Whether purchasing your holiday home, relocating to Portugal or buying an investment property we can assist with mortgage finance.

Through our links with banks in Portugal we have available to offer you capital and interest loans which can include an interest only period. From time to time special investor packages are also made available. Please ask for more details.

Fees and taxes on Property Purchase

You should always check with an independent lawyer the costs involved in purchasing a property in Portugal. The following information is provided as a guide only and are generally standard:-

There is a tax on acquisition of a property called IMT. This is based on a scale from 0% to 8% and is based on the declared value or Valor Patirmonial (VP). There are fixed allowances in each tax bracket which will reduce this overall cost except for properties in excess of €500,000. If it is thought the VP has been under declared to avoid tax then the property may be subject to compulsory purchase at that price.

Notary expenses are likely to be in the region of 2.0% to 2.5% and your lawyer will probably charge between 1.5% and 2.0% of the purchase price.

Fees and Taxes Relating to a Portuguese Mortgage

You should always check with an independent lawyer the costs involved in taking a Portuguese mortgage.

The following information is provided as a guide only and are generally payable regardless of who you take a mortgage with:-

Predial registration for the mortgage €135.00
Notary registration for the mortgage €142
Predial registration related to the property purchase€125
Notary registration related to the property purchase €175

Stamp duty will also be payable and we recommend you estimating €8.00 per €1,000 borrowed

The amount differs for re-mortgages and you should allow approximately €5.50 per €1,000

Valuations are carried out by the lenders and you as the purchaser will be liable for this cost. The valuation fee varies from lender to lender although generally it is around €200.00.

You will need to pay the banks opening commission. This is normally between 0.5% and 2% of the loan amount and depends on which lender you choose.

Finally, all banks will require you to take some form of buildings insurance which obviously protects their loan should, for example, the building be destroyed by fire. However, not all banks offer competitive insurances and some will only protect their own interest in the property. On some specific deals banks will try and sell their own insurance, however, in most cases you can select your own company as long as it meets the banks own minimum criteria and their interest in the policy is noted by the insurance company. You may wish to add contents insurance and third party liability all on the same policy.

To find out more please contact us by telephoning the numbers provided, emailing us at info@evergreen-spain.com or completing the mortgage or insurance enquiry form and we will call you back.