FAQ
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.
Sales Price
The following costs involved in acquiring one's own home are included in the purchase and contract price
- kitchen with AEG appliances (or similar)
- bathroom(s)
- finished walls and floor, windows
- underfloor heating
- electrics
- wardrobes
- 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
The total purchase price agreed with you in the purchase and building contract is fixed, except for changes in the V.A.T. Increases in the cost of wages and materials during construction are at the expense and risk of the builder.
After your initial down payment of 20% any further payment will be scheduled according to a payment scheme which is mentioned in the Preliminary Purchase and Sales Contract and is planned in terms of progression of all construction work.
- 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 Process
- 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
The following:
- XL solar panel installation with batteries for energy storage
- BBQ area
- plunge pool
- fire pit
- pizza oven
- shading comfort
- jacuzzi
- carport
- electric car charging wall box
- shading
- 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.
The follow:
- property & rental management
- interior-design service & logistics
- landscaping & garden design
- rehoming service
- mortgage assistance
Delivery
The house is delivered clean. The maintenance period lasts three months after delivery. During this period, you can still claim any imperfections, after which remedial action will be taken as soon as possible. If you have windows and doors that do not close properly during the maintenance period, you can report this before the end of this period. Three months after completion, the developer guarantees a certain architectural quality of the home. Should any constructional defects occur within the guarantee period, the proprietor is obliged to repair them. In principle, this guarantee is valid for six years. For certain specific parts mentioned in the guarantee regulation, a shorter period than six years applies. For example, the paintwork is guaranteed for one year and for the appliances the manufactory warranties apply. Damage that is the result of insufficient maintenance is of course not covered by the guarantee.
Our houses are delivered 'Turn key'. This means you buy a house that's ready to be used, minus your own furniture. However depending on the agreement you make with the construction company CO Cerro Mouro, buyers have some limited opinions available on finishings and floor plan which includes extra costs. You might want to arrange the finishing touches yourself once the construction work is done, this needs to be agreed upon with the construction company and details added to the promissory contract.
Sustainable Innovations
The following:
- 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
ClosedTimber Frame Construction (TFC) panels with a compressed straw insulation functions very well and its insulation values are superior. Our houses are comfortably warm on cold days and wonderfully cool in the summer. And all that without energy-guzzling heating or air conditioning which results in a very low energy bill.
Our prefab construction panels are made of material that breath. With a loam finish you get a more constant humidity in the house. So, you live in a very healthy and ventilated living environment. And this natural moisture regulation prevents the formation of fungus and mould. Thanks to the high insulation values, the climate in your home is always pleasant.
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.
Building Techniques
Using timber and compressed straw for the construction is not only completely compliant with current EU regulations, also the EU acknowledges the need for more sustainable building methods. Therefore the EU supports Bio-based construction materials as a solution for the CO2 problems.
Timber and compressed straw are both materials that last a very long time. The oldest wood building is over 1300 years old. Modern straw building techniques date back to the beginning of the last century. The first houses built in Europe (1921) and the USA (1925) are still in impeccable condition. We offer a 10-year product warranty on the insulation layer and 10 years on the construction. If assembly requirements are met, the life expectancy of our panels can be measured in centuries.
Contrary to popular belief, timber frame and straw buildings are very resistant to fire. The straw in our panels is compressed at a density of 110kg/m³, leaving no room for oxygen that would feed the fire. In addition, straw has a high content of silica which is a natural fire retardant. In the event of a fire, both materials create a charcoal insulation layer on the surface that protects against flames. When combined with finishing loam plaster, our panels are, according to REI 120 certifications, resistant to two hours of intense fire. This means that our panel facades meet very strict fire safety requirements. In fact, in a two-hour fire test of over 1000°C on one side, the other side of the facade showed a temperature increase of only 17.7°C. No chemical additives are added to the straw panels.
No. Straw contains only cellulose and thus is not a food source what so ever, unlike hay which can be attractive because of its leafy material. Rodents like to make corridors and look for holes. Highly compressed straw is not a suitable environment for them to do this.
Any leaks in the structure can lead to warm, moist air escaping and condensing in the structure. Our airtight layer ensures that the structure has an exceptionally long life without hidden damage. Also, airtightness greatly minimizes heat loss and drafts.
The wood fiber board adds an extra insulation layer and a level of security to the structure because any damage to the façade will not affect the supporting structure of our timber frame panels. It also provides an additional flat surface that can be plastered with regular stucco systems certified for wood fiber panels.
Our panels contribute very positively to the climate. This is partly due to the CO2 that is stored in the straw and timber. In addition, straw is a residual product from arable farming and is therefore produced anyway.
In addition, by using our panels you avoid using materials such as concrete, bricks or polystyrene, which produce a lot of CO2 when produced. This improves the climate footprint even further.
Our panels have excellent sound insulation properties (a sound resistance of 54db). This greatly exceeds the minimum standard requirements and results in exceptional acoustic comfort. The use of finishing loam plaster increases this comfort even more.
Not at all. Do not confuse straw with hay; where hay is dried grass and contains pollen, straw is cellulose and therefore allergy-free. Moreover, our walls combined with a very thick layer of loam plaster effectively regulate indoor humidity and can alleviate your allergy symptoms.
Insurance and Warranties
YES! Our construction methods comply 100% with the EU Building Code: building with our panels meets all requirements of the Building Regulations. It is even very safe. Products we use are certified according to European standards for insulation value, fire safety and strength.
During construction, the house is insured against the risks of fire and storm damage, conform legal requirements from the city hall of Lagos. The insurance taken out by the constructor ends on the day of delivery. On the date of delivery, you must insure your home from this date onwards.
