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Buyers

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PURCHASE PROCESS

The process of buying property in Portugal is extremely simple and transparent. Employees of Portugality Realty & Investment will provide you with complete and timely information about every step of the process. Depending on each individual case, for the purchase of real estate, you will need to make 1-2 visits to Portugal. Usually the process of buying begins at home, with the compilation of a list of property for viewing in the area which intrests you. Our experienced agents will help you find real estate and provide all the necessary information about the specifics of the location, technical characteristics and other features of the property you like. After determining the dates of the trip (usually from 3 to 10 days), an English-speaking agent will be assigned to you, who will meet you in Portugal and conduct the viewings, as well as help prepare everything that is needed for the future purchase. Organization of property viewing is a service provided free of charge.

In the event of a purchase decision, non-Portuguese residents must obtain a taxpayer’s number and open an account with one of the Portuguese banks. With the timely preparation of the necessary documentation, the process of obtaining the Portuguese NIF takes 24 hours, and opening a bank account about 1 hour in person. Both services are provided by the agents of Portugality Realty & Investment. If you wish to purchase a property on your first trip, you need to prepare the documents in your home country prior to arival in Portugal. Our agents will help you with this.

The process of buying usually consists of three stages: reservation, signing of a contract of intent (preliminary contract of sale) and registration of a sale-purchase transaction. The time for implementation of all the stages takes from 7 days to several months (depending on the terms of the contract), but you do not need to be in Portugal all this time. You can either fly in for a purchase transaction, or  create a power of attorney for the purchase implementation. When buying a property, the buyer must pay taxes and notary services. Taxes vary depending on the value of the property on the basis of the progressive scale established by the Tax Service of Portugal. The costs can be from 1 to 7% of the transaction amount. Once you have become the legitimate owner of real estate in Portugal, you must sign contracts for utilities, condominium and other real estate services. Our agents are happy to help you choose the most favorable rates.

ORGANIZATION OF VIEWING

A trip to explore the area and real estate – your chance to see everything with your own eyes and personally choose the place where a new life will begin for you. For inspection you will be offered those real estate options that match your requirements for price and location, and getting to know the surroundings will give you the opportunity to plunge into the local atmosphere. Thorough organization of the trip and absolute freedom of choice are the hallmark of our company’s work.

A sightseeing trip involves an inspection of facilities and consultations with specialists. The trip is not free tourism and does not include sightseeing. Locally, the English-speaking representative of the company acquaints the buyer with the objects of interest to them and helps to make the right choice. If the first visit did not succeed in discovering a property, the trip can be repeated later. In the absence of the buyer’s ability to be in Portugal throughout the transaction there is the possibility of a so-called remote acquisition. For this, at the time of being in Portugal or in the Embassy of the Portuguese Republic, a power of attorney (Procuração) is issued to the representative – an independent lawyer or employee of our company, which is then sent to a specialist in Portugal. The document is issued in Portuguese.

Services for organizing views – free for customers of the company Portugality Realty & Investment! Before registering a sale transaction, the buyer must obtain the Tax Identification Number (NÚMERO CONTRIBUINTE) from the local fiscal body (FINANÇAS), and open an account with the Portuguese bank (see the relevant sections for details of what documents are required for this).

OBTAINING of the taxpayer identification number (NIF)

To buy property in Portugal, the buyer must have a Portuguese taxpayer number (Número de Contribuinte Fiscal NIF). To obtain this number, non-citizens of the European Union must have a fiscal representative who is a guarantor of the foreigner before the Portuguese tax authorities. The staff of Portugal Realty & Investment will help you to obtain a Portuguese Taxpayer Identification Number, even before you arrive in Portugal. To do this, you need to send us the following documents by e-mail:

1. The first page of the passport.

2. Confirmation of residence. Since there is no registration in Portugal, the verification of the address is any invoice for communal payments, or a letter or a certificate from the bank, which indicates your name and full address. This document should be taken not earlier than 2 months and translated into Portuguese or English. To avoid the cost of translation and save time, many banks can request a certificate immediately in English.

3. A signed contract for the provision of services of tax representatives. (Request a contract from your agent).

The cost of this service is 180.20 euros for 1 person and 220.40 euros for a family of 2 people. The cost includes the opening of a fiscal number and a tax guarantee within 1 year. With the timely preparation of the necessary documentation, the process of obtaining the Portuguese NIF takes 24 hours.

Stages of the PROCESS OF PURCHASE / documents

The process of buying a property consists of three stages: reservation, signing a contract of intent (preliminary contract of sale) and registration of a sale transaction.

Reservation. This stage begins when the buyer has already selected one or more real estate properties and is ready to start trading at the price and terms of the purchase. At this time, a “purchase proposal” is drawn up in writing, which states the desired purchase price, the terms of signing the preliminary and basic contract of sale, the amount for non-refundable collateral under the preliminary contract, as well as a request for reservation of the property for the term of the final price agreement and terms of purchase (usually 14 days). To confirm the seriousness of intentions, the buyer, when signing the “offer”, leaves a pledge in the deposit, usually from 500 to 5000 euros, depending on the value of the property that is stored in the agency and serves as a guarantee for the seller. This amount is always refunded to the buyer when making a pledge under a preliminary agreement, in the event that the parties reach an agreement, or at any time at the request of the buyer if the parties have not agreed on the terms of the purchase. Within 14 days from the date of signing the “offer” the seller agrees to withdraw his property from sale to other buyers.

