FAQs

Preliminary Checks

• Parties Identity and Residency checks
• Money laundering and other legislation
• The Bankrupt seller
• The seller is a company
• The seller is an offshore company
• Marital Regimes and Pre-nuptial Agreements
• Número de Contribuinte - Tax Number
• The seller is not the owner
• The property is not registered
• Title Searches - Land Registry - Fiscal Department - Local Authorities- IPPAR

Planning in Portugal

• Planning Enquires
• Plano Director Municipal - PDM
• Agricultural and Ecological Reserves
• Locality Plans
• Outline Planning
• Rural Land
• Land for construction
• Building Contracts
• New built property
• Developments
• Apart-hotels
• Tourist Villages
• Refurbishment and reconstruction
• Habitation Licence
• More than one owner and adjoining owners
• Local Authority Rights

Sale and Purchase Contract

• The Promise to buy and sell
• The basic sale documentation
• Standard terms of a Contract
• Exchange of contracts
• Deposit
• Breach of Contract
• Specific Performance of the contract
• Completion - Escritura
• Payment of Transfer Tax, Notaryand Land Registry Fees
• Completion Date
• The Notary Public in Portugal
• Where to find the title deeds
• Registration
• Costs

Building Property

• Construction Supervisor
• Description and Identification of the Property
• Plans and Specifications
• Construction and Habitation Licences
• Construction Time Schedule
• Building Works Schedule
• Payment Schedule
• Penalty
• Provisional Handover
• Handover
• Guarantees
• Horizontal Property and Horizontal Division
• Manana
• Off plan
• Provisional registration
• Promissory Contract
• Construction law
• Development regulations
• Condominiums

Powers of Attorney

• Friend or foe!
• Why Power of Attorney is required
• Specific Powers of Attorney
• Special needs Power of Attorney
• Companies Power of Attorney
• Execution of a Power of Attorney
• Practical use of the Power of Attorney
• Irrevocable Power of Attorney
• Assignments

Fiscal Representation

• Fiscal Representative
• IMI Payment
• Tax Returns
• Fiscal Representatives Duties
• Termination
• Money Laundering Legislation

Notary Public - Notário Público

A property is transferred when the Seller and the Buyer sign the Deed (Escritura) before a Notary Public in Portugal who acts as an officer of the State in a similar capacity to that of a Registrar. The Notary witnesses the transaction and retains the original deeds and issues copies.

The Notary Public’s role in Portugal is different to that of a Notary Public in the UK or the USA for example. In England and Wales the work of a Portuguese Notary Public, is normally undertaken by Solicitors.
 

Legal Representation

• Who represents who
• Common sense
• Recommended legal representative
• The interested parties
• The Lawyer
• Engaging a lawyer
• Is a lawyer required
• Common sense again
• Services to expect from a lawyer
• Lawyers charges and services
• Professional Indemnity Insurance
• Independent Legal Representation

Fiscal Representatives

Any person who intends to or owns property in Portugal and who is non resident, must have a Fiscal Representative in Portugal who is responsible before the Portuguese authorities to file all the necessary tax returns arising out of the ownership of the property.

Many non resident owners of property in Portugal are not aware that they are registered in Portugal or registered as “Resident” for tax purposes. You should contact us to regularise your status.
 

Mortgages in Portugal

Lita Gale Solicitors shall be pleased to introduce you at no cost, to several sources of finance that may assist you in the purchase or remortgage of your property in Portugal.

Over the years our personal experience of representing various banks in Portugal and in the UK has led us to streamline the mortgage work. We are also able to assist you with preparing the documentation that you will have to supply to the Bank.

We can provide you with information on the lending sources available. This is strictly on the basis that we are not acting as agents of any bank or lending authority and that there is no commitment on your part.

We work with BPI, Caixa, Barclays, Millenium, Santander Totta, Caixa Duero and Caixa Agricola many other lenders.

Type of Finance available in Portugal

The most common methods of financing the purchase of your home in Portugal falls into the following main categories:

• With the assistance of a bank loan to be secured on the Portuguese property.
• Using your own Funds
• Secured on the shares of a company which has been used as a vehicle to acquire the property;
• Secured on your UK property, pension fund, policies, stocks, shares etc;
• Non status lending.

Each of the above methods of finance has advantages and drawbacks.
Lita Gale Solicitors shall be pleased to discuss with you the method which best suits your personal circumstances.
We work with most banks ranging from BPI, Santander Totta, Barclays, Millenium to Caixa Agricola.
 

Additional Security

We have many years experience in Portugal dealing with mortages. We handle mortgages over properties and also over companies who own properties

We have represented both the banks and other lending authorities as well as our
clients, be they individuals or offshore companies owning property in Portugal, Spain and in many other countries.

Currency

Loans may be made in any given currency. However, in the event that the loan is taken in one particular currency and repaid in another there is a risk
that the amount repayable may differ due to a rise or fall in the exchange rate.
 

References and Valuation and Surveys

The lender will carry out his own investigations to determine the value of the property and to ascertain your ability to repay the loan and may wish to obtain references and you will have to prove your ability to repay the loan.

Please remember that a valuation carried out by the bank is not the same as a survey
 

Lending Criteria in Portugal

Each lender has its own criteria. However, under normal circumstance you should anticipate that the maximum each creditor would be prepared to lend is on average
75% of the purchase price or alternatively, 75% of the valuation of the property (whichever is the lowest value), to be repaid over a period of 10 - 15 years to coincide
with retirement age.

Who should buy

The decision of whether to buy the Property in your own name or in the name of a Company will depend on a number of factors.

Recent changes in legislation do not make it attractive any longer to purchase property using the vehicle of an offshore company but it may still be good advice to use a company to acquire property in certain circumstances.

The common practice has been to purchase of shares of the company which owns the property in Portugal . This should be undertaken with great care. You should be fully informed and aware of the potential Tax consequences.
 

Inheritance Tax

The tax legislation changes in 2003 have made a substantial difference to the payment of Inheritance tax in Portugal as between parents and children and husband adn wife and which can make Portugal a very attractive place.
 

Succession and Wills

Making a Will is always advisable. You should contact us to discuss this is detail.

Special care should be taken if you are living in Portugal. There are many instances when it is appropriate to make a will solely to deal with your property in Portugal. In some cases the contrary may be the best alternative.
 
The decisison of whether to do a Will in Portugal and the consequences or the requirements may be highly complicated and will and should always be judged on a case by case basis and if need be in conjunction with your tax advisers, accountants and Solicitors.
 

Costs

There are various fees and expenses involved in buying and mortgaging property in Portugal. In every instance and significantly to the Tax Authorites, Land Registry, Notary Fees, Lawyers fees.

The fees are payabe in respect of the mortage adn of the purchase as they are treated by the authorities as separate transactions, even though they may be made on the same deed and at the same time.