A Guide To Selling Your Property In Portugal
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Table of Contents
Introduction
One of the most significant things you will likely do in your life is selling your property in Portugal, which demands planning and time to be successful.
There are several considerations to make before beginning the process that might speed up the sale of your property particularly if it is your first time selling real estate in Portugal. See the detailed instructions for selling your in Portugal below.
Selling Your Property in Portugal
Finding the correct real estate firm is one of the most crucial steps in selling your property in Portugal. In every region of Portugal, several real estate companies provide a wide selection of homes.
You are free to list your property for sale with as many agents as you choose at the same time under Portuguese law. While waiting for a buyer to show up, many of those firms will just advertise your home.
In Portugal, the buyer’s attorneys handle the majority of the work involved in buying and selling real estate; having a lawyer on your side is not required, although it is recommended.
Listing your home with a real estate agent is the first step in selling it. To do this, you must ensure that all of your documentation are current and that any renovations have been registered with the local government.
Documents Required When Selling Your Property in Portugal
- Caderneta Predial (Tax Registration Document) – The current owner, the property’s fiscal number, the property’s inscription for fiscal purposes, and information on the property’s tax situation are all included in this document.
- Certidão de Teor (Land Registry Document) – This document specifies any debts, liens, or encumbrances that are attached to the property, and establishes your ownership of it.
- Certificação Energética Avaliação (Energy Rating Certificate) – When selling real estate in Portugal, you are legally obligated to present an energy rating certificate.
- Escritura (Deed) – You would have signed this when you bought the property.
- Ficha Técnica de Habitação (The Property’s Technical Report) – This describes any technical information regarding the property, such as the builder’s credentials and the building materials utilized.
- Licença de Habitabilidade (Habitation License) – This is necessary for all properties constructed after 1951 and essentially proves that the property has undergone an inspection and got a certificate stating that it is suitable for human habitation.
- Número de Identificação Fiscal (Tax Identification Number) – You may get this from the tax office and it enables the government to identify you based on your tax footprint.
- Planos de Propriedade (Property Plans) – These should be available at the town hall; however, to ensure that there are no errors, have a lawyer review them as well.
8 Steps to Selling Your Property in Portugal
1. Prepare to sell your property in Portugal
The first thing to check is if the property’s taxes are current and paid. Your property may be auctioned at a public auction if you don’t fulfill these requirements, which would be done to pay off the debt. The property will thus be sold to the highest bidder and may fetch a price far lower than its actual value.
Additionally, before the sale, you must ensure that all utility bills, including those for gas, water, and electricity, are fully paid.
2. Get a real estate agent or opt for a private sale
Choosing whether to sell privately or via Agente Imobiliaros (estate agent) is the first choice you make when selling your property in Portugal.
The best return on your investment can be obtained by selling privately, but this can be a very drawn-out and time-consuming procedure, and the outcome depends entirely on you.
A real estate agent will handle much of the work required in selling your property in Portugal, including marketing it and setting up Marcaçes e Visitas (property viewings). They also probably have access to a sizable database of prospective buyers. An estate agent often charges a 4 to 10% fee on the sale of your house, so this isn’t a cheap option.
Alternatively, if you take care to avoid signing an exclusivity contract, you can promote your home both independently and through an estate agent.
3. Determine the right market price
It is a good idea to thoroughly investigate the appropriate market price for your home in order to guarantee the success of your sale. While you’ll want to set the asking price as high as you can, you don’t want to overcharge and run the danger of your home remaining on the market for an extended period of time.
Prices in Portugal are influenced by a number of variables, including the property’s size, location within the Distrito, Concelho, or Freguesia, as well as the amenities it has access to.
If you have hired an estate agency, they will probably do the Avaliaço Imóveis (property appraisal) for you, but if you have decided to sell privately, you should hire both a Vistoriador (surveyor) and an Avaliador (evaluation agent).
4. Make your property stand out
Making your property stand out from the hundreds of other houses on the market is crucial when it comes to selling it.
In order to highlight the greatest features of your house and give potential buyers a clear sense of the layout, you should make sure to take enough of high-quality pictures of it. Employing a professional photographer is advised if you truly want to maximize the potential of your home.
In the event of viewings, you’ll want to make sure the house is not overrun with clutter and that the vast majority of your personal photographs have been stored. The purpose of seeing a property is to assist potential buyers in envisioning the residence as their future home, which might be challenging if the walls are decorated with photos of someone else’s family.
5. Prepare all the paperwork
Before you can sell your property in Portugal, just as in almost every other country in the globe, you must compile a mountain of documentation.
Hiring a property solicitor, or Advogado Propriedade, is a smart approach to ensure that all legal criteria are satisfied and that no paperwork is missing.
If you are unable to be present for the full sale, your solicitor can act on your behalf by preparing a Procuraço Publica (power of attorney) document that can be signed and recorded in the notary office.
6. Accept an offer to buy
A promissory contract of purchase and sale (Contrato de Promessa de Compra e Venda), which outlines the terms of the transaction and the repercussions of either party failing, must be signed by both parties in the event that you get an acceptable offer on your property.
The buyer will often be required to put down a 10% deposit on the property’s worth, which they will lose if they back out of the deal. Before signing the contract, be sure you’re prepared to sell since if you back out or don’t follow the conditions, you’ll be responsible for twice the deposit.
7. Close the deal
The public deed must be signed at a notário pblico (public notary) with all parties and legal agents present, and it must be done on the day specified in the promissory contract you signed prior to the public deed being signed to finalize your transaction.
Make sure to provide your legal representative the power of attorney so that they may finalize the sale on your behalf if for whatever reason you are unable to be there for the signing.
Before the deed is signed, they will be read to the parties concerned and checked to ensure that the property transfer tax has been paid and the contents of the Contrato de Compra e Venda have been validated.
The original paperwork is then retained by the notary’s office and bound into official records before copies are sent to the necessary parties.
While this is going on, the public notary arranges for the title deed to be recorded in the buyer’s name at the Conservatória do Registo Predial (land registry office) nearby to finalize the ownership transfer.
8. Pay the capital gains tax
Naturally, the sale of your property will be subject to taxes; you will have to pay capital gains tax on any profit you may have made when you first bought it, with Portuguese tax residents receiving a 50% exemption.
The sale’s earnings will not be subject to taxes if they are used to purchase a home for habitation in Portugal or any other nation within the European Union. Taxation is applicable to any property purchased within 24 months of the sale or within 36 months after the sale.
Final Thoughts
That concludes the step-by-step guide for selling your property in Portugal. Keep these things in mind if you’re planning to sell your home soon so you can obtain the highest price.
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