We have been coming to the area for about 12 years and purchased our property in 1998 in Monte Carvoeiro but now due to unforseen business circumstances find it neccesary to sell and realise the equity for business purposes in the UK

We are not classed as Portuguese residents as we have only ever spent up to 18 weeks in the country per year

Can you please advise us if it is neccesary to use a solicitor to sell our house and if so what sort of costs are charged

A friend has told us that estate agents charge 5% for marketing and selling properties which is vastly different to agents in the UK

Not being classed as a resident in Portugal we understand that there is no tax window of opportunity to roll onto another property should we wish to purchase another property within a certain period of time. Is this so?

Any tips on how to keep costs down including tax bearing in mind we are living in the UK and would appreciate the least number of trips to CVO at the moment and at what point are these taxes paid

Any help would be greatly appreciated

Hi Boatman. Biffa is probably more your man on this but you raised several questions. I'll say what I believe to be true and I am sure he will pick me up later if I have made any errors.

If you are not resident in Portugal then there is no rollover period for you to reinvest. You have to pay the Capital Gains Tax on the profit (assuming there is one) of 25% immediately after the sale.

Yes, estate agents normally charge 5% here. Seems a bit steep to me but I am sure they will justify the reason. You could try selling privately of course. No problem in that but that would mean having someone here to show people around etc.

You don't have to use a lawyer or solicitador(a) for buying or selling a property. It is up to you whether you would like to employ the services of one. If you read on here regularly you will probably already know my views on these "professionals". I only recommend one company with their HQ in Lisboa. Lawyers are expensive and as a seller I can't see why you would want to use one. You already should, I believe, have a fiscal representative in Portugal though as non residents.

Anyhow, register on the forum and pm Biffa or myself if you need any further, more detailed help or advice and I am sure we will do our best.

Whatever happens, when the time for the final deed arrives, come over and see and sign for yourself and make sure, if you don't understand Portuguese, to take an independent translator to read through the papers for you. Best of luck.

Thanks Bruxinha for info.

With regard to 25% CGT is there a taper scale or a cost of living increase taken into consideration on the tax payable. Some one said that the longer you have owned the property the less tax percentage you pay. Yes maybe I do need a legal representative

boatman, re estate agents fees: yes they normally do charge 5% plus vat at 21%!!!
I suggest you negotiate a fixed fee. I do know that in Lisbon there are many agents who are prepared to market a property for €5000…. don’t know about Algarve.

Not 100% sure on the sliding scale stuff Boatman, you might be right. If Biffa doesn't pick up on this later. Send him a message. But be careful not to cut corners to save money, as sometimes this can cost you dear in the long run through bad advice and unscrupulous people.

I don't think they are so keen down here on that Digger from what I've heard, unless you agree to do something dodgy like not have their name put down on the final deed, so they can not put it through their books etc. I spoke to a real estate agent in Carvoeiro with other branches in the Algarve and he said he never does anything for less than 5%.

Perhaps others have practical experience of this on the forum.

I agree with Bruxinha, Biffa is the man to talk to about taxes at the Sovereign Group in Lagoa.
www.sovereigngroup.com
nhoare@sovereigngroup.com

I don't think they are so keen down here on that Digger from what I've heard, unless you agree to do something dodgy like not have their name put down on the final deed, so they can not put it through their books etc. I spoke to a real estate agent in Carvoeiro with other branches in the Algarve and he said he never does anything for less than 5%

I know the chains/franchises have to be consistant in how much they charge everyone, but - again here in Lisbon - the small independent agent can charge each customer differently.

Doesn't hurt to enquire does it?

Ref Estate agents charges, have not yet found anyone who charges less than 5% ( plus VAT ) have even come across one at 7%.

quote from one " I wouldn,t even get out of bed for less than 5% "

THis used to be the situation in the UK until one or two broke away and now its even possible to get under 2%.

If any estate agents are reading this just think how much more business you could get if you TRIED !!!

Yes tbbr, I suggested this to a real estate guy once but he balked at the idea and gave me some reason why it couldn't be done. I can't remember the exact reasons, so it was probably a load of old waffle. If someone was brave enough to do it I am sure they'd get loads of business.

I have since posting earlier, spoken to someone, who did manage to get a real estate agent to agree to 3%, but it does seems rare.

But as I said above make sure that if an agent is involved in a sale that their name and details are put on the escritura.

Have not neen impressed with the the performance of the average Algarve estate agents.

1) The do not always keep appointments
2) WE don,t work weekends ?
You the BUYER must giv up your valubale working time to fit in with our leisure needs. ( in the UK we have jad SUBDAY viewings and sales offices are open all day saturday and sundays. )
3) On one of our early property viewing visits we have virtually made up our minds as to the development we wanted to buy on.
PROBLEM, our pre booked appt clashed with the sales agents TENNIS afternoon.

Result we bought elsehwere , he lost the sale.

But with 5% commission how many do they need to sell to be comfortable.

Is,nt that the real reason for the lack of competition.

TBBR,

I share your views with regard your comments on the lack of good service (and much more) from some Estate Agents. Out of interest you say that you are having a property built, therefore, is this on a complex and how did you purchase your plot through an Estate Agent here or perhaps in the Uk or straight from the owner/builder! Have you already decided on a good LDA registered company to construct your property etc.


N.R.

Re Nightriders questions, our initial purchase was on a development on the west side of Albufeira, through ( a then very keen ) a new estate agent.

This was a very simple and quck process taking less than 3 months to complete.

However it was never our intention to spend more than " holiday " time on such a complex.

We spent over 12 months looking at various options/locations finally purchasing a plot of land in a local urbanisation.

To date our plans have been drawn up and submitted to the Camara and we now wait for approvals etc ( only 5 months so far ).
We are encouraged that others who were just ahead of us in the process have started contsruction.
We looked at other properties constructed by our proposed builder and have taken up references etc.

Does it cause us concern when we think of what could go wrong, yes sometimes it does.
Are we being asked for monies in advance ( to date not ).
Did we check out the background and reputation of our solicitor ( as far as is possible ) we did.

Will we breath a huge sigh of relief when all is completed and we are finally sat on the terrace looking towards Monchique with a glass of someting in our hands.

YOU BET WE WILL.

But as many , many others have told us. IT WILL BE WORTH IT.

TBBR,
Whilst I thank you for a reply. However, the reply was not really what I was asking.

Regards Nightrider

re agents

I have bought & sold a number of properties in both London and Lisbon over the years, and the estate agent has always proved invaluable.
They should actually cost you nothing! Here’s the trick: get your property valued (you know how much you want for it anyway) then add on the agents commission… so the buyer is the one who pays