Cost Involved When Selling Property in The Algarve
Selling a house might seem straightforward, but knowing the various costs and taxes involved in Portugal is essential. Knowing these expenses upfront is crucial whether you’re capitalising on the strong housing demand or simply looking to move on.
Key Expenses to Consider When Selling Your Property
- Permanent Property Certificate (€20-€15): Essential for understanding the property’s history and legal status. It is available at a land registry counter or online.
- Use Licence (from €35): Issued by the municipal council, this confirms the property’s compliance with legal standards.
- Housing Technical Data Sheet (from €35): A requirement for homes built post-March 2004, detailing technical and functional aspects.
- Energy Certificate (€28-€65): A legal necessity, this assesses the property’s energy efficiency. Non-compliance can lead to hefty fines.
- Purchase and Sale Promise Contract (up to €60): Drafting and signature recognition costs.
- Deed Fees (€400-€900): Vary based on professional fees.
Real Estate Agency Commission: While not a direct expense, remember that agency fees (2%-6% plus VAT) are deducted from the final sale price.
Mortgage Cancellation: If the house was bought with a loan, cancelling the mortgage incurs a €50 fee at the Land Registry Office.
Owner Responsibilities: Until the sale is finalised, the owner bears the costs for utilities and maintenance, such as water, electricity, and internet.
Tax Implications on Selling a Property
In Portugal, tax is payable on capital gains – the profit made on the sale. From January 1, 2023, the same tax rules apply to residents and non-residents.
Capital Gains Tax Exemptions:
- Properties purchased before January 1, 1989, or building land acquired before June 9, 1965.
- Reinvesting in a new primary residence within specific timeframes.
- Over 65 or retirees reinvesting in specific financial products.
- Applying the sale value to repay a housing loan within three months.
Calculating Capital Gains:
The formula includes the sale value minus various costs, including the acquisition value, appreciation charges, acquisition expenses, and selling costs. Note the application of a currency devaluation coefficient for properties owned over 24 months.
Armed with this knowledge, you’re better equipped to navigate the financial aspects of selling your property in Portugal, ensuring a decision that aligns with your needs and goals.
Why Choose Gatehouse International Algarve for Selling Your Property
When it’s time to sell your Algarve property, choosing the right estate agent is crucial. Gatehouse International Algarve is your premier choice, thanks to our extensive network of real estate agents and deep understanding of the Algarve property market.
Extensive Network: Our wide-reaching network of experienced agents ensures your property gets maximum exposure, attracting the right buyers quickly and efficiently.
Local Expertise: Our team’s in-depth knowledge of the Algarve region means we can highlight what makes your property unique – its location, architecture, or the lifestyle it offers.
Personalised Service: At Gatehouse International Algarve, we believe in a tailored approach. We understand that each property is unique, and so are your needs. Our dedicated agents work closely with you to ensure a seamless and successful sale.
Trust and Reliability: With years of experience and a strong reputation, we are committed to providing transparent and trustworthy services. Our clients’ satisfaction is our top priority.
Choose Gatehouse International Algarve to experience a hassle-free and rewarding property-selling journey. We’re not just selling houses; we’re opening doors to new beginnings in one of the most beautiful regions in the world.