The post Official Complaint Book first appeared on .

If you would like to sell your property, we highly recommend contracting the services of a licensed estate agent like Gabi Miguel Lda.

2. Agency Fees
In Portugal, these are generally paid by the seller. The standard commission is 5% + VAT of the sales price.

3. Why Choose Us?

– Motivated, experienced, knowledgeable and multi-lingual staff;
– A vast and efficient network of partnerships in different Europen countries;
– Strong marketing, including online and print media advertising;
– Modern and bright office in privileged location;
– Optimised website.

4. Required Documents

All Government Licensed Estate Agents are required to obtain the documents listed below from the seller, enabling them to establish that the property has full legal status. No Agent can officially list a property without receiving the necessary documents. As all Licensed Estate Agents are liable to periodic inspection by their governing body InCI, they must ensure copies of these documents are in place.

The required documents are as follows:

4.1. Deeds (Escritura Notarial de Compra e Venda)
This document indicates the title of acquisition of a property. The originals are held by the Notary Office where they were signed.

4.2. Tax Office Registration (Caderneta Predial)
This document shows the description of the property at the Tax Office and its fiscal value on which rates are charged.

4.3. Registration Certificate (Certidão de Registo Predial)
This document confirms as to whom the property is registered to and also gives a description of the property with the size of the land and the house and will show any existing charges on the property.  The description on this certificate must match the description on the Caderneta Predial, failing which one of the two is not correct and should be rectified.

4.4. Habitation License (Alvará de Licença de Utilização)
This document confirms that the property was built according to the Câmara (Local Council) plans and specifications and that the property has been inspected for habitation upon completion.

4.5. Plans (Projectos de Arquitectura)
It is worthwhile obtaining a set of approved plans from the Câmara to check that what has been built is in accordance with the originally approved plans.

4.6. Borehole License (Registo de Captação de Água – Furos Aquíferos) – if applicable
This document confirms the borehole is registered with the relevant authority.

4.7. Septic Tank Registration (Registo de Descargas de Águas – Fossas Sépticas) – if applicable
This document confirms the septic tank is registered with the relevant authority.

4.8. Personal Papers
We will require copies of the Portuguese Fiscal Card and Passport / Cartão de Residência.

4.9. Ficha Técnica da Habitação
This document provides global information about the property, including materials which were used, names and contacts of suppliers, builder, etc.
This document is NOT required for:
a) Properties built before the 7th of August 1951;
b) Properties for which the Habitation License (Licença de Utilização) was applied or issued until the 31st of March 2004.

4.10. Energy Performance Certificate
Obligatory since the 1st of December 2013 for all properties which are up for sale.

4.11. Seller’s Profession and, if applicable, identification of the Employer
This information can be provided by declaration (email). Obligatory under the new money laundry regulations – Law no. 25/2008 – 5th of June

4.12. Proof of Residence
We will require a copy of a utility bill or driving license. Obligatory under the new money laundry regulations – Law no. 25/2008 – 5th of June

5. Recommendations

5.1. Keys
If you do not live in the property all year round, it is advisable to provide us with a key so we can easily show your property to prospective buyers. Some sellers decide to handover the key to a third party (sometimes the maid or gardener) but this is not an ideal solution as we will have to liaise with the key holder whenever we want to show the property and this may cause delays or even make it impossible to show the property to some clients.

5.2. Preparation of the Property
If you live in the property, it is advisable to tidy everything up before we take photos or show the property to prospective buyers. Since the olfaction plays an important role when it comes to choosing a property (very often unconsciously), we recommend to air the property prior to visits and to avoid the use of air-fresheners or cleaning products with a strong perfume or odor.

The post Selling a Property in Portugal first appeared on .

Who may apply?
Citizens involved in an investment activity, either individually or through a company conducting, at least, one of the following operations in the Portuguese territory, for a minimum period of 5 (five) years:
1. Acquisition of a property with a value equal to or above 500 thousand euros;
2. Capital transfer with a value equal to or above 1 million euros;
3. Creation of, at least, 10 jobs.
It covers shareholders of companies already set up in Portugal, or in another EU State, with residence in Portugal and fulfilled tax obligations.

Investment Requirements
Performing an investment activity for a minimum period of 5 (five) years, attested by a bona fide declaration signed by the applicant.

1. Acquisition of Real Estate with a value equal to or above 500,000€
Provide evidence of giving the ownership of Real Estate Property.
Public deed or promissory contract of the property, with a declaration of an authorized financial institution to exercise its activity in Portugal stating the effective transfer of capital to stating the effective transfer of capital to its acquisition or to execute as a down payment of the promise to purchase in the equal or superior value of 500,000€ and;
An up-to-date certificate issued by the Real Estate Registry, which must always be, in the case of contract-promise and where legally feasible, the respective register.