Agreement of Intent. When the buyer and the seller have come to an agreement on the price and terms of the purchase, the next step is the signing of the contract of intent / preliminary contract of sale. After a thorough check of documents for the absence of debts and encumbrances, at the time of signing the contract, the text of the contract is prepared with the description of the amount of non-refundable collateral (usually 10-20% of the cost), the method of payment, the maximum term for the sale and purchase transaction, For the parties the conditions about which the parties have agreed in the bargaining process. The contract is signed by the parties in the presence of each other and does not need to be notarized. In case of failure to fulfill the deadline for processing the transaction through the fault of the buyer, the amount of the pledge shall not be refunded, in the event of failure to perform due to the fault of the seller, the buyer has the right to demand the return of the amount of the pledge in a double amount, unless otherwise specified in the text of the preliminary contract. In the case of attracting bank funds (mortgages) for the purchase of real estate, it is necessary to pre-register (REGISTO PROVISÓRIO) the processes of transfer of ownership and mortgage lending to the local body of cadastral registration of real estate (CONSERVATÓRIA DO REGISTO PREDIAL).

Execution of the transaction of purchase and sale. The buyer must notify the agency of the desired date of the transaction at least 5 working days, the agency in turn agrees the date with the seller and appoints the transaction from the notary, and also passes to him all the documentation necessary for the transaction for the last check. Before the transaction, it is necessary to pay the transfer tax and stamp duty (see Taxes section), and also prepare a bank check for the remaining amount under the contract for transfer to the buyer from the moment of signing the purchase contract. If one of the parties or both parties does not know the Portuguese language on the transaction, the presence of an interpreter is obligatory, which undertakes to transfer the contents of the contract reliably before signing it. In the event that the seller has a valid mortgage on the transaction, a representative of the bank is necessarily present and the seller in the presence of the buyer completely repays his mortgage debt. Absence of other debts and encumbrances the notary last time checks online immediately at the time of the transaction, which guarantees the buyer full “cleanliness” of the property. After signing the contract of sale, the notary registers the right of ownership in the registration cadastral body within 15 days.

The signing of the contract of sale (ESCRITURA PüBLICA) at the Notary Office will take place only if all necessary documents are available for this:

 Receipts for payment of IMT and IMI taxes;

– Documents identifying the personalities of both parties;

   Documents related to the property:

I. CERTIDÃO DE TEOR – a certificate certifying the real estate property and its location, as well as containing information about all actions performed in relation to the property. Asked at the local body that performs cadastral registration of real estate properies (Conservatória do Registo Predial)

II. CADERNETA PREDIAL – a document certifying the registration of a property in a fiscal body. Contains information about the patrimonial value of the property, the description and status, the name of the owner and his fiscal number. A kind of passport of the property. Is issued by the local branch of the fiscal body.

III. CERTIFICADO ENERGÊTICO (energy certificate) – mandatory in the case of a purchase-sale document, issued on the basis of energy audit and reflecting the energy efficiency of the property (AE)

IV. FICHA TÉCNICA DE HABITAÇÃO – Technical data sheet of the facility containing the description, technical characteristics and plans. This is only for buildings built after March 30, 2004 (or the License for the use of which is requested after the designated date).

V. LICENÇA DE UTILIZAÇÃO – document on the purpose of the property (for living, for construction, for commercial activities). It is issued by the local municipality (Câmara Municipal do Concelho).

VI. In the event that mortgage lending is involved in the process, a copy of the preliminary registration (REGISTO PROVISÓRIO) in the Real Estate Cadastre for the transfer of ownership of property and mortgages to the bank is also provided.

Preparation and verification of all documents related to the property, is entirely the concern of specialists of Portugal Realty & Investment.

The final stage of the purchase process is the registration of the transfer of ownership of property in the body involved in cadastral accounting Conservatória do Registo Predial). In the case of the existence of preliminary registers (as, for example, in a mortgage), they change from the preliminary status to the final ones.

ACCOUNT OPENING IN THE BANK

List of documents required to open an account with Portuguese banks:

1. The passport

2. Taxpayer Identification Number of the buyer / investor’s country

3. Portuguese fiscal number (Número de Contribuinte Fiscal) – obtained from the local fiscal body.

4. Proof of residence. Since there is no registration in Portugal, the verification of the address is any invoice for communal payments, or a letter or a certificate from the bank, which indicates your name and full address. This document should be fresh, no more than 2 months, and must be translated into Portuguese or English. In many banks you can request a certificate immediately in English to avoid translation costs and save time.

5. Confirmation of employment – a certificate from the job (indicating position and salary) or other confirmation of employment (for example, receipt of wages, a working contract, a copy of state registration of business activities, etc.) – in the original

The account activation period is 24 hours after the visit to the Bank.

TAXES AND EXPENSES 

When buying a property in Portugal, the buyer must pay:

1. Tax on the transfer of property (Imposto Municipal sobre a Transmissão Onerosa de Imóveis), which is calculated according to the tables presented below. The amount of tax and levy is calculated from the higher of the two values: the purchase price or the cadastral value.

