FAQ (Frequently Asked Questions)

Thinking of purchasing a property in Portugal? You probably have a few questions on your mind. To help you sift through your initial thoughts and questions we've compiled a list of Frequently Asked Questions. Have a browse through. If your question isn't answered here, simply give us a call or send us an email and we'll happily answer it for you.

1. How do I offer a price for a property?
   There's less room for bargaining in Portugal, unlike in the UK market, but your Sales Consultant will generally know whether there is room for negotiation and will handle the price negotiation on your behalf.
   
   
2. What am I legally required to do before buying in Portugal?
   We go into more detail on this in the Buying and Selling section but ultimately you need to make sure you have secured the necessary funds, have obtained a fiscal number and have opened a bank account.
   
   
3. How much of a deposit do I give?
   Standard amount is 10% but it depends on the vendor and what stage of build the property is in. Some developers require a deposit of up to 30%, so the initial down payment can be between 10% and 30%.
   
   
4. What additional costs will there be?
   Notary and Registration fees are approximately 1.5% of purchase price; IMT is up to 8% (depending on the type of property and the purchase price); Lawyers and surveyors fees, which are subject to agreement + VAT/IVA.
   
   
5. Do I have to be present in Portugal to exchange and complete on my property or can my lawyer complete the transaction?
   You can give your lawyer power of attorney to sign all necessary documents on your behalf. The easiest way to do this is while you're in Portugal making the initial arrangements for your property purchase. It is possible to arrange from the UK, but you wll need to get the document notarised by a public notary in the UK, and then the document has to be formalised in the Portuguese Embassy in London.
   
   
6. Will the property I buy be Freehold?
   It will be Freehold as Leasehold doesn't exist in Portuguese Property Law.
   
   
7. Can I get a Portuguese mortgage?
   Yes and we can help you find one. You can normally borrow up to 80% 75% of valuation and interest rates are usually lower than in the UK, and the borrowing age is up to 75 with some lenders.
   
   
8. Should I make a will covering my property in Portugal?
   Yes. If you own a property in Portugal, it is advisable to make a will. There is no specifically named Inheritance or Gift Tax in Portugal. However, gifts and inheritances are subject to taxation and regulated in the property transfer tax code. The level of tax payable depends on the declared amount to be inherited as well as on the inheritor's relationship with the deceased. Please see the section on Inheritance Tax in our Property Tax section
   
   
9. Should I use a Portuguese solicitor?
   We recommend that you do because they have a thorough understanding of Portuguese law and will be less expensive than a British lawyer.
   
   
10. Can I receive my UK pensions and benefits in Portugal?
    Yes. They can be paid directly into your bank account. Details are available from:
    Pensions and Overseas Benefits Directorate, Room TC109, Newcastle NE8 1BA (0191 218 7777).
    
    
11. What is the cost of living in Portugal?
    It is significantly cheaper to live in Portugal than in the UK. Food, clothes and household items are cheapest, but cars are more expensive than in the UK.
    
    
12. Should we learn the language?
    If you intend to live in Portugal and make any headway with the locals then, yes, without a doubt. Just as you would appreciate your neighbours speaking English in the UK, they will appreciate your grasp of Portuguese in Portugal.
    
    
13. Can I take my pet(s)?
    Yes. For more information telephone Pets Travel Scheme 08702 411710.
    
    
14. Am I eligible for healthcare?
    Yes and the system is surprisingly efficient (at least for those of us used to the NHS). It is available to all EU residents. For further information contact The Department of Health Enquiry Line - 0207 210 4850.
    
    
15. Can I drive with my UK plates and License?
    If you are spending less than 183 days per year in Portugal. If your car is left-hand drive you can transfer to a Portuguese plate. Right-hand drive cars can only transfer if the owner is a new resident. You can drive on your license temporarily, for up to 6 months before you need a local one.
    
    
16. Can I use British appliances?
    Voltage is 220-240v AC so you will need new plugs but you won't need a transformer. Electrical goods are cheaper in Portugal.
    
    
17. Can I legally work in Portugal?
    You will need a Portuguese Tax and Social Security number, but yes, you can.
    
    
18. What do I need to do if I want to live in Portugal for good?
    First you should find out at your local Embassy or Consulate before you leave your home country if there are any specific requirements. The Portuguese Embassy in London is based at 3 Portland Place W1B 1HR (0207 291 3770). It is not necessary to have a Residence Card if you want to live in Portugal but it makes life easier when opening bank accounts and applying for loans.
    
    
19. Do I need to have a Fiscal Representative?
    Under Portuguese law, all non-Portuguese non-residents who own a property in Portugal must appoint a fiscal representative.