2. Capital transfer with a value equal to or above € 1 million
Provide evidence of having invested the minimum amount required, including stocks or shares of companies.
Declaration of a financial institution authorized to exercise its activity in Portugal certifying: the effective transfer of capital in the amount of not less than €1 million, to an account demonstrating the investor is the sole or first holder of capital; or de-acquisition of stocks or shares of companies, and;
An up-to-date certificate issued by the Commercial Register, certifying that the applicant holds a share in the capital of a company.

3. Creation of, at least, 10 Jobs
Provide evidence of having created 10 jobs and registered the employers in the Social Security.
An up-to-date certificate issued by the Social Security.

Minimum Permanent Residence Periods
For the purposes of renewing a residency permit, you may have to show that you have resided in Portuguese territory for a minimum period of 7 days, either consecutively or non-consecutively, during the first year, and 14 days in the subsequent two year periods.

Family Reunification
The holders of Golden Residence Permits for Investment have the right to family regrouping and may gain access to a permanent residence permit, as well as to Portuguese citizenship in accordance to the current legal provisions.

Required Documentation
• Passport or another valid traveling document;
• Proof of legal entry and permanence in national territory;
• Proof of health insurance;
• A signed application enabling consultation of the Portuguese Criminal Record by SEF;
• Criminal Record Certificate from the relevant authority of the applicant’s home country or from any other country where he/she resided for over a year;
• As means of evidence of compliance with tax obligations, the applicant shall deliver a declaration proving the absence of debts issued by the Inland Revenue and Customs Authority and by the Social Security

Other Requirements under General Law
• Applicants must not have been convicted of a crime punishable with deprivation of liberty exceeding one year;
• Applicants must not be subject of an entry ban in the national territory following a removal order from the country;
• Applicants must not be subject of alerts in the Schengen Information System;
• Applicants must not be subject of alerts in SEF Information Integrated System issued for purposes of non-admission.

The post Golden Visa first appeared on .

2. The Promissory Contract (Contrato Promessa de Compra e Venda)
The Promissory Contract is a legally binding contract signed between seller and buyer and includes the following information:
•  Identification of the parties;
•  Identification of the property;
•  Stage payments;
•  The standard penalty clause;
•  What is included in the purchase, e.g. furniture, golf membership, etc, in the form of an attached inventory list;
•  Completion date.

On the day the Promissory Contract is signed, the buyer (either directly or through their appointed lawyer) pays the seller the agreed deposit (normally between 10% and 20% of the purchase price).
The Promissory Contract protects the buyer and the seller, in that if the seller withdraws from the contract they are required to return the deposit in double to the buyer, whilst if the buyer withdraws from the contract, the seller is entitled to keep the deposit.

3. The Portuguese Fiscal Number (Número de Contribuinte or Número de Identificação Fiscal)
Before you are able to purchase a property and open a bank account in Portugal, you need to obtain a Fiscal Number from the local tax office (Autoridade Tributária e Aduaneira). To obtain this number, you will need a valid passport and a document which proves your residence (driving license, German Identity Card, etc.).

4. The Deed of Purchase and Sale (Escritura de Compra e Venda)
The Escritura is the official Deed of Purchase and Sale and can either be signed straight away, without a Promissory Contract being signed before or after the latter was signed. There is usually a period of time between these contracts, which depends on the terms agreed between the parties, although it is normally not more than 90 days.
After the Deed has been signed in front of a Portuguese Notary, your lawyer will register the property in your name at the Land Registry (Conservatória do Registo Predial) and change all utility contracts from the previous owner(s) into your name. The registration at the Tax Office (Autoridade Tributária e Aduaneira) is nowadays automatically done by the notary.

5. Your Lawyer’s Duties
In Portuguese law, an attorney-at-law is known as advogado. His or her job equals that of both solicitors and barristers.
It is normally the buyer’s lawyer who prepares the Promissory Contract after carrying out all the necessary legal searches on the property and after making sure that the property has no debts, i.e. that there are no outstanding charges against the property, such as utility bills, taxes, mortgages, condominium fees, amongst others. Your lawyer will also help you obtain a Portuguese fiscal number.
As long as you give your lawyer Power of Attorney (Procuração), he/she can represent you and sign the Promissory Contract and the Deed on your behalf, as well as any other documents directly or indirectly related with the purchase of the property.
After the Deed has been signed, your lawyer will register the property in your name at the Land Registry (Conservatória do Registo Predial) and change all utility contracts from the previous owner(s) into your name.

