The Silver Coast offers something refreshing for those seeking property for sale in Portugal abroad for holidays or investment.
Property price rises expected
Indeed, the area is likely to grow in popularity with Brits looking to retire abroad as the region is unspoilt and under-developed in comparison to many areas of the Portugal and Spain. Many expect property prices in the region (currently around 50% the levels seen on The Algarve) to rise substantially in the near future. This will be aided by the new airport recently announced just outside Lisbon, chosen for the room it offers for later expansion when needed.
The Silver Coast, a little like the Peak District, is easier to find than to define – it is principally the area around the towns of Obidos, Peniche and Caldas da Rainha. Yet exactly where it starts and finishes is less clear. The locals don’t typically call it The Silver Coast, preferring instead the Western Region but most people can direct you to it.
Quaint towns and fishing villages characterise this part of Portugal and you will frequently see the locals dressed in traditional costumes even outside the carnival and tourist times. In the low-season it is quite possible to walk along deserted sandy beaches for miles, marvelling at the spectacular, rugged and craggy cliff-sides which provide shelter from the Atlantic winds within their picturesque coves.
The area is most closely associated with the Queens of Portugal who were given cities such as Obidos for their own use. The region was recaptured from the Moors from around 1123 by the then king as he moved gradually south over many decades, pushing the Moors back to Africa.
Property in this region of Portugal is still very reasonably priced, certainly when compared to The Algarve. In part this is due to the less developed nature of the area and in part due to its milder climate. The Portuguese government has set out detailed plans for the whole country of how much development can be undertaken and where and in this part of the country the build density is restricted to around 7%-8% for new developments. This means the essentially rural nature of much of the countryside will be maintained for the foreseeable future. Indeed, of the 40,000 hectares of land around the region only 4,000 has been zoned for development and then only at the low build density mentioned earlier.
The bulk of the new development taking place around Obidos is accounted for by 3-4 resorts all within a few miles of one another:
Praia d’el Rey, Falesia d’El Rey, Bom Sucesso and Royal Obidos. Each of these has or will have an 18-hole golf course designed and built to the highest standards as well as 4- or 5-star hotels with all the facilities one would expect. In the case of Praia d’el Rey the hotel is run by Marriott, the others have yet to announce which group will be running their hotels. Most of these resorts have reciprocal arrangements with one another enabling residents to play any of the golf courses in the area.
Further south towards Lisbon is Campo Real, long familiar to golfers and this is probably around the southern most point of the Silver Coast. Campo Real has a Westin hotel as well as a challenging golf course.
The climate along this part of Portugal’s coastline is milder than the Algarve climate as it faces out onto the Atlantic Ocean. This will suit many as the summers are hot but not baking and the winters temperate rather than cold. The sea here is a little more vibrant than in the south and sailing, windsurfing, kiting and surfing are all popular along the Silver Coast. The sheltered nature of many of the beaches here make them sun-traps and the area is very popular with the Portuguese during the hot summer months.
Buying and owning a property on the Silver Coast
Portugal, historically the Algarve and now the Silver Coast is one of the most popular destinations for overseas property ownership due to the warm climate, quality of life and easy low cost travel with plenty of cheap flights available departing from most UK airports and the expected development of a new airport just over the border in Huelva will make the Algarve even more attractive. Portugal and the Algarve location guides there is a good choice of property available with something to suit everyone from in town to rural; Golf resorts actively being developed. We have a lot of other articles and property news about Portugal.
The process for buying a property in Portugal and the Silver Coast
The process of buying a property in Portugal is different to the UK process, but none the less it is pretty straightforward and you should always buy a property in Portugal only through Government Licensed Estate Agents, this not only guarantees that the Estate Agent has been trained correctly but also that they are authorised to use and submit much of the paperwork which forms part of the buying process. Most important of all is the professional indemnity insurance licensed estate agent is required to, which means you have some protection in the case of a dispute.
