REAL ESTATE
LVP Advogados advise on the full range of real estate-related transactions in Portugal.
Forward thinking and commercial in our approach, we handle the entire property 'life-cycle' from the initial acquisition, development, leasing, joint venturing and financing through to the final exit.
Our real estate acquisition assistance includes:
- The legal structuring of the deal
- Advice on the tax implications
- Checking the public records to confirm the title and legal status of the property
- Drafting and negotiating the purchase agreement
- Arranging the payments in connection with the purchase, including taxes & Government fees
- Filing the property conveyance with the registry office and the tax authority
The real estate projects that we support include the following:
- Construction
- Rehabilitation (including assistance with accessing the available tax incentives)
- Leasing
- Hospitality
- Real Estate Development
- Real Estate Finance
- Real Estate Funds
- Real Estate Litigation
- Real Estate Private Equity & Investment
- Real Estate Securitisation
- Real Estate Tax
- REITs
We may also introduce you to the non-legal professionals (real estate agents, property managers, contractors, etc.) that may be needed for your project.
About Buying a Property in Portugal
No restrictions apply to the nationality or place of residence of the owners of Portuguese real estate.
Typically, the sale and purchase of a property in Portugal is preceded by a promissory agreement, which may optionally be registered with the land registry office (Conservatória do Registo Predial) and provides for all the terms and conditions of the deal. The most common procedure consists of the following steps:
- Seller and buyer informally agree on the price and payment terms, at which time the seller may occasionally demand a "reservation" payment of a relatively symbolic value, to take the property off the market while the promissory purchase and sale agreement is being prepared. In the event there is a "reservation" payment, this is titled by a relatively simple receipt and the paid value will be deemed a down payment on account of the agreed property price.
- The lawyers of each party conduct the paperwork due diligence and agree on the drafting of the promissory agreement.
- The parties sign the promissory agreement, at which time the buyer makes a down payment, typically of between 10% and 30% of the total price, there being the possibility of further payment instalments between this date and that of the final deed.
- In the event there are entities that are entitled to exercise an option to buy this specific property, as is often the case of at least the Municipality, then such entities must be notified by the seller of the promised terms of the sale and have 10 days to respond, failing which the option lapses.
- Before the final deed takes place, but often just a little time before it does, the buyer must pay the taxes in connection with the purchase, namely Stamp Duty (0.8%) and IMT, the property transfer tax (between 0% and 6.5%, depending on the property type and value, or 10% in the event the buyer is a blacklisted tax haven entity).
- The final deed is signed and, typically, the remaining value of the property price is paid.
- The conveyancing is registered with the land registry and the tax office.