Renting

Buying process PPM

 

⦁    Find a property that you want
⦁    Instruct a local Lawyer to represent you in the buying process. He will apply for your fiscal number.(+- 3/5 days)
⦁    Open a local bank account
⦁    Place your offer on the property and inform your Legal rep of the details, via the agent.
⦁    The Lawyer will then do all the necessary property checks regarding building /renovation licences, any outstanding charges like          Council rates, condominium fees, and utility bills to the property etc
⦁    Preparation of the CPCV (Promissory Contract) 

 

This CPCV will be legally binding, as you the Buyer promises to buy, and the Seller promises to sell, stating clearly, the property description, the price agreed and the method of payment.


If the Buyer is in breach of contract before Deed, there is a penalty – The Buyer loses his deposit paid, and if the Seller does not fulfill his contractual obligations by Deed, he will be have to refund the deposit in double, back to the Buyer. 
Normally there is a deposit of 10% -20% paid over by the Buyer, on signature of CPCV

 

⦁    The official Deed or “Escritura” is done at the notary office. Here all change of ownership settlements are made. Outstanding purchase amounts paid, Utility readings recorded, all property documentation and all keys handed over to the new property owner.The buyer will pay all property taxes and stamp duty as well.

 

Property costs

 

⦁    Lawyers' fees vary from 1% to 2% of the purchase price.
⦁    IMT – Property Purchase Tax as by the table below

 

For your primary home:


Value of Property Transaction    % Tax Payable    Amount to Deduct
Up to €92,407.00    0%    0
From €92,407.00 to €126,403.00    2%    €1,848.14
From €126,403.00 to €172,348.00    5%    €5,640.23
From €172,348.00 to €287,213.00    7%    €9,087.19
From €287,213.00 to €574,323.00    8%    €11,959.32
Over €574,323.00    6%    0

 

For second home


Value of Property Transaction    % Tax Payable    Amount to Deduct
Up to   €92,407.00    0%    0
From   €92,407.00 to €126,403.00    2%    €924.07
From €126,403.00 to €172,348.00    5%    €4,716.16
From €172,348.00 to €287,213.00    7%    €8,163.12
From €287,213.00 to €550,836.00    8%    €11,035.25
Over €550,836.00    6%    0

 

 Value of Property Transaction      % Tax Payable
Rustic and Agricultural Plots          5%
Other Property and Urban Plots    6.5%
Offshore in Blacklisted Jurisdictions 10%    


 
⦁ Land Registry when the transfer of property ownership is registered. The stamp duty is a flat rate of 0.8% of the property price.

 

Renting your property

 

As a way of reducing the annual costs of owning a holiday home it is worth considering renting your property, even if for at least for a few weeks during Summer. The extra income is always welcome to assist upkeep of your holiday home.


Rental licenses (Licença de alojamento local)


The Decreto-Lei n.º39/2008 of 7 March and Portaria 517/2008 25 June states that properties which are rented out, but not licensed as a touristic development, require a Rental Licence. 


These are issued by the local Câmara. Either the  owner or his Lawyer or the property manager can arrange to obtain the proper licence. For this application you will probably need:

 

⦁    Copy title deeds
⦁    Copy of electricity, gas certificates
⦁    Any plans of the property
⦁    Health and Safety plan for the property
⦁    Caderneta predial
⦁    Certidão predial
⦁    Ownership details

 

You will also need to ensure that the property is equipped with the following and is of a reasonable standard which may be verified by an inspector from the Câmara:

 

⦁    Fire safety equipment (extinguishers and fire blanket in kitchen)
⦁    Emergency signs
⦁    Connected to all mains utilities or with their own provision in place
⦁    Hot and cold water
⦁    Proper ventilation system 
⦁    Reasonably furnished
⦁    Proper exterior locks and on bathroom doors
⦁    Adequate changes of linen
⦁    Cleaning schedule
⦁    Complaints book
⦁    First aid facilities with emergency numbers clearly displayed
⦁    Property rules and regulations manual
⦁    Instruction manuals for appliances
⦁    Proper safety measures around swimming pool

 

These are worth putting into place ,its a simple process.

 

Taxation issues

 

If the property is located in Portugal then Portuguese tax has to be paid on any income generated by the property. This applies even if the owner is based outside Portugal and the rental is arranged without the assistance of a Portuguese-based agent.


The property owner is legally obliged to file an income tax return declaring the rental achieved during the year. Expenses can be deducted from the gross income, like:

 

⦁    Annual rates
⦁    Property management & cleaning expenses
⦁    Any improvements on the property
⦁    Condominium charges

 

The tax payable varies- confirm with your accountant.


