Albufeira Property

Land, villas and apartment in Portugal are all sold as freehold properties. Leaseholds are not used for residential properties.

Some of the things you might like to consider when buying a property in Albufeira are:

If the property is to be rented out what is the letting potential? (eg: location, on site facilities such as a swimming pool: amenities nearby such as shops.
What are the arrangements for maintenance repairs, cleaning and gardening?
If you are using the property as a second home how much space do you need for your family and friends to visit?
What are the tax implications?
How do you pass on ownership to another member of your family?

When you have identified a property you wish to buy you will be asked to place a deposit (normally 10% and non-refundable) so that it is taken off the market until the Private Contract is signed. It normally takes about four weeks to prepare and sign this contract and if you cannot be in Portugal when this document is ready for signature you can give your lawyer Power of Attorney.

When you complete on the property both you and the vendor will be asked to sign the Escritura de Compra e Venda in the presence of a Notary when the ownership will be transferred to you and the balance of the purchase price is paid.

You should be aware of the following fees that Portuguese properties incur:

7% IVA is charged on all new build properties
There is no IVA on resale properties but there is a 7% Property Transfer Tax
If you buy off plan you may be asked for anything between 30-40% of the purchase price to be paid during the construction period
On top of the purchase price you should budget for costs of anything between 10-15% to cover the Stamp Duty, Lawyer’s fees, Notary’s fees and Land Registration

The above is only a very simplistic guide on property purchase, and it is important that you deal with a reputable estate agent and lawyer who can advise you on all aspects and help you through the process.