An overview to selling your property in Portugal


Although the Portuguese property market seems to be picking up, it’s still something of a buyer’s market, and if you’re in a hurry, you’re going to have to price your property to sell. 
 

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Some types of property are still substantially “overstocked,” especially apartments in the Algarve, so the best piece of advice is probably to remain patient.

If you’ve become used to the culture of Portugal, you’ll know that nothing happens very fast anyway. It’s best to choose an agent on recommendation, as some agencies are far from proactive when it comes to marketing properties. You may even wish to consider doing some marketing of your own, and several people do look into private sales and advertise their homes on Facebook groups and other online locations.

There are a couple of big practical issues you should consider before selling your property in Portugal. The first is capital gains tax, especially if you’re not a Portuguese tax resident.

Some expats in Portugal try to sidestep the law and “stay under the radar” in terms of tax residency. These people (perhaps deservedly) can come unstuck when they come to sell a property, as non tax-residents are charged a rather punitive fixed rate of 25% on all capital gains (although this is net of improvement costs and buying and selling fees). There are some exceptions to this, so make sure you seek advice from a trusted accountant.

If you ARE a Portuguese tax resident, you get a 50% exemption on this capital gains tax.

Another important consideration is the exchange rate. Many people bought property in Portugal while Sterling was very strong. This has protected some people from the full impact of the fall in Portuguese property values since the financial crisis. Sterling is quite strong again at the time of writing, so if you’re selling up to move back to the UK, you must think very carefully about the impact of the exchange rate in terms of the genuine UK equivalent value of your property.

This can be a very good time to make use of the services of a currency exchange broker. Unless you’re prepared to gamble on how much money you will actually get when your sale is complete, it can make sense to “lock in” a transfer rate you’re happy with. Yes, you could make the wrong call, but it’s better to know what to expect, and a good broker can provide you with some informed advice.

Finally, make sure you give some serious thought to how you’re going to “dress” your property for sale. As stated above, it is still a buyer’s market in Portugal. If you want your property to stand out, it will need to look special or have a bargain price tag. There are some stunning Algarve homes on the market that have stayed stubbornly unsold for many months—so be realistic about what you can achieve.


Further reading for Selling In Portugal

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Your selling options

It's a good idea to think about how you can best use an estate agency to your advantage.
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Top tips to help you sell

Selling a property in Portugal can be a complicated process.
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Getting the right price

It’s important to make sure you are realistic about the price you will receive for your property.
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Legalities of selling in Portugal

What are the key legal considerations to keep in mind when selling your property?
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When purchasing property legal hold-ups can be disastrous. You need to make extra sure that you have an English-speaking, impartial solicitor looking out for your best interests from the very start.

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We can put you in touch with a trusted agent in your desired area, who will immediately send you example properties so that you can clearly define what you are looking for in a property.

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