Selling a property in Portugal
Consider the Costs.
If you decide to sell a property in Portugal, you’ll need to factor capital gains tax into your calculations.
If you’re a Portuguese resident, you’ll only need to pay capital gains tax on 50 per cent of your gains, although you can deduct the costs of any improvements you’ve made to the property in the five years before you sell it. Your rate will depend on your circumstances, as capital gains tax is factored into your overall income tax in Portugal.
If you’re not officially a resident, however, you’ll need to pay a fixed rate of 28 percent on all capital gains.
When selling your home, you’ll also need to factor in our costs for the marketing and sale of your property. Our fees range from between 3–5 per cent (plus 23 percent Value Added Tax/VAT) of your property’s value, depending on whether your property is marketed exclusively by Algarve Retreats, or if you decide yo place your property with multiple agencies. Please contact us for more information, or to arrange for a free valuation of your property.
Make a list before placing your property on the market of all the important information that willl be required.
- Chosing the right real estate is the first and most important factor. Alagrve Retreats, will provide you with complete trust from the minute we first meet, with the honesty and transparency you need during the sale of your property. Frequent updates and clear/regular communication.
- Collate all the necessary reports/inspections and certificates, prior to putting your house on the market – it can save so much time further down the salse process.
- Consider the implications of Capital Gains Tax if you are not using the money from your sale to reinvest in another property purchase in Portugal.
- Be realsitic in terms of the price you expect to achieve and how long this may take. Although the property market is strengthening again after a period of slow growth over the last few years, buyers are still in the driving seat, to some degree, when it comes down to the price they are willng to pay.