Investing

Finance and Mortgages

Appraisals and the Market

The list below is your search results. Use the sort options to organize the list.

You may use the arrows under the photos to discover a little more or click on the photo/read more to open a window with a full description and bigger photos to see.

www. litagale.com

Find it here!

Hundreds of answers to common real estate and mortgage questions divided in the following categories:

Consult the ultimate Practical Legal Guide to Buying Property in Portugal, sponsored by Lita Gale Solicitors and written by a Solicitor with over 24 year legal experience of dealing with property in Portugal.

Appraisals and Market Value

Buying propetry in Portugal Uk or any where else in the world requires above the exercsie of common sense.

Over the last 30 years the property market in Portugal has came along in leaps and bounds.

Portugal and its people are a country with vision, open to the challenges of the future and who has invested in its youth whilst seeking to encourage foreign investment , to include the property sector as well as many other fields, where discreetly and without much ostentation it has been taking its share of the market in many areas which are not immediately obvious such as in the optic and steel cable industry, whilst the Alentejo wines are finally receiving the glory they so richly deserve .

BuyingHome

Property Transfer Tax in Portugal - IMT - Introduction

IMPOSTO MUNICIPAL SOBRE TRANSMISSOES

This is a tax that is payable prior to purchasing a property. It very similar to the Stamp duty payable in a transacion in the UK.

One of the major differences is that Stamp Duty in the UK is payable within 30 days of completion of the purchase of the property and in Portugal stamp duty is payable on or before the completion date of the transaction.

There arealso different rates at which this tax is payabe.

The rate depends on the type of property being transfered and whether the property is in the mainland or Madeira and the Azores.

Houses and apartments which are to be treated as a first home incurr IMT on a sliding scale and a higher scale for 2nd Homes.

This means that a non resident person that s acquiring a property in Porrugal is on average treated as acquiring a second home and pays IMT tax at a slightly higher rate, unless they are actual residents of Portugal.

A diferent rate applies acquiring rustic/ agricultural land and all othr types of property transactions.

There area also differenta reates applicable to Madeira which result in that IMT in Madeira adn the Azores is on average less than in mainland Portugal. This is to accomodatea and reflect maybe the different economy of those Islands.

Careful consideration should b egiven to the payment of this tax.

The forms which required to be completed are very specific and require specific answers to specific questions and care should be taken in particular when setting out the parties marital regimes.

IMT payment scales

This page is under construction
Please check soon for full details and tables

A TO Z of Legal terms in Portugal and Advice

Complied from the EMERGENCY GUIDE TO BUYING PROPERTY IN PORTUGAL a book by Cecila Gale

A to Z of Portuguese Legal Terms
www.litagale.com

In most jurisdictions a contract can be made very simply, in writing, orally or by conduct, therefore, care must be taken to always read the small print. I strongly recommend that you do not sign documents or pay any monies until first having consulted your legal representatives.
Buying a Home in any country can be traumatic but it does not have to be and the joys and rewards of owning your own home make it all worth while.
Good luck and enjoy your home in the sunshine!
This is a Quick Glance Guide to Terminology and the immediate checks to be made if you are interested in a particular property and before making any kind of offer on a property and to introduce you to some terms more commonly used and their Portuguese equivalent and at the same time to give you an explanation of the basic steps, which you will encounter throughout the buying process.

Advogado
Equivalent to an English Solicitor and are addressed as doctors in Portugal.
They are equivalent to an English Solicitor who do in the UK the work of the Notaries IN Portugal
Agente Imobiliário
Estate Agent - Estate agents in Portugal must be registered with their governing body.
You should resist dealing with any person or company who is not licenced.
REMEMBER estate agents in Portugal are duty bound provide full evidence of title to the property and to disclose all relevant information and documentation
Apólice de Seguro
Insurance Policy - Arrangements must be made as soon as possible for insurance cover once you purchase the property.
If the property is in an apartment block there is normally an insurance policy for the whole block. If you want to terminate an insurance contract you must serve notice in writing.
Consider also taking out insurance for contents and for your staff such as cleaners and gardeners.

