This FAQ summary forms an integral part of our sales and support services and has been compiled accurately and with care on the basis of data and designs provided by utility companies, municipal services, architect, structural engineer and advisers for the plan. Nevertheless, a reservation must be made regarding architectural and constructional changes, as well as any deviations that may arise from further requirements and wishes on the part of the authorities and/or utilities companies. The materials and dimensions indicated are indicative. In reality, (minor) deviations due to construction methods and/or government regulations and/or utility companies may be possible regarding the description and the drawings, without any rights being derived from this.
If you have any further questions which have not been addressed in one of the 14 categories mentioned below, we kindly invite you to contact us and we will do our best to answer you as soon as possible. Note: all questions and answers have been organised in 14 categories. Then choose a categories and click on a numbered question of interest.
The following costs involved in acquiring one's own home are included in the purchase and contract price
- kitchen with AEG appliances (or similar)
- finished walls and floor, windows
- underfloor heating
- air to water heat pump installation to heat and cool your house
- basic garden with grass and/or gravel, some shrubs, wooden or green fencing;
- private parking (*only with the detached villas)
- solar installation
Not included in the purchase and contract price are:
- the notary costs for the drawing up the final deed; Notary and registration fees will usually be € 1.000 - € 1.500
- transfer tax, IMT, of 6 to 7% is the tax paid at the final deed when the house is bought
- Imposto de Selo Stamp Duty of 0,8%: The minimum amount on which the stamp duty can be paid is the VPT, even if the sales price is lower
- the costs associated with taking out a mortgage.
- the connection costs for the central antenna installation (CAI) and telephone
- IMI is a (low) annual communal tax paid to the City hall of Lagos. In general these costs do not exceed € 500 per year. However the actual costs of IMI is not known yet.
- The Condominium fee to be paid to the Home Owners Association is set at € 150 per month.
- Insurance of the house and contents, approx. € 300 – 400 per year
- Water of course depending on consumption, approx. € 30 per month
- Electricity, again depending on consumption, approx. € 100 per month
- Internet approx. € 30 per month
- PURCHASE: After the decision to purchase the property, the buyer decides upon optional facilities and equipment.
- LEGAL AND TECHNICAL SEARCHES: We supply the buyer with all the legal documents. We offer services to support the buyer in purchasing a property in Portugal, with all its legal and fiscal implications.
- PROMISSORY CONTRACT: This is a legally binding contract that formalizes the terms and process between buyer and seller. There are penalties for breach of contract on either side. Signatures can be made in the presence of a notary or lawyer. First installment will be paid at this stage.
- PAYMENT REGIME: During the construction phase there are 4 installments to be paid, see the time schedule as described in the contract.
- REAL ESTATE TRANSFER TAX (IMT) AND STAMP DUTY: The buyer has the obligation to pay Real Estate Transfer Tax and Stamp Duty prior to completion at the point of deed.
- COMPLETION: The Final Deed or Official Deed of Transfer of Ownership is signed by both parties on the agreed date and is witnessed by the notary, who ensures all purchase taxes have been paid. The notary can assist in registering the buyer as the new owner in the Land Registry and inform the Tax Authorities. At the Deed the remaining installment is paid.
Optional Upgrades & Services
- XL solar panel installation with batteries for energy storage
- BBQ area
- plunge pool
- fire pit
- pizza oven
- shading comfort
- electric car charging wall box
- garden storage cabin / box for surfboards, bicycles, tools etc.
* If you are interested in one or more upgrades, please let us know and we make you a quotation free of charge.
- property & rental management
- interior-design service & logistics
- landscaping & garden design
- rehoming service
- mortgage assistance
- a roof or ground mounted solar panel installation
- air to water heat pump installation for heating and cooling the house
- A+ insulated house elements: walls, floor, windows, roof
- no concrete is used in our construction, walls are prefabricated in a factory and made from a structural double timber frame closed panel system, insulated with bio-based compressed materials
- all 24 household's grey water will be thoroughly filtered and reused as irrigation water for trees and green areas. This saves us approximately 1.5 million liters of water on an annual basis
- most construction material are locally sourced & fabricated which contributes to a low embodied carbon footprint
- the houses are installed with water saving shower heads
- rainwater is collected and reused as irrigation water
- communal green areas will be planted with drought tolerant specifies
- we provide green kitchen waste bins for kitchen scraps which will be collected at our composting facility close to the communal gardens
Our prefab panel materials are easily reusable. The possibility of complete recycling is circular construction in optima forma. Our panels are made from 98% natural renewable materials. This optimal bio-based product, completely free of harmful or chemical substances, results in high indoor air quality. The entire system is vapor-open and breathable (it allows excess humidity to escape) It has zero thermal bridges, is airtight and leaves no room for drafts or mould. Also on average our houses have the ability to store more than ten tons of CO2 collected from the air. Natural materials create a comfortable, healthy and balanced indoor environment.
High insulation value hidden in wood and compressed straws.
Thanks to its unique cellular structure, straw has been used in construction for thousands of years. Combined with modern compressing technologies, we have managed to further improve its performance and achieve exceptional insulation properties, achieving the Passive House standard has never been easier.
Insurance and Warranties
- On the border of the small town called 'Barão de São João'
- In the municipality of Lagos
- In the district of Faro
- In the province of the Algarve
- In the South-West of Portugal
- GPS coordinates: 37.137436, -8.778278
- Google map pin
Communal Green Spaces
We can recommend you a professional fiscal specialist, however here are some points to consider:
- Capital Gains tax: If the property you are selling is your main residence, and if you reinvest the proceeds of the sale within 36 months, in the acquisition, construction or refurbishment of another property designated as your main residence, within the EU territory or in a territory belonging to the European Economic Area with whom Portugal has agreements for the exchange of information in tax matters, you can avoid the payment of capital gains tax.
- Inheritance tax: Between close relatives -i.e. parents/ children and spouses - there is no inheritance tax in Portugal. On gifts is 0,8% stamp duty based on the VPT calculated. Other situations of inheritance or gift are subject to stamp duty at the rate of 10% of the VPT (rateable value of properties (Valor Patrimonial Tributário).
- Non-habital Residents: Portuguese Government have a regime for non-habitual tax residents which offers an incentive to those that have not been a tax resident in Portugal for the last 5 years. As a beneficial Personal Income Tax (PIT) regime, available to non-resident individuals who decide to become a resident in Portugal, provided they have not been taxed as a Portuguese resident in the 5 years prior to taking up residence.
- EU, EEA and Swiss citizens have an automatic right to live in Portugal, and individuals of other nationalities must obtain a residence permit. To qualify, an individual must become a tax resident in Portugal under Portuguese domestic legislation. This means they must either: - stay in Portugal for more than 183 days during a 12-month period. - keep a house in Portugal that can be considered their personal and permanent address. The regime is applicable for a 10-year unbroken period and is not renewable. The regime differentiates between income derived from a domestic source and income derived from a foreign source.
- Check the website of PwC for further information: https://www.pwc.pt/en/pwcinforfisco/tax-guide/2020/pit.html