Buying Property for Rental Purposes

This article was written by Angela Harpert from www.vacation-rentals.com

There are many reasons why someone might want to purchase property in Portugal, especially considering the country’s safety and popularity as a European tourist destination. Whether it is a second home away from home or simply a new life abroad Portugal is a wonderful choice. There are however those who prefer to purchase a property there purely for business purposes as part of a business plan or a similar purpose. The landscape is picturesque and beautiful with beaches and mountains well-traveled by tourists every year so the business potential is high.

So for those willing to buy property in Portugal regardless of the reason there are some rules and paperwork one must follow in order to do so without a hitch:

 Fiscal Number

This is something a non-resident must have in order to purchase any property since it is used on any documents pertaining the business correspondence between the owner and client. In case you are a married couple both you and your spouse must have a number otherwise the Tax Department of the Portuguese government will not process your payments. This can be done in any post office in Portugal for about 6.40€ and you will need an address in the country on which you’ll be able to receive the number.

 The Promessa Contract

Signing this contract is something that must be done after you find the property you wish to purchase before you receive it from the previous owner. It is prepared by a lawyer where all sides are presented including the property itself. The contract protects your interests in case the owner decides to re-nege on it and in that case you are a double compensation by law. When the contract is done it has to be registered online to ensure its validity. Purchasing a property and going through all the procedures can take up to a few months depending on different factors. It is also possible to purchase a property via the Casa Pronta system as an alternative. Keep in mind that the contract has to be in Portuguese in order for it to be valid.

 Municipal Purchase Tax

This is a tax paid when a property changes hands and it may vary depending on the property. It may vary up to 6.5% depending on what the property is and before it is paid you won’t be able to complete the sale. You must provide proof of payment to the notary to finish things.

 Property Registration Fees

When you finish purchasing your property you will have to register it at the Property Registry Office in which your property resides and of course the local tax office. Unless you register and list yourself as the approved owner it will not be yours by law.

 Extra expenses

You will need to prepare for a little of that since there are a number of other things you may need to spend more money on during the process like legal charges for your lawyer and the purchase tax of the property. When hiring your lawyer do keep in mind it is always a good idea to look for someone as far away as possible from the land owner or real estate agent to make sure they are acting in your best interest.

 

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