Logo

RECOMMENDATIONS
FOR A
SECURE DEAL

RECOMMENDATIONS FOR A SECURE DEAL
FOR ALL STAKEHOLDERS

We are delighted that you are interested in Portugal, and that you are looking to purchase or invest in a property or project.
But we want this satisfaction to be reciprocal and for you to feel good with Portugal forever, so we recommend that you read the notes below.

When you decide to buy a property in Portugal, you should bear in mind that in addition to the value of the property, you will have to consider taxes and all the costs related to the purchase (IMT, IMI, ..., Notary).
Especially the IMT (Municipal Tax on Property Transfers).

IMT - What is it and how is it paid:

This is a single instalment tax, which must be settled and paid by the purchaser of the property, prior to the execution of the deed of purchase and sale.

For the settlement of this tax, it will be necessary to fill in and deliver the IMT Model 1 return at any Finance Service or on the official website of the Tax Authority (Portal das Finanças) in case the return is submitted electronically.

It should be noted that notaries always require proof of payment of this tax (as well as the Stamp Duty), and it is not possible to carry out the deed without the respective proof of payment.

The IMT is calculated on the value declared in the purchase and sale agreement (i.e., acquisition price) or on the taxable equity value (“VPT”) contained in the land register, if this is higher, and there may be cases in which the purchaser is exempt from this tax (see exemptions below).

In the case of a residential property, the amount of IMT payable depends on the following characteristics of the property:
- Purpose: Permanent housing, secondary housing, …;
- Location: Mainland or Autonomous Regions;
- Tax basis: acquisition value or VPT, if higher;
- Rate to be applied, which varies between 1% and 7.5%.

I recommend you a physical visit to the property / project in Portugal.
This visit will serve to confirm that the property / project meets your expectations, to be sure that is what you are looking for.
And, for your security, it will allow you to validate / certificate all documentation related to the property / project, and the signing of contracts to be carried out in person at a notary.

If you need bank credit in Portugal to purchase your property, you can use the services of a credit intermediary company to obtain the best conditions on the market. This service is free!

Only entities accredited by Banco de Portugal can carry out this activity.
We are not, but we have a business partner for this purpose.


**************************************************

LOAN (Funds, Private Financial Investors, ...):

If you are a financial company providing real estate loans, or a private investor, I have clients that could be interested in a loan to financing their projects.
HOWEVER, PLEASE NOTE THE FOLLOWING:
Due to situations of fraud where advance payments were made and in the end the financing was not obtained and it was not feasible to recover the advance payments.
My clients refuse to pay anything before getting the loan!
Preferably, all expenses related with the loan process are paid directly by the investor / lender and deducted from the amount to be transferred to my client (borrower).
And, it is also important to bear in mind the obligations referred to in point (4) below concerning "COMBAT MONEY LAUNDERING and TERRORIST FINANCING".

Therefore:
My clients refuse to pay anything before getting the loan!
NO UPFRONT PAYMENTS! NO UPFRONT FEES!


HOW WE RECOMMEND TO PROCEED:


1. PROJECT PRE-APPROVAL:
My client will provide documentation so that the investor can assess whether he is interested in the property / project.
If the investor is interested in the project, video conferences should be organized so that interested parties can get to know each other and clarify doubts, or requests for additional documentation or information.
If this phase goes well we have a pre-approval from all parties.

2. CONTRACT and ASSOCIATED COSTS:
With pre-approval, and to obtain final approval, my client must be informed of ALL requirements, actions, necessary documentation, the expected time for completion of the process and transfer of the loan amount, ..., and ALL costs associated with the process, for knowledge and acceptance by my client (in writing).

BUT, YOU MUST TAKE NOTE THAT:
My clients may agree to pay all expenses related to the process, such as:
- Due Diligence
- Travel and accommodation expenses for the investor or representative to visit the property / project.
- Insurance Surety Bond
- Administrative expenses
- Loan origination fees
- Other expenses.
but you should keep in mind that all expenses will only be paid after my client receives the loan.
NO UPFRONT FEES!

PLEASE, NOTE THAT RIGHT NOW, BEFORE NEXT STEP (CLOSING):
It will be necessary to clearly identify the investor/lender and borrower, as well as the banks and bank accounts used in transactions related to the process. All transactions must be clearly identified and documented.
Also be aware of the legal limits on cash payments.

3. CLOSING / CONCLUSION:
Signature of the contract and transfer of the loan to the borrower's bank account.

If these conditions are acceptable to you,
please contact us to introduce you to my clients.

By law, legal and mandatory actions to combat money laundering and terrorist financing impose the duty of identification and due diligence of customers (buyers, investors, ...), legal representatives and beneficial owners.
Identification of politically exposed persons or close family members.

If it is a company, detailed information about the company, the person representing it and the final beneficiary (if not the same person) will be required.

In Portugal, cash transactions of amounts greater than €3,000 are prohibited, so it will be necessary to obtain the details of the bank account that will be used for the transactions (bank name and account details).

CASH PAYMENT LIMITS
Summary of Law No. 92/2017, of 08/22:
It requires the use of a specific means of payment in transactions involving amounts equal to or greater than €3,000, amending the General Tax Law and the General Regime for Tax Offences.
# Individuals €3,000
# Non-resident natural persons €10,000
# Companies, Legal persons (organized accounting) €1,000
Calculation of the limit - considering all payments in aggregate


Please contact us for more information.