2. Stamp duty on real estate transactions (Imposto do selo) – 0.8% of the higher of the two values: the purchase price or the cadastral value.

3. The payment of notary services for the registration of purchase and sale and registration of property in the cadastral authority is usually carried out by the buyer, unless the parties have agreed otherwise. The cost of registers is 250 euros, the notary fees are calculated on the basis of the transaction amount.

Tables for calculating the Transfer of Property Tax (IMT)

FOR RESIDENTS. The first and permanent housing, the continental part of the country

            Value of the property               Interest rate (%)                      The subtracted coefficient *

Till 92.407                                           0                                              0

Over 92.407 to 126.403                      2                                              1.848.14

Over 126.403 to 172.348                    5                                              5.640.23

Over 172.348 to 287.213                    7                                              9.087.19

Over 287.213 to 574.323                    8                                              11.959.32

Over 574.323                                                              6%

 

FOR NON-RESIDENTS. The second housing, the continental part of the country

Value of the property               Interest rate (%)                      The subtracted coefficient *

Till 92.407                                           1                                              0

Over 92.407 to 126.403                      2                                              924.07

Over 126.403 to 172.348                    5                                              4.716.16

Over 172.348 to 287.213                    7                                              8.163.12

Over 287.213 to 550.836                    8                                              11.035.25

Over 550.836                                                              6%

Agricultural land – 5%

Land for construction, commercial property – 6,5%

  Subtractable coefficient is a value that is subtracted after calculating the appropriate percentage of the value of the property. For example: the price of the property purchased as a holiday home (see table 2), 100.000 euros. The tax rate for this cost is 2%. Therefore, the amount of tax paid is: 100,000 x 2% – 924,07 (Parcela a abater) = 1075,93 euros.

 

Taxes payable annually. Every year, the owners of real estate in Portugal pays “Municipal property tax” (IMI – Imposto Municipal sobre Imóveis). Tax rates vary depending on the nature and cadastral value of the property, the marital status of the owner, and on the tax rate of the municipality. The real estate tax, intended for living, as well as commercial real estate, ranges from 0.3% to 0.5% of the cadastral value. The land tax rate for agricultural land is 0.8%. There is also an additional tax AIMI (Adicional ao Imposto Municipal sobre Imóveis). This tax is levied on real estate with a cadastral value of more than 600.000 euros – a rate of 0.7%, and from 1.000.000 euros – a rate of 1%. The municipal property tax is paid by the owner of the property (physical / legal entity): – once a year, in April – if the amount for payment does not exceed 250 € – in two installments in April / November – if the amount to be paid from 250 to 500 € – three In parts in April / July / November – if the amount to be paid is above 500 €. The tax legislation provides for the exemption from payment of the above tax in some cases (more information you can get from our consultants).

EXPENSES RELATED TO THE MAINTENANCE OF REAL ESTATE

In addition to the annual municipal property tax, the homeowner in Portugal will have to pay for community and maintenance services, depending on the type of real estate, size, characteristics, location and intensity of use. To pay utility bills, the owner must sign contracts for water, electricity and gas supply with utilities. If the real estate belongs to the secondary market, you need to reassign the communal contracts of the previous owners. It is important to be attentive to the dates of previous payments, so as not to pay the expenses of the former owners. On average, the content of the villa area of ​​250 square meters will cost from € 250 per month, apartments of 70 sq.m. – € 70-150. The amount of some payments can be fixed with subsequent clarification on the meter.

Estimated monthly expenditures are:

• Electricity – from € 40;

• Water supply – from € 15-18;

• One large gas cylinder – € 50 (enough for two months for a family of four);

• Internet / TV / telephone – € 25;

If the apartment or villa is in a condominium, it is necessary to allocate some funds for the maintenance of real estate (condominium services). It includes the maintenance of good technical facility systems (electrical, etc…), Repairing roads, cleaning the interior and the surrounding area, painting buildings, garbage, pool cleaning, and various ancillary services – up to forwarding mail. Payments for an apartment in a condominium will amount to approximately € 300 to € 2,5 thousand per year. To service the villa you can contact a specialized management company. The cost of its services will be approximately € 2.5 thousand to € 5 thousand per year.

Another item of expenditure can be insurance (typical insurance includes such risks as fire, natural disasters, malicious acts of third parties, etc.). It is not mandatory, its cost is approximately € 70-400 per year.

MORTGAGE CREDIT LENDING

Mortgage lending is one of the most convenient and progressive financial instruments for real estate acquisition, not only in your own country, but also in the territory of other states. In Portuguese banks, loan conditions and loan rates are such that a citizen can become the owner of a property. Since for any bank in the first place – the solvency of the borrower, almost all banks in Portugal take into account the existing obligations and monthly payments, whether bank, personal (alimony), mortgage or utility. The size of all one-time monthly payments, including mortgages, under Portuguese law can not be more than 35% of your total monthly income, but in some cases the bank reserves the right to adjust this figure.

All banks in the territory of Portugal require confirmation of your income. This evidence can serve as a reference for a monthly salary and certificates of the availability of other income (savings, investment). Insurance of property acquired in mortgages is a mandatory condition for banks and is sometimes sold by the bank as a separate product. Life insurance of the borrower is also mandatory in most cases, but there are always some exceptions.

