- What are the different stages in buying a property?
1. Choose the property
Clients should tell us what the most important factors are in the choice of a property to buy, so that a
selection of properties with such characteristics can be made, and one of our professionals will take clients
to see the selected properties.
2. Reservation
Once a property is chosen, a reservation is made in our office, where information is provided about all the conditions concerning this.
3. Promissory Contract (C.P.C.V.)
The C.P.C.V. will be signed by the Vendor and the Buyer, with all details about both parties (vendor and buyer) being stated in the contract, as well as details about the property and all the conditions agreed between the two parties. At this stage, a deposit will be paid of an amount agreed between the two parties.
4. Payment of Property Transfer Tax (IMT)
The purchaser will have to pay the IMT at the finance department before the signing of the deed.
5. Signing of the Deed (Escritura)
At the signing of the deed, the sale of the property is formalised, and the total payment for the property is made. Then the transaction is registered definitively at the Land Registry Office, with a copy of the deed.
- And if you need a mortgage, what do you need to do?
In addition to the above steps, you will need to collect the documents listed below, and deliver them to one of our staff at our Office. We will deal with arranging the mortgage because we have agreements with a number of banks.
To arrange a mortgage, it will also be necessary to register the transaction provisionally at the Land Registry Office prior to the signing of the deed.
Documents needed to get a mortgage: Relating to the clients
- Photocopy of the ID card and tax card of the proposers
- Most recent IRS (income tax declaration)
- Last three salary slips
- Latest income tax statement (Nota de Liquidação) Relating to the property
- Property Tax Document (Caderneta Predial)
- Property Registration Certificate (Certidão de Teor)
- Utilisation Licence
- Plan of the Interior of the Property
- Location plan of the property
- How much IMT will I pay?
The IMT is paid at the Finance Department before the deed is signed. It is calculated by multiplying the “marginal rate” by the transaction value of the property as it appears in the C.P.C.V. and the deed, and then deducting the “Amount to be deducted”.
Table currently in force:
Scales (Euros)
“Marginal Rate”
Amount to be deducted
Up to €87.500,00
0%
€ 0
+€87.500,00 Up to €119.700,00
2%
€ 1.750,00
+ €119.700,00 Up to €163.200,00
5%
€ 5.341,00
+ €163.200,00 Up to €272.000,00
7%
€ 8.605,00
+ €272.000,00 Up to €543.900,00
8%
€ 11.325,00
+ €543.900,00
Single rate 6%
-
Practical example for a property costing € 120.000,00
IMT= € 659,00
- What documents do I need to sell my property?
- Property Tax Document
- Property Registration Certificate
- Utilisation Licence
- Plan of the interior of the property
- Location plan of the property
- I.D. card and Tax Card of the Owner(s)
Imobarlavento - Imobiliària do Barlavento Algarvio
