We have created the Online Real Estate Clinic for you to ask us any Portugal property related question. This useful information is then here for all clients to take advantage of.
To have your own question answered, please do not hesitate to contact us by email at email@example.com, or leave us a message here.
"If I want to sell my house in the Algarve, which documents do I need to have?"
ANSWER: When you are selling your house in the Algarve, or anywhere in Portugal, it is important that you have the following documents, for an agency to make up a contract and for a lawyer to check the legalities :
A copy of your tax number, copy of your passport, Energy Certificate, Caderneta Predial, Certidao de Teor, Habitation License. For properties built after 2004, you will also need a Ficha Tecnica.
"How much does it cost to buy a property in Lagos?"
ANSWER: When buying a property in Lagos, the Algarve or anywhere else in Portugal for that matter, you will pay another 6 to 10% over the property price for additional buying costs. For more in-depth information about the buying costs in Portugal, please click here.
Please note: There are no costs for using our agency services when you are buying a property.
"How much do you generally pay as condominium fees for a two bedroom apartment in Lagos?"
ANSWER: Condominium fees, are payable on all properties which have ‘common’ areas, i.e. pool, garden. The condominium fees range very much depending on the facilities offered. As a guideline, a condominium fee for a two bedroom apartment with a shared outdoor pool and garden, you would generally be looking at about 100-150 euro a month. However, this can be more or less, depending on the amount of apartments the pool is shared with, if there is also an indoor pool, a gym, etc. For more information, please contact us on firstname.lastname@example.org.
"If I buy a villa without a pool, can I build one?"
ANSWER: To build a pool, you must obtain a license from the property’s local council (Camara municipal). There are a few factors which are taken into consideration in the decision. It can depend on the zoning of the land and what the neighbouring properties are like. We recommend you check if it is allowed before you build.
"What are the ongoing taxes in Portugal after I’ve bought the house?"
ANSWER: The Property Tax (IMI) is the tax to be paid to the council when you own a property', also known as council tax. It is a percentage of the property’s fiscal or patrimonial value, which is decided by the council. Please note that the council’s property value is not necessarily the same as the price you bought the property for.
The tax ranges from 0.4 to 0.5 percent per year, depending on the council. The tax is usually paid in three payments.
See more information regarding ongoing taxes after buying a property in Portugal here.
"Do I automatically buy the land when I buy a villa, or does the land belong the the government?"
ANSWER: In most cases the properties in Portugal are Freehold. So when you buy a villa, you also buy the land. Apartments are usually also freehold and you own a percentage of the land, the common areas, garden and pool.
When you buy a property in Portugal, you will use a lawyer to obtain and check the property’s paperwork. Included in the paperwork is the size and location of the land you buy with the property.
"I want to buy an apartment to spend time there myself, but to rent it out when I am in the UK. Is it possible to have someone take care of it when I’m away and how much does it cost?"
ANSWER: A lot of people have a property in the Algarve as a secondary residency or holiday home. You will find a lot of management companies that take care of the complete packages for you; advertising, booking, cleaning, welcoming clients, repairing when something is broken, etc. Depending on the level of service required, generally you are looking at costs of around 20-30% of your rental income for the service. See more information here.
"We want to invest in Portugal for the Golden Visa program. If we invest in a property, do we have to keep that property for the duration of the visa program? Can we sell, and reinvest in other locations?"
You would have to keep the investment for the 5 years then you could sell it if you wish. In the meantime you can sell as long as you reinvest, but you have to have the €500k minimum invested, so you would do the new deal first and then sell. For more information about the Golden Visa, please click here.
"Can we buy a €1,000,000 property with a partner?"
ANSWER: Yes. A €1,000,000 investment divided by two partners will allow 2 main investors.
"If my partner and I buy a €500K house together in Portugal, does that halve the amount that would be accumulating for one of us towards the Golden Visa amount?"
ANSWER: In this situation investment should be made in one name only, €500K only allows one investor.
"Does buying land and building a house count for a Golden Visa?
ANSWER: Yes, you can buy land, but it must be for €500k minimum. Building costs will not be considered.
"How long is the property purchase ‘valid’ for as far as a golden visa application is concerned?"
ANSWER: The property purchase is ‘valid’ for the Golden Visa application since the year of 2013 when the Golden visa program was created. If the government decides to end the program, the person that bought the property to apply for the Golden Visa but didn’t apply yet, can no longer apply.