The stage in the process is the Contrato de Promessa de Compra e Venda or Promissory contract. This document, which sets out the terms and conditions of both the sale and purchase and legally binding on both parties. The Law relating to buying a property in Portugal enforces that the seller to compensate the buyer by twice the amount of the deposit should they withdraw, and if you as the buyer pull out then the full deposit is forfeited. It is very important therefore to have a lawyer qualified in Portuguese property law review this document before signing, signing is done in the presence of a notary.
Another document in the process is the "Procuração Publica" which grants a power of attorney which permits your Lawyer or other third party and is presented to the Notary and registered by the notary. It is recommended that this document is prepared in Portugal, it can be prepared outside Portugal but the process of getting this “legalised” is cumbersome and best avoided if possible.
In order to proceed with the purchase the buyer must obtain a Fiscal Number, Finanças, from the local tax office.
Before the purchase can be completed the tax due, IMT - Imposto Municipal sobre Transamissões, This payment can be made at the local tax office and the amount due is shown in the following table, the figures are in Euros
Up to 85,000 - 1% Deducted Value = 0.00
85,000 to 117,200,00 – 2% Deducted Value = 885,00
117,200 to 266,400 – 5% Deducted Value = 4,370.00
159,800 to 511,000.00 – 7% Deducted Value = 7,567.01
266,400 to 511,000.00 – 8% Deducted Value = 10,231.09
Over 511,000.00 – 6% = 0.00Example
Price of property = € 100.000,00 x 2 % (% tax to apply) = € 2.000,00
Deducted Value (difference) € 855,00
Total to be Paid = € 2.000,00 - € 855,00 = € 1.145,00 IMT Tax
The next stage in the process is the Escritura de Compra e Venda" which is known as the Act of Sale which can now be completed in front of any Notary. The Notary will check that all the paperwork is in order and at this stage you will pay the balance due.
The Act is recorded by the Notary Office who will issue an official photocopy of the entry which is the proof to the buyer that the act of purchas has officially taken place. This photocopy will carry the seal of the Notary, if further official copies are needed these can be requested at any time. This is not a Title Deed as we understand it the UK. Title is recorded with the Land Registry.
When the Act has been completed as above, you will be registered as the new owner in the Land Registry Conservatoria do Registo Predial. In Portugal the registration of a property only becomes obligatory when the owner sells the property, it is very good practice to Register immediately as a preventative measure, if the property is registered in your name then no financial abuse can occur.
Stamp Duty
Stamp Duty is levied on all documents, books, papers, acts and products listed in the General Schedule Stamp Duty Schedule and is determined by the value of the Act, or the contract. A property purchase is subjected to a Stamp Duty of 0,8% of the declared value.
IMI - (Imposta Municipal de Imóveis)
This is a municipal tax is levied on the taxable estate value on all properties located in Portuguese territory. The taxable person is the named owner of the property, usufructuary and surface rights holder, as on the 31st of December of the year in which the tax is related.
The IMI Rates are calculated on the following basis: for Rural properties 0,8%; for Urban properties-between 0,2% to 0,5% (variable from council to council and reviewed annually)
Properties for sale in Portugal, the Silver Coast and the Algarve
At Overseas Property Centres we strive to making buying a property in Portugal, the Silver Coast and the Algarve as Straightforward, safe and persoanal as can be.
Importantly, We are independent of any builders,agents or property developers and we do not enter into exclusive contracts, we carry out a strict process of due diligence to ensure that we only promote Portugal and Algarve properties when we are satisfied with the credentials and financial stability of the parties with whom you may be dealing. We gather together properties and knowledge, which we organise into three main groups, places to invest, places great for holiday homes and places that are suited to living in all year round. This ensures that you receive straightforward information relevant to your decision, saving you the time and effort and getting your questions answered.
