# Closing costs on house with land



## itramsitra (May 7, 2014)

Hi all,

We're buying a property near Obidos. Can someone please give us an idea of what closing costs we can expect.

By this I mean:
- Lawyers fees
- Taxes
- Fees
- Stamp duty
- Commission etc
- Anything else we aren't aware of?

Our agent mentioned that this usually adds up to about 5% of the value of the property. Is she being optimistic?

Thank you
Itra :fingerscrossed:


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## canoeman (Mar 3, 2011)

You should *NOT* pay any commision it's a sellers expense

Lawyers you should negotiate and make certain exactly what their doing for you and cost

Stamp Duty is 0.8% of buying value

IMT is a banded percentage what price are paying, with a discount amount depending on your residence or non Residence status
Don't be tempted to under declare, it's you it comes back too as a problem
Both must be paid before Escritura with presented receipts, the amounts are calculated and supplied by Financas

Registering Property at Financas is free
Registering property at Conservatoria depends on value, but the current cheapest place to complete Escritura is Casa Pronto a part of the Conservatoria (Public Registration Office for property, land, cars and lots more) and registration fees are then inclusive of cost, the Escritura is a buyers cost not sellers. You can stipulate where you eant Escritura i.e. Casa Pronto, Notary etc

Fee to register at your Water department varies but approx 20€
Electricity, telephone, internet free to register
If you can't attend Escritura in person/s then both will reguire POA to represent you

For the future all receipts for costs associated with property purchase should be kept safe.

Don't forget property insurance


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## itramsitra (May 7, 2014)

canoeman said:


> Lawyers you should negotiate and make certain exactly what their doing for you and cost


Thanks for this detailed information, canoeman.

As for negotiating with the lawyer, what is reasonable? The property is under €70,000 - what is a fair amount to pay a lawyer to work on this transaction?

Thanks again!


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## travelling-man (Jun 17, 2011)

I'm going from memory but seem to recall that our lawyer's fee was something in the region of €600 or €700 when we bought about 2 years ago.

There were also a few other costs but nothing significant.


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## canoeman (Mar 3, 2011)

Under 92,407€ there shouldn't be any IMT but maybe on land if a Mista or separate article number value @ 5%. Stamp Duty (Imposto Selo) still applies

On that price I wouldn't be happy paying more than around 500€ top, you should make sure lawyer speaks English as by Law you must have a competent translator present at Escritura and better someone that represents you than a unknown


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## In 2 bikes (Apr 18, 2013)

Our new gaff cost 80000 euros ( reduced from 120K )

The lawyer has been a star and cost 1000 euros and she has power of attorney to complete the documentation on our behalf. This saves having to to travel back to Portugal just to sign a couple of documents before you actually own the place and cn move in.To pass on power of attorney to your solicitor you have to sign off permissions at the local notaire's office for a small admin fee.

We were exempt from IMT ( tax ) on our house purchase because it was below the threshold amount as stated, but we were hit with a 648 euro tax bill ( I.S. ) because the property has a detached garage on the grounds.

Things that we're going to have to take on the chin are the cost of filling the diesel tank on our arrival for the central heating ( probably 1000 euros due to its size ). Also the cost of a 'flush out' for the sceptic tank as we are not on mains sewage and it would be wise, we think, to give the sceptic tank a revive. I think we will also be paying out for enough wood for the first winter's real fire use and for some to store as well.

One more thing to consider is the cost of importing a car and swapping its number plates to local versus buying a local car to start with, which I have to say are much more expensive than in the U.K. (anywhere else).

Overall all our legal fees and taxes for the purchase came to 2400 Euros.

Good luck and stick with it...


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## canoeman (Mar 3, 2011)

Imposto Selo is calculated on the VPT (tax value) of property and any separate articles of land or Mista not it's purchase price, the same figure that is used to calculate IMI (yearly rates).

Currently if we where still using heating diesel in our area it's 1,293€ per litre inc 23%IVA but we opted to replace the diesel burner unit for a wood pellet burner, difficult to make a direct comparison but we seem on course to recoup cost within next 12 months

Septic tank 40€ to empty

Some Solicitors are empowered to do the POA without the need to go to Notary and therefore cheaper

Also an often forgotten expense new WILLS made in Portugal


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## itramsitra (May 7, 2014)

Thank you everyone.


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## Batalhasue (May 11, 2014)

travelling-man said:


> I'm going from memory but seem to recall that our lawyer's fee was something in the region of €600 or €700 when we bought about 2 years ago.
> 
> There were also a few other costs but nothing significant.


You were lucky - we paid 2000 euros just for the solicitor plus all the other costs. May depend on the price of the property.


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## travelling-man (Jun 17, 2011)

Batalhasue said:


> You were lucky - we paid 2000 euros just for the solicitor plus all the other costs. May depend on the price of the property.


Strewth....... I don't know anyone who's paid anywhere near that much!


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## canoeman (Mar 3, 2011)

Nor me, too late now but I would have found another Solicitor, the works the same regardless of price, keep the receipt safe as least you can offset if you sell and have CGT


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## mehereinportugal (Jul 28, 2012)

Regarding Wills. You will not need a new will unless you are planning on having children here in Portugal or you or your wife have children who are Portuguese. Your UK will applies and is legal.


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## canoeman (Mar 3, 2011)

mehereinportugal said:


> Regarding Wills. You will not need a new will unless you are planning on having children here in Portugal or you or your wife have children who are Portuguese. Your UK will applies and is legal.


If your English Will has UK assets plus Portuguese assets[/B] then *before* Portuguese Probate can commence the Will must *first* be Probated in UK, then officially translated and Notarized, it adds considerably to costs, creates issue with Probate in UK and delays process.

Far easier and more practical to have 2 Wills one for UK assets, 1 for Portuguese Assets 

A Will made and registered in Portugal only has to contain Portuguese Assets and there are certain terms you might have in a English Will that create problems in Portugal like Trusts and Trustees so should be avoided and Portuguese terminology used, another is joint tenancy, it's not recognized, so property banks accounts etc jointly owned are "tenancy in common" so do not pass automatically to joint owner so must be specified in the Will.

A Solicitor in Portugal should be consulted but one who knows that UK or your country of birth Law of Succession takes precedence over Portuguese Law


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## canoeman (Mar 3, 2011)

Should add to above, another major difference is *Codicils* you* cannot alter or amend* a Portuguese Will with Codicils a new Will must be drawn up


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