Real estate

Finding a property in the Algarve

If you want to buy a property in the Algarve you can check this site for some examples and get an idea of prices. You can also ask us to look for the right property. We are independent consultors. Please let us know what you are looking for, kind of location, how many rooms, how close to the beach and villages, and of course your budget. You also can find something on the many real estate agents websites, and if you wish we can check for you if everything is legal, if the price is conform the market, the exact location etc. Please keep in mind that the market is 'hot', properties who are offered for a reasonable price will be sold quickly.

The procedure of buying real estate

The buying process in Portugal is not very complicated, but one must take into account some important issues.

If a buyer finds a house that he wants to buy, he can make an offer. The agent is required to pass this bid to the owner. If buyer and seller agree on the bid a lawyer starts his work. First there will be made a preliminary contract and the buyer pays 10-20% of the price to the third party account of the lawyer. The lawyer will then figure out exactly if the house meets all legal requirements, if the licenses are in order, if there are no resting debts like mortgages, if the house is well registered in the real estate registry and the tax office etc. If everything is OK, (this can last between 2 weeks and 3 months), an appointment with the notary will be made to sign the final contract. Before that, the remaining amount and the IMT has to be paid. When the final contract (the deed) is signed then the lawyer registers the purchaser as the new owner and then contracts can be signed for electricity, water, telephone, TV, Internet, etc. If buying property in Portugal you must have a fiscal number, NIF (the lawyer can arrange that for you) and a bank account.

Buyers can always give a power of attorney to the lawyer so they do not have to come to Portugal for every formality.

Prices

Real estate prices in the Algarve are generally lower than prices in subtropical places in the United States, such as Florida and California.

The average price for an apartment in the Algarve is around €250,000. The prices for a T3-villa in the Algarve start around €600,000 up to 5 million. Comparable properties in Florida and California will be around twice as much.

Of course there are also exceptions to this rule. In some popular areas in the Algarve, such as the 'Golden Triangle', prices are more comparable with Florida and California.

Purchase costs

When buying a property you have to pay IMT, transfer tax. The rate is based on a sliding scale from 0-7,5%.

If you buy a house including the inventory, the costs of the inventory can be deducted from the price before the IMT is calculated, usually around 10%..

Click here to calculate the IMT tax.

The other costs are:

- a lawyer , depends on the difficulty of the transaction, 1-2,5%

- the notary and registration, around € 1.000

Normally the selling agent is paid by the seller.