At the moment, for non-residents, Portuguese banks provide a loan on the following terms: the loan term until the age of 75 of the senior borrower, the initial entry of at least 50%.

Portuguese banks practice 2 types of rates: floating and fixed. The floating rate consists of two parts: the “base” – the time-varying market situation indicator and the “bank margin” (spread) – a constant value that is added to the database. This rate is revised periodically (3, 6 or 12 months). The basis is the interbank rate EURIBOR for the same period (that is, the interest rate = EURIBOR + spread). Currently, EURIBOR for 3 months is -0.329%, while the banking margin, that is, the spread ranges from 1.75 to 3% (depending on the amount of the loan and the bank). Another option is that the rate is uniquely written in the form of a fixed figure – in this case it does not change during the term of the loan agreement and is called fixed, as a rule this rate is initially overstated. When issuing a loan for the purchase of housing, the bank will necessarily require you to draw up a home insurance contract and possibly life insurance for an amount equal to the amount of the loan. Insurance premiums are paid monthly, along with payment for the loan. Usually banks calculate two interest rates – a nominal rate (TAN), which takes into account only interest for using the loan, and an effective rate (TAE), which takes into account all additional fees, insurance and commissions. It is clear that this is the best bet and shows the true cost of the loan for the borrower. Currently, it ranges from 2% to 3% for a floating rate and reaches 5% for a fixed rate.

 

List of documents required to apply for a mortgage in Portuguese banks for non-residents:

1. Declaration of income from the tax inspection for the last year, certified by an apostille, translated into Portuguese*.

2. Foreign passport.

3. Taxpayer Identification Number (número contribuinte). Issued by your local fiscal body.

4. Certificate of employment ** (indicating your position and salary) in English.

5. Receipts from banks on the movement in the account for the last 6 months, where the salary is paid.

6. Proof of residence. Confirmation can serve as correspondence from the bank in English language (enough that the address and name were in English) or, for example, utility bills translated into Portuguese (the translation is certified by the consulate).

7. It is desirable to show a certificate from the bank indicating the availability of funds for the initial payment.

Life in portugal

Are you planning to move to Europe and consider Portugal as a very attractive choice? Then we will tell you a little about history and culture, about modern economy and politics, and about the advantages of living in this country.

For more detailed information and personal integration into the social environment, as well as on the issues of opening and developing business – contact Portugality agency.

MAIN DATA AND HISTORICAL EVENTS

The total area is 92 212 square meters.

Population – 10 337 000 (data of 2015).

Economically active population – 5 195 (data of 2015).

The population density is 112.6 people per square meter.

Official name – Portuguese Republic.

The population in the capital is 2.1 million inhabitants in Greater Lisbon.

The Portuguese state is one of the oldest in Europe and was founded in 1139. In ancient times, the territory between the rivers Douru and Tejo was called Lusitania by the name of the tribe that inhabited this region. From 139 BC, the Romans settled here, and since 711 the Moors have ruled. Christians were able to regain the lands in the north of Portugal only in the XI century, and in 1147 the royal residence housed in Lisbon.

The greatest prosperity Portugal reached in the era of the colonial conquests of the XV-XVI centuries. Since 1580 and for 60 years, the weakened country was ruled by the Spaniards. After the restoration of independence, the country’s economic position was strengthened due to the gold deposit found in Brazil. In 1755, a devastating earthquake led to long years of breakdown, but Marquis of Pombal reforms allowed the economy to recover quickly enough to overcome the political crisis. In 1807, Portugal was weakened by the invasion of Napoleon, and in 1825 Brazil gained independence. The Revolution of 1910 overthrew the monarchy, but in 1926, as a result of the military coup, the dictatorship of Antonio Oliveira Salazar was established, which was only overthrown in 1968 as a result of the Carnation Revolution.

Portugal maintained its neutrality during the Second World War, and in 1949 became part of the NATO bloc. In 1975, African colonies were granted independence, banks, large enterprises and landowners, insurance companies were nationalized. Democracy in the country was restored in 1976. In 1986, Portugal joined the European Union, which led to significant economic growth, which slowed down in 2001-2003. In 2002, the country switched from the national currency escudo to euro.

Portugal has a rich cultural heritage, in the formation of which the Phoenicians, Romans, Moors took part. Significant role in the Portuguese history was played by the Knights Templar, rendering assistance to the government, also during the time of great discoveries. The country has more than 200 medieval castles, many ancient monasteries, cathedrals and churches, ancient cities with a unique charm are the open-air museums.

At present, Portugal, having overcome the crisis, demonstrates political stability and constant economic growth, which is promoted by the development of tourism.

GEOGRAPHICAL AND CLIMATIC FEATURES

Modern Portugal includes the mainland, bordering with Spain, the Azov Archipelago and the island of Madeira. The geographical position of Portugal between the rest of Europe, America and Africa, provided its strategic destination for connecting the continents.

Portugal has the same time zone as Great Britain and Ireland, 1 hour difference with the countries of Central Europe and 3 hours with Moscow.

The climate in Portugal is subtropical Mediterranean with a pronounced influence of the ocean. The north of Portugal is characterized by a colder and more humid climate, in winter in the mountains in the north there is usually snow. In the south it is drier and warmer, the temperature in summer is 27-32 degrees, the water in the ocean warms up to 20 and more degrees.

