Portugal is a country with an excellent climate, very well located between Europe and North and South America as well as Africa, with an old but vibrant culture and very friendly to foreigners. It has some of the most beautiful beaches in Europe as well as a fairly differentiated country side. When compared to most of Europe, it can offer an affordable cost of living.
Politically, it has been very stable, particularly since it obtained E.U. membership in 1986.
General Real Estate Practices
The commission due to real estate intermediaries normally fluctuates between 4 % and 6 %, depending on the area, type of property and value. Value Added Tax (VAT) is added to all commissions. VAT is at present ( January 2013) at 23 %. Commission is paid by the seller.
Transfer tax (IMT) varies from 0 to 8 % of the registered purchase price up to a maximum of just below € 600.000,00 (six hundred thousand Euros). All transactions above this threshold value are taxed at a flat rate of 6 %. On transactions below this maximum price, a fixed amount, whose value depends on the price, is deducted, thus effectively reducing the tax to be paid. The tax free limit is € 80.000,00. The threshold value is about € 25.000,00 less if the property is purchased for temporary (not permanent) living.
Lawyers and surveyor fees can add up to 2 % of the purchase value, should their services be used. Stamp and notary fees are approximately 1 % to 2 %.
The government has introduced new legislation aimed at attracting foreign investors to Portugal, making it easier to obtain a visa permit for non EU residents (the so called “goldenvisa”). A section of the legislation applies to real estate investments.
The rules which apply in this case are as follows:
Acquisition of Property equal to or above € 500.000,00 (five hundred thousand Euros).
The purchase must have taken place after 8th October 2012.
The acquisition must have taken place before the application for the permit.
Properties have to be acquired free from any charges or mortgages.
Minimum lengths of stay in Portugal are 30 days for the first year and 60 days following periods of 2 years.
The Residency Application must be made within a maximum 90 days after entry in Portugal.
Possibility of permanent residency after 5 years and nationality one year later.
Documents required are as follows:
Valid passport and Schengen Visa
Valid travel document and medical insurance
Updated property documents showing ownership
Absence of criminal conviction and of interdiction to enter the country
Golden Visa Typical Application Costs
Processing Fees: € 500,00
Initial Investor Residence Permit: € 5.000,00
Renewal of Investor Residency Permit: € 2.500,00
Initial Residency Permit for family Members: € 5.000,00
Renewal of Residency Permit for Family Members: € 2.500,00
Legal Services and Property Work
Our company offers the full support of our legal services covering property acquisition and the application for investor residency permit, thus allowing the client proper representation before the Portuguese Authorities.
There is no multiple listing system but firms are free to cooperate if and when they see fit.
Brokerage firms and individual brokers cannot operate unless registered and licensed with the association which officially represents them.
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