| Additional considerations when buying a property
Survey Report
Condominium Fees
Legal Costs
Utilities Connections
Insurance
Public Liability Insurance
Accidents at Work Insurance
Ongoing Costs
Survey Report
Although a survey report is not a legal requirement during the purchase of a property in Portugal, many purchasers request a report from a survey company when buying resale property. This will add to the general expenses, but will assure the purchaser that the building is in good condition. A survey report generally costs up to a thousand euros, depending on the value of the property.
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Condominium Fees
A Condominium fee (or annual maintenance charge) is payable when buying an apartment or villa on a complex and includes the upkeep of common areas, gardens, swimming pools, etc. The amount varies from property to property, depending on the level of service provided by the maintenance company.
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Legal Costs
If you are using a lawyer for your property purchase, expect to pay between one and three per cent of the purchase price, plus IVA (equivalent to VAT) at 21%. These do not include Notary and property registration fees, which are charged at approximately 1.5 - 2.5% of the purchase price.
Top Utilities Connections
Having completed your purchase, you will need to apply for utilities connections, for which a photocopy of the deed and your fiscal number is required. Mains water connection must be requested at the Council (Câmara Municipal), electricity at the electricity board (EP), telephone at the telephone company and gas with the gas company.´
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As in any country, insurance of your property and its contents is advisable. The buildings insurance will cover re-build costs. There are numerous reputable English-speaking insurance brokers who can advise you on the types of cover available, and many of the Portuguese banks also offer insurance policies. Buildings insurance usual covers fire, flood, storm damage and earthquake. If you have a swimming pool, ensure that this is included.
Top Public Liability Insurance
It is also recommended to take out Third Party Public Liability insurance cover (Responsabilidade Civil). This insurance is advisable in case anyone is injured whilst on your property. Be sure to establish the correct level of cover is included.
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When carrying out any renovation/building works to your property, it is required that an Accident at Work (Accidentes de Trabalho) insurance is taken out for the period of the project. This is in case of accident to anyone working on the property.
If you directly employ staff (such as a gardener, maid etc.), you should have an Accident at Work policy in force throughout their employment in case of injury sustained when they are at work.
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Ongoing Costs
Allow for costs that you may not have in your home country, such as pool and garden maintenance. This will include higher water consumption if you have a pool and a garden irrigation system, pool chemicals, etc.
There are many reputable property management companies who can provide solutions for all your management, maintenance, cleaning and maid service needs, as well as looking after rentals, if you don’t wish to do this yourself.
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