LONG-RUNNING SCAM FINALLY BEING EXPOSED
For years, publications, websites and TV programmes have been warning that if buying in a property in Portugal you must add 10 - 15% to the purchase price for extras. This is simply WRONG. The true figure is around 5%, give or take a bit.
IMT House: 3,995 (purchase tax)
IMT Land: 1,200 (purchase tax)
Stamp: (0.8%) 1,600 (this used to be included with the notary's fee)
Local Lawyer: 1,000 (est)
Notary: 350 (approx.)
Registration: 355 (approx.)
_____
TOTAL EXTRAS 8,500 = 4.25% That’s it!
The misunderstanding has its origins decades ago, when a quite substantial property in Portugal could be purchased for 10,000 euros. Extras could well amount to 1,500 so there was your 15%.
It has been copied from one publication to another down the years, and exploited by a number of less-than-scrupulous lawyers and real estate agents, who offer to ‘take care of extras’ for an additional 12.5 or 15%. In some cases they may well be the very same who advise the editors. Hence a myth has become firmly rooted, and editors have become unwitting accomplices to a very sharp practice.
Would-be buyers are thus being needlessly deterred from buying good value property in this beautiful country, so a group of fed-up local estate agents have got together to try to set the record straight.
PLEASE CHECK OUT THESE FIGURES FOR YOURSELF AND HELP PUT AN END TO THIS FRAUDULENT PRACTICE.
Here is a typical example from our own considerable experience (costs in Euros):
Purchase price: 200,000 euros (house 180,000, land 20,000)IMT House: 3,995 (purchase tax)
IMT Land: 1,200 (purchase tax)
Stamp: (0.8%) 1,600 (this used to be included with the notary's fee)
Local Lawyer: 1,000 (est)
Notary: 350 (approx.)
Registration: 355 (approx.)
_____
TOTAL EXTRAS 8,500 = 4.25% That’s it!
The misunderstanding has its origins decades ago, when a quite substantial property in Portugal could be purchased for 10,000 euros. Extras could well amount to 1,500 so there was your 15%.
It has been copied from one publication to another down the years, and exploited by a number of less-than-scrupulous lawyers and real estate agents, who offer to ‘take care of extras’ for an additional 12.5 or 15%. In some cases they may well be the very same who advise the editors. Hence a myth has become firmly rooted, and editors have become unwitting accomplices to a very sharp practice.
Would-be buyers are thus being needlessly deterred from buying good value property in this beautiful country, so a group of fed-up local estate agents have got together to try to set the record straight.
PLEASE CHECK OUT THESE FIGURES FOR YOURSELF AND HELP PUT AN END TO THIS FRAUDULENT PRACTICE.
