The procedure for buying properties
Buying real estate is a serious step. It is therefore particularly important to enlist the help of professionals with extensive experience and a solid reputation on the real estate market. Our company offers a full range of services related to the purchase of real estate. Employees of our company will assist on the search and selection of client interest property in Madeira and Porto Santo islands, assisting on the preparation of documents required for property deals and legal issues of its registration. We will protect your interests at all stages of the transaction, while preserving full confidentiality.
In Portugal, any natural or legal person may acquire real estate or business; establish a joint stock company, be a shareholder and the Chairman of this society. Foreigners can freely acquire property as residential and commercial in Portugal. Foreigners are entitled to organize its business in any form prescribed by local law.
Any citizen can obtain residency, buying property in Portugal. And also it is possible to obtain residence.
▶ The buying process is divided into two major phases:
The 1st and most important is the choice of the property. To save time, by the time of the arrival of the client, we prepare several possibilities that meet your requirements.
The 2nd: The preliminary contract and the Sale - during the registration you will be required to sign the contract. A preliminary contract usually contains such details: as property value, terms and order of payment, the date of implementation - in the case of an investment project and any additional conditions agreed by both parties. When signing the contract, the buyer pays the security deposit (usually at the preliminary stage is from 20% up to 30% of the value property), thereby reserving the property in his own name and confirming the intention in the future to conclude the purchase contract.
After signing the preliminary contract, the seller no longer has the right to sell your property and the buyer must, within a certain period of time, make the deposit of the agreed amount on the seller's account. After this, if the buyer decides to go back of his decision, the deposit is not refundable.
When purchasing a property under construction, the schedule of payment depends of the time of the property conclusion. Apart from the security deposit previously mentioned, you will be required to make a 20% up to 40% payment off the total property cost on the following 2 to 5 months. The final payment will take place at the time of property conclusion.
To sign the final contract, first of all, you will get a fiscal (tax) number (Numero Fiscal de Contribuinte). Having this tax number you are authorized to the Financial Institution (Repartição de Finanças) to buy a portuguese property. You will need also to have a valid passport and an address in Portugal, to which the local Financial Institution will be able to send you the fiscal card (Cartão de Contribuinte). If you don't have an address in Portugal, this service can be provided by our company.
The next step is the master document “Escritura Publica”. The signing of the title "Escritura Publica" occurs in the notary's Office, where the customer pays the cost of the purchased real estate and the bank draft (if you receive a bank loan, a Bank representative will be present at time of the signing of the notary Deed). After the signing of the public Deed of Sale, you get the keys and a certified copy of the original Bill of Deed of sale.
▶ Mortgages in Portugal/Madeira
Bank financing in Portugal/Madeira, for the acquisition of property:
Many buyers are attracted by the opportunity to buy property in Portugal. As Portuguese or foreigners citizens you are entitled to request a Mortgage.
Mortgage loan amount ranges between 40% and 50% of the estimated value of the Property.The property valuation is made by the bank which provides the mortgage. The credit can be made for a period ranging between 5 and 40 years, with an annual tax of 6% depending on the Euribor tax and the bank spread.
Interest on the loan will be debited from your account monthly (you must place your checking account in this Bank). For late payments will be charged a penalty and if you are not able to pay the loan during 2-3 months, the Bank can take back the property thought the Courts.
▶ Required documents for a Bank Loan
▶ The buyer must provide the following documents to the Bank:
· The last year Finance income statement copy (the official form)
· A Salary certificate for the last 3 months issued by the employer.
· A Bank statement from your account for the last 12 months.
· A copy of a document confirming your home address as the electricity, or water invoice.
· The passport photocopy.
· The photocopy of the preliminary contract for purchase.
All documents must be translated to English or Portuguese languages and must have the notarized stamp "Apostille".
In possession of the mentioned documents, the mortgage bank department will analyse them and then will decide to give or not the loan to the buyer. Once the loan is approved, the buyer must choose between payments plan proposed by the Bank, that suits with his interests.
