&lt;p style=&quot;font-weight: 400;&quot;&gt;&lt;em&gt;To protect your interests and avoid potential pitfalls when purchasing in Portugal, be sure to appoint an independent solicitor. They should be bi-lingual, familiar with the Portuguese property market and have lots of experience helping foreigners. To save you time, Ideal Homes will happily refer you to a selection of local solicitors with a proven track record in helping clients throughout the years.&lt;br&gt;&lt;br&gt;&lt;/em&gt;&lt;/p&gt;
    &lt;p class=&quot;center-small-ss f-center&quot;&gt;
        &lt;img src=&quot;/media/03cmc0q4/shutterstock_398906539.jpg&quot; alt=&quot;Find your dream house&quot; class=&quot; max-width-100&quot; /&gt;
    &lt;/p&gt;

&lt;p style=&quot;font-weight: 400;&quot;&gt;&lt;strong&gt;&lt;br&gt;Why legal protection?&lt;br&gt;&lt;/strong&gt;At Ideal Homes we always provide the most accurate information possible about the properties we sell and do our best to make your buying experience problem-free. We are not legally qualified though, which is why we recommend hiring an independent solicitor. In fact, we enjoy working alongside them and feel reassured that our clients are getting the right advice during their purchase.&lt;/p&gt;
&lt;p style=&quot;font-weight: 400;&quot;&gt;&lt;strong&gt;Due Diligence&lt;br&gt;&lt;/strong&gt;Due diligence is a key part of your solicitor’s service. This includes land registry searches to verify a property’s owner and details, as well as check there are no charges, rights of way or debts over it. They will also look at the property’s description at the Tax Office and local council, as well as its habitation licence and current utilities accounts. Certain checks will need to be done if the property is part of a community. Other procedural things they will assist with include getting your tax number &lt;em&gt;(N&#250;mero de Identifica&#231;&#227;o Fiscal &lt;/em&gt;or&lt;em&gt; NIF)&lt;/em&gt; and opening your Portuguese bank account.&lt;br&gt;&lt;br&gt;&lt;/p&gt;
    &lt;p class=&quot;center-small-ss f-center&quot;&gt;
        &lt;img src=&quot;/media/pgvf1ggy/shutterstock_2301170363.jpg&quot; alt=&quot;typical villa&quot; class=&quot; max-width-100&quot; /&gt;
    &lt;/p&gt;

&lt;p&gt;&lt;strong&gt;&lt;br&gt;Contracts and Completion&lt;/strong&gt;&lt;br&gt;Once you and your solicitor are satisfied with the searches and addressed any issues accordingly, they can prepare the promissory (sales) contract &lt;em&gt;(Contrato de Promessa de Compra e Venda)&lt;/em&gt; and organise the signing of it. If there is a mortgage, your solicitor will include the necessary details. As well as Ideal Homes, they will liaise with all parties involved in the transaction, including the vendor’s solicitor, lender’s solicitor (if applicable) and notary &lt;em&gt;(Not&#225;rio)&lt;/em&gt;. They will also organise the signing of your final title deed &lt;em&gt;(Escritura de Compra e Venda),&lt;/em&gt; which they will prepare for completion day at the notary’s office. They should ensure all important documentation is translated into English for you.&lt;/p&gt;
&lt;p style=&quot;font-weight: 400;&quot;&gt;Throughout the process, all payments will be made through your solicitor. If buying new-build/off-plan, they will check all deposits and stage payments are protected by bank guarantees and that you are protected in the event of breach of contract by the developer. Post-completion they will register you as the new owner at the land registry and Tax Office and put everything in your name that needs to be.&lt;br&gt;&lt;br&gt;&lt;strong&gt;Power of Attorney&lt;br&gt;&lt;/strong&gt;To make life easier, consider granting a Power of Attorney (POA) to your solicitor. This gives them the authority to act on your behalf throughout the transaction, saving you the need to travel backwards and forwards to Portugal. Imagine, all you need to do is arrange when to come and collect the keys and celebrate your new home in Portugal! Setting up a POA is easy - your solicitor will draw up the required documents, which can then be legalised by a notary.&lt;br&gt;&lt;br&gt;&lt;/p&gt;
    &lt;p class=&quot;center-small-ss f-center&quot;&gt;
        &lt;img src=&quot;/media/twcixwtx/shutterstock_757982218-2.jpg&quot; alt=&quot;lawyer&quot; class=&quot; max-width-100&quot; /&gt;
    &lt;/p&gt;

&lt;p&gt;&lt;strong&gt;&lt;br&gt;Buying Taxes&lt;br&gt;&lt;/strong&gt;As a guide, budget an additional 7-8 per cent of the agreed price of your property to cover the buying costs that come with its purchase. Most of these costs go towards transfer tax (IMT), which is levied on a sliding scale of 1-6 per cent, with a higher rate (10 per cent) for offshore/ company owners and some exemption for primary residences. &lt;br&gt;&lt;br&gt;The remainder is made up of stamp duty (0.8 per cent), lawyer’s fees (1-2 per cent), notary fees (0.2-0.5 per cent) and other small disbursements. If buying with a mortgage, add an extra 1-2 per cent (for valuation and application fees).&lt;br&gt;&lt;br&gt;&lt;strong&gt;Ownership taxes&lt;br&gt;&lt;/strong&gt;Portugal’s council tax is called ‘&lt;em&gt;Imposto Municipal sobre Im&#243;veis’&lt;/em&gt;&#160;(IMI). Payable by the owner annually and based on rateable values &lt;em&gt;(Valor Patrimonial Tribut&#225;vel)&lt;/em&gt;, rates vary depending on a property’s classification, municipality and age, but a rate of 0.3-0.45 per cent is typical for urban properties and 0.8 per cent for rural properties.&lt;br&gt;&lt;br&gt;&lt;strong&gt;Other services&lt;br&gt;&lt;/strong&gt;Typically, Portuguese solicitors and law firms do more than just help you purchase a property safely. Most will also assist with ownership structures and Wills, tax returns and rental licences &lt;em&gt;(Alojamento Local). &lt;/em&gt;For foreigners, including non-EU citizens, coming to live in Portugal they will help with visas and residency, tax residency and wealth/financial planning.&lt;/p&gt;

Portugal Property: Legal Process & Taxes

Buying property in Portugal is much easier if you hire a local lawyer who speaks the language. Your lawyer will help you manage all aspects of the purchase process, with the correct paperwork and due diligence performed. A lawyer will help with other fundamentals like obtaining your Portuguese tax number (NIF) and setting up a bank account.