Purchase of apartments and locals in Portugal

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PROCEDURES

Buying procedure:

Conditions of sale and purchase apartments in Portugal and Madeira Island are the same as in Poland and whole European Union. Purchase is made by notarial act which is prepared and signed in the country in which the property is buying. Transactions in Portugal are performed only in Euro.

There are two variants of purchasing:

1. First variant is to buy an apartment during the investment departure – a visit to Portugal or Madeira Island.
2. Second option is to buy property without necessity of visiting to Portugal or Madeira Island. We are always encourage to use the first variant, it provides a personal knowledge of terrain, surrounding area and immediate neighborhood, what is very helpful in making this type decisions.

We would to emphasize that ILS Poland Group is a licensed broker (who has liability insurance) and co-founder of the Polish Chamber of Real Estate – PIN. We care about the best buyer interest in every purchase option. There are three possibilities of signing the contract which has to carry about client interests: in Poland, in Portugal and Madeira Island or by correspondence.
In both variants, buying property is associated with several basic steps.

That process is completely carried out by the ILS Poland Group and looks as follows:

1. Signing a contract or
2. Organization the investment trip, including both ways flight and hotel reservation
3. Pickup from airport and transfer to the hotel and than signing the agency agreement
4. Presentation of alternative properties according to customer specifies criteria and indication of current developers offers
5. We negotiate the offer price with the seller on client request. Negotiations are most effective when the payment is a one-time or if you are buying at least 2 apartments
6. Payment of reservation (usually about 1.000-2.000 EUR) and signing the reservation contract, only in case of primary market offers directly from developer.
7. Individual customer registration at the local Tax Office, in order to gain the Tax Identification Number – portugal Numero Contribuiente. It is necessary to start the purchase process.
8. Translation and negotiating terms of the preliminary agreement
9. Signing of the preliminary agreement and payment of the first tranche which can not be less than 30% of the apartment value within 14 days including into account payments already made a reservation fee (eg. 1.000-2.000 EUR) In case of primary market offers, directly from developer. In case of purchase from individual, signing of the preliminary agreement and payment of the deposit in the amount determined individually with the seller
10. Payment of the remaining 70% of the value in installments and dates agreed individually during signing the preliminary contract. Only in case of preliminary market offers, directly from developer.
11. Receiving and commissioning of premises, verification of the facts and parameters of the local in terms of documentation
12. Organization and signing the final agreement (after formal legal putting the building for use) with a notary in Portugal or Madeira Island with a sworn translator. Usually until that moment the seller is expected the full price, though it is possible to pay during notarial act or after it in date agreed with seller (in cash or by bank transfer).

Nevertheless, the sites will is clearly specified in the contract what guarantees the security of transaction. Content of the agreement defines the brokers responsibilities and steps for its realization.
To meet your expectations, to resolve any doubts and answer the most frequently asked questions we would like to stress that developers with which we have signed contracts are always tested by us. They often have state guarantee, already completed projects and satisfied customers (eg. Our natives from Poland permanently living in Poland, France, Great Britain, Ireland, Norway and other countries around world including lawyers, economists etc.)

COSTS

Purchase costs:

To any real estate purchase, in this case an apartment in Portugal or Madeira Island, except offer price should be added:

1. Notarial transfer agreement costs that is notary fee and the tax on the civil law transactions (same as in Poland) whole is paid to the notary. Notary fee is a cost ranges from ten to hundreds of Euro – negotiable. The tax on the civil law in Portugal and Madeira Island is from 1 to 8% of the transaction. It depends on the commune in which the property is purchased and of the purchased property value – see the following table:

1. to 112.125€ 1% 0
2. from 112.125€ do 153.375€ 2% minus 1121,25€
3. from 153.375€ do 209.125€ 5% minus 5722,50€
4. from 209.125€ do 348.500€ 7% minus 9905,00€
5. from 348.500€ do 668.375€ 8% minus 13390,00€
6. above 668.375 € 6%

2. Costs of flight in both directions and stay in any hotel. The flight costs varies between 400 and 800zł in the off-season in both direction that is Poland-Portugal-Poland per one person. Costs of staying in a good class hotel with a sea view in the winter months and before the season is from 200zl/day per person (it is a optional cost because we are also supporting complex transactions without flight)

Permanent costs:

In the territory of The Portugal Republic and on Madeira Island all owners and buyers of homes, apartments are obligated to pay rent which depends on the type of grade from T1 to T4 according to the size and number of bedrooms. Every apartment owner, wherever the property is located (also if it is a condominium type apartment in a closed complex with many facilities) is obligated to sign a manage contract (the equivalent of our rent) with the administrator, usually developer. Year-round price of the property management oscillates between 25 EUR for T1 to 80 EUR for T4 per month.

Components of permanent costs:

To take full illustrate of the above costs we are giving an example of intimate apartment. We assume that the cost of year-round maintaining for this apartment will be 25 EUR per month (according to the management agreement) which provide 25EURx12months what is 300EUR per year.

This fee forms a cost of managing complex and includes the maintenance of common areas in that:

• front desk
• clock protection
• swimming pools cleaning
• free protected parking for apartments owners
• lifts conservation
• renovation fund
• saunas keeping
• gym, fitness and much more etc.
• proportional flat fee for media (electricity and water)

Additional costs:

Additional fees are set on the basis of counter values and includes electricity and water consumption. Sometimes the fee for the property management includes also a flat charge for electricity and water accounted in annual fee or overpayment after the end of the calendar year

Costs of complex ILS Poland Group service:

ILS provides comprehensive service and conducting every transaction (from own offers bank or from sources indicated by the customer). During the purchase of apartments the broker salary is covered by developer so the buyer is exempt from paying commission!

