# Buying land in azores



## smurray

Hello there,

I have a plan to buy land somewhere in the azores and to build a home to retire to. I will most probably be retiring in around 8 years time and my original idea was to buy the land and build upon my retirement. However, I do have the funds to at least buy the land now with a view to building in around 8 years time. I thought that this way I could make a saving as I imagine that land prices will rise somewhat in 8 years, despite the current economic climate.

I understand that I have to find out the classification of the land and whether I can build anything on it in the first instance. Then, once I have established that the land is suitable for my needs, I must obtain a building license for my project. However, from what I've read, this only seems to be valid for a year(?). Obviously if I have no intentions of building anything for several years until I retire, this license will quickly become invalid. 

My questions are: 

is it possible to renew this license until I am ready to build? (even if it is 8 years)

If so, how much does a renewal cost? 

I suppose I would just like to know, from all of your experience, what would be the best way to approach this situation? 

I fear that by trying to make some savings in this way I will only create more problems for myself and ultimately I do not want to end up with land that is no longer suitable.

Many thanks in advance,

Steven


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## canoeman

No if you apply for a project i.e submit plans and receive permission to build which can take 18 months, then that licence is only valid for 1 year from date granted, on application you can get 1 further year. 
It is possible to extend build time, but that is presuming you actually start the build. A fee fine is charged but it's not designed to extend a build indefinably, and it might not be allowed. Part of the plans and licence is a schedule of build.

Fine buy land now, but you should then plan your application for when you have funds or so it would be ready for your planned move.
The only danger with this is that if the law or land designation changes in the 8 year period, you might not get permission to build, just because you could get it now now it doesn't mean that you would get it in 8 years time.

The same would apply if you applied and received permission now and allowed it to lapse that doesn't mean you would get permission in 2, 4, or 8 years time.


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## smurray

canoeman said:


> No if you apply for a project i.e submit plans and receive permission to build which can take 18 months, then that licence is only valid for 1 year from date granted, on application you can get 1 further year.
> It is possible to extend build time, but that is presuming you actually start the build. A fee fine is charged but it's not designed to extend a build indefinably, and it might not be allowed. Part of the plans and licence is a schedule of build.
> 
> Fine buy land now, but you should then plan your application for when you have funds or so it would be ready for your planned move.
> The only danger with this is that if the law or land designation changes in the 8 year period, you might not get permission to build, just because you could get it now now it doesn't mean that you would get it in 8 years time.
> 
> The same would apply if you applied and received permission now and allowed it to lapse that doesn't mean you would get permission in 2, 4, or 8 years time.



Thank you for your clear response. As I suspected it will probably come down to whether I'm prepared to take the chance or not. I'll have to give this a great deal of thought!!

Oh by the way, what taxes are involved when buying land? Is it different from buying an actual house?

Thanks again,

Steven


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## canoeman

Not really
First thing you require is a Fiscal Number i.e. tax number
Bank a/c
Taxes as a % of selling price, don't agree to any undervaluing or undeclared payments.
Stamp Duty 0.08%
IMT 
Rustic (farmland) 5%
Urban 6.5%
Predios Mistos Urban section (buildable are) 6.5% Rustic 5%

There is a sliding scale on value but the 6.5% is good enough for basic calculations.
You also have Notary and registration fees and lawyer if you use one.


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## smurray

canoeman said:


> Not really
> First thing you require is a Fiscal Number i.e. tax number
> Bank a/c
> Taxes as a % of selling price, don't agree to any undervaluing or undeclared payments.
> Stamp Duty 0.08%
> IMT
> Rustic (farmland) 5%
> Urban 6.5%
> Predios Mistos Urban section (buildable are) 6.5% Rustic 5%
> 
> There is a sliding scale on value but the 6.5% is good enough for basic calculations.
> You also have Notary and registration fees and lawyer if you use one.



Well thanks again for so much useful information canoeman. No doubt I'll be back with more questions as I go along but at least I know where to ask!


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## canoeman

Notary fees vary a bit, but the new Casa Pronto service with the Conservitoria is the cheapest.
Simple purchase with no loan or Mortgage €205 + IVA, by Portuguese law if you don't speak Portuguese you are required to have an interpreter usually your Solicitor.


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