MCP Solicitors' Guide To Buying Property In Portugal
MCP Solicitors have joined with Lisbon based Portuguese lawyers Almeida e Paiva & Associados (APA) in order to make life easier for UK investors purchasing Portuguese property.
What is MCP Solicitors' Portuguese connection?
One member of the MCP team Paula Fernandes is a Portuguese Legal Assistant who will happily deal with your work in either Portuguese or English.
MCP Solicitors works with Lisbon based Portuguese lawyers Almeida e Paiva & Associados (APA). They will deal with the legal work in Portugal while MCP Solicitors will deal with associated work any in the UK, such as the signing of documents. MCP Solicitors will also help you to understand the legal process in Portugal.
For your peace of mind MCP Solicitors can give you confirmation of APA's registration with the Portuguese Law Society, their Professional Indemnity Insurance and other such essential matters.
Together MCP Solicitors and APA aim to make life easier for the UK client purchasing property in Portugal.
Can I have a free initial consultation?
Yes. If you are thinking of buying property in Portugal or already have that property and want to review your arrangements do not hesitate to contact MCP Solicitors now. Our initial consultation will be without charge.
Do I have to pay IHT in Portugal?
Not only does living in Portugal give the joy of wonderful weather but it may even offer a very attractive tax proposition!
If you live in Portugal and die with Portuguese tax status then gifts to the statutory next of kin are broadly free of any tax charge.
However, in the UK Inheritance Tax is 40% on anything over £312,000. You would need to apply for Portuguese residence, but this can be done after living there for just six months and APA will happily help with this.
Also, if you purchase the property in the name of an heir and decide to return to live in the UK your Portuguese property could still pass to your heir free of Inheritance Tax (providing certain conditions are met).
This is a specialist area and if it is something you are interested in then please get in touch with MCP Solicitors who will happily explain the situation in further detail.
You can make a Will for your Portuguese assets here in the UK. MCP Solicitors' Portuguese Team will be very happy to go through the formalities relating to the Will.
We will prepare the document in English and let you have a certified copy of the Portuguese translation. We will then arrange for that Will to be reviewed and confirmed by APA. This means that your Will is fully legal in Portugal, but by working with a Lawyer in the UK you will understand every step of the process.
How much are Portuguese properties?
There are currently a whole range of properties to suit most aspirations in Portugal from under £100,000 to well in excess of £1m. Through APA we have early access to many developments and can offer a wide range of introductions.
APA can offer you the significant advantage, particularly when buying new properties, of local assistance and guidance. APA will be able to provide valuable support through knowing the system and the local market place and will often even help you negotiate on price!
What will happen as I grow older in Portugal?
If you decide to take Portuguese residency and abandon the UK you will want to know your future options. You can return to visit, mandate any income in the UK to Portugal, visit the UK for medical treatment (although you will almost certainly have to pay) and finally your family may bring your remains back to the UK if that is what you/they decide. MCP Solicitors and APA can help with all of these issues.
How can I pay for my Portuguese property?
There are many varied and different ways in which a property purchase in Portugal can be funded. The following is an outline of the simplest:
Cash Purchase
Most purchases, particularly on the Algarve by British buyers are paid for in cash. This is often raised in the UK by remortgaging a present property.
The advantages of this are that the funding is in sterling (the currency of your income) and you will not have to negotiate and pay additional fees for funding in Portugal.
MCP Solicitors is happy to deal with any re-mortgaging, arrange prompt despatch of funds to Portugal and keep APA informed of all timings.
Funding in Portugal
This is, in effect, a mortgage in Euros. There are a number of Portuguese banks who specialise in this, particularly Abbey, Barclays and Bank Totta (with whom we have connections).
Shared Equity
Many buyers purchase property with friends or family. Such a method required a partnership arrangement to be agreed and written. In our experience this is best written in English and governed by English laws so that there are no misunderstandings. MCP Solicitors is happy to help you with this.