6. Legal Expenses
Some lawyers charge a fixed rate for their work (minimum 800€ + VAT), whilst others charge a percentage of the purchase price, which can go up to 1.5%.

7. Real Estate Transfer Tax – IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis)
This tax must be paid by the buyer prior to completion, i.e. prior to the signature of the Deed. The amount payable varies according to the purchase price. Up to a purchase price of 550,836.00€ the percentage is variable on a sliding scale up (from 1% to 8%). If the purchase price is higher than 550,836.00, there is a fixed percentage of 6%. The applicable IMT tax for plots or properties within a touristic complex is always 6,5%. The IMT tax is slightly higher for second homes than for permanent homes. Your estate agent and your lawyer will be able to provide you with an exact simulation.

8. Stamp Duty, Notary and Registration Fees
These need to paid by the buyer as well. The Stamp Duty is currently 0.8% of the purchase price and can either be paid together with the IMT tax or at the notary where the Deed is signed. Notary fees vary according to the purchase price. Registration fees apply when the new owner(s) are registered at the Land Registry and are currently 225€ (online) or 250€ (Land Registry).

9. Estate Agent’s Fees
In Portugal, these are generally paid by the seller.

10. Corporate Ownership
Some properties are owned by companies which offer you the possibility of buying the company instead of the property. Most of these companies have their domicile in Delaware, the U.S.A., although some properties may also be owned by Portuguese companies, this is rather seldom.
The purchase of a company located in a jurisdiction with a more favorable tax regime, such as Delaware or Malta, usually involves the purchase of the seller’s ‘beneficial interest’ in the shares of the company, rather than the actual shares themselves.
Most of the companies are set up using nominee shareholders, who are the registered owners. They, in turn, hold the shares or share capital, in trust for the true owner. The company administrators will also provide directors and other company officers and take care of all the legal requirements of filing returns and preparing accounts, which may be necessary for certain jurisdictions.

The post Buying a Property in Portugal first appeared on .

The objective is “to respond to less serious medical conditions that can be treated on the spot, or, where necessary, to refer the patient to a more appropriate nearby health unit,” explained an Algarve’s health service statement.

These medical outposts will operate on beaches in the following Council areas; Aljezur, Vila do Bispo, Lagos, Portimão, Silves, Lagoa, Albufeira, Loulé, Faro, Olhão, Tavira, Castro Marim and Vila Real de Santo António.

In the past, holidaymakers have received on site care for sunstroke, fractures, stings and small bruises, avoiding unnecessary travel to a health facility.

Staff examine patients and decide whether they need to be taken to a hospital or a nearby clinic.

Medical staff also can phone the national medical emergency service (INEM) line where trained staff will help diagnose problems.

This initiative is run by the Algarve’s health service and the Portuguese Red Cross.

The beach medical outpost service will run from 30 June to 16 September, with the opening hours from 10:00 a.m. to 6:00 p.m. (until July 15) and from 10:00 a.m. to 7:00 p.m. (July 16 to August 31).

From 1 to 16 September, seven beachside medical stations will be in operation from 10:00 a.m. to 6:00 p.m.

There is a map showing the beaches where medical staff will be available through the summer:

The post Algarve beachside medical outposts open for the season first appeared on .

AMAL, the Algarve municipalities association, has approved the creation of a region-wide tourist tax to be charged at the region’s hotels and other accommodation facilities.

When it will be implemented and how much it will be has not yet been decided, though AMAL president Jorge Botelho says the cost will be similar to other parts of the country where tourist taxes are already charged. In other words, it will likely be €1 per person.

What is certain is that the same fee will be charged across the Algarve.

The revenue will be managed by each of the region’s 16 municipalities and be invested in developing infrastructures linked to the sectors of “tourism and culture, fighting seasonality and promoting the Algarve as a tourist destination”.

While AMAL said that the vote to implement the tax was unanimously approved by all boroughs, Silves council has denied the statement saying that it did not even take part in the voting and that it is against its introduction.

The post Algarve to introduce regional tourist tax first appeared on .

The post Property Tax first appeared on .

Do you want to retire in Portugal? Do you want to live in Portugal for a part of the year? The Portuguese non-habitual resident regime gives you the possibility to receive your pension or other income tax free!

