Selling your property

Capital Gains Tax

There is a Capital Gains tax in Portugal. For non residents (or where the property is not your primary residence) there is currently a capital gains tax of 28%, for companies (non-residents) it is 25%. If the money from the sale is re-invested into another property then only 50% of the net taxable income will be subject to capital gains.

To calculate the taxable gain, take the selling price and minus the acquisition costs as well as any costs incurred during the transfer of ownership, any property improvement costs that have incurred within five years of the sale as well as real estate agent fees.

There are a few exemptions:

If you are a tax resident of Portugal (Domiciled in Portugal) and you are selling your primary residence here and buy another residence in Portugal. Importantly this rule applies for sales that are within three years after, or two years before.

If the property in question was first occupied before January 1989 in your name.

If you decide to reinvest the monies made from the sale of your Portugal primary residence into another primary residence in the EU, you are then able to roll over the costs.

We recommend to engage the services of a Portuguese lawyer to represent you in the sale of your property. They will be responsible for updating property paperwork, checking contracts and confirming any responsibility for capital gains liability. For this the average charge is 1% of the sale price of the property.

As the seller of the property you are the one to pay us our commission. The percentage of this is agreed when we sign the mediation contract – the industry standard here in Portugal is anything between 5% – 10% commission. In the mediation contract it will also state when this commission is due to be paid – 100% once the promissory contract has been signed, 50% at promissory and 50% on deed or 100% on deed.

Documents needed:

When you decide to put your property up for sale, it is very important to make sure that you have all the documentation in order. For a privately owned property you will need the following documentation:

When you decide to put your property up for sale, it is very important to make sure that you have all the documentation in order. For a privately owned property you will need the following documentation:

• Caderneta Predial
• Certidão de Teor (Registered in the conservatória)
• Licença de utilização (Habitation License)
• Certificado energético (Energy certificate)
• Copy of owners identification
• Copy of owners Numero de Contribuinte (fiscal number)

We will use all of our experience, contacts and marketing expertise to find the right buyer and price for your property, however every property can always be made more attractive to buyers. Preparing your property for viewings is important. It will not only ensure that your property is sold faster but can potentially add thousands of euros to the final sale price. We ask that you consider the following tips for selling and together we can make the sale of your property a fast, smooth and enjoyable process.

First impressions count

Presentation of your property both inside and out can make all the difference when it comes to selling. A potential buyer could be put off even before they set foot inside your front door if they are given a bad first impression. You want them to come through the gates or walk up the path already feeling impressed and excited to see more.

Make sure the exterior of your property is up to scratch, move bins out of view, have a tidy up of the garden and clear away anything unsightly. The inside of your house should be as clutter free as possible – remember we deal with many nationalities who are looking for clean/simple lines – check all light bulbs are working and fix any squeaky doors.

We will make sure to highlight all the less obvious elements that make your property attractive, its fantastic location, rental potential, sun exposure or friendly neighbourhood.

Define each room

Buyers need to be able to picture themselves living in the house so it’s essential that each room is shown off to highlight its purpose. If your dining room is full of work papers or exercise equipment for example, return it to its original purpose. If it is possible, de-personalise the rooms if you can – for example take down posters in the children’s bedrooms so the buyer can see the potential for the house and where they would put their own items.

Access for viewings

It is important that we can let people view your property at a time that is convenient for them. A lot of potential buyers are only here for a few days and can be on tight time schedules. Ideally it is best for us to keep a set of keys for our accompanied viewings but we are also used to liaising with property managers or directly with vendors. If you need a certain amount of notice prior to viewings please let us know. If your property has rental clients please let us know the dates as early as possible so we can work around these to ensure the maximum number of viewings with minimum impact.

Be patient

Don’t worry if positive viewings don’t lead to a sale – it doesn’t mean there is anything wrong with your property or the way it is presented. We take great care only to invite qualified clients for viewings however experience tells us that there are lot of people who get cold feet about buying abroad when they return home. Be open to feedback and be prepared to listen to ideas to make your property more appealing.

Be open-minded

You don’t have to accept the first offer that comes through the door, it is worth discussing whether we think more can be achieved. We can weigh up the pros and cons, are they cash buyers, what is their time frame for buying etc and whether a swift sale now may save you money in the long run. If your property is older buyers may choose to have a survey done which could impact on the price they are willing to pay. If you are aware of any issues with the property it is better to be upfront as there are certain laws protecting the buyers.