It is a straightforward process provided you stick to the letter of the law and are advised or represented only by competent and reputable specialists who are fluent in a language you understand. Deal with estate agents who are government licensed ( mediador autorizado ). In addition to introducing you to properties, some estate agents are sufficiently qualified and experienced to give a more efficient and diligent conveyancing service thans ome lawyers. As a general rule, however, only use an estate agent to handle the legal side of a transaction if you are sure, through experience or high recommendation, of his competence. It is important, too, that you do not let your estate agent handle legal matters if he is doing the same for the seller.

Deal only with lawyers who are fully qualified, advogados or solicitadores , who come with a high recommendation from someone who has used them. Never use a lawyer who is acting for the seller.

Taxes are based on the value of the property being bought. So are legal fees. Taxes and legal fees are paid by the buyer, as are land registry and notary costs.

You can give your lawyer or anyone else specific power of attorney to sign documents on your behalf, but closely follow that the power steps are being taken without any undue delay.

SEARCHES

Having chosen a property, have your representative search the local registry ( Conservatória do Registo Predial ) to check that the seller ( vendedor ) has clear title of ownership, that no one else has rights over it, that it is exactly described and that it is free of charges or mortgages. Photostat extracts from the land registry are valid for a limited period only.

Fiscal number

Apply for a fiscal number ( número de contribuinte ) at your local tax office ( finanças ). It will come in the form of a card which you will need for payment of rates.

Tax document

Obtain the official tax document ( caderneta predial ) relating to the property from the seller and check that the description of the property (number of rooms, area of house, area of land, etc.) is the same as in the land registry.

Usage license

Obtain a compy of the usage license ( licença de utilização ) from the local town hall ( câmara municipal ). For residential property you will need a habitation license ( licença de habitação ). Check that the description on the habitation license is totally in accordance with what you are buying. Non-residential licenses need to stipulate the appropriate commercial or industrial use the property is being put to.

Contract

Have a promissory contract drawn up ( contrato promessa de compra e venda ) to be signed by you and the seller. It should be include all the terms and conditions of sale. You will normally have to pay the seller a deposit of 10% of the full purchase price at this stage. The contract is signed in front of a notary. It is legally binding on both buyer and seller. If the buyer defaults he forfeits the deposit. If the seller defaults he has to pay the buyer double the deposit.

Transfer tas (IMT)
Prior to act of purchase, the purchase will usually be subject to a State payment named "Imposto Munipal Sobre Transmissões - IMT" which replaced the originally known tax known as "Sisa". This tax is paid in the local tax office nearest to the location of the property being purchased. The amount charged is dependent upon the nature of the purchase and does vary. In certain cases the buyer may be exempt from paying this tax if the value of the deed of conveyance (escritura) is below the figure of € 85.500,00. Below is shown a table for your guidance based on a series of "platforms of sale value" and is applicable to all urban purchases.

All Rural properties are subject to a flat 5% tax based on the escritura value.

Up to	€ 87.500,00			Tax = 0%
	€ 87.500,00	up to	€ 119.700,00	Tax = 2%
	€ 119.700,00	up to	€ 163.200,00	Tax = 5%
	€ 163.200,00	up to	€ 272.000,00	Tax = 7%
	€ 272.000,00	up to	€ 543.900,00	Tax = 8%
Over	€ 543.900,00			Tax = 6%