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Fiscal number
The
first thing to do is to obtain a fiscal number from the Tax Office (“Finanças”). Each fiscal number costs
6,40€.
Paying a deposit
Second, it is quite normal for both Parties to initially enter into
a Promissory Contract detailing the conditions of Sale - "Contrato de Promessa de Compra e Venda". This Contract is legally
binding on both sides and the law requires the seller to repay twice the deposit should he withdraw from the sale. Likewise,
if the buyer fails to complete he forfeits the total of his deposit. There are specific laws relating to this act that a Lawyer
will be able to explain.
IMT
tax
Third, dependent upon the value of the property being purchased, there may be taxes
to pay called IMT (Imposto Municipal sobre Transmissões).
The
tax to pay is as follow:
A fix rate of 5% allocated to the land value and a scale rate for the houses that can
go from 0% to 8% dependent on the value of purchase (see these rates here).
"Escritura de compra
e venda"
Fourth, after the deposit, the sale can go ahead with the act
known as 'Escritura de Compra e Venda'
which takes place in front of the selected Notary and is subsequently registered. It is at this time that the final
payment has to be made. The Notary's Office then issues a photocopy of the Escritura, the Notary will always hold the
original.
Registry
The property is then registered in the Land Registry
(Conservatória do Registo Predial), in the new owner's name. It is not obligatory for this to be done until the owner
wishes to sell the property. However, we strongly recommended that the new owner makes this registration immediately.
*If all the paperwork
is in order, the process shouldn't take more than a few weeks to be completed
* We suggested that legal advice be sought in any purchase. If necessary we can recommend an English-speaking
solicitor or lawyer.
* It is also often convenient
for the buyer to ask a third party to act on their behalf throughout the process of buying a property. A document called
'Procuração Publica' (Power of Attorney) is prepared with the necessary details and registered in the Notary, to serve these
purposes. This can also be implemented in the Portuguese Consul in a foreign country.
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