Property Management

 

Finding the right, trustworthy property manager to look after your investment, is a treasure in itself. There are many, good, smaller companies that take your investment seriously and put a great deal of effort into making your Algarve property ownership a pleasure. This is the most efficient and cost effective, affording you the pleasure of arriving at your property and everything is in order leaving you time to just enjoy your holiday. Getting referrals first, is highly recommended, as you would like attention to detail, regular communication, accountability, transparency and honesty.


The basic services you may need:

 

⦁    Weekly visits to ventilate and ensure the interior is dry,loo flushed etc.
⦁    Maintenance of gardens and/or pools.
⦁    Payment of utility bills, taxes, insurances, council rates. Record keeping.
⦁    If you have a car, the yearly inspections. Picking you up from the airport.
⦁    Supervise any works and receive deliveries;
⦁    Cleaning and laundry services after holiday tenants. Meet and greet tenants.
⦁    Rentals.

 

The level of attention to detail with rental tenants will add the chances of return business.
We can recommend various Property managers.

 

Building

 

Embracing our almost perfect year round sunny weather, The Algarve is desperately needing to catch up on the more desirable modern home designs, reflecting the open plan lifestyle with lots more glass and light, large living areas, home cinemas and better planned, outdoor relaxed spaces. 


Although some clients still prefer the traditional local charm they mostly still want the comforts of a more contemporary to modern interior. Choosing the right workforce, starting with the architect, can make these dream Algarve homes, possible - Top expertise definitely exists here in the Algarve.


Dealing with Algarve´s extreme temperatures, moisture issues in winter and keeping in mind the odd earth tremor -These experts know all too well, how to offer the correct solutions with regards to the structure, correct options on materials, insulations, Solar enhancements, optimum plumbing products, etc. There are very few things in the Algarve that are not available or techniques that can't be done

Renting your property

 

As a way of reducing the annual costs of owning a holiday home it is worth considering renting your property, even if for at least for a few weeks during Summer. The extra income is always welcome to assist upkeep of your holiday home.


Rental licenses (Licença de alojamento local)


The Decreto-Lei n.º39/2008 of 7 March and Portaria 517/2008 25 June states that properties which are rented out, but not licensed as a touristic development, require a Rental Licence. 


These are issued by the local Câmara. Either the  owner or his Lawyer or the property manager can arrange to obtain the proper licence. For this application you will probably need:

 

⦁    Copy title deeds
⦁    Copy of electricity, gas certificates
⦁    Any plans of the property
⦁    Health and Safety plan for the property
⦁    Caderneta predial
⦁    Certidão predial
⦁    Ownership details

 

You will also need to ensure that the property is equipped with the following and is of a reasonable standard which may be verified by an inspector from the Câmara:

 

⦁    Fire safety equipment (extinguishers and fire blanket in kitchen)
⦁    Emergency signs
⦁    Connected to all mains utilities or with their own provision in place
⦁    Hot and cold water
⦁    Proper ventilation system 
⦁    Reasonably furnished
⦁    Proper exterior locks and on bathroom doors
⦁    Adequate changes of linen
⦁    Cleaning schedule
⦁    Complaints book
⦁    First aid facilities with emergency numbers clearly displayed
⦁    Property rules and regulations manual
⦁    Instruction manuals for appliances
⦁    Proper safety measures around swimming pool

 

These are worth putting into place ,its a simple process.

 

Taxation issues

 

If the property is located in Portugal then Portuguese tax has to be paid on any income generated by the property. This applies even if the owner is based outside Portugal and the rental is arranged without the assistance of a Portuguese-based agent.


The property owner is legally obliged to file an income tax return declaring the rental achieved during the year. Expenses can be deducted from the gross income, like:

 

⦁    Annual rates
⦁    Property management & cleaning expenses
⦁    Any improvements on the property
⦁    Condominium charges

 

The tax payable varies- confirm with your accountant.


Property Management

 

Finding the right, trustworthy property manager to look after your investment, is a treasure in itself. There are many, good, smaller companies that take your investment seriously and put a great deal of effort into making your Algarve property ownership a pleasure. This is the most efficient and cost effective, affording you the pleasure of arriving at your property and everything is in order leaving you time to just enjoy your holiday. Getting referrals first, is highly recommended, as you would like attention to detail, regular communication, accountability, transparency and honesty.


The basic services you may need:

 

⦁    Weekly visits to ventilate and ensure the interior is dry,loo flushed etc.
⦁    Maintenance of gardens and/or pools.
⦁    Payment of utility bills, taxes, insurances, council rates. Record keeping.
⦁    If you have a car, the yearly inspections. Picking you up from the airport.
⦁    Supervise any works and receive deliveries;
⦁    Cleaning and laundry services after holiday tenants. Meet and greet tenants.
⦁    Rentals.

 

The level of attention to detail with rental tenants will add the chances of return business.
We can recommend various Property managers.

