Buying a house in Portugal can be a dream for many emigrants. Whether for your own use, as an investment, or to secure a place to return to in the future, it is important to be well informed about the process. This guide covers the main aspects you should consider when buying a property in Portugal.
1. Financial Planning
Budget Evaluation
- Determine how much you can spend, considering savings, current income, and financing capacity.
Loans and Financing
- Mortgage: In Portugal, banks offer several mortgage options for emigrants. It is essential to compare the interest rates, terms and conditions of each institution.
- Effort Rate: Generally, the effort rate (percentage of income allocated to the payment of the credit) should not exceed 30-35%.
Read also: The Importance of Credit Pre-Approval: Why It's Your First Step to Buying a House
Read also: Home Construction Loans: Everything You Need to Know
Bank Account in Portugal
- Need for a Bank Account: Having a bank account in Portugal makes it easier to pay for expenses related to buying the house, such as the down payment, taxes, and notary costs. It is also necessary to obtain a mortgage.
- Account Opening: To open a bank account in Portugal as a non-resident, you generally need to submit the following documents:
- Identification Document: Citizen Card or Passport.
- NIF (Tax Identification Number): You can obtain this number from the Tax Authority in Portugal.
- Proof of Address in the Country of Origin: Banks accept proof of residence in the country where you currently reside.
- Proof of Income: IRS statements, payslips or other documents that prove your income.
Some banks, such as Millennium BCP, Caixa Geral de Depósitos and Novo Banco, have specific offers for emigrants and allow you to open an account online or at branches abroad
2. Required Documentation
Personal Documents
- Identification: Citizen Card or Passport.
- NIF (Tax Identification Number): Required for any financial transaction in Portugal.
- Proof of Address and Income: IRS statements, payslips or other documents that prove your income and residence.
Documents for the Property
- Certificate of Content: Document issued by the Land Registry Office that proves the ownership and legal status of the property.
- Caderneta Predial: Document issued by the Tax Authority that describes the characteristics of the property and its patrimonial value.
Read also: Real Estate Appraisal: Everything You Need to Know
3. Choice of Property
Type of Property
- Used vs. New: Consider the advantages and disadvantages of new and used properties.
- Location: Analyze the location considering proximity to services, transportation, security, and potential for appreciation.
Read also: Buying a Property under Construction: Advantages, Disadvantages and Precautions to Take
Read also: What Questions Should You Ask When Buying a Home?
Visits and Inspections
- Make several visits to the property at different times.
- Consider hiring a professional to perform a technical inspection of the property.
Read also: Gross, Useful, Dependent and Private Area. Do you know the differences well?
4. Purchase Process
Proposal and Promissory Contract of Purchase and Sale (CPCV)
- Purchase Proposal: Present a proposal to the seller. If accepted, the CPCV is advanced.
- CPCV: This contract binds both parties until the signing of the deed. It includes the payment of a down payment, usually 10-20% of the value of the property.
Read also: The Importance of CPCV: Everything You Need to Know
Read also: The Importance of the Energy Certificate in Buying a House
Deed and Registration
- Public Deed: Act formalized in a Notary Office that makes the purchase official.
- Registration at the Land Registry Office: After the deed, it is necessary to register the property in the name of the buyer.
5. Additional Costs
Taxes and Fees
- IMT (Municipal Tax on Property Transfers): Variable according to the value and type of the property.
- IS (Stamp Duty): 0.8% of the purchase price.
- IMI (Municipal Property Tax): Paid annually, calculated based on the patrimonial value of the property.
For more details: Buying a Home: Associated Costs
Read also: IMT and IS exemption for young people up to 35 years old
Deed and Registration Costs
- These include notary fees, registration costs and possible lawyers' fees.
6. Final Considerations
Professional Consulting
- Lawyer: Recommended to ensure that all legal aspects are handled properly.
- Real Estate Consultant: They can help you find the right property and negotiate the best price.
Future and Profitability
- Evaluate the potential for appreciation of the property and consider the possibility of renting for additional income.
Conclusion
Buying a house in Portugal as an emigrant may seem challenging, but with the right planning and information, the process becomes simpler and safer. Prepare, research well, and consider the support of professionals to ensure you make a good investment.