Land Transfer Tax

The IMT (transfer tax) must be paid: proof of payment must be given to the notary. The final deed (escritura) is drawn up, signed by both parties, and witnessed by the licensed notary at a public notary office (the "notrio").
Property Transfer Tax (IMT) 2007
Price from Till IMT Rebate
0 € 85,500 0 0
€ 85,500 € 117,200 2% € 1,710
€ 117,200 € 159,800 5% € 5,226
€ 159,800 € 266,400 7% € 8,422
€ 266,400 € 532,700 8% € 11,086
€ 532,700 + 6% 0

Example

Purchase Price € 250,000
IMT Tax (7%) + € 17,500
Rebate - € 8,422
______________

Total IMT € 9,078
(3.6% of purchase price)

The purchaser will receive a certified copy of the "escritura", with which the purchase has to be registered at the local tax office (Repartiao de Finanas), and at the land registry office (Conservatria do Registo Predial). A simple photocopy of the "escritura" is needed as well when applying for the connection of service facilities (water at the local town hall, electricity at the Electricity Board, telephone at the Telephone Company, and gas at the Gas Company).

Build your dream home

Choosing the location and building the house of your dreams - We can help.

We offer architectural projects for our clients who are looking to create their dream home in the Algarve. Starting with the selection of a plot of land, we begin the process of shaping your goals. The process is simplified into three main stages:

1. Evaluating the Location and its natural views, angles and proximity, sun exposure, wind and topogrophical possibilities.
2. Plan - taking into account budget, technical and legal issues, lifestyle and ambitions of the property owners.
3. Creativity and direction, to put the imagination and knowledge into the perfect architectural solution.

For best results the property owners must provide freedom to the architectural minds for concept of the project. Simultaneously, must define the format in which their lifestyles will take place, their vision and of course their budget restrictions. From this point forward, our architectural team concepts solutions based on their input and feedback along the way, to arrive to an expressive aesthetic concept of their dream home.

For your personal consultation on a customized home project, please contact us. We will be glad to manage the project on your behalf.

Additional Information

Maintaining your investment in good condition is a healthy return on your investment.

Insurance
Despite the fact that the overall crime rate is lower in Portugal than in most European Countries, it is still important to insure your property.

Two policies are required - one for the Rebuilding costs, the other for Contents. Reputable agencies will advise you on the types of cover available, Portuguese Banks also offer good general policies. They will recommend that the policy should include cover for Fire, Flood, Storm damage, Seismic risks.

Third Party Public Liability/Civil Responsibility (Responsibilidade Civil) is advised in case someone is injured on your property (whether invited or otherwise). Most insurers include this at a low level but do check to make sure it is included and that cover is to the correct value, as it could prove quite important. If you are planning any building or renovation work then a special 'accidentes de trabalho' (accidents at work) policy is required for anyone working
on the site, the policy must be maintained for the duration of the project.

Property Maintenance
The size of the garden affects whether you need an automatic watering system and a gardener. Although most of the villas in Portugal have an automated garden irrigation system, a gardener is still required for pruning of shrubs, grass maintenance, pesticide and fertilizing control, fountains, jacuzzi, pond maintenance, etc.

If your swimming pool gets regular use, then a bi-weekly cleaning in the summer season and a bi-monthly cleaning in winter migh be sufficient, utilizing the the relevant chemicals.

Cleaning services are recommended for the good upkeep of a property, even when it is not being lived in. A less frequent cleaning service is then available, and can be customized according to your needs. Based on the size of the property, a single person, or a professional team might be hired.

For a key-holder service and management of utility bills, repairs, or any other maintenance, a monthly charge is applied. A customized maintenance packaged is then prepared for your particular needs, and costs are estimated accordingly.

Legal and Notary Fees

Other costs to bear in mind are Notary & Registration fees - These are approximately 1% of the value of the deed (escritura) - Legal fees - typically around 1.5%, but can vary between 1% and 3%.

for more information

Exclusive Algarve Villas (Portugal)
Rua Ernesto Cabrita
Edificio Vales, Loja -A
8400 387 Lagoa - Algarve - Portugal

Tel.: +351 282 353 019 · Fax: +351 282 381 421
Mobile: +351 918 024 082
E-mail: info@eavillas.com