If you are thinking about or planning to buy a property in Portugal, the Silver Coast or the Algarve for use as a Holiday Home, an investment or to move to Portugal or the Algarve, Overseas Property Centres offers a range services that will help you through the process. Our knowledge database contains a wide range of topics related to buying a property in Portugal, the Silver Coast and the Algarve, everything from the legal processes, the cost owning, letting and living in your property as well as 100’s of articles about popular destinations for Portugal, Silver Coast or Algarve holiday home owners and property investors alike.
You can browse articles about buying and owning a property in Portugal and the Algarve in our Regional Property Guides section, use the quick links that will appear when looking at any property for sale in Portugal and the Algarve or simply enter your keywords in the search box on the upper right of the screen.
Remember Overseas Property Centres carries out extensive checks on anyone we partner with or services we promote on our web site, this goes for Portugal, the Silver Coast and the Algarve property developers and agents as well as anyone you might go to for financial, mortgage, personal Tax planning and Legal advice. Our experts are on hand to answer or get the answer to questions you may have about owning or buying a property overseas, so if you prefer the personal touch why not contact us now on 0845 257 3737 and let us help you every step of the way.
Through our partners we can arrange tailored no obligation property viewings of property for sale in Portugal, the Silver Coast and the Algarve, some of which are subsidised. We can organise independent investment and financial advice, independent legal advice and advice on currency exchange, infact everything you may need.
What we do extends beyond just chosing your Portugal, the Silver Coast or Algarve property, our after sales service is there to help with any issues that may arise during the buying process and even beyond where we can offer for example advice on how best to let your overseas property and we even promise to advertise our clients Portugal, the Silver Coast or Algarve property for free until sold should you wish to sell in the future.
Above all, We aim at all times to offer a Straightforward, Safe and Personal service. Straightforward means we give you facts, we strive to be unambiguous in what we say, we write and do. Safe means we do everything in our power to ensure that we only promote properties from developers we have checked out and trust. Personal means, it’s your decision and we’ll be with you every step of the way.
View properties for sale in the Regions of Portugal Algarve Algarve Municipalities Albufeira Alcoutim Castro Marim Faro Destinations Vilamoura Parishes Santa Barbara de Nexe Towns Alvor Urbanisations Quinta do Lago Lagoa Parishes Carvoeiro Areas Carvoeiro Caramujeira Estombar Ferragudo Lagoa Porches Lagos Parishes Luz Odiaxere Santo Antonio Loule Parishes Loule Almancil Destinations Almancil Vale do Lobo Olhao Portimao Sao Bras de Alportel Silves Tavira Parishes Cabanas de Tavira Santa Luzia Vila do Bispo Vila Real de Santo Antonio Destinations Praia Verde Lisboa Munic. of Lisboa Cascais Resorts Cascais Estoril Setubal Sub regions Setubal Almada Areas Almada Costa da Caparica Sintra Parishes Sintra Colares
Property Tax in Portugal, the Silver Coast and the Algarve Taxation of Property in Portugal
When buying property in Portugal it is worth taking some time to understand and calculate what additional costs will be involved over and above the purchase price. As well as solicitor and notary costs tax will be a major consideration and there are a few taxes it is worth investigating.
Tax representation in Portugal
Before considering the taxes themselves it is important for all those seeking to buy a house, apartment or other property in Portugal to realise that they will need to be registered with the Portuguese tax authorities and to have a Fiscal Number - the equivalent to the National Insurance Number in the UK. It is also a legal requirement for all non-resident property owners in Portugal to appoint a local Fiscal Representative who will deal with all the necessary returns and official communications with the tax authorities.
The authorities will not allow a transaction to go through unless they have the name of someone in Portugal entitled to handle the tax affairs of the owner - this is to avoid problems getting hold of the relevant person to deal with queries and/or issues. If you wish to change your Fiscal Representative this can only be done by appointing a replacement - you cannot cease to have a representative. Even once the property is sold your representative will need to remain in place until the expiration of four years - the period during which the authorities can carry out a tax inspection.
