According to the Portuguese Association of Real Estate Professionals, the French are the first foreign buyers in Portugal. French investors investing in real estate in Portugal represent 25% of the 13,064 non-residents who bought real estate in Portugal in the first quarter of 2016.
Once the property is found, the buyer signs with the help of a lawyer, a promise to purchase that can be reciprocal, similar to the sales agreement, or unilateral with conditions precedent. In all cases, it is accompanied by the payment of a deposit (at least 10% of the price) that will remain with the seller if you withdraw without valid reason. The transaction will not become final until the signing of the deed drawn up by a notary responsible for establishing the cadastral and mortgage situation, the existence of any easements and urban planning rules, and register the sale in the land register.
As in France, the purchaser bears the costs of registration and registration. The progressive transfer taxes vary between 1 and 8%. For example, the tax authorities will charge 5,840 euros in fees for a property worth 200,000 euros. The fixed and honorary fees of the notary are added to this amount.
Regarding financing, the establishment of a mortgage loan granted by a French banking institution remains the surest way to finance a property purchase in Portugal. The loan agreement is drafted in French and the funds are released under the control of a French notary.
A mortgage loan for the purchase of a villa or apartment in Portugal is for owners of real estate located in France. It can be a principal residence, a second home or rental which will then be given as a displaced guarantee.
The operation of the loan will be similar to a conventional home loan.