How to buy a property in Portugal
Corporate Ownership (page 1/3)
Buyers continue to ask many questions regarding the different methods of owning a property in Portugal. They naturally want reassurance when so much money is being invested in a property abroad, and we fully understand that concern.
However, there are still some misunderstandings regarding corporate ownership and its advantages and, in an attempt to help our clients, both buyers and sellers, we have therefore prepared this information leaflet to explain in a clear way the reasons why many owners of property in the Algarve decided, and continue to choose, to purchase and own their property through a corporate structure.
As you are probably aware, some properties in Portugal, and especially in the Algarve, are indeed owned by a company. Today these companies are usually domiciled in Malta or Delaware. The property itself is an asset of the company and buyers purchase the shares of the company. This transaction takes place in the jurisdiction where the company is domiciled and there are benefits in buying and owning property in this manner.
Both parties still require a local lawyer, as the usual searches on the property must still be carried out, and most local lawyers are also familiar with this type of corporate transaction. A Share Purchase Agreement is drawn up, the usual deposit paid and a completion date set in the usual manner. The immediate benefits of such a transaction are indeed its simplicity and the fact that all documentation proceeds in the English language.
To buy a property in Portugal you don't need to learn portuguese, but it maybe useful to know the name of the important documents and taxes.
- Certidão de Teor.
- Caderneta Predial.
- 1. Use a government licensed Estate Agent like Algarve Property Online agents.
- 2. Non-Residents, and Fiscal Representation.
- 3. Reservation Deal, to take the property off the market.
- 4. Collect all the documentation.
- 5. Promissory Contract, buyer and seller agree on the deal.
- 6. The property transfer tax should be paid.
- 7. Final Deed signed at the Notary’s
- 8. Registration in your name.
Owning a property in Portugal using an Corporate Ownership.