Property Taxes in Portugal
We have various articles explaining what taxes are involved when property is purchased and, where appropriate, what the tax rates are. However, these should be used as a guide only since tax laws and rates can change at any time. It is advisable to consult your lawyer or tax specialist before progressing with a transaction so that you have the most up-to-the-minute data on taxes and rates.
The key taxes to take into consideration are:
Transfer Tax Municipal Tax Capital Gains Tax Stamp Duty and VAT
Mortgages for buying a property in Portugal and the Algarve
If you are considering using a Mortgage to purchase an apartment, town house or Villa in Portugal, Portuguese Mortgages can be obtianed for purchasing a property in Portugal with interest rates from approx 4.70% in Euros, for the puchase of Portuguese Residential Property.
If you are looking at options for purchasing a property in Portugal, Portuguese Mortgages are available for the majority of Nationalities for either House Purchase or re-financing for other purposes including Home Improvements.
Portuguese Mortgage are available on a Repayment or Interest only basis.
Minimum advance is £ 20,000 with no Maximum, but it must not exceed 80% of the valuation of the apartment, town house or Villa
Proof of Income is required in the majority of cases (this can be made up of Earned Income, Pension, Investment or Rental Income. Please note however, it is not always the case that the Lender will take all or part of these Incomes into account when determining the maximum loan available). Non-Status or self certifcation mortgages are currently not available, however minimum documentation lending schemes for Self-Employed applicants are now being considered on an individual basis.
Term: can be from 5 to 30 years and possibly up to the age 80
Currency, Euros and all other Major Currencies
Current Variable Interest Rate: from approx 1.50% above LIBOR on a Variable Rate basis in Sterling or from approx 0.60% above EURIBOR in Euros
Typical Portuguese Mortgage for the purcase of an apartment, town house or Villa in Portugal in Euros would be a Repayment mortgage of approx €100,000 over a period of 25 years at an interest rate of approx. 4.70% = approx €574.00 capital and interest per month = a total approximate amount payable over the term of €175,060 including capital, interest, arrangement and survey fees.
If you would like to an Independant advisor about using a mortgage to purchase a property in Portugal Enquire
Banking in Portugal and the Algarve
Banking in Portugal
The opening hours of banks in Portugal and from 8.30am 11.30am and 1.00pm - 3.00pm Monday to Friday. As Portugal is a member of the EU, the ways of banking are similar to the UK. If you wish to open a bank account you will need a Cartao de contribuinte which is similar to a national insurance number.
Normal day to day banking is more expensive in Portugal and many of the facilities we take for granted over here will charge you for there service in Portugal.• Caxia Geral de Depositos is a Portuguese government ran bank and this has a website in English.
This site is www.cgd.pt
• Millennium BCP
• Barclays
The most commonly used cards in Portugal are: visa, visa electron, American express, diners club, Europay/Mastercard, JCB and Maestro.
For lost or stolen credits cards call:
Visa - 800 811 107
MasterCard – 800 811 272If you require a more detailed explanation of banking in Portugal then go to www.BankofScotlandinternational.com. They are an award winning offshore bank who will provide more information about banking overseas.
Owning a Property in Portugal and the Algarve
The Portuguese and their “business like culture” and hospitality contributes to making this an ideal location for retirement or holiday. English is spoken widely.
Portugal and the Algarve benefit from a well established tourist industry with world class entertainment and events held thoughout the year.
There is an unrivalled choice of property available with something to suit everyone from coastal, urban to rural - Portugal has it all.
Residency in Portugal and the Silver Coast
All European community national who wish to settle in Portugal no longer need a residence visa prior to travel.
Once you have arrived in Portugal you must make an application for residence to the nearest Portuguese immigration office.
• People who wish to reside in Portugal on their own means (including retired) will be asked to provide proof that they can financially support themselves and their dependents without state support. They will also have to provide evidence that they have adequate medical cover be it state or private.