Azores and Madeira Island are of volcanic origin, have a unique flora and fauna and are therefore very popular among fans of eco-tourism.

Cork oak, pine, eucalyptus forests are spread throughout the country, relict tropical forests have been preserved on the island of Madeira.

POPULATION AND LANGUAGE

According to data of 2016, the population of Portugal was 10.34 million people. The country is inhabited unevenly, with a higher density in coastal areas and in big cities – Lisbon, Porto, Funchal.

Portuguese is widely spoken on all continents, it is spoken by more than 200 million people. More than 61% of Portugal’s population speaks at least one foreign language, mainly English, French and Spanish.

The Portuguese are friendly and hospitable people. Having great pride and respect for the history and culture of their country, they also have an interest in everything new, that is why they happily communicate with foreigners and are always ready to help.

SECURITY AND INFRASTRUCTURE

The Institute of Economics and Peace of the USA put Portugal on the 3rd place in the rating of the safest countries in the world by the results of 2017. When compiling the rating, such factors as the level of personal and commercial security, international relations of the country, and expenditures for military needs were taken into account. Even in such a secure country as Portugal, you need to take care of the safety of your wallet and phone in overcrowded places, for example, at the markets.

Portugal occupies the 15th place in the world as per the level of infrastructure development. The country has a developed network of roads, the total length of which is 68.7 thousand kilometers, among them – high-speed motorways, national free highways, municipal roads, regional roads. The railways, with a total length of 2,544 km, provide fast, comfortable and affordable transportation.

The country has 15 airports: 3 international airports on the mainland (Lisbon, Porto and Faro), nine airports on the Azov archipelago and two on the island of Madeira. Eight largest seaports serve international transportation; the ports of Lisbon and Funchal receive the largest transatlantic liners.

ECONOMICS AND INDUSTRY OF PORTUGAL

The structure of the country’s economy according to the data of 2015:

– the share of services – 75.8%

– the share of the employed population – 68.1%

– the share of agriculture and forestry – 2.4%

– fishing – 7.5%

– industry, construction and energy – 21.9%

– water management – 24.5%

In the last decade significant changes have occurred in the industry of Portugal, high-tech industries such as automobile industry, electronics, energy, pharmaceutical industry, information and communication technologies have been successfully developing. In the north of the country the most successfully developing industries are textile and footwear production, as well as the production of furniture and consumer goods, wine production. The largest oil refinery in the country is located in Porto. The region of Alentejo is distinguished by agricultural products and food production, and is also the largest wine supplier. Mineral resources of the country are quite diverse, but mostly small businesses are involved in this industry.

In the energy sector, Portugal still depends on imported fuel (80% of consumption), but, at the same time, it has a high hydropower potential (Energy and water supply station provides 50% of the consumed electricity).

A significant length of the coastline (over a thousand kilometers) and a variety of fish species ensure the success of fishing. More than a third of the country’s territory is occupied by forests, so forestry and wood processing have a significant weight in the economy. The most valuable tree species are pine and cork oak, Portugal excels all other countries in the world in the production of cork products.

Portugal is a notable participant at the European market, which has more than 500 million consumers and another 250 million in other Portuguese-speaking countries. According to the National Institute of Statistics (INE) GDP gross growth in 2015 was 1.5%, the forecast for acceleration to 4.7% in 2017. According to analysts of the Bank of Portugal in the coming years the increase of the exports share in GDP to 42% is expected by 2018. It is also projected to reduce the unemployment rate to less than 11% in 2017.

One of the most promising areas for the development of Portugal is tourism. In 2011-2015, the tourism industry each year showed an increase of an average of 8.9%.

The main income from tourism Portugal receives from the following countries (2016 data):

– Great Britain, 18.3%

– France, 15.5%

– Spain, 13.2%

– Germany, 12%

– the Netherlands, 4.9%

– the United States, 4.7%

– Brazil, 3.5%

– Switzerland, 2.7%

The financial system of Portugal has gone through several stages of reforming. By 1993, the banking sector was divided into the following groups: commercial banks (short-term operations), investment banks (medium-term) and savings banks (long-term). Portugal is known for its high activity and extensive use of bank cards. A single card system Multibanco allows you to not only receive cash 24 hours a day, but also carry out various operations to open deposits, pay for services, transfer money to other accounts, pay taxes and much more. Competition among banks allowed reducing the interest rate in the industry to 0% (current data). Mortgage loans for real estate became even more accessible; the lowest rate reached 1.75% in 2016.

QUALITY AND COST OF LIFE IN PORTUGAL

Comfortable environmental conditions, high-quality and diverse food, good education, medical care and social security, access to a variety of leisure activities, a developed transport infrastructure, all of this combined with a low level of costs (compared to the countries of the European Union) ensures a sufficiently high quality of life. The average lifespan in Portugal is over 80 years.

The minimum individual subsistence level in Portugal (as per the end of 2016) is 626 Eur per month, the minimum family subsistence level is 765 Eur.

Cost of real estate ownership

The annual municipal property tax (IMI) is 0.2-0.5% of the cadastral value.