 

Building

 

Embracing our almost perfect year round sunny weather, The Algarve is desperately needing to catch up on the more desirable modern home designs, reflecting the open plan lifestyle with lots more glass and light, large living areas, home cinemas and better planned, outdoor relaxed spaces. 


Although some clients still prefer the traditional local charm they mostly still want the comforts of a more contemporary to modern interior. Choosing the right workforce, starting with the architect, can make these dream Algarve homes, possible - Top expertise definitely exists here in the Algarve.


Dealing with Algarve´s extreme temperatures, moisture issues in winter and keeping in mind the odd earth tremor -These experts know all too well, how to offer the correct solutions with regards to the structure, correct options on materials, insulations, Solar enhancements, optimum plumbing products, etc. There are very few things in the Algarve that are not available or techniques that can't be done

Renting your property

 

As a way of reducing the annual costs of owning a holiday home it is worth considering renting your property, even if for at least for a few weeks during Summer. The extra income is always welcome to assist upkeep of your holiday home.


Rental licenses (Licença de alojamento local)


The Decreto-Lei n.º39/2008 of 7 March and Portaria 517/2008 25 June states that properties which are rented out, but not licensed as a touristic development, require a Rental Licence. 


These are issued by the local Câmara. Either the  owner or his Lawyer or the property manager can arrange to obtain the proper licence. For this application you will probably need:

 

⦁    Copy title deeds
⦁    Copy of electricity, gas certificates
⦁    Any plans of the property
⦁    Health and Safety plan for the property
⦁    Caderneta predial
⦁    Certidão predial
⦁    Ownership details

 

You will also need to ensure that the property is equipped with the following and is of a reasonable standard which may be verified by an inspector from the Câmara:

 

⦁    Fire safety equipment (extinguishers and fire blanket in kitchen)
⦁    Emergency signs
⦁    Connected to all mains utilities or with their own provision in place
⦁    Hot and cold water
⦁    Proper ventilation system 
⦁    Reasonably furnished
⦁    Proper exterior locks and on bathroom doors
⦁    Adequate changes of linen
⦁    Cleaning schedule
⦁    Complaints book
⦁    First aid facilities with emergency numbers clearly displayed
⦁    Property rules and regulations manual
⦁    Instruction manuals for appliances
⦁    Proper safety measures around swimming pool

 

These are worth putting into place ,its a simple process.

 

Taxation issues

 

If the property is located in Portugal then Portuguese tax has to be paid on any income generated by the property. This applies even if the owner is based outside Portugal and the rental is arranged without the assistance of a Portuguese-based agent.


The property owner is legally obliged to file an income tax return declaring the rental achieved during the year. Expenses can be deducted from the gross income, like:

 

⦁    Annual rates
⦁    Property management & cleaning expenses
⦁    Any improvements on the property
⦁    Condominium charges

 

The tax payable varies- confirm with your accountant.


Property Management

 

Finding the right, trustworthy property manager to look after your investment, is a treasure in itself. There are many, good, smaller companies that take your investment seriously and put a great deal of effort into making your Algarve property ownership a pleasure. This is the most efficient and cost effective, affording you the pleasure of arriving at your property and everything is in order leaving you time to just enjoy your holiday. Getting referrals first, is highly recommended, as you would like attention to detail, regular communication, accountability, transparency and honesty.


The basic services you may need:

 

⦁    Weekly visits to ventilate and ensure the interior is dry,loo flushed etc.
⦁    Maintenance of gardens and/or pools.
⦁    Payment of utility bills, taxes, insurances, council rates. Record keeping.
⦁    If you have a car, the yearly inspections. Picking you up from the airport.
⦁    Supervise any works and receive deliveries;
⦁    Cleaning and laundry services after holiday tenants. Meet and greet tenants.
⦁    Rentals.

 

The level of attention to detail with rental tenants will add the chances of return business.
We can recommend various Property managers.

 

Building

 

Embracing our almost perfect year round sunny weather, The Algarve is desperately needing to catch up on the more desirable modern home designs, reflecting the open plan lifestyle with lots more glass and light, large living areas, home cinemas and better planned, outdoor relaxed spaces. 


Although some clients still prefer the traditional local charm they mostly still want the comforts of a more contemporary to modern interior. Choosing the right workforce, starting with the architect, can make these dream Algarve homes, possible - Top expertise definitely exists here in the Algarve.


Dealing with Algarve´s extreme temperatures, moisture issues in winter and keeping in mind the odd earth tremor -These experts know all too well, how to offer the correct solutions with regards to the structure, correct options on materials, insulations, Solar enhancements, optimum plumbing products, etc. There are very few things in the Algarve that are not available or techniques that can't be done

R. da Quinta do Romão, Vilamoura 8125-301

+351 925 557 851

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