Buyers Guide

Buying Costs

As a rule of thumb, you’ll need to keep aside around 10% of the property purchase price for associated fees and taxes. The stamp duty and IMT taxes can vary and we will be able to guide you with exactly how much you will need on an individual basis.

• Property Purchase Tax (IMT)

Your property purchase tax can be charged variably - depending on whether you have an urban or rural property - by up to 8%. IMT isn’t charged on properties below €92,407. Remember that rates rise above 5% on properties valued over €172,348. Your IMT tax will be calculated either on a council assessment of your property value or for the price you have paid.

• Stamp Duty

You will be charged 0.8% in stamp duty on top of your property purchase tax. Note that if you are purchasing your property using a mortgage then you will need to pay stamp duty at a rate of 0.6% on the amount loaned.

• Notary Fees

Notary fees ensure that your paperwork is accurate and in order for the transfer of ownership. You are looking at fees of around 1-2% of the purchase price of your property.

Mortgages

Oscar James Portugal can help to arrange your mortgage and guide you through the legal process when it comes to financing your purchase. We can put you in touch with a mortgage broker before you go and we have links to local solicitors who can assist with the legal work associated with your property. Let us guide you through your contract of sale, payment of a deposit and various taxes and completion in a smooth experience that’s made easier by the property experts at Oscar James Portugal. Take a look at the below checklist of requirements and charges to consider when you start aligning your finances for a mortgage application.

What Will I Need?

• An income tax declaration that covers the past two years.
• A year’s worth of bank statements.
• Your passport.
• Proof of income for the past six months (for example, payroll).
• Records of existing mortgage loans.
• Statement documenting your assets and liabilities (to be supported by accountant).

Additional Finance

Assess your options by speaking with a financial advisor or bank if you need to buy with a mortgage. You’ll need to sit and work out how much deposit you’ll need and how you will repay the monthly payments.

Ongoing Finance

Remember that other costs will be part of your purchase, such as local property tax rates, maintenance and other expenses, such as travel to and from your property. Take these costs into consideration and ensure you have money set aside.