Good preparation Portugal
Good preparation Portugal
Being well-prepared is often half the battle and, once you get deeper into the buying process, it prevents stress and panic attacks. In short, to be well prepared is to buy carefully and in a controlled manner. We can assist you in the preparation process. We have an extensive network of specialists in the industry.
Is buying and owning a home in Portugal really for you? And how do you address it? There are legions of books available on this subject. We are happy to give you tips.
If you are going to buy a house in Portugal then some knowledge of the Portuguese language is indispensable. It starts with language, even in Portugal.
You cannot buy a house in Portugal without having a Portuguese tax number; the NIF number. Also known as the Número de Contribuinte. Contact Mortgage & Abroad about how to request this number.
If you do not know what you have to spend then you cannot search for a house. Get advice on this; based on available equity and your borrowing capacity, the buying budget can be determined. Contact us for a free exploratory “quick scan” and possibly a preliminary application to a Portuguese bank.
Good planning gives overview and thus control of your project. Create a timeline showing approximately how much time you will spend on each stage of the buying process.
Avoid dwelling too much on multiple thoughts (regions). Focus on a particular Portuguese region and thus avoid that too broad an orientation will take you too much time and it will only be searching and your plan will never become concrete
To be prepared for applying for a mortgage later, it is very wise to prepare for it at this stage. In fact, a lot of documents will be requested regarding your identity, income, expenses and future collateral.
If you have never bought a house in Portugal before, it is unwise to want to handle the purchase without outside help. You will find that it is impractical to have to reinvent the wheel on every subject. Moreover, a good advisor makes his money back. Map out which advisors you can approach. In doing so, it is especially important that you timely approach an attorney who will be un-lined to assist you legally with your purchase.
The role of the notary in Portugal is different from the role of the notary in the Netherlands. A Dutch notary assists clients with advice and checks and examines whether what is stated in a purchase agreement is correct. This includes the property’s registrations, the status in terms of any mortgage collateral that is on the property. However, a notary in Portugal has a different role than a Dutch notary. The notary in Portugal is more of an “action machine” who notarizes deeds and is hardly an advisor or controller. This is why it is also important to hire a lawyer when buying a house in Portugal.
We can help you prepare a notarized power ofattorney for the completion of the purchase from the Netherlands (so without having to travel to Portugal to sign personally with the notary). We have contacts with a Dutch notary where the process of making the power of attorney and apostille can be arranged remotely (via video call).
When it is clear that buying into a Portuguese limited liability company(Sociedade por Quotas (Limitada (LDA)), is the best choice for you, it is important to realize that you are going to set up a company in Portugal. There will have to be articles of association, a deed of incorporation, registration with the Portuguese Chamber of Commerce, and the company must be registered with the Portuguese tax authorities. In addition, a bank account in the name of the company will need to be opened. Buying within an LDA is considered fiscally sensible only from purchase amounts of about. €1 million. This is equally true of buying through an “off-shore company. We can put you in touch with a knowledgeable tax advisor.
Especially with somewhat larger purchase amounts, it is wise to think about “estate planning” in advance; in other words, avoiding paying (too much) inheritance and inheritance tax in the future. To this end, it makes sense to make choices regarding the legal design of the purchase prior to the purchase. Hypotheek & Buitenland can put you in touch with advisors specialized in this.
