Purchasing a home is the biggest investment that most people make in a lifetime. It is important to be aware that when making this decision, there is na array of costs inherent to the business, in addition to the amount to be paid for the property.
One of the biggest costs associated with buying a property is the realization of the
deeds. This being the last step in the acquisition of a property – it is truly the moment when you receive the key to your new home, find out how much this process can cost you and which parties are involved in it.
The deeds are the final phase of the contract for the acquisition of a property and it is through this stage that whoever will acquire the house becomes considered its legal owner. If you are still at the beginning of the process of buying home, the ideal is to first compare all the housing credit solutions on the market to save the most on interest rate and commissions.
Costs of Property Deeds
It is difficult to determine for sure the value of the deeds of the housing credit, since this amount varies greatly depending on the purchase price of the property, whether it is your first or second dwelling, among other factors, so there is no previously established cost table.
Please note:
The more expensive the property, the higher the costs associated with the deeds will be.
The deed itself (the paper document) does not have too high a cost associated, but it is added to a series of taxes that those who will purchase the property have to pay, in addition to the expenses associated with housing credit:
Stamp duty on the transaction = 0.8%
Stamp duty on credit (over 5,000€) = 0.6%
Registration of the deeds (which can be with a solicitor and/or in a public or private notary)
Payment of the IMT* = Deeds Value or Tax Asset Value (the highest of these two) x Fee to be applied - Portion to be reduced
Below you can see the tables used to know how much you will pay for IMT*, which you will use to determine the value of your deeds. These values are merely indicative and should consult the Council** where the property is located.
The first table refers to the values put into practice in the acquisition of the property where you will reside full-time, while the second applies to all other dwellings that do not serve this same purpose.
It should be noted that, in the calculation of the IMT*, the portion corresponding to "Portion to be reduced" corresponds to the taxable income (which varies depending on the price of the property)
Table #1 - Own and Permanent Housing
Collectible income | Percentage rate to be applied | Portion to be reduced |
Up to 92.407,00 € | 0% | 0€ |
More than 92.407,00€ até 126.403,00€ | 2% | 1.848,14€ |
More than 126.403,00€ até 172.348,00€ | 5% | 5.640,23€ |
More than 172.348,00€ até 287.213,00€ | 7% | 9.087,22€ |
More than 287.213,00€ até 574.323,00€ | 8% | 11.959,26€ |
More than 574.323,00€ até 1.000.000€ | One off Fee 6% | |
More than 1.000.000€ | One off Fee 7,5% | |
Often, when buying a property, there are many associated costs that are not always clear to the consumer, he/she simply does not remember or does not have knowledge of it. Which is what sometimes happens in these situations.
It may happen to be already in an advanced stage of looking for a property and only then will the question arise: but how much do the deeds of a property cost?
It is essential, in this sense, to have prior knowledge of all associated taxes (and without payment of which it is impossible to carry out the deeds) and a series of expenses with registrations and bureaucracy. The ideal scenario is to inform yourself properly before "D-day" so as not to be caught off guard.
For more information visit www.abracadabra.pt .
* (Property Transfer Tax)
** (Câmara Municipal)