Information about Portugal


  



Introduction
Regional Locations
The buying Process
Legal Issues to Consider
Financing a property purchase
Investment Potential
Education
Health



Introduction:

Bordered by Spain, Portugal has a coastline of nearly 2000 kilometres which drives its tourism industry. Situated on the Atlantic ocean to the South West of Europe, Portugal has a diverse population of just over 10 million people. Since joining the European Community in 1986 Portugal has come on leaps and bounds and has established a robust economy which is predominantly service based.

 

Advancements in technology have allowed Portugal to compete economically and maintain steady growth, telecommunication systems are both high speed and reliable. Portugal is also easily accessible by sea, road and air and as a result of its geographical location has become home to many an Expat.

 

An increase in demand and popularity has fuelled Property prices in certain regions of Portugal within the last few years. Majority of the Expat community can be found in Southern Portugal's Algarve region, which is known for its golden beaches and perfect golf courses. In recent years, other areas along the West Coast and to the North of Portugal have also become popular and offer a different sort of Mediterranean lifestyle.



Regional Locations:

Costa Verde - Green Coast

 

As the name suggests, heavy rainfall contributes to the fertility of this agricultural region. Rolling hills, green valleys, untouched beaches, vineyards and forests all make this region one of Europe's most undiscovered locations of natural beauty. 

 

 

The Algarve

 

The Algarve is located on the southern coast of Portugal. It is a popular destination for both UK Expatriates as well as UK holiday makers. Roughly 5,500 square kilometres in size the Algarve has a population of approximately 400,000 permanent residents who enjoy its beaches and sunshine weather. Over the course of the last 20 years the Algarve has experienced significant development and as a result of its popularity house prices have increased substantially.

 

Popular areas of the Algarve include:

 

Albufeira, Faro, Lagoa, Lagos, Loule, Portimao, Silves and Tavira.

 

 

Montanhas

 

Translated as Mountains, this area located to the North East includes some of the finest scenery that Portugal has to offer. Like most mountainous areas visitors that arrive here can expect to enjoy beautiful scenery and breathtaking views while walking in the summer and good snow and skiing throughout the winter.

 

 

Costa Lisboa

 

Situated on the West coast of Portugal, Lisbon is the largest city in Portugal as well as the capital. The Lisbon region is by far the wealthiest area in Portugal and contributes 45% to Portugal's overall GDP figure. Lisbon is popular because of its weather and because of its accessibility; roughly 3500 hours of sunshine a year make it one of Europe's most popular and most visited cities.    

 

 

Costa de Prata - Silver Coast

 

Situated on the west coast below the Green Coast and above the Lisbon Coast is Costa de Prata, also known as the Silver Coast. This region's booming economy has allowed it to become one of Europe's most profitable locations. The cost of living here is still very affordable although property prices have risen steadily in recent years. Building in the area is limited and governed to promote and protect the regions natural beauty.

 

 

Madeira

 

60 Kilometres long and 22 kilometres wide with a coastline of nearly 100 kilometres, Madeira is an island located just off the south west coast of Portugal. Regarded as one of the safest travel destinations in the world, along with good weather pretty much all year round, its no wonder this island paradise generates the level of tourism that it does. Sugarcane and wine production also drive the islands economy.

 

 

Alentejo

 

The Alentejo area is commonly known as the "bread basket" of Portugal. This region supports its economy through agriculture, livestock and wood. The Alentejo area is also home to the largest cork forests in the world. Alentejo is a scarcely populated region with large plains and open horizons.

The buying Process:

Unlike some countries around the world, the property buying process in Portugal is relatively simple. As with most overseas property purchases the search usually begins with an estate agent. It is always worth ensuring that you are dealing with a professional company that holds a valid license.

 

Once you have found your dream property and decided to move ahead with your purchase you will usually be required to sign a promissorry contract also known as a Contrato de Promessa de Compra e Venda. This contract will be put together by a lawyer and simply outlines the agreement to purchase between you the buyer and the vendor.

 

 

Once the contract to purchase has been signed by both parties the buyer will be required to transfer 10% of the purchase price as a deposit. Portuguese contracts are legally binding; if you decide to withdraw once the promissorry contract has been signed you may lose your deposit.

 

The vendor will also be required to provide documentation pertaining to the property being sold.

1. Caderneta Predial or Tax Registration Document - this shows the tax situation of the property along with details of the current owner.

2. Certidão de Teor or Land Registry Document - this shows valuable information on who owns the property and who has rights to the property as well as if the property has any charges against it.

3. Licença de Habitabilidade or Habitation License - properties built after 1951 are required to have a Habitation License. This document proves that the property is fit for human habitation.

4. Ficha Técnica de Habitação or The Property's Technical Report - This document is only required for properties built after 2003. This document contains technical details and information about the build of the property, the builders and the construction process.

5. The property Plans - Identifying boundary lines.

6. Identificação Fiscal - Fiscal Number - As a future home owner you will be required to get A Fiscal Number from the Local Tax Office.

Once your completion date has been set, you will be required to sign the completion documentation or Escritura in from of a Notary.

 

You will then be required to register your property at the tax office within 60 days.

Legal Issues to Consider:



• Lawyers' fees vary and can range between 1%-1, 5% of the purchase price.
• In Portugal the Estate Agent's fee is paid by the seller at around 3% to 5% plus 21% VAT.
• As a general rule one should allow at least 8% of the purchase price to cover all costs including taxes, stamp duties, conveyancing, and registrations.



Financing a property purchase:

Financing an overseas property purchase is easy when you deal with professionals...

 

If you are thinking about buying an overseas property, then you also need to be thinking about the best way to finance your purchase. At Sublime Location we work closely with a number of specialised lenders who have all been carefully selected based on trust, experience and reputation.

 

Selecting the right product and making the right decision when it comes to financing a large investment could save thousands.

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• Competitive rates negotiated on your behalf
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• First class service
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• Education on all aspects of overseas finance
• All areas covered including Legal costs and Tax issues



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Investment Potential:

Investment potential in Portugal is still relatively good although prices have not experienced year on year increases in all areas. Portugal's geographical positioning and good weather still keep it high up on the favourites list for UK residents looking to live and retire abroad. 

 

According to the Instituto Nacional de Estatistica (INE), Portugal, the average price of property in Portugal calculated on a per square meter basis has dropped in the last 2 years from €1,243 to €1,220. On the whole the Algarve has experienced the most positive growth and has remained the most popular area to invest among expatriates.

Education:

The education system in Portugal is divided into pre-school, basic education, secondary education and higher education.

 

It has been said that the education system is Portugal is severely under funded and that teachers are underpaid and over worked. However in recent years the government has been forced to address this issue. The education sector offer a range of both state schools and private schooling facilities, however these facilities do vary dramatically from area to area.

 

Higher education in Portugal is divided into two subsystems. University education and non-university higher education are available. Higher education is generally provided in independent public universities and private universities.



Health:

Anyone that contributes to the Portuguese social security is entitled to free or subsidised medical and dental treatment.

 

It is possible for EU citizens and citizens of European Economic Area (EEA) countries to make payments in their home country entitling them to use the public health services in Portugal.

 

Retired EU residents receiving a state pension may be required to have private health insurance in order to apply for a residence card which will enable them to utilise the Portuguese Social Security system. If you are an EU national of retirement age, who isn't in receipt of a pension, you may be entitled to public health benefits if you can show that you cannot afford private health insurance.

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