If you want to buy a property in Madeira and find the breathtaking scenery there astounds you, you must manage the process under professional advice. Purchasing a residence abroad, such as Portugal, raises financial and legal considerations as well. This book will walk you through five essential steps to enable you to make a sensible investment and confidently purchase Madeira real estate.
1. Get a Specialized Real Estate Lawyer in Madeira
Hiring a specific real estate lawyer is the first important step in buying Madeira property. Dealing with the Portuguese legal system can present challenges for overseas purchasers. Knowing Portuguese and Madeiran property law will equip a lawyer to provide you invaluable guidance and help all through the purchasing process. Our staff of English-speaking lawyers at MCS has a lot of expertise assisting overseas customers in Madeira property purchase. Our professionals will ensure your purchase of a home satisfies all legal criteria, therefore guiding you away from any possible issues.
Our staff of English-speaking lawyers at MCS has a lot of expertise assisting overseas customers in Madeira property purchase. Our professionals will ensure your purchase of a home satisfies all legal criteria, therefore guiding you away from any possible issues.
2. Get a Portuguese Taxpayer Identification Number (NIF)
You have to obtain a Portuguese Taxpayer Identification Number (NIF), sometimes known as “Número de Identificação Fiscal,” before purchasing Madeira property. Whether you are doing any legal or financial activities in Portugal, including Madeira property purchase, you require this number.
Working with a trained accountant would be a smart way for you to assist in your NIF application. They will consider your circumstances including whether you wish the property to be a full-time residence or a vacation house, whether you are married, and whether additional family members also require an NIF. Living outside the European Union could mean naming a Portuguese tax agent.
The advice of a specialist to obtain an NIF will ensure that you purchase Madeira property following Portuguese tax regulations.
3. Do a Full Check
When you purchase Madeira real estate, you need thoroughly verify everything. Your attorney must thus review the legal and technical aspects of the property in order to identify any such hazards.
Regarding legal affairs, your attorney should review important documentation including the Property Registration Certificate (“Certidão do Registro Predial”), Fiscal Property Identification Document (“Caderneta Predial”), and Occupancy License (“Licença de Utilização”). Additionally you should review the Technical Data Sheet of the Property (“Ficha Técnica de Habitação”) and the Municipal Master Plan (“Plano Director Municipal”).
Bring in a qualified architect or engineer to evaluate the structural stability of the property and ensure any renovations follow local guidelines in order to do technical due diligence. This stage helps you avoid unpleasant surprises and lets you make wise decisions about purchasing Madeira real estate.
4. Sign a Promissory Contract of Purchase and Sale (CPCV)
Your next action in purchasing Madeira property is signing a Promissory Contract of Purchase and Sale (CPCV), after you have finished verifying everything and choose to proceed. This legally binding paper lays out the terms and conditions of the property sale. It covers your agreed-upon payment schedule as well as the price.
At this point, you probably will set down a deposit roughly equal to 10% of the property’s value. The CPCV guarantees your and the seller’s seriousness regarding the agreement. Should the seller back out, you get twice your deposit back; should your change of opinion, you lose your deposit. Signing this agreement makes the Madeira property acquisition go and offers you legal protection.
5. Complete the Public Deed of Purchase and Sale
Signing the Public Deed of Purchase and Sale comes final in the process of purchasing Madeira property. Your attorney writes this official agreement, which you review before a notary. The notary places the property in your name with the Portuguese Land Registry, verifies you paid the agreed upon payment, and examines any necessary documentation.
By now you also have to pay the Municipal Property Transfer Tax (IMT), which varies based on the property’s price. The notary wraps up your Madeira home purchase and registers the property for you.
MCS can assist you by providing a specific tax breakdown to ensure the deal is done up in the most economical manner whether your purchase is through a trust, foundation, or firm.
Conclusion
Purchasing real estate in Madeira offers a rewarding opportunity, but it requires careful planning and expert guidance. To buy property with confidence, you should hire a real estate lawyer who specializes in this area, get a Portuguese NIF, do a thorough check of the property, sign a Promissory Contract of Purchase and Sale, and complete the Public Deed.
At MCS, we make it easy for expats and foreign investors to buy property in Madeira. Our skilled team of lawyers and accountants helps you through each step making sure your investment is smooth and secure.
Get in touch with us today to begin your journey to own property in Madeira.
The information in this article on “buy property in Madeira” is for general informational purposes only and is not intended to constitute legal advice. While every effort has been made to ensure the accuracy of the content, laws and legal procedures can change, and the specifics of each case can vary widely. Therefore, readers are advised to consult a qualified professional or attorney in Portugal for advice tailored to their circumstances before taking action. This article does not create an attorney-client relationship between the reader, the authors, or the publishers. The authors and publishers are not liable for any actions taken or not taken based on the content of this article.
Ambrosio Jardim has, since 1998, worked mainly in the areas of commercial law (corporate, mergers and acquisitions, joint ventures, restructuring and planning), national and international tax law and real estate…. Read more
