There are several financing solutions for the purchase of real estate in Portugal.
Some common base cases are listed below:
- Sale of the property in the country of origin and purchase in Portugal. You can choose to sell your property first, transfer the necessary amount to a Portuguese bank and then proceed to purchase the new property. Another hypothesis is to mortgage your property with a financial institution of the country of origin that is recognized by the Portuguese banks and thus obtain an international bank guarantee, which in turn is used as collateral by a Portuguese banking entity to grant a credit to the property, with or without mortgage of the newly acquired property.
- Acquisition of a dwelling already built: usually an initial percentage is requested, the remaining amount being paid through a mortgage of the property itself;
- Lot purchase + housing construction: this option allows you to choose a lot of land to your liking and the architecture you want. Usually the client has to own capital for the purchase of the land, contracting then a loan for the construction of the property. The property is mortgaged to the bank.
Letter of Intentions and hire a local attorney
Once the property you want to buy has been found and your agent has settled the deal on your behalf, a professional agent gives you a “letter of intent”. This document clarifies the negotiated price, exchanges, completion dates and everything that was negotiated. At the same time we recommend that you instruct a local lawyer to represent you when buying the property. The letter of intent signed by you will be delivered to your legal representative as a reference on the agreed conditions.
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