For the separate elements and materials used in the construction of the house warranties for quality and duration are given by the constructor and/or the supplier of the materials. The same accounts for the diverse installations and equipment. These will be provided with the transference of the property.
Deviations
During implementation, minor deviations from these descriptions or drawings may be made after approval by the management. The management during the construction is done by CO Cerro Mouro. If such a deviation is deemed necessary from a construction and/or technical construction and the quality is not seriously affected, CO Cerro Mouro reserves the right to make changes. Settlement because of the aforementioned changes is not possible.
In general, all changes that are carried out on the instructions of the buyer must comply with the provisions of the relevant articles of the General Terms and Conditions of the purchase/contract agreement. Work by third parties is not possible during the construction phase and is therefore permitted only after completion.
Of course, CO Cerro Mouro is dependent on government-imposed building regulations such as the Construction Decree, the Construction Regulations, etc. This may possibly limit the feasibility of your personal wishes. For example, moving an internal wall may be a simple wish, but moving it may mean that a room no longer meets the requirements of the Construction Decree, for example regarding daylight admission or ventilation. It may also be the case that your personal wishes cannot be planned in due to the progress of the construction.
Owners can adjust their houses under certain conditions. Alterations and extensions to houses are subject to legal obligations. A building permit must be obtained from the city hall of Lagos. Extensive - external - modifications must be presented to the home owners association board (HOA), so that the transformation is in accordance with the aesthetics of the CO Cerro Mouro project as a whole.
Location
The location of the plots is indicated on the situation map, which is included in the sales documentation. The size of the plots has been determined based on the subdivision plan, the so-called Loteamente. For that reason, the sales agreement refers to the size of the plots as 'approximately'. The contractor will indicate the property boundaries upon completion. Where necessary, the boundaries will be indicated by means of short posts. Any under sizing or oversizing shall not result in a settlement of the ground costs. The design of the public space shall take place under the direction of the Municipality and the project developer. It is therefore possible that there may be slight differences between the design and the actual layout of the public space.
- 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
Planning
We are planning to start with constructions in Q1 2023 and finish the total project by Q4 4 in 2024. However at the time of sale, a global delivery forecast is given. This delivery forecast is based on the duration of construction. This includes margins for unworkable weather, such as strong winds that prevent certain activities from being carried out. At a later stage of construction, we will be able to provide a more accurate forecast. This more accurate forecast will be announced in the newsletter. In addition, the start of construction may depend on municipal and/or provincial procedures. At the time the homes are sold, zoning and/or environmental permit procedures may still be in progress. We have no influence on the duration of these procedures, nor on any changes this may entail.
Homeowners Association
Yes, all buyers are obliged to become members of the Home Owners Association (HOA). The membership starts at the signing of the final deed. The HOA is responsible for the management and maintenance of the communal spaces. The statutes of the HOA states the rights and the obligations of the owners.
The HOA General Assembly is the highest decision-making body. It is the formal meeting where the owners - the members of the HOA - discuss the current issues: Annual accounts, management & maintenance, and plans & investments. The Association functions as a 'social body' as well where all important developments are discussed and decided upon. In addition, it is the HOA General Assembly that authorizes the board (or ad hoc committees) to make certain expenditures or perform certain actions.
The annual costs or so-called condominium fee are set at €150 per month. These costs are meant for maintenance and management of the common facilities of the Co Cerro Mouro project. The HOA collects these costs periodically and can decide to adjust the price.
The fee might vary slightly between the T4 villa’s and the T2+1 Townhouses, relative to the maximum number of people using the property.
One property has 1 vote.
Although everyone living in CO Cerro Mouro are invited to partake in enjoying the green oasis and picking the fruits from its orchards and gardens, professional caretakers have the responsibility to maintain the 1.2 hectare green spaces.
Communal Green Spaces
After the development, furnishing and planting of the communal garden spaces, the developer CO Cerro Mouro will rent the land out for a symbolic sum to the HOA who will enjoy 99 years of usufruct and have the responsibility of maintenance.
The communal green spaces consisting of the plot of land with the food forest, natural swimming pond, vegetable gardens and children’s playscape, as well as the space in front the Townhouses are planned to be ready simultaneously with the delivery of the houses or short after. Our experts in landscape architecture, landscape engineering and ecological agriculture have already created their plan and works on the land will start in the autumn and winter, the best season to start planting.
The communal green area will be fenced off and the rules 'how to use it' will be clearly communicated. This is also a question to be delegated to the HOA.
For the green space in front of the Townhouses, the developer CO Cerro Mouro has been requested by the Chief architect of the Municipality to propose a layout. Our intention for this design is essentially a green, quiet place where residents and people from the local community can meet. We are thinking of the following plants and elements: - Native plants, fast growing bamboo, fruit trees, small fountain, flowers and herb bushes. With infrastructure such as walking paths, benches, mini-kiosk closer to the road for coffee & croissant, a Yoga / Tai Chi platform surrounded by bamboo, giant chess game and jeu de boule area. Through our Newsletters we will keep you informed of the progress.
A natural pool, swimming pond or lake is a swimming pool that's filtered and purified biologically by water plants and a special biological filtration system. Natural pools can be any shape, size or style and designed to blend with your garden.
Rental
Yes, you can rent your house. For this you need a formal application with the local municipality for a tourism license such as Alojamento Local (A.L.). We offer the service to take care of the license and the management of all rental activities.
Yes, you do. Income tax from Alojamento Local can range from 28% to 35% depending how the income is registered with the Portuguese Tax Authority. For fiscal questions you are advised to have an individual advise from a fiscal expert. We can assist in this. The VAT on renting is 6%.
Yes, you can, although it would be highly appreciated when your house would be offered to people on the ´waiting list´ who are eager to participate in CO Cerro Mouro.
Fiscal Information
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