• A British passport holder who is receiving the UK state pension will be entitled to state health care and should register with the local health authority as soon as they arrive in Portugal. The health centre will obtain an E121 form from the British health authorities. If they are not getting the UK state pension then they will have to provide proof that they have private medical insurance. Their residence permit will be valid for a period of 2 years and renewed every 5 years.
• People coming to Portugal to earn a wage for only 3 months do not require a residence permit.
• Workers who only wish to work for the holiday season (maximum of 8 months) do not require a residence permit.
• People who wish to work for more than 3 months but less than 12 will need a temporary residence permit.
• People who wish to work in Portugal for a period of over 1 year will require a residence permit which is valid for 5 years and renewable every 10 years.
• Any spouse of an EU national working in Portugal will require a residence permit and this will be given the same validity as the working partner.
• Anyone aged 14 or over has to make their own application for residence. Children under this age will have their name added to either one of their parent’s residence permits.
All applications for residence have to be made to the nearest Servicos de Estrangeiros e fronteiras (SEF).
Education in Portugal and the Silver Coast
Like many countries Portugal offers both state schools and private education for expatriate children.
As in this country the standard of state/private schools you will have access to will be given in relation to where you live.
Sadly Portugal’s state schools have a reputation of being both as the teachers are majority under paid and over worked. But as with this country there will be certain schools that have a higher track record of the education they provide. It is worth looking seriously into this prior to moving if you have children, the best way to find out about schools in Portugal is to contact the British embassy for Portugal, or try the following website…
http://englishschools.org
Employmen in Portugal and the Silver Coast
As Portugal is a member of the EU and so is your country of residence you do not need a work permit or visa to work in this country.
Before you can start working in Portugal you will need to obtain a tax card and fiscal number (similar to national insurance number in the UK). Portugal has a monthly PAYE (pay as you earn) system of income tax and this can be anywhere between 15% - 40%.
Portuguese residents are taxed on their world wide income and non-residents are taxed on any income they receive in Portugal.
Employment rights in Portugal are very good and they have extensive legislation to ensure that all workers rights are adhered to and that equal opportunities are provided to all.
Cost of Living in Portugal and the Silver Coast
Portugal is one of the cheapest countries to live in, but it is a safe bet that as the popularity of living in Portugal increases so will the living costs.
Eating out for a family of four will cost around 30 euros for a 3 course meal.
Supermarkets are generally more expensive, but in more rural areas people tend to buy their groceries direct from a local source and there is usually a van that comes round selling goods.
A bottle of wine will cost the minimum of 3 euros, for a bottle in a restaurant as little as 69 cents in the local supermarket.
Beer can start from 50 cents per can up to 7 euros for bottle.
It is very difficult to estimate any individuals living costs as this is always dependent on their own circumstances but it would be reasonable to say that between 200 euros – 300 euros should easily feed 2 adults a month (this does include wine but not expensive foods like caviar).
A couple owning their own home should be able to easily live off an income of 1000 euros a month (not including any mortgage payments). 2000 euros would mean a comfortable lifestyle. Most UK residents find it easy to live off their income as costs in Portugal can be up to 50% cheaper than in the UK
UK Pensions in Portugal and the Silver Coast
You can claim state pension if you live outside the UK. However you will only receive the yearly index-linked increases and other benefits I.e. the Christmas bonus if you live in the EEA (European economic area) or in a country that has a UK social security agreement.
The state pension can be paid into a UK bank account or into a bank account of the country in which you reside.
Your tax position will depend on whether you are classed as a non-UK resident for tax purposes and the country you are residing in.It’s a good idea to get advice about paying tax on your state pension if you live abroad. You can contact HM revenue and customs centre for Non-residents.