The Non Habitual Resident regime was introduced to attract individuals and their families to Portugal, by making it beneficial from a tax perspective to become tax resident in Portugal. This means providing the the ability to

• grow wealth
• pass on wealth without taxes on inheritance or gifts,
• namely for children or spouse enjoy their retirement
• without tax on their pensions.dispose of assets and may benefit from tax exemptions,

In Portugal non residents are only taxed on income which arises in Portugal. An individual is considered tax resident in Portugal if they either

a) Spend more than 183 days in Portugal during a particular calendar year;

b) Spend less than 183 days in a calendar year but have at the 31 December of the year their principal residence in Portugal.

Income and capital gains from immovable property located in Portugal are considered as arising in Portugal.

Taxation of income arising in Portugal is usually taxed at a flat rate which means that the non resident does not need to present a tax return or pay any additional tax beyond the tax already deducted.

The following types of income are taxed at a flat rate of 25% when they are paid to non residents:

• Employment Income
• Pensions

The following types of income are taxed at a flat rate of 28%

• Rental income
• Interest
• Dividends
• Capital gains

Do you have questions regarding Taxation of Non Residents
or would you like to book a meeting?

The post Taxation of Non Residents first appeared on .

With Portugal being nominated the third safest country to live by the Global Peace Index in 2017 and, Lisbon and Porto placed on the top ten of best destinations worldwide as safe(r) places to visit, affordable way of living, and cultural and architectural richness, suddenly increased the demand in the tourism section and the need to provide the right supply.

Additionally, the warm and sunny climate, numerous well-known restaurants and white sandy beaches combined with rich culture and history, has helped to create a vibe of excitement in the country and making investment opportunities more appealing.

Tourism Boom

Indeed, tourism plays a significant role in the Portuguese economy and Portugal has become an attractive destination worldwide by several renown identities. However, Portugal was not prepared to supply the high demand for new constructions, which was the primary reason that encouraged many investors to acquire real estate to meet this growing request for tourist accommodation.

With the tourism sector sudden growth, since 2012, not only hotels have increased its bookings but also short rentals companies like Airbnb were fully booked throughout the whole year. This made properties seem very appealing in investment terms. Residents started to convert their residential property into short-term rental apartments when they discover they were having a low taxation on their short rentals and the high-income rental was substantially appealing for an additional source of income.

All of this combined have put Portugal on the map for investors, and people from the most diverse countries in the World have found great investment opportunities. Mostly, you guessed it, on properties.

And here is where the real estate boom came in. Basically, a more favorable economic environment and the good performance of tourism took the real estate sector into a remarkable recovery.
Residency Programs for Foreign Investors

On the other hand, while Portugal´s property market offers good returns for investors, new Residency Programs and Investment Benefits Scheme launched by the Portuguese Government to non-residents have appeared in the picture. Since 2012, the Golden Visa Program together with the “Non-Habitual” Resident Scheme have been the determining factors in the real estate sector and to help recovery the Portuguese economy.

While investors from countries such as France look to Portugal to take advantage of the tax benefits the government offers to foreign investors, nationals from China, USA, Saudi Arabia and most middle eastern countries are looking for the Portuguese residency programs, and consequently, gain access to the rest of Europe and free trade.

The Golden Visa Program for instances helps to further boost the volume of foreign capital investment in the real estate market, while also enabling the renovation of city centers to make them more attractive.

An important thing to retain is that the Golden Visa Program was not only launched to bring foreign investment to the country but also to help renovate city centers.

Candidates for the Golden Visa Program and Non-habitual Residents Scheme usually look for rehabilitated apartments in historical neighborhoods. In this areas, not only investors can generate an income around 8 to 12 percent a year through a daily rental basis, but this also has helped to bring new life to historic and rich parts of town.
Reasons why Portugal is so attractive to foreign investment:

– A cheaper way of living
– Solid Real Estate Sector
– Part of European Union
– Banks loan access
– Safe place to live
– Growing economy
– Diverse touristic offer
– Tax benefits (from €280k)
– Excellent communication infrastructures
– The sunny weather

Fact is, Portugal is not just a dream travel destination but also dream investment too, either in business ventures or real estate. It all depends on the capital you have available.

As it is, the real estate market is still on the rise, with Lisbon going through a deep landscape makeover. To invest now is to take advantage of all the benefits, whether you are looking for a luxury permanent residency, a holiday home, or a profitable rental property investment.

Here, at Gabi Miguel Lda we monitor closely these events so we can better advise those who seek us. We can help you provide all the legal information needed, tax consultancy and investment guidance.

If you think we can help you in any way, please contact us for more information.

The post Why buy property in Portugal first appeared on .