WHAT ARE THE CLOSING COSTS OF PROPERTY IN MADEIRA?

You have found the perfect property in Madeira;  what is next in the home buying experience?.. Signing the contracts and paying the closing costs. So what exactly are the closing costs?

Here is a list of the most common closing costs:

1.   LAWYER AND ESTATE AGENT

Lawyers in Madeira, Portugal must be registered with the Portuguese Law Society.   You can check their registration number at:  www.oa.pt.

Estate Agents in Madeira, Portugal must be registered with the INCI and you may verify their registration number and up to date insurance cover at www.inci.pt.

LAWYERS FEES

These are paid by the buyer and a simple transaction will cost between €500 to €1500.

AGENTS FEES

The seller pays the real estate agents fee for listing, marketing, showing the property and handling contract negotiations.  The commission is usually a percentage of the sale price of the property and determined in advance by the seller and the real estate agent via written mandate.

ADDITIONAL COSTS AT THE TIME OF PURCHASE

1. IMT

2. Title transfer (“Escritura”) fees and stamp duty

3. Property registration fees

IMT COSTS

From 1% – 6 % for urban property, residential villas and apartments.  There are 2 tables below for permanent residents and one for non-permanent residents.  The rates are calculated normally on the purchase price or taxable asset value, whichever is the higher.

2014 IMT tax table – FOR PERMANENT RESIDENTS:
Value of property Tax % Amount Deductable
Up to 115.508,75 0% 0,00
From 115.508,75 to 158.003,75 2% 2.310,18
From 158.003,75 to 215.435,00 5% 7.050,29
From 215.435,00 to 359.016,25 7% 11.358,99
From 359.016,25 to 717.903,75 8% 14.949,15
OVER AND ABOVE 717.903,75 6% 0,00
2014 IMT tax table FOR NON – PERMANENT RESIDENTS:
Value of property Tax % Amount Deductable
Up to 115.508,75 1% 0,00
From 115.508,75 to 158.003,75 2% 1.155,09
From 158.003,75 to 215.435,00 5% 5.895,20
From 215.435,00 to 359.016,25 7% 10.203,90
From 359.016,25 to 688.545,00 8% 13.794,06
OVER AND ABOVE 688.545,00 6% 0,00

TITLE TRANSFER FEES & STAMP DUTY

Stamp duty is 0.8% of the purchase price.

Property registration fee is 250Euros + 100Euros for extras if there is no mortgage registration.

If you are thinking of buying property in Madeira, I would love to assist you. I am a licensed Agent in Madeira and also a CIPS INTERNATIONAL AGENT in Madeira and know where to find great opportunities in the market. Call me today at +351 291 099901 or email me at: nobregarealty@netmadeira.com

 

About Author: Tony Nobrega

Leave a Reply

Your email address will not be published. Required fields are marked *