Purchase and Sale of Property
The decision to buy property abroad is a big step.
At BBM Lawyers we can give you the legal support you need to experience a stress free process.
Here is an overview of the procedure for buying and selling property in Portugal:
- Once the decision to buy/sell, evaluation of the property, and initial agreement is done, the negotiation towards the signature of the promissory contract takes place. The promissory contract is the legal document that will bind the parties to the deal and establish all the conditions to it, such as, the price, schedule for completion and existence of any special conditions. In this step the assistance of a lawyer is vital in order to assure that the due diligence is properly done avoiding surprises, and also to make sure that the parties don´t enter into a commitment that they may not be able to fulfil in any aspect.
- Signature of the deed/completion of the deal – this is done via a public deed in a Notary, following which the Purchase and Sale is definitive and the new owner is registered in the legal documents related to the property.
- Tax implications: With the purchase of property the following taxes apply:
- IMT (Property Transfer Tax), which is calculated on the property price;
- Stamp Duty;
- IMI (annual municipal rates). In some cases additional IMI (called AIMI) applies on the ownership of properties.
- On the sale of the property - CGT – Capital Gain Tax, will apply on the sale of property in Portugal.