Services (electricity, gas and water supply, sewerage) on average:

– apartments with an area of 70 sq.m – 70-100 Eur per month

– villa, with an area of 250 sq.m – 250-300 Eur

The condominium services are approximately 200 – 2000 euros per year for apartments, with an area of 70 sq.m with a common pool and garage, for a villa of 250 sq.m – 2000-5000 euros per year with a management company.

Telecommunication services

In Portugal, 3 major telecom operators provide telecommunication services: Vodafone, Meo and Nos. On average, a minute of conversation on the mobile phone – 0,22 Eur. You can buy a mobile Wi-Fi modem for about 30 Eur and pay about 30 Eur a month or contract for installing a cable television, a landline phone and a wired Internet and pay about 30-35 euros for a package of services a month. The quality of communication is good, coverage across the country depends on the population density, but overall satisfactory.

Food

Portugal is famous for its fresh and diverse products, which can be purchased in supermarkets, small grocery stores, at urban and farm markets. In the store, the cost of fresh fish and seafood – 6-16 Eur per kilogram, at the markets it’s a bit more expensive. The assortment amazes the imagination of even sophisticated gourmets: salmon, sea bass, dorada, tuna, swordfish, sardines, mackerel and many more. All year round there are octopuses, crabs, lobsters, shrimps, mussels, squids, oysters, cuttlefish and other marine delicacies on sale. Fresh vegetables and fruit are always available – 0.5-3 Eur per kilogram, wine – 2-10 Eur per bottle. Fresh chicken meat – from 2 Eur per kilogram, pork – from 2.5 Eur, beef – from 5.7 Eur per kilogram, lamb – from 7, eggs from 80 cents for 6 pieces. A cup of coffee in a cafe – from 0,65 cents. Olive oil – from 2.7 per bottle of 0.75 liters. Water from mineral springs costs from 0.2 Eur for 1.5 liters, from 0.55 Eur for 5 liters. Among the most famous sources – Luso, Glaciar, Monchique, almost all types of mineral water of Portugal are exported.

Portuguese cuisine is very simple and healthy, slightly different from the Mediterranean. To understand the specifics, you need to go to local restaurants more often. The average bill per person in an ordinary Portuguese restaurant is from 10 to 30 Eur, portions are usually large, a bottle of dry wine – from 10 Eur.

Transport

To buy a car in Portugal is not difficult, it can be done in specialized salons or by using the sites olx.pt, standvirtual.com and others. The cost of new cars is quite high. A used car can be purchased at a very low price, for example, a ten-year car will cost 3-5 thousand Eur depending on the brand, condition and mileage. Registration of the car will take 5 minutes, also you need to pay the registration fee. Every year, it is necessary to pay a transport tax, the amount of which depends on the engine volume and carbon dioxide emissions. Mandatory minimum annual insurance – from 120 euros. The cost of gasoline in Portugal in recent years is about 1.6-1.8 Eur per liter, depending on the brand, diesel fuel – 1.5 Eur. The fuel quality is very good. We can say the same about the quality of highways. It is necessary to remember the speed limits, as fines in Portugal are very high. The maximum speed of traffic in the city is limited to 50 km / hour, in the countryside – 90, on highways the maximum speed is up to 120 km / h. Travel on most motorways and some bridges is paid, the payment is about 4 Eur per 100 km. There are several ways to pay for the roads – an electronic card that is “tied” to a car number, an electronic device associated with a bank account, a prepaid card or in post office as per the number plate of the car.

In Portugal it is convenient to take a taxi to get from the airport or from the restaurant, or just get home from guests. Unlike most countries in Europe, taxi services in Portugal are not expensive, especially beneficial if the car is taken by several people. Traveling is comfortable and safe. The taxi usually uses Mercedes, other brands are less common. Passenger traffic in Portugal is licensed and controlled, private transportation is not available. You can take a taxi in special parking lots, call a taxi to help you at the reception of any hotel or you can make an order by phone. A single telephone for a taxi call is 707 277 277. The cost of a taxi in all localities is the same, the tips are not obligatory, you need to pay as per meter. The taxi start fee costs 3.25 Eur, payment for a kilometer is about 0.25 Eur around the city, an hour of waiting is 15 Eur, a taxi call is 0.80 Eur. There is a daily and nightly rate (from 21.00 to 06.00). Transportation of luggage and animals can be paid separately, highways and bridges are paid by the passenger.

Railway transport in Portugal complies with international standards of service quality. In addition to the advantages of speed and comfort, traveling by train, you can admire the beautiful views from the window, as the routes often pass very picturesque places. There are several possibilities for buying tickets: at ticket offices at the train station, in vending machines, at cashier machines or via the Internet. The approximate cost of tickets from Lisbon to Albufeira is 20-24 Eur (travel time is about 2.5 hours), from Lisbon to Porto – 24-30 Eur (travel time – 2.5-3 hours). There is a flexible system of discounts.

Separate attention is paid to the bus service in Portugal, which is a convenient and not expensive alternative to the railway travel. Bus routes exist between all major cities and other large population centers. Dozens of transport companies in competition among themselves offer affordable services and have a flexible payment system. The organization of bus transport is coordinated by the Rede Nacional de Expressos company. The trip from Lisbon to Porto will cost about 18 Eur per person, from Lisbon to Faro – 18.50, to move from Faro to Porto, crossing almost the whole country – for 27 Eur. You can get on the bus at the car terminal, in the terminal (there can be several in large cities) and at bus stops, if it is a question of local transport. To receive all the necessary information, as well as order a ticket, you can visit rede-expressos.pt.

