative.

  • The NIF, or Tax Identification Number, is a number assigned to any individual, whether national or foreign, who needs it to carry out tax-related activities in Portugal. It can be obtained at any tax office or through a tax representative. This number is used in various situations, such as:
    – Signing the CPCV (Promissory Contract of Purchase and Sale)
    – Completing the property purchase deed
    – Opening a bank account in Portugal
    – Paying taxes such as IMT (Property Transfer Tax), Stamp Duty, or IMI (Municipal Property Tax)

  • Foreign buyers should expect additional costs of around 7% to 10% of the property value. One of the main charges is IMT (Municipal Property Transfer Tax), which varies depending on the VPT (Taxable Property Value) and the intended use of the property, whether it is a primary residence or a secondary home.
    Stamp Duty is another cost associated with property purchases, charged at a fixed rate of 0.8% of the deed value or the VPT. If a mortgage is used, an additional Stamp Duty of 0.6% applies to the loan amount.
    Regardless of where the deed is completed, there is a cost that typically ranges between €500 and €1,500. If legal support is required, which is particularly recommended for foreign buyers, legal fees may range between 1% and 2% of the purchase price.
    When applying for a mortgage, buyers should also account for bank charges such as application fees, property valuation fees, and other related costs, which vary depending on the financial institution.
    After purchasing the property, foreign buyers should consider annual costs such as IMI or AIMI. IMI typically ranges from 0.3% to 0.45% of the VPT. AIMI (Additional Municipal Property Tax) applies only to owners whose total property assets exceed €600,000, or €1,200,000 for married couples filing jointly.

  • The buyer doesn’t need to be present. A fiscal representative can be appointed for this purpose. This is a very common practice among foreign buyers and is completely safe and legal.

  • Although it is not a legally mandatory document, signing the Promissory Contract of Purchase and Sale (CPCV) provides greater security for both buyer and seller. It sets out the price, deadlines, deposit amount, and other conditions related to the purchase and sale of the property that both parties wish to clarify before the deed is completed.

  • Yes, a foreign citizen can obtain a mortgage in Portugal. However, specific rules may apply, and the process may be more stringent and bureaucratic for non-residents.