Q: Can I afford a property in Portugal? A: With UK property prices increasing, many people are using equity from their current home to finance a foreign purchase. We are happy to recommend an independent financial advisor in the UK.
Q: What costs are involved in the purchase? A: In addition to the purchase price of your property it is advisable to allow between 5% and 9% of the purchase price to cover the costs involved. This will cover your IMT (Imposto Municipal sobre Transmissõe), Notary & Registration fees as well as Lawyer's fees.
Q: Do we need a deposit? A: Usually a deposit of 10 - 20% of the sales price will be required, although this may be more upon agreement of both parties. Normally, should the buyer default on the contract the deposit remains with the seller, and if the seller defaults, they are required to refund the buyer with twice the amount of the deposit.
Q: Can I get a Portuguese mortgage? A: You can arrange a mortgage of up to 80% of the value of the property as a maximum, subject to status. All valuations are controlled by the lending bank who use an independent surveyor to carry out the valuation. The term of the loan varies from 1 to 35 years and interest is charged at a percentage over the Euribor (European Inter Bank Offered Rate) base rate. Should you require further information on mortgages here in Portugal, we would be happy to recommend you to a bank with English speaking staff.
Q: How do I set up a bank account? A: Opening a bank account in Portugal is fairly straight forward. You will need a 'numero de contribuinte' (fiscal/tax number) which your Portuguese lawyer can obtain on your behalf for a small fee, a copy of your passport, proof of your address in the UK and you may also require proof of income.
Q: Are English speaking property lawyers easy to locate? A: Yes, in fact most lawyers here in the Algarve speak English. It is always advisable to use a Portuguese property lawyer and we would be happy to recommend someone to you.
Q: Where can I exchange my Sterling (£) for Euros (€)? A: Due to fluctuating exchange rates it is advisable that you do not leave the matter of currency exchange to the last minute. Whilst the obvious choice may be your high street bank, it is likely that they may not be the cheapest or the most experienced in currency exchange and transfers. Gatehouse International can supply you with details of currency exchange brokers on request who, in our experience, may save you a great deal of money.
Q: What about inheritance tax? A: Gift and inheritance tax will not be levied as long as it favours surviving partners, children and parents. In cases where other people inherit, a 10% transfer tax applies.
Q: Do I need to be a resident in Portugal to live in or own a property there? A: Anyone living in Portugal for more than 6 months of the year must officially have residency. The process of applying for residency has recently been simplified, so you may either apply for it yourself, or your lawyer may do it on your behalf for a small fee.
Q: When I am not using my property can I rent it out? A: Of course. Gatehouse International would be more than happy to supply details of reputable rental agencies and maintenance companies.
Q: Can I work in Portugal? A: Anyone from the UK who becomes a resident in Portugal and has obtained a tax number has the right to work in Portugal, without a permit, providing they have a valid passport.
Q: Is the health care good? A: Portuguese healthcare is very good and is available to all EU citizens. As E111 forms are no longer valid, you will require a European Health Insurance Card (EHIC). You may apply for an EHIC online, by phone, or by post. Visit www.dh.gov.uk for further details.
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