Signature Properties Solutions: PROPERTIES

PROPERTIES

Under this section , you will find the properties that are for sale  and also rentals . 

Under this section "Properties for sale"  you will find also interesting and useful information pertinent to buying a property in the Algarve. 

BUYING, NON HABITUAL RESIDENCE AND GOLDEN VISA

 

BUYING

Buying a property in Portugal is a simple and logical process. After you have decided on the property that you wish to purchase you need to put in an offer considering both the asking price and the purchase conditions.

You need to consider whether your offer includes furniture and if so, ensure that you have an agreed inventory of which items are included and which items are not. Additional flexibility regarding the offer is often helped if you are a cash buyer, have a pre- arranged mortgage or if you can close the deal to a time scale convenient to the vendor.

Once the purchase price has been agreed by both parties, you will need to put down a fully refundable 5000,00 Euro holding deposit which can be held by the lawyer of your choice and co- sign a reservation form.  At this stage you will agree to a timescale for the next stage of the process to take place. During this time the property will no longer be shown but will not be taken off of the market.

The next phase of the process is called the promissory and after this time neither you nor the vendor can change your mind without a financial penalty. You will be required to put down at least 10% of the agreed purchase price and should you change your mind after this process has taken place you will lose the monies. Should the owner change their mind then they are obliged to pay you twice the 10% deposit. It is at this stage that the property is officially taken off of the market.

Once the promissory stage has been completed your lawyer will ensure that any outstanding items are dealt with and schedule the signing of the deed. If you have not made arrangements for your lawyer to represent you then you will need to be present.

 

Costs

There are certain costs that have to be accounted for in addition to the purchase price :

For a purchase of any property over 523,00.00 Euros there is a flat fee of 6% IMT purchase tax

Stamp duty 0.8%

Legal registrations etc.  up to 500 Euros

Lawyers fees generally 1% of the purchase price

The Signature Team has developped an Excel cost calculation which can help you to estimate the final purchase price. 

 

 

NON HABITUAL RESIDENCE

 

The non Habitual resident tax regime was introduced in 2009 to attract talent in high value activities and is available to all individuals becoming tax residents in Portugal providing that they were not previous tax residents.

To be considered as a tax resident you need to remain in Portugal for more than 183 days during each fiscal tax year or have a home in Portugal that you intend to hold as your habitual residence.

Non habitual residents are subject to a 20% tax rate on salaries and professional income from a Portuguese source arising from scientific, artistic or technical work.

Pensions paid abroad to non habitual residents are also tax exempt if they are not considered to be obtained in Portugal and the related contribution did not allow a PIT deduction in Portugal

In addition there is reduced or deferred taxation on dividends and other investment income and no inheritance or gift tax.

 

 

GOLDEN VISA

In 2012 Portugal launched a Golden Visa Program to attract foreign investors which provides a Permanent residency visa for NON EU citizens.

To be eligible one of the following investments have to be made into Portugal.


The Investment can be made as either an individual or through a company providing the personal share of the investor fulfills the amounts as stated above.

Once the application for the Golden Visa is made the applicant will also have to fulfill the following conditions  with all foreign documents  being officially translated into Portuguese and legally verified:-

Provide evidence that they can support themselves

Provide evidence of adequate health insurance

Provide evidence that they have accommodation and are residing in Portugal

Have a clean criminal record

On receipt of the application the Portuguese Government will determine whether to sanction the permit or not – this usually takes 60 days.

The minimum time to retain the Investment in Portugal is 5 years during which the holders of the permit will have to provide proof that they have been in Portuguese National territory for a minimum of 7 days in the first year and 14 days in the following years.

The holder of the Golden Visa permit is then given the same rights as a Portuguese National and have the right to Health care, education, access to the justice system and travel within the Schengen zone countries.

Although Portugal does have treaties with a number of other countries to avoid double taxation the holders of Golden Visa permits are liable to pay local taxes.

 

If you wish to apply we recommend that you seek professional advice from a Portuguese registered lawyer and/or an accountant.

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