Portugal properties Guide
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- Published on Monday, 10 October 2011 17:37
- Written by Super User
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Location checklist
Before you start looking for a property abroad, it's worth asking yourself a few basic questions, which should save you time and money in the long run:
- Do you prefer the town or country?
- Do you want to be inland or on the Algarve coast?
- Do you want to be isolated or in the thick of it? (Most people prefer to be within about an hour's travel time of a town.)
- How much outside space do you want?
- How close do you want to be to your neighbours?
- How close do you want to be to shops, bars and restaurants?
- Where's the nearest public transport, how often does it run, what time does it end?
- How far is the beach?
- How close are you to the nearest airport?
- How far is it to sports facilities, golf, tennis, swimming, and so on?
- How good are the local health and social services?
- Arts and entertainment - what's available in the area?
- Neighbours - what are they like and how often do you want to see them?
Professional advice
Use qualified professionals to protect your interests and make the purchase of your new home a stress-free experience. Estate agents are a good source of advice. Only negotiate with ones that are officially registered and hold a licence. Ensure you have a good lawyer with an excellent command of English and the native tongue, to deal with the endless stream of rules and regulations. For instance, did you know that if you're buying property in Portugal you should make out a will in Portugues after buying, or that you can inherit property tax debts from a previous vendor?
Costs
Research all legal issues and costs involved. Your solicitor/lawyer will advise and assist you. Before you have decided on a property it's important to be fully aware of the legal process and costs involved in your puchase. Obtain professional advice and check your finances, taking account of these additional costs.
Be well prepared with your finances and taxes when buying. Set up a direct debit from a native bank account to pay for bills. Be careful not to miss payments and read those red letters; foreign banks are not lenient with those who don't pay up in time. If you're considering renting out the property when it's empty, bear in mind that advertising in the UK for a property abroad could result in tax demands from both the English and foreign authorities.
Making an offer
Make your offer in writing if possible (of course, subject to contract), and include not only the price, but also the amount of deposit, when you're prepared to pay it, when you're prepared to complete, what you understand to be included in the price (for example furniture and fittings if applicable) and, an often neglected point, that all machinery equipment and installations are in normal working order.
Buying property in Portugal
Portugal's pleasant, healthy climate and wide selection of properties make it the most popular destination for an overseas property. Choose from developed plots, farmhouses and village locations, through to villas, townhouses and new apartment developments.
Residency
If you wish to spend more than six months in Portugal you need to apply for a 'residencia' to become a resident. Being a resident doesn't restrict movements in any way and it has many advantages, such as lower taxes.
The estate agent
Ask your estate agent for details of the outgoings payable every year to maintain the property:
- annual real estate tax
- community fees
- water rates
- electricity charges
- property income
Mortgage in Portugal
Applying for a mortgage is a straightforward process, as in the UK. A number of documents must be furnished to the Portuguise bank in order to accommodate a smooth transaction. Please note that originals of everything will need to be shown and copies will be taken at the bank.
- passport, driving licence
- if employed: past three months' payslips, latest P60s
- if self-employed: last three years audited accounts, tax returns and accountant's reference
- Portuguese fiscal number
- Birth certificate
- Utility bill to proof of UK address
Children's education
If you plan to move the whole family abroad, your children's education is highest priority. You can choose from International schools in Algarve, state and private schools.
Viewing a property checklist
There are so many things to consider when viewing a property abroad and often the most important questions are forgotten. Ensure you ask the relevant questions by taking our handy viewing checklist with you on your viewing.
| Viewing a property: |
| Estate Agent: | ________________________________________________ | |
| Agent's phone number: | ________________________________________________ | |
| Property address: | ________________________________________________ | |
| ________________________________________________ | ||
| Property asking price: | ________________________________________________ | |
| ►; | How much is the council tax for the area? | ______________________ | |
| ►; | Is there allocated parking? | ______________________ | |
| ►; | If there isn't, is it easy to park? | ______________________ | |
| ►; | Does it have a private or shared garden? | ______________________ | |
| ►; | What aspect is the garden? | ______________________ | |
| ►; | If the property is rented out, how much is the rent? | ______________________ | |
| ►; | Does the property have central heating? | ______________________ | |
| ►; | What are the neighbours like? | ______________________ | |
| ►; | What are the local schools like? | ______________________ | |
| ►; | Are transport links good? | ______________________ | |
| ►; | How far is the nearest station? | ______________________ | |
| ►; | Is the area noisy? | ______________________ | |
| ►; | Where are the nearest shops? | ______________________ | |
| ►; | How quickly would the owners like to move? | ______________________ | |
| ►; | Has any building work been done on the property since the owners moved in? | ______________________ | !- | -->
(Please feel free to copy and print this check list)