Purchasing a property in Portugal   As a fully registered and licensed real estate company, Domaidan Mediação Imobiliária Lda will help you at all the stages of purchasing a property. We understand how complex the process can appear to those unfamiliar with Portuguese law and language.

We will seek to fully understand exactly what type of property you are looking for and how much you wish to spend. We will discuss with you the type of location, facilities and ensure that you have the benefit of all our local knowledge and experience. 

You will be helped to choose properties which meet your criteria after which we will arrange viewing visits to those of most interest to you. We understand that our clients do not wish to waste precious time viewing properties that are not suitable.

Property purchase in Portugal is relatively straightforward and there are five basic steps to the buying process:

Obtaining a Fiscal number (tax number). The promise to buy and sell contract. Payment of taxes. Completion of the contract. Registration of the property into your own name.

Fiscal Numbers For non-Portuguese clients it is important to know that you must obtain a fiscal number and open a Portuguese bank account. Domaidan will give you every assistance in obtaining these as well as offering you a choice of independent local lawyers to provide you with objective and legal advice on the purchase to ensure peace of mind in this important decision.

When you have chosen the property you want to purchase and you have agreed the purchase price with the vendor, a Promissory Contract (Contrato Promessa de Compra e Venda), which details the conditions of sale and other agreements regarding the transfer, will be drawn-up. The contract will also record a date for completion of the purchase. Once this has been signed, both parties become legally bound to see the transfer through. A deposit of 10% to 20% of the purchase price is usually lodged at this stage.

NB: The Promissory Contract is a legally binding contract. In the event that the purchaser withdraws from the sale after signing the promissory contract, he will lose the amount given as a deposit. Should the vendor withdraw from the sale, then he will have to re-pay double the amount given as a deposit.

Taxes are payable in the Finance Department before the execution of the Deed of Purchase and Sale. There are currently two taxes payable on acquisition of a property in Portugal: The Portuguese Government Property tax (IMT - Imposto Municipal sobre as Transmissões Onerosas de Imóveis) and Stamp Duty (Imposto de Selo).

Stamp Duty – the current rate is 0.8% of the purchase price. IMT tax – is on a sliding scale based on purchase price and whether the property is for your permanent residence or is non-residence / a second home. Rustic land – the current tax rate is 5%. Building land and commercial property – the current tax rate is 6.5% Mortgage – the current tax rate is 6%

Completion of the contract takes place with the execution of the Deed of Purchase and Sale (Escritura Pública de Compra e Venda), which is signed before a notary and officially recorded. On signing the Deed of Purchase the balance of the purchase price is paid according to the provisions of the Promissory Contract.

Registration of the property into the new owners name is undertaken at the Land and Property Registry (Conservatória do Registo Predial) and in the Finance Department (Finanças) of the Câmara Municipal, after which the transfer is complete.

Other taxes to consider: The annual council tax - IMI (Imposto Municipal Imobiliário) differs from municipality to municipality and ranges between 0.4 and 0.8% of the council´s valuation of the property.  

Golden Visa

What is required
The rules governing the granting of Residence Permit for Investment (ARI / Golden Visa), in force from 8 October 2012, enable third country nationals to obtain a temporary residence permit to conduct business activities with visa waiver to enter national territory. The beneficiaries of ARI / Golden Visa are entitled to: 
• Residence visa waiver for entering Portugal; 
• Living and working in Portugal, on condition that they stay in Portugal for a period of 7 or more days, in the first year, and 14 or more days, in the subsequent years; 
• Visa exemption for travelling within the Schengen Area; 
• Family reunification; 
• Applying for permanent residence (pursuant to the Aliens Act – Act number 23/2007 of 4 July with the current wording );
• Applying for Portuguese citizenship, by naturalization, provided all other requirements set out by the Nationality Act are fulfilled  (Act number 37/81 of 3 October, with the current wording);

Eligibility – Who may apply?    All third country citizens who conduct an investment activity, as an individual businessperson or through a company set up in Portugal or in another EU Member State and who, in addition, are stably settled in Portugal, provided these citizens fulfil the quantitative requirements and the time requirements set out by the relevant legislation, may apply for a Residence Permit for Investment, by one of the following routes:   i. Capital transfer with a value equal to or above 1 million Euros;
ii. The creation of, at least, 10 job positions; 
iii. The purchase of real estate property with a value equal to or above 500 thousand Euros; 
iv. The purchase of real estate property, with construction dating back more than 30 years or located in urban regeneration areas, for refurbishing, for a total value equal to or above 350 thousand Euros;
v. Capital transfer with a value equal to or above 350 thousand Euros for investing  in research activities conducted by public or private scientific research institutions involved in the national scientific or technologic system; 
vi. Capital transfer with a value equal to or above 250 thousand Euros for investing  in artistic output or supporting the arts, for reconstruction or refurbishment of the national heritage, through the local and central authorities, public institutions, public corporate sector, public foundations, private foundations of public interest,  networked local authorities, local corporate sector organizations, local associations and public cultural associations, pursuing activities of artistic output, and reconstruction or maintenance of the national heritage; 
vii. Capital transfer with a value equal to or above 500 thousand Euros, for purchasing shares in investment funds or in venture capital geared to capitalize small and medium companies that, in turn, must present a feasible capitalization plan. 
  Portuguese, EU and EEE nationals are not eligible for the ARI / Golden Visa scheme.      

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