Frequently Asked Questions

1) Decide what type of property you desire and where: if it is a new construction, or an used property (by the sea or in town). Choose the best suited option for you and contact the Portimmo team. We will supply you with several options, know that we care about finding the right property for you and we will accompany you through the entire process, always with professionalisme and  a smile.

2) Visiting the property. When you visit your potential new house, be sure to take notes, and take plenty of photo’s. Take measurements, consider the layout, the oriëntation of the house, consider the amount of light coming in, check f.i ventilation in bathroom(s) and kitchen. Investigate the state of the wiring, check the area for noise and amenities. Be thorough, take your time when you visit your potental house. Only then, if you are convinced, make your offer.

3) Mortgage. Getting a loan, either from a Portuguese bank or one at home, using the property itself as a guarantee against defaulting, is a more common option than a one-off payment. Depending on your age and certain other characteristics, payment terms can be up to 40 years, with banks usually lending 80% of the house’s sales price and the remaining 20% to be paid from the buyer’s own capital.

4) Sign the deposit agreement (contrato de promessa de compra e venda).

This is the first contract to sign and it acts as a preliminary safeguard for the rights of buyer and seller. It means paying 10% deposit on the total value of the property and the buyer will take over rights and responsabilities. If you, as buyer later decide not to go through with the transaction, you lose this down-payment. If the seller decides to cancel the sale, they will have to pay you 2 times the deposit back to you.

5) Sign the title deed. The signing of the deed has to be done in front of a notary with both the buyer and seller present. Ensure that the deed contains a correct description of the property, also it must include any outstanding mortgages or charges on the house and the sales price as well as the payment method, indicating all taxes and expenses related to the sale. You need to take this opportunity to check that all documents are present and correct, like f.i. the Energy Performance Certificate, insurance (if applicable) and invoices for the latest tax- and community cost payments.

6) Pay the transaction cost and taxes, the main expenses when buying a home in Portugal are the IMT Property Transfer Tax, VAT and Stamp Duty and the notary cost, the cost of the Estate Agent (if you used one) and any cost related to the mortgage. As a quote 6-7% of the sales price on the deed should be allowed for this cost.

7) Change the name on the contracts for energy, water and gas. Inform the respective companies that you are the new owner and you will be handling the bills.

8)  Please keep all documents on a safe place since you will need them again whenever you will rent or sell the place.

9) Get the keys and move into your new home and enjoy it

Persons registered before April 2020 with NHR status have a tax of 0%. Persons registered after April 2020 with NHR status have a tax rate of 10% instead of 0%

Competitive Benefits:

• Taxes linked to the IRS on personal income made in Portugal are at a 20% fixed for a 10-year period of time.
• There are no double taxes on self-employment, employment or pension income derived abroad.

How can a person gain status as a non-habitual resident?

• Not being a Portugal resident for the past 5 years;
• Go to a local tax office and register as a Portugal tax resident. For this to be possible, you have to stay in Portugal for 183 non-consecutive or consecutive days. If less time has passed, you must have a home by December 31st of that year that has been fully lived in as a residence.
• Request your non-habitual resident status during registration for a Portugal tax resident or at least by March 31st of the following year after becoming a Portugal tax resident.

What is the rate of taxation and how is it applied to domestically obtained income, after the status for non-habitual resident has been granted?

The applicable rate of taxation is 20% for both self-employment and employment cases. However, in 2013 there was also a 3.5% surcharge.

This taxation covers income made through highly skilled fields such as the following scientific, technical or artistic fields:

• Engineers, architects and related fields
• Auditors
• Actors, musicians and fine artists
• Technicians, liberal professions and other related fields
• Psychiatrists, dentists and doctors
• Teachers
• Directors, managers and investors when connected to companies that are covered by certain rules written in the Investment Tax Code
• Senior managers

Non-habitual resident registration grants you the right of being taxed over a 10-year period after becoming a portugal tax resident.

After the status of non-habitual resident has been granted, when is earned foreign income exempt in Portugal from being taxed for non-habitual residents?

Read the following information, as this pertains to retired people and pensioners:

• The source state taxes the income under an agreement between the state and Portugal to eliminate double taxations.