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Selling Property in Portugal

Selling your Property in Portugal

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Selling your property in Portugal can be a stressful experience if not handled correctly. You should therefore make sure you have trust in the Real Estate agent who is assisting you in the sale.

If you deal with Ocean Key Property we guarantee our loyalty and excellence when listing your property. And also finding a buyer who will love your property as much as you do. We will put your property on our sites with a good selection of photographs and an attractive write up. Also we have buyers in our data base who also maybe the one looking for your type of property. We will contact you if anyone inquiries on your property and let you know the days it will be viewed. Our clients are already pre-approved making the sale of your property less stressful for all involved.

The first question a seller needs to let us know is how much your property is worth. This is when one of our agents will be sent to your property to appraise it. The agent will then talk to you to see if you agree on the asking price. Our agents are trained and will tell you if any renovations should be done if you wish a higher price.

It is up to you the owner if you wish to have a for sale sign up on the property. If not don’t worry we will advertise your property on all of our property engines.

If you do wish to come on board with Ocean Key Property we will draw up a contract with you. We will also inform you when we have interest in the property.

If you are selling property here in Portugal the documents you will need to see are as follows;

  • Identification such as your passport from all the owners of the property
  • Fiscal number
  • Tax and financial registration of your property which is issued by the tax department. This document shows the financial registration of your property, rates, and the taxes payable to the local council. Make sure this document is no later than 6 months old.
  • Property registration certificate or land registry which shows who the registered owner of the property is. This document is also needed to show any outstanding payments of loans or mortgages. The document is available at the land registry office. This document shows the construction area, plot size and other information about the property.
  • Habitation and construction license is required for properties constructed after 1951, and is issued by the city Hall. This document shows that your property has been built according to the plans approved for your property. No property can be sold without this license in place. With properties built before 1951 there would have been no registration done meaning this property would need a declaration from city council. This document states the property was indeed constructed before 1951.
  • Property Technical file, this document is provided by the developer or builder and is a new requirement since March 2004. This file is the detailed ID of your property and explains in detail the construction. The ID also shows the suppliers, materials used and all other technical data used for the construction of the property.
  • Energy Certificate, this is according to the new law here in Portugal. All properties advertised with a Real Estate agent should have their own certificate.
  • Mediation contract, before an agent can advertise your property for sale, you will need to sign this contract between the property owner and the agent handling the sale. This contract is the owner giving permission for the hired agent to find a buyer for your property.

Selling Costs

Lawyers fees – The seller may choose to have a lawyer for representation of selling your property, but the costs of lawyers here in Portugal will vary on the lawyer. You will find most agents will have a lawyer that will work on behalf of the seller and buyer cutting the cost of fees for both parties involved.

Income Tax – IRS/income tax for the capital gain obtained through the sale of your property which the buyer purchases at a lower price. The seller or the agent must report the sale of the property to the tax department within a fixed time after the final deed. Amount of capital gains tax payable depends on whether you are a Portuguese resident or not, having deductable expenses or not, year the property was purchased etc. Prior to selling your property you should enquire with your tax advisor before determining the price of your property.

Agents Fee – The seller will meet with their chosen Real Estate agency to find out the costs as here in Portugal the seller pays the fees to the hired agency.

Please note, as the laws in Portugal are constantly changing the above information is just a guideline and we cannot be held liable for any errors or misinformation and recommend legal and fiscal consultations prior to any transaction.

 

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