"Does the Golden Visa have to be applied for within a certain number of months or years after the property purchase date?"
ANSWER: No, there is no deadline to apply for the Golden visa after the property purchase is completed.
"Is a Golden Visa applied for after a property purchase?"
ANSWER: Yes, correct.
"Can the total investment required be made up of more than one property? And do those properties have to be bought at the same time?"
ANSWER: Yes. You can accumulate the investments over time and then apply for the Golden Visa once the total required has been reached.
"I have read that the property investment must be done as cash, not as a mortgage, in order for it to be eligible for a Golden Visa. If we are accumulating investments over time to reach the Golden Visa investment requirement, can it be done as a mortgage initially and then become eligible once it is paid off?"
ANSWER: Yes, as soon as you clear the mortgage you can submit the GV application.
"What is a Golden Visa?"
The Golden Visa Scheme is a residency program introduced in 2012, designed to attract foreign investment to Portugal. Simultaneously it provides non-EU members + family members a chance to obtain Portuguese residency and travel freely through the Schengen area. For more information about the Golden Visa, please click here.
"How do I apply for a Golden Visa?"
Applying for a Golden Visa is subject to an investment in Portugal. There are several ways to invest and each has its own set of requirements. The most straight-forward way to apply for a Golden Visa is to invest €500,000 in Real Estate (any property, multiple properties, etc.). However, for the full list of options and all requirements, please click here.
We highly recommend to apply for the Golden Visa through one of our suggested lawyers
, as they have a lot of experience with Golden Visa applications and will get your application through rather quickly.
NON HABITUAL RESIDENCY
"What is a Non Habitual Residency?"
The Non habitual Residency (referred to frequently as the NHR) is a Portuguese tax status. It was introduced in 2009 to attract individuals and their families to Portugal. It enables whomever becomes a tax resident in Portugal to get great tax advantages. The tax advantages are granted case by case, for a period of 10 years. For more information about the NHR, please click here.
"How do I apply for a Non Habitual Residency?"
You may apply as soon as you are a Portuguese tax resident, or before the 31st
March of the following tax year. We highly recommend to apply for the NHR through a lawyer, as they often have direct channels to authorities dealing with the NHR and will be able to give you an answer on your application quickly. Please do not hesitate to contact us to advise you on good, pro-active and English speaking lawyers
to help you with your application.
"My partner wants to get a mortgage in his name only, but I want to co-sign the deed. Is that possible?"
ANSWER: If the mortgage is obtained by 1 applicant, the bank requires that he/she also owns 100% of the asset as the bank will register a charge against 100% of the property.
If the property was purchases in joint names with a 50/50 holding, then the bank can not register the charge on the 50% that are owned by the person who is not part of the mortgage deed. Therefore since the financial crisis the banks require that if a property is purchased in joint names, both owners need to be part of the mortgage deed.
"How much cash do I need to get a mortgage in Portugal?"
The deposit percentage for a mortgage in Portugal is different per situation. However, as a general rule of thumb, you need at least 30% down payment as a foreign investor. For a plot of land, it is not possible to get a mortgage at all. For more personal information on your mortgage options, please contact our recommended mortgage service.
"Is Lagos busy all-year-round?"
ANSWER: Lagos is a bustling town that gets busy in summer with tourists, peaking in July and August. In winter, Lagos’ inhabitants are the local community of about 30.000 people and non-residents. Although it is less busy in winter, most shops, restaurants, bars, and other amenities are open and busy at weekends.
"Which golf resorts are in or close to Lagos?"
ANSWER: In and around Lagos, you will find 5 golf courses/resorts:
- Espiche Golf Course, an 18-hole golf course 10 minutes drive from Lagos in an eco-friendly environment, with award winning clubhouse.
"Would you say Lagos is fun for my teenage children as well?"
ANSWER: Lagos is a small village but there is so much to do and to explore. Being situated right by the sea, there is surfing, wake boarding, sailing, windsurfing, body boarding, stand up paddle boarding, and kayaking in the water. Because it is surrounded by nature, there is hiking, climbing, biking, and horse riding. Big sports in Portugal are soccer and basketball. At the weekend, during summer as well as in winter, the bars are open and kids and young adults from all nationalities go out to the bars, cinema, restaurants, etc. Definitely, there is a lot for your teenager to enjoy and explore.
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