Finding the right estate agent is the key to selling property in the Algarve, particular in the current buyer’s market. Your estate agent can find you the right buyer and help you to understand the sales process.
You should make sure that all of your municipal and property taxes have been paid before you sell property in Portugal. You will also need to provide the following documentation for the buyer and their lawyer: property tax document, property registration certificate, energy rating certificate, habitation license, technical report and escritura or title deed.
Your estate agent can help if you need advice on where to obtain these documents or whether you are exempt from any of them due to the age of your property.
Although a lawyer isn’t required for sellers, you might want to hire a property solicitor, particularly if you are selling your property in Portugal while you are overseas. Your solicitor can draw a Procuração Publica (power of attorney) in order to act on your behalf.
Property Selling Process in Portugal
Hiring an estate agent is the best way to sell your property in Portugal. Casas do Barlavento can arrange a valuation or survey and help you to decide on the right asking price for the property. The price will depend on the size, style, facilities, quality and location of the property.
Your estate agent can also ensure that all of the legal requirements are met and ensure that your property is marketed effectively.
When you decide to accept an offer on your property, you will sign a promissory contract or Contrato de Promessa de Compra e Venda with the buyer. This is a legally binding contract and it commits you to sell at the agreed price. The deposit will be paid at this stage. As long as the buyer’s lawyer finds no issues that prevent the sale from going ahead, you will then sign the Escritura de Compra e Venda, the final deed, and the sale will be completed.
Costs of Selling your property in Portugal
The seller is responsible for paying the estate agent’s fees when selling property in Portugal. If you decide to hire your own lawyer, you will also need to pay for this. You will also be liable for capital gains tax, which will be higher if you are not a Portuguese tax resident. If you are a Portuguese taxpayer, you will get a 50% exemption on the 25% capital gains tax.
Tips for Selling your property in Portugal
Portugal is something of a buyer’s market at the moment, so it is important to ensure that your property is being marketed effectively and that you present it in the best light when buyers come to view it. You should choose a proactive estate agency like Casas do Barlavento who is experienced in selling property in Portugal, but you may still need to be patient. You should be able to get a good price if you are able to wait, but if you are in a hurry you may need to compromise on price when you are selling your property in Portugal.
If your considering selling a property in the Algarve or you would like further information on the process, please feel free to contact us. We would be pleased to answer your questions and assist you in selling your property.