Understanding the hidden costs of buying a house in 【Portugal】 and the hidden VIP house viewing list!
The house Sources in Portugal
In Portugal, there are various sources for finding properties, including owners, real estate agents, and developers. Commonly used online resources include Idealista and Imovirtual.
Idealista is a free resource and generally has more listings compared to Imovirtual, which charges for its listings. However, listings on both websites can differ, and users may encounter common issues such as discrepancies between the location marked on the website and the actual location, properties that have already been sold despite still being listed, and different prices for locals and foreigners.
Real Estate Agents
In Portugal, there are several larger real estate agencies including international ones such as Remax, ERA, JLL which has Chinese investments, and well-known 21st Century. These large companies have many real estate listings and agents. Additionally, different listings can be found on these websites compared to the two major websites mentioned earlier. Smaller real estate agencies may not have the same large chain size, but they may specialize in a specific area and provide more personalized service.
Real estate developers
Not all real estate agents have a good understanding of Portuguese immigration laws when it comes to purchasing a property that qualifies for the Golden Visa. In general, these types of investments are directed towards developers who will handle the development and sales process. There are few related products available on the market, and most of them are either sold directly online or through partnerships. Buying a new property under construction is also a good option.
VIP List
In the Portuguese market, there are also VIP client lists where selected properties are competitively priced and are sold out as soon as they are listed. These properties are not publicly listed, and are often shared via phone calls to provide location and size details to interested buyers. This can result in immediate viewings and transactions.
Various types of taxes are hidden costs
When buying a property in Portugal, there are many fees and taxes that are not included in the property price. Let’s take a look at some of the expenses that may be overlooked:
- Stamp Duty (IS): 0.8% of the purchase price.
- Property Transfer Tax (IMT): ranges between 0-8% depending on the property type and purchase price.
- Land Registry Transfer Fee: ranges between 200-500 euros depending on the property type.
- Municipal Property Tax (IMI): ranges between 0.3-0.8% depending on the government-assessed property value and type. Tax-free havens have different tax rates.
- Additional Municipal Property Tax (AIMI): additional property tax is applicable if the value of the property exceeds a certain amount, depending on the marital status. (Note: the above taxes only apply to properties and do not include renovations.)
Common Questions
Q: How do you know if a real estate agency is a registered company?
A: You can search on the government’s AMI website.
Q: Do real estate agents have relevant licenses?
A: There is currently no official license, but professionalism can be improved through training courses.
Q: Does the buyer need to pay the agency fees?
A: No, because the fees are paid by the seller.
Q: Who needs to pay these taxes?
A: The buyer needs to pay the above taxes.
Q: Is it mandatory to purchase property insurance?
A: Home insurance is mandatory.
Q: Can you negotiate? How to negotiate?
A: Please refer to this article.