Assinatura do Contrato
Exchange of Contracts: Upon the signing of the Promissory Contract, the Seller becomes bound to sell and the Buyer bound to buy the property and the deposit is then payable to the Seller who normally retains it.
In the UK the deposit normally is retained by the seller solicitors as stakeholders but in Portugal is under normal circumstances used and the amount of damages payable for severe breach of contract
Avaliação -
Valuation: This is normally carried out by the Banks but it is not the same as a Survey.
You should consider always having your own survey and valuation of the property before committing to buy a property and if appropriate make further enquires and have a topographic study of the property.
Caveat emptor
Buyer beware
The property and contents are normally sold as seen other than as implied but define that normal wear and tear is excluded
Because of this you should have the property surveyed and inspected where possible before exchange of contracts and completion of the transaction.
Comprador
Buyer - As for the seller, ensure that you or your legal representative makes identity, residency and status checks.
Conservatória do Registo Predial
Land Registry - A Property of whatever nature may not be transferred unless it has been registered at the Land Registry in the name of the Seller. If the Seller is not the owner, the true owner will have to sign the transfer Deed.
Conta Bancária
Bank Account It is advisable to have a bank account in Portugal and you will also need to provide evidence and identification of who your parents are, your residency and proof of income and what is your profession as well as fiscal numbers.
Contrato de Empreitada
Building Contract - Which deals only with the construction, refurbishment or other building works rather than the sale of the land.
Great care should go into agreeing the final terms of this agreement and in particular the to ensure that you have fixed payment conditions by reference to construction time and actual building schedules.
It is also wise to include penalties for late delivery and a suitable retention to deal with minor post completion works.
Contrato Promessa de Compra e Venda
Promissory Contract - This normally is provided by the Seller together with Evidence of Title and the plans of the property and contains the usual terms and conditions for buying the Property.
Direitos de preferência
Rights of Preference - Neighbours, Local Authority and or the Portuguese Architecture Institute (IPPAR) may also have rights to acquire the property and they must first say that they are not interested in acquiring the property.
Do not overlook these rights.
Entrega dos documentos
Deliver Documentation: In order to book completion it is necessary for all of the property documentation to be delivered in advance to the Notary as well as the identification documentation of the parties, such as copies of passports, powers of attorney searches etc.
Escritura
Deed: Also used to refer to the transfer of the property.
Finanças
Fiscal Department - The equivalent to the local Inland Revenue tax department for the area where the property is situated.
A property may not be transferred unless it is also registered at the Fiscal Department and certain areas of the country have an additional requirement for the property to be registered on the Cadastro. That means that the property ahs to be properly registered at the Fiscal Department, Land Registry and Cadastro.
Hipoteca
Mortgage/Charge: The bank normally arranges to value the property and issues a mortgage offer. The lending will be secured with a mortgage/charge over the property.
Imcumprimento
Substantial Breach: Under normal circumstances a substantial breach of contract by the Buyer entitles the Seller to retain the deposit. A substantial breach by the Seller entitles the Buyer to receive twice the amount of the deposit.
Imposto Municipal sobre Transmissões (IMT)
Property Transfer Tax: (formerly Sisa Tax), payable prior to the signing of the Deed of Sale and Purchase. This payable normally on a sliding scale.
Inspecção
Inspection - It is highly recommended that you inspect the property and the contents and see if all is in working order before exchange of contracts and certainly before completion of the sale of the property.
Inspecção da Propriedade
Survey This should be done by reference to the plans of the property and its description at the Land Registry, Fiscal Department and Habitation Licence where there is one.
IPPAR - Instituto Português de Patrimonio Arquitetonico
The Authority who decrees whether a building or area is a listed building and the conditions imposed.
Inventário
Inventory: If the property is being sold with contents? If so these should be detailed in full and you should enquire as to whether there are valid guarantees in force.
Licença de Habitabilidade/ Licença de Utilisação
Habitation Licence: Confirms that the property has been constructed in accordance with the Planning Permission.
A Property may not be sold unless it has a Habitation Licence or a specific document issued by the town hall that declares that the property is exempt form that requirement.
Marcação da Escritura
Book Completion: The Promissory Contract normally provides for who is to book completion of the sale and purchase and also a mortgage where there is to be one. It has to take place before a Notary Public in Portugal.
Mora
Minor Breach: Usually dealt with by way of damages.
Notario Público
Notary Public - A property is transferred when the Seller and the Buyer sign the Deed (Escritura) before a Notary Public in Portugal. He/she acts as an Officer of the State in a similar capacity to that of a Registrar.
In the UK this work is undertaken by Solicitors.
Número de Contribuinte
Fiscal Number - Equivalent to a national insurance number. It is required by anyone who has property or other interests in Portugal such as Bank accounts.
Oferta de mútuo empréstimo e Hipoteca
Mortgage Offer: The bank’s formal confirmation that it will finance the purchase of the property.
This should be read carefully as the bank will make usually some retentions and the net amount lent will not be the same as the gross amount.
Partes
The Parties - Who are they? Where do they live? Are they bankrupt? Or, if the party is a company, are they in liquidation? Who has the power to represent them? Is the Seller registered as the owner of the property.
PDM: Plano Director Municipal:
Shows what may be built on the property and the area.
Procuração
Power of Attorney: a person can instruct another to represent him/her by giving a Power of Attorney.
Registo Provisório
Provisional Registration: The mortgage or the purchase is registered at the Land Registry prior to the purchase of the property, after exchange of contracts.
Regime de Bens

Marital Regimes - there are 3 different types of marital regimes. Take care to know what this means and the effect of quoting the wrong marital regime in Portugal.
Representante Fiscal
Fiscal Representative - Anyone who has an interest in property or other assets in Portugal and is non resident in Portugal for tax purposes must have a Fiscal Representative. The representative is responsible for passing on to the non resident all communications received from the Portuguese Tax Authorities which also applies to their spouses.
Sinal
Deposit: Usually 10 to 20% of the Purchase Price
Solicitador - Equivalent to an English Legal Executive.
This is not and should never be taken or accepted to be the same as a Solicitor, unless the person s qualified in the UK as a Solicitor
Testamento
Will: Take careful independent advice on the need to make a Will form someone that understands your background and needs.
This may be vital to the future of those whom you wish to protect if you are not here.
Transferência Bancária
Bank transfer: Make sure that you have the monies in place, ready for completion as soon as possible.
Vendedor
Seller - Ensure that you or your legal representative makes identity, residency and status checks.

Complete Legal Guide to Property in Portugal

Visit
www.litagale.com
www.legalportugal.com