The current status of the property market in Portugal is excellent, indeed – the government could not have handled the debt crisis any better. The austerity measures have worked – the banks have since recapitalized and lending is back to normal again. If you are looking to sell your property in Portugal in 2016, you can certainly benefit from higher property prices. So it’s good news all-around.
Here we discuss how the process of selling property works in Portugal. In Portugal right now, there is a huge gap between supply and demand, with supply much higher in places like the Algarve, where there are thousands of apartments up for sale. For sure, you will be able to get a good price for your apartment or villa for sale, but the key is to remain patient.
The Portuguese culture is such that nothing happens here too fast. It is important to hire an agent to sell your property. There are some agencies that are better motivated than others, so who you choose to help you sell the property makes a huge difference.
Generally, EU citizens enjoy the same property rights in Portugal as the locals, and the laws related to the property transaction are pretty simple as well. You are advised to hire an estate agent specializing in overseas property for the purpose, especially those who can network effectively with local Portuguese based agents and have extensive contacts with cash rich investors from emerging economies such as China and Russia.
An estate agent handles all the marketing related to the property and promotes it effectively to those who are likely to show an interest in it on the internet, on the social media and in various property portals and online forums.
Next, you will need to understand the taxation aspect of selling your property in Portugal. The capital gains tax on the property sale is fixed at 25 percent for all non-residents, which is really quite high. So make sure to hire a reputable tax accountant for advice on selling the property. Portuguese residents get a 50 percent exemption on the capital gains tax to be paid on the property sale. So it really helps to be a resident of Portugal.
The fact that the Sterling is much stronger than before while the Euro is considerably weaker will have an effect on the sale of the property as well. It makes sense to hire the services of a currency exchange broker to help you get the most out of the sale, especially if you are moving back to the UK. What a currency exchange broker does is to help you lock in a transfer of your preference.
Next, while the regulations related to property transactions in Portugal are quite simple, it is still very important to hire a local lawyer to help you deal with all the paperwork related to the sale. Hire a lawyer who has a decent reputation with the expat community and has lots of experience in buying or selling property. He should be just as comfortable in English as he is in Portuguese, and should be able to communicate easily with you. The lawyer should be a member of the Portuguese Bar.
It is very much a buyer’s market in Portugal, so it is important to make sure that the property is packaged well to attract prospective buyers. This means carrying out extensive renovation of the kitchen and bathrooms, painting, gardening, plumbing and so on. This might cost you a bit, but will help you get a better price for the property.