If you are moving abroad you will need to contact
• Your social security office
• The HM customs and national insurance contributions office
• Your tax office
• The pension service
Expat communities in Portugal and the Silver Coast
The are a large number of expats living in Portugal. You will find that most of them are welcoming and willing to offer advice about Portugal. The best way to contact them is on the following website www.expatsportugal.com
Important contacts for Portugal and the Silver Coast
Important contacts for Portugal
Portuguese Embassy in the UK
11 Belgrave Square, London SW1X 8PP, UK Tel: (020) 7235 5331. Opening hours: Mon-Fri 0900-1300 and 1400-1730.
Portuguese Consulate General in the UK
3 Portland Place, London W1B 1HR, UK Tel: (020) 7291 3770 or 09065 508 948 (recorded visa information; calls cost £1 per minute). www.secomunidades.pt/londres Opening hours: Mon-Fri 0900-1330, appointment only (closed UK and Portuguese public holidays).
Portuguese National Tourist Office in the UK
Portuguese Embassy, 11 Belgrave Square, London SW1X 8PP, UK Tel: 0845 355 1212 (brochure request and information service; local call rate). www.visitportugal.com
British Embassy
Rua de sao Bernado 33 1249-082 Lisboa Tel + 351 21 392 40 00 Fax + 351 21 392 4021 Working hours Monday to Friday 09.00 – 13.00 14.30 – 17.00 Summer hours (7th July to 25 August) Monday to Thursday 09.00 – 13.00 14.30 – 17.00 Friday 09.00 – 13.00
Consular opening hours Monday to Thursday 09.30 – 11.30 15.00 – 16.30 Friday 09.00 – 12.30 closed in the afternoon
Importation of vehicles custom offices
For those residents in the districts of Leiria, Lisbon, Portalegre and Santarem: Alfandega de Lisboa Jardim do Tobaco Avenida Infante D Henriques 110-280 Lisboa Tel; 21 881 4100 Fax: 21 886 8898
Resident in Braga, Braganca, Guarda, Porto, Viana do Castelo and Vila Real: Alfandega do Freixieiro Jardim Nacional 107 Perafita 4405 Matosinhos Tel: 22 999 9680/9690 Fax: 22 996 0725
Resident in Aveiro, Coimbra, Castelo Branco, Guarda and Viseu: Alfandega de Aveiro Edificio TIRTIFE. Lugar de Moinhos 3801-301 Aveiro Tel: 23442 3350 Fax: 23 430 1062
Resident in Beja, Evora and Setubal: Alfandega de Setubal Avenida Jaime Rebelo 2904-536 Setubal Tel: 26 552 2165 Fax: 26 523 4156
Resident in the Algarve: Alfandega de Faro Avendia 5 de Outubr, 82-A 800-076 Faro Tel: 28 989 8550 Fax: 28 989 8559
Resident in Madeira: Alfandega do Funchal Avenida do Mar e das Comunidades Madeirenses, 24 9000-054 Funchal Tel: 29 122 0137 Fax: 29 123 0156
Resident in Azores: Alfandega de Ponta Delgada Praca Vasco da Gama 9500-350 Ponta Delgada Tel: 29 628 5251 Fax: 29 628 4469
Defra Email pet.helpline@defra.gsi.gov.uk International animal health division 020 7904 6415 Tel 0870 241 1710
What do properties in Portugal and the Silver Coast rent for? Holiday Rentals
The most popular choice of Apartments from £60,000 Townhouses from £90,000 Villas from £170,000
Find out more about Overseas Property Centres where you can find a wide range of property for sale in Portugal including holiday homes, apartments, studios, townhouses,villas, retirement property and investment property. we have 100’s of properties for sale in Portugal that we are currently listing.
If you can’t pin point what you are looking for please Enquire or talk to one of advisors call now 0845 257 37 37
Need more information? Try using our Knowledge base
There are many sources out there for more information on buying property in Portugal. Our knowlegde base articles on Portugal will provide a helpful insight into the world of owning overseas property. Read our guide about the key points for property ownership in Portugal, or our guide to the Portugal property purchase procedure.
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Portugal mortgages Taxation in Portugal
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