*Any commission for brokering activities including comprehensive service and carry out of transaction can be determined only when you buy the smallest and cheapest apartments in the promotional ILS POLAND GROUP terms, only when the seller is an individual or developer who does not pay remuneration. ILS POLAND GROUP salary is set individually basing on the property price. The client is informed about this before taking a decision.

ATENTION: ILS POLAND GROUP provides comprehensive after-sale service including assinstance the immense renovations of houses and during apartments are to be furnished and equipped, basing on individual agreements or separate contracts.

Additional and useful links:

1. Embassy: >>https://www.gov.uk/world/organisations/british-embassy-lisbon
2. Wikipedia: >>https://en.wikipedia.org/wiki/Portugal
3. Search for real estates in Portugal for sale: >>https://en.ilspoland.com/real-estates/portugal
4. Search for apartments in Portugal for sale: >>https://en.ilspoland.com/real-estates/portugal/apartments/sale

Purchase of houses and plots in Portugal

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PROCEDURES

Buying procedure:

Conditions of sale and purchase plots and houses in Portugal and Madeira Island are the same as in Poland and whole European Union. Purchase is made by notarial act which is prepared and signed in the country in which the property is being bought. Transactions in Portugal and Madeira Island are performed only in Euro.

The process of buying houses and plots looks similar as buying an apartment:

1. First variant is to buy house with a plot or same plot during the investment trip – a visit to Portugal or Madeira Island,
2. Second option is to buy property without necessity of visiting to Portugal or Madeira Island. We always encourage to use the first variant, it provides a personal knowledge of terrain, surrounding area and immediate neighborhood, what is very helpful in making this type of decisions.

We emphasize that ILS Poland Group is licensed broker (who has liability insurance) and co-founder of the Polish Chamber of Real Estate – PIN. We care about the best buyer interest in every purchase option.

There are three possibilities of signing the contract which has to carry about client interests: in Poland, in Portugal or Madeira Island or by correspondence.

1. Signing a contract or
2. Organization the investment trip, including both ways flight and hotel reservation
3. Pick up from the airport and transfer to the hotel and then signing the agency agreement
4. Presentation of alternative properties according to customer specifies criteria
5. We negotiate the offer price with the seller on client request
6. Individual customer registration at the local Tax Office, in order to gain the Tax Identification Number – portugal Numero Contribuiente. It is necessary to start the purchase process.
7. Organization and signature of the final agreement (after formal legal putting the building for use) with a notary in Portugal or Madeira Island with a sworn translator. Usually until that moment the seller is expected the full price, though it is possible to pay during notarial act or after it in date accepted by both sides of transaction (in cash or by bank transfer).
8. Clearly specified will of the sites in the contract guarantees the security of transaction. Content of the agreement defines the brokers responsibilities and steps for its realization.
9. To meet your expectations in order to resolve any doubts and answer the most frequently asked questions we would like to stress that available houses with plots from the secondary market comes directly from the owner-sellers and we are always checking it against formal aspect.

COSTS

Cost of purchase:

To any plot purchase in Portugal and Madeira Island, except offer price should be added:
1.    Notarial transfer agreement costs that is notary fee and the tax on the civil law transactions (same as in Poland) whole is paid to the notary. Notary fee is a cost ranges from 10 to hundreds of Euros – negotiable. The tax on the civil law in Portugal and Madeira Island is from 1 to 8% of the transaction. It depends on the commune in which the property is purchased and of the purchased property value – see the following table:

1. to 112.125€ 1% 0
2. from 112.125€ do 153.375€ 2% minus 1121,25€
3. from 153.375€ do 209.125€ 5% minus 5722,50€
4. from 209.125€ do 348.500€ 7% minus 9905,00€
5. from 348.500€ do 668.375€ 8% minus 13390,00€
6. above 668.375 € 6%

2.    Flight costs in both directions and stay in any hotel. The flight costs varies between 400 and 800zł in the off-season in both direction that is Poland-Portugal-Poland per one person. Costs of staying in a good class hotel with a sea view in the winter months and before the season is from 200zl/day per person (it is a optional cost because we are also supporting complex transactions without a flight)

Permanent costs:

Property tax – on the teritory of Portugal Republic and Madeira Island the height of property tax depends on the commune in which the property is purchased and its oscillated between 0,35-0,75% of property value calculated at the local tax office rate for a year.

Additional fees:

Additional fees are based on the counter values, it includes normally consumption of electricity , water and waste disposal.
Costs of complex ILS Poland Group service:

ILS Poland Group provides comprehensive service and conducting every transaction (from own offers bank or from sources indicated by the customer). During the purchase of apartments the broker salary is covered by developer so the buyer is exempt from paying commission!

*Any commission for brokering activities including comprehensive service and carry out of transaction can be determined only when you buy the smallest and cheapest apartments in the promotional ILS POLAND GROUP terms, only when the seller is an individual or developer who does not pay remuneration. ILS Poland Group salary is set individually basing on the property price. The client is informed about this before taking decision.

ATTENTION: ILS POLAND GROUP provides the comprehensive after-sale service including assinstance the immense renovations of houses and during apartments are to be furnished and equipped, basing on individual agreements or separate contracts.

Additional and useful links:

1. Embassy: >>https://www.gov.uk/world/organisations/british-embassy-lisbon
2. Wikipedia: >>https://en.wikipedia.org/wiki/Portugal
3. Search for real estates in Portugal for sale: >>https://en.ilspoland.com/real-estates/portugal
4. Search for houses in Portugal for sale: >>https://en.ilspoland.com/real-estates/portugal/houses/sale