Julie's Properties

The most important recommendation we can make to you once you have found your dream Algarve property is, do not sign anything until you have attained competent and independent legal advice on the purchase of the Algarve property. Deal only with a Government Licensed Estate Agent and a lawyer who is a member of the Portuguese Law Society.

Buying a new Algarve property can be a daunting prospect with all the legal processes to consider and more so in a foreign country, where the language and purchase law is far different. However, with our help and a reputable legal advisor there will be no need for concern when buying your new Algarve property.

We will guide and assist you through the buying process once you have found the Algarve property you wish to purchase. The next step is to contact a lawyer. Your legal advisor will require full information on the Algarve property, which we will provide.

We can introduce you to banks to assist with financing on the Algarve property purchase and Currency Exchange companies that offer preferential rates for transferring funds to the Euro. See our Finance page for further information.

The Buying Process for a Algarve property – Purchasing an Algarve property is straightforward and recent changes in the laws have strengthened the legalities giving you greater peace of mind.

Legal Representation – Once you have appointed a lawyer we recommend you assign them power of attorney. This allows them to apply for the necessary paper work for the Algarve property on your behalf and will save you time and costs in the long run. This also avoids you having to return to Algarve every time a signature is required. The lawyer will check the following relative to the Algarve property:

Land Registry – Conservatoria. A search will be made to check the land registry title of the Algarve property at the local municipality. Where appropriate, checks on licenses and permissions will be made.

Caderneta Predial - Repartição de Finanças. Every Algarve property must have a Caderneta. This is a taxation document that sets out among other things the rateable value of he Algarve property. This valuation is important for determining the IMI tax (rates). A search will be made to ensure tax registration on the Algarve property and there are no charges that may adversely affect the Algarve property.

Numero de Contribuinte - Taxation Number. Your lawyer will apply for your fiscal number (your personal taxation number) through the local Tax Office. Your fiscal number will be required for many transactions relative to your Algarve property, including opening a bank account in Portugal.

Contract – Contrato de Promessa de Compra e Venda. A promissory contract is drawn up between purchaser (buyer of the Algarve property) and vendor (owner of the Algarveproperty). This contract is your promise to buy and the vendors promise to sell. At this stage a deposit, normally of 10% is required, however on new build Algarve property it is normally 25-40%. This is a legally binding contract and should you wish to withdraw from the purchase of the Algarve property then you will forfeit the deposit. In the event that the vendor defaults, then they must repay double the deposit.

Final Deed – Escritura. Your official Algarve property deed. The signing of the Escritura must be in the presence of a Notary official. All parties should attend the Notary office except in the case that the lawyer has power of attorney. The Notary will check and confirm the legality of the Algarve property documents. Proof of payment will be identified before the Notary.

Registration – Registo Predial. Once the transaction has been entered into the Notaries records the lawyer will take a copy of the deed and register the transaction relative to the Algarve property at the land registry. This records the purchaser’s legal ownership of the Algarve property.

IMT – Property Transfer Tax (formerly SISA). There have been recent changes to the legislation on how the Algarve property transfer tax is paid. Previously the maximum rate for SISA was 10%. This has now been lowered to 6% on declared values over €500,000. There are substantial deduction allowances on each scale.

On rural Algarve land the tax is 5 per cent. IMT is not payable where a Algarve property is registered to an offshore company.

Notary & Registration Fees – These are paid on completion of the purchase of your Algarve property. The approximate cost is 1 to 2% of the purchase price of the Algarve property.

Legal Fees – It is important that you are aware of the approximate costs involved prior to signing the promissory contract on the Algarve property. Your legal representative will be able to advise of all the costs including land registry, notary fees, IMT tax, and their own fee (normally 1.25% – 1.75%). It is important to note that vendors do not require legal representation nor are they required to pay any part of the fees towards your purchase of their Algarve property.

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Office Address: Av. Maria Lizarda Palermo, 9 r/c, 8700-081 Moncarapacho, Algarve, Portugal

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