Basic tax indicators

The rate of income tax is 21%

Sales tax – 23%

The social security rate is 34.75%

The social insurance rate for employees is 11%

The rate of social insurance for companies is 23.75%

HEALTH AND MEDICAL INSURANCE IN PORTUGAL

According to the main criteria – the level of emergency care, technical equipment and the quality of medical services, Portugal takes a fairly good position and rises annually in the ranking of European countries. The Ministry of Health is in charge of this area. For health needs, the Ministry allocates about 10% of GDP, which is quite high in the European Union. The universal national health system (NHS), special public and private programs and private systems of voluntary medical insurance provide modern health in Portugal. The NHS system provides (but does not fully cover the cost) only the most essential services: first aid, general practitioner services and care for the mother and child. Dental services, diagnostics, physiotherapy and other directions are available only on a private basis.

Nowadays, there are 19 companies operating in Portugal that provide voluntary health insurance services, which covers about 20% of the population and this indicator is growing every year. Any interested person can use the voluntary insurance system, insurance companies operating in Portugal offer different packages of services. Working owners of policies can count on a tax deduction. The most popular insurance company among foreigners is international Grupo Allianz.

Having become a holder of a residence permit in Portugal, everyone has the right to state medical care. To do this, you can contact the nearest Center of Health (Centro de Saude) and obtain an Individual Number (Número de utente) for access to a single electronic patient database that allows you to receive medical care throughout the country, with your doctor’s access to history of the disease, tests, vaccinations and so on. For those who contribute to the Social Insurance Fund, medical care will be free of charge or on preferential terms.

EDUCATION IN PORTUGAL

Preschool education in kindergartens in Portugal are free and is funded by the state, children can attend the groups when they are three years old. Commercial kindergartens have an extended program, the average level of payment is 400 Eur per month for the child.

Basic schooling is compulsory in Portugal. Elementary education lasts four years, and from the age of 6 the pupils switch to a five-year secondary education program corresponding to European models. The next level of full-fledged secondary education is paid, so for most children, education ends at 15 years. To enter higher education you must pass a state examination.

In Portugal, there are international schools, where the entire educational process is carried out in English, and a successful ending is a stepping-stone to entering the best higher education institutions of the world. Of course, such education will not be cheap.

Higher educational institutions in Portugal provide quality European education for a moderate fee. Annual training will cost about 1000 Eur per year. Higher education institutions are divided into academic universities and polytechnic institutes. The most prestigious are the pedagogical, engineering and administrative areas. For foreigners, an easier way to enter a higher education institution in Portugal, and, in terms of further adaptation, there can be language courses at an educational institution. Almost any graduate of a university with a bachelor’s diploma from another country can enter a Portuguese university for a master’s degree. Lisbon University is widely known outside of Portugal, and in the city of Coimbra there is one of the oldest universities in the world, founded in 1290.

Nov
02

Who We Are

Portugality is a company specialized in elite real estate and investment consulting in Portugal. We supervise not only purchase, sale and rent processes, but also obtainment of Portuguese residence, construction works and property management. The company is represented in the areas of the most customer demand: Algarve, Lisbon and Cascais.

  • Optimized purchase and investment processes in accordance with legal peculiarities of Portugal and buyer’s country.
  • Access to any available on Portuguese market property through the strong cooperation with local agents.
  • Punctual and complete answer to the client’s request in 24 hours timeframe.
  • Legal and financial security provided by a professional team of lawyers, financiers, tax consultants and property advisers.
  • 100% of clients served by our lawyers have received residence in Portugal through the “Golden Visa” program.
  • After-sale service and accompaniment during the first steps in the new country.

Work With Us

Valuing and respecting individuality, our goal is to create a team of professionals where one can fully realize his potential. Portugality provides the agents with free permanent professional courses, free advertisement materials, as well as comfortable working conditions. The close-knit team helps newcomer from the very first day of work: training for the beginners, patronage and advice of experienced supervisors and various corporate events.

Join the team

Join the team

Please, leave us your contacts and our HR department will get back to you.






Aug
12

Home

Our exclusive collections

Portugality agents will provide their expertise and deep knowledge of Portugal Real Estate market to help you find a Golden Visa property, a profitable investment or a home you love.

Join your forces with a professional property adviser

The team of professional property advisers, lawyers and financial experts guarantee the most efficient, secure and transparent real estate and investment experience.

Having a question?

From search to signing, we are always here to provide you with a complete and fast answer regarding the real estate, Visa Gold and Investment in Portugal. You can submit you specific request and receive a personally properties selection on your email.

Welcome to our Offices

Jul
25

Sellers

Sellers of real estate

Do you own a property in Portugal and want to sell it for some reason? The specialists of Portugality company will help you to do this as soon as possible, and take lead on the full organization and support of this process.

Why selling with Portugality?

Representative offices of Portugality company are located in the most popular regions among customers – Lisbon and the Algarve. The company’s specialists have ten years’ experience at the Portuguese real estate market.

