Before engaging a lawyer, selection of the property should be made. Following tips should be kept in mind while selecting a property:

Requirement from property: If the property is purchased to spend life post-retirement, it is advisable to be in close proximity to shopping centers, hospitals and a bank. If the property is planned as a holiday home then the requirement changes accordingly.

Location: While selecting a property due care must be taken about the selection of location. Properties close to rivers, lakes may be visited in spring or summer, seasons when Portugal experience heavy rainfall. The water levels tend to rise alarmingly, giving you a clear approximation of safety levels of the location of the property you intend to buy. Similarly, a property should be visited at different times of day before final selection.

After a buyer selects a Portugal property, the process of purchase begins. Following tips should be kept in mind during process of purchasing a property in Portugal:

Tax or Fiscal Number: This may be obtained from the nearest tax office by producing a proof of identity and an address in Portugal. The identity proof may be a residency card; a valid passport and the address may be of a friend or a solicitor where the fiscal card would be sent.

Portuguese Bank Account: This is required to pay the bills locally, arising during the purchase process and transfer of large sums of money from an existing home account. A valid passport, birth certificate, fiscal number and present address proof are required to open a bank account in Portugal.

Contract of Purchase: This is known as Promissory Contract in Portugal. By this mutually agreed contract, the seller of a property agrees to sell a certain property at an agreed price within a fixed time limit. The buyer agrees to it and deposits a certain sum of money (generally 10% of the agreed price) to the seller. If the purchaser fails to honor the contract within the stipulated time the deposit is lost. If the seller fails he pays twice the deposit money.

Purchase Tax: Before completion of the sale, purchase taxes must be paid. This is called Imposto Municipal Tax (IMT) in Portugal. There are different rates for rural and urban property, agricultural land and shops. The Maximum cap is 6.5% of the agreed price.

Completion of Sale: At an agreed date the buyer and seller meet at the office of the Notary to sign the ‘Deed of Purchase and Sell’. The balance of purchase price is paid at this time. An official copy of the completion of sale (Escritura Publica de Compa de Venda) is taken to the land registry office (Conservatoria do Registo Predial) to register the property in the name of the buying party.

While the buyer may select the Portugal property and its location, the process of purchase should be left to an expert solicitor. Solicitors in Portugal usually charge a fee of about 1.25-1.75% of the price. Service charge of a Portugal property is payable on a monthly basis and so are most utility bills like electric, telephone and house insurance.

Portuguese investment property.

Portugal remains of consistent interest to overseas property investors, those seeking a home for retirement and second home buyer’s .Despite strong competition from areas such as France and Spain along with emerging markets such as Bulgaria and Croatia .Portugal is particularly attractive for buyers from the UK. The country’s south coast is one of the most popular with luxury resorts; Algarve area is a firm favourite and provides steady performance for buy-to-let investors.

Portugal is truly accessible.

Portugal ideal for investment as it is very easy to get to & good communications are top class. All investors know that the best overseas property destinations are the ones that are accessible. Portugal is one such region it has a National Airline called ‘TAP Air Portugal’ whose numerous flights fly to Portugal from most cities in Europe. Portugal benefits from several airports. The main airports are Lisbon Faro and Porto

Growing economy.

A strong stable economy backed by EU investment is giving Portugal a property market that has been quietly growing Portugal an ideal place to invest in property. Some locations in Portugal are producing wealth for property owners from capital growth and rental yields said to be up to 10%.The ever strengthening economy is backed by EU funding and strong inward investment from tourism and international investors. Portuguese property prices have risen modestly in the past 18 months and the Algarve tends to have the largest capital increases. Portugal has a good infrastructure which has been progressively modernized.

Tax made easy in Portugal.

Portugal still remains a place where the tax planners can thrive. It is still possible to buy property in Portugal using offshore companies. This can help secure significant tax advantages those investing in Portugal, resident or not, can very often legally circumvent capital and transfer taxes

Sunny Climate.

Summers are hot and dry throughout Portugal, particularly in the Algarve, which experiences very little rain. Portugal benefits from cool sea breezes in the long hot summers. Winters vary depending in which region you in however Golfers still make for the Portuguese shores all year round.

Top location The Algarve Portugal.

With over 30 top golf courses The Algarve is attracting the big spending Golfing community. The Algarve benefits from sand beaches, scuba diving, waterskiing, sailing, tennis centres, equestrian centres, casinos, Michelin star restaurants, marinas Good health care, private clinics and lots more! Keeping your cool buying abroad

My tips for buying overseas.

Don’t rush. Get familiar with the location and the type of properties you’re considering. Research the residency rules for non nationals. Know the people and the lifestyle. Get advice from a reliable source. Select a reputable local lawyer. Use respected real estate agents. Don’t let yourself be pressured by a pushy salesman. Independent advice is the best advice. Consider your exit plans