Buying Property in Portugal

A buyer was represented in the purchase by a representative who, prior to the deed, visited the house and found that one of the rooms with a glazed marquee had dampness near the windows. The seller justified himself with works carried out by a neighbour that had caused damage to a window, through which water … Read More

Isn´t the warranty term always the same in any case or situation? Discover the determining factors of the warranty term for a building. The warranty term for a building is a right given to the consumer/buyer of the good, holding the builder responsible for construction defects, built-in damage or  lack of conformity with the agreed … Read More

The Energy Performance Certificate (EPC) is a document presenting the energy efficiency of dwellings on a scale of A+ to G, whereas A+  corresponds to the most efficient performance and G to the worst. All homes bought, sold or rented in Portugal require an EPC. EPCs contain: a) information about the building; b) description of … Read More

— Calculation of capital gains — Reinvestment   — Real estate sales may generate income subject to income tax (IRS) (with a capital gain resulting from the difference between the purchase and sale prices).   The following must be known to calculate the capital gain amount: — purchase price and year; — costs of property … Read More

The acquisition of real estate is subject to a Stamp Duty of 0.8%, regardless of whether it involves a purchase/sale, donation or inheritance.   Real estate donations are also subject to Stamp Duty (10%). The final applicable rate is 10.8% against the property’s taxable assessed value (per the legal description).   The rate of only … Read More

Construction works for certain types of properties may be entitled to a reduction in tax rate (6% in mainland Portugal, 4% in the Azores and Madeira).   This rate applies to the improvement, remodelling, renovation, restoration, repair and conservation of properties or individual parts of these allocated to residential purposes. Cleaning work, maintenance of green … Read More

This is the document that obligates the parties to carry out the property purchase/sale transaction under a given set of terms and conditions, in accordance with their respective interests, needs and requirements.   It must be adapted to each separate transaction. Any breach of the promissory agreement will result in penalties.   The parties must … Read More

When buying a new property, in addition to the price negotiated with the seller and taxes (Real Estate Transfer Tax [IMT] and Stamp Duty), you will have to pay some additional costs involving the warranty deed, notary public and registries.   If you are taking out a loan, you may be charged for your credit … Read More

Buying a house in Portugal involves a series of legal procedures and tax obligations. You should go to your local tax office and learn about the property’s financial and tax status. You must find out whether the property is free of any liens or encumbrances (mortgages, attachments, usufruct, rental agreements, etc.). This information is available … Read More