The agency has established an excellent reputation among the customers from different countries: Russia, Portugal, Kazakhstan. Due to extensive measures to promote its services at these markets, the company is constantly expanding the range of potential customers. Participation in exhibitions, posting on thematic portals and other media provide direct contact with the target audience.

Portugality company has a vast network of partners connected with the real estate market: law firms, banks, insurance companies, engineering offices, other real estate agencies.

Portugality agency uses simple and understandable contracts with transparent conditions between the buyer and the seller, and when signing an exclusive contract provides professional photography of your real estate objects.

Stages of selling process. Seller’s documents

At the very beginning of cooperation on organizing the sale of a property in Portugal, the owner should provide the agency with a full package of documents.

Certidão predial do imóvel. This document is issued by the Conservatoria da Registo Predial and shows the legal status of the object. It contains the name of the owner, the area and the number of rooms, debts and mortgage for the object, if any. The information on debts and mortgage must necessarily be reflected in the contract and should be available to potential buyers.

Certidão predial do imóvel can be ordered in several ways. In any Conservatoria da Registo Predial office you can receive an uncertified hard copy of the document, paying 1 Euro per page, or copying to an electronic media (flash drive) for 50 cents. The validity period of the document is 6 months. In exceptional cases, when the document does not exist in digital form, it can be obtained only at the place of registration of the object.

You can also request a version of the document online (electronic form) for a period of 6 months, for which you need to pay 20 Euros.

In addition, you can get the access code on the portal www.predialonline.pt for receiving any up-to-date information. In this case, the document can be obtained online, the validity period is 6 months, the price is 15 Euros.

Caderneta Predial is a document issued by the tax authority and contains information on the fiscal situation of an object and its owner. This document can be requested by the owner free of charge on Portal das Finanças portal, if the owner has senha de acesso or in any tax office for 8 Euros.

Alvará de Licença de Utilização. This document is issued by the Camara Municipal municipality. A certified copy of the license can be obtained from the local municipality, the prices vary in each of them. Alvará de Licenca de Utilização is mandatory for buildings after 1951.

Ficha Técnica de habitação is only required for living accommodations. This is a technical passport of an object that describes its main characteristics.

This document is transferred to the owner at the time of buying a property. If the owner does not have it, then you can order a copy from the real estate developer or the local municipality, the price varies in different municipalities.

If the building is dated after 2004, then it is necessary to have Planta de localização for a house / land parcel. It is needed to understand if the area and location of the parcel corresponds to those claimed by owner. It is requested in the local municipality.

Planta de fracção is the plan of the house / apartment, contains information on the area of all rooms, their location. Ideally, this information must correspond to the reality, which is important when presenting the object to the buyer. It is requested in the local municipality.

Certificado Energetico is a document issued by a licensed body and containing information on the energy class of an object and its economical efficiency. From December 1, 2013, the certificate is mandatory already at the stage of the promotion of the property, since any announcement of the sale / rent of the property must contain information about the class of the object, the non-fulfillment penalty is from 2500 Euros.

After the transfer of the full package of documents to the agency, the object is published on all resources of the agency and should be available for display to customers. The seller can also fully entrust collection and verification of the documents to the agency.

The next selling step in the sale process is reserving an object for a specific client, usually for a period of 14 days. After the reservation, the buyer must transfer the necessary collateral to the agency (from 500 to 5000 Euros, depending on the value of the object), both sides, at the same time, sign an agreement of intent (preliminary contract of sale). The final stage is the closure of a deal, the signing of the contract of sale at a notary’s, after which the notary registers the transfer of ownership within 15 days.

In case of using bank funds (mortgage), a representative of the bank is required.

Tips from Portugality agency

1. In order to protect yourself from errors, loss of time and financial losses, do not sell the property yourself, contact the specialized agencies.

2. Repair the property, make cosmetic repairs, if necessary, remove personal belongings, get rid of old furniture and accessories.

Nov
10

Business Tips

Residence permit in PORTUGAL

“GOLDEN VISA” OR TEMPORARY RESIDENCE PERMIT FOR FOREIGN INVESTORS

Important Update to Portugal’s Golden Visa Program: As of October 7, 2023, Portugal has implemented significant changes to its Golden Visa program. Please be advised that the option to obtain a Golden Visa through investments in real estate has been discontinued. For more detailed information on the updated investment options and how they may impact your plans, please contact our advisors.

Jul
19

Contacts

OUR OFFICES:

In Albufeira: Urb. Roja-Pé edf. Algarb loja A 8200-380 Albufeira

In Cascais: Rua Nova de Alfarrobeira, 6, 1.º andar, loja 10, 2750-452 Cascais

info@portugality.pt
+351 289 14 77 22 (Albufeira),
+351 210 98 80 51 (Cascais),
+351 965 570 775 (Mobile Portugal)

Get In Touch

Fill up the form and we will get back to you within 24 hours!  Tell us more about the property you are interested in and get a personalized selection of the real estate put up for sale in the Portuguese agencies. Please, indicate the area, price range, and minimum number of bedrooms.  If you want to sell a property with us, please, indicate its location and an agent specialized in your area will enter in contact with you.  You can also consult on any other matters related to your stay in Portugal.






Jul
19

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