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A Guide To Buying A Property In Portugal

Buying property abroad is not necessarily the same as buying in the UK, there is other essential information you need to be aware of both before and during your property purchase.

It is of paramount importance to seek independent advice from an overseas solicitor. 

You need to ensure that you will have full title to the property on completion and that you have the appropriate documents, including the “copia simple”, available for the lender.  Other documents such as the official plans of the property, a plan of the site and a copy of the caderneta predial, fiscal numbers and certidao de encargos may be required before the lender is able to carry out a valuation.  These documents are usually available from your solicitor

You should check with the estate agent and/or your lawyer that you are aware of the costs charged by legal and Government authorities for buying a Portuguese property e.g. SISA Tax is normally charged on the ‘Declared Price’.  The lender will also have their own legal costs for assigning the loan, the cost of which they will normally advise you when they issue the mortgage offer.

Before signing the sales contract, the bank will require a copy of this document to be forwarded with the relevant application form.  However you are able to sign this contract with the clause “subject to mortgage finance” as the contract, once signed is legally binding.

Please be aware that the notaire may be incorporating costs for assigning the mortgage within his charges, and you should establish the actual cost before proceeding with a loan application.

Properties can be purchased in either individual or joint names or in the name of an offshore company (with personal guarantees).

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