WHY CHOOSE CERRO NOVO

We pride ourselves on offering flexible and personalised services to help every Client realise their goals – when selling their own property or buying a new home. Offering a choice of listings and carefully targeted marketing campaigns available to all Clients, we have a Listing Service for every vendor and a property for every buyer.

  • 01 A fully licensed Real Estate Agency & Est. 1981 AMI 860
  • 02 Global marketing reach and attendance at overseas events
  • 03 Deep knowledge of the local market and legal processes
  • 04 Extensive database of qualified clients waiting to buy.
  • 05 Our offices are open six days a week, but we are always available to help! Access to expert partners in wealth management and tax, legal etc.

BUYING WITH CERRO NOVO

Our goal is to make your property purchase stress-free and enjoyable. Your CN Property Consultant will listen to your requirements, understand what you are looking for, present the best property selection and guide you through the whole process.

REGISTER TO VIEW PRIVATE LISTINGS

Deal with a Government Licensed (Mediador Autorizado) Real Estate Agency with AMI Number and whose conduct is subject to enforced rules. Our AMI Registration Number is AMI 860 and we are the longest established agency in Albufeira city.

In order not to be disappointed when you find the right property, make sure you have the 10% deposit ready to put down. The remaining funds should be ready to withdraw or a finance package pre approved before your start viewing.

Portuguese Notaries do not work for an individual buyer or seller as they might in countries like France. Only Lawyers or Solicitors are legally allowed to draw up contracts. Therefore, for safety and security, it’s highly recommended to instruct a registered Lawyer in Portugal who can represent you with a power of attorney and help you obtain a Portuguese fiscal number.

Our personal property finding service allows you to share details of properties you like in Portugal, so your CN Property Consultant can arrange and accompany you on all property viewings. As the vendor pays agent’s fees in Portugal, there is no cost for you.

When you have found the right property be prepared to put an offer through. As the market is very strong, be prepared to offer the full asking price if you really want the property.

After the price and conditions have been accepted a reservation agreement can be signed with a nominal deposit paid, but legally, this must be refundable, so it’s not a guarantee. Therefore a promissory contract should be signed ASAP.

A conditional survey is recommended, especially if you buy via a virtual viewing or want to know more about the construction. Unlike some countries, this isn’t used as a bargaining tool in Portugal but could give you peace of mind or valuable knowledge of the costs of renovations or how to avoid issues in the future.

Your lawyer will receive all property documents and conduct the searches to ensure that the property is registered and built to plan. Sometimes this isn’t the case but knowing what can be legalised is essential when deciding to buy.
Your lawyer will typically prepare the promissory contract, and once negotiated with the vendor’s lawyer, the agreement will be translated and presented to you for approval.
Any amount can be agreed upon, but a 10% to 20% non-refundable deposit is usually paid to the vendor’s lawyer.
If the buyer doesn’t complete within the terms of the contract, then the deposit could be retained by the seller, and if the seller does not wish to complete, then the deposit might have to be returned in double.

Opening a Portuguese bank account is highly recommended so utility and other bills can be paid.
It is important to arrange insurance for your property and contents.

The purchaser’s lawyer will book the deeds for the agreed date.
The purchase taxes (Transfer Tax (IMT) & Stamp Duty (IS)) plus remaining payments for Notary and registration etc., should be transferred to your lawyer’s client account a few days before completion. If you are not using a lawyer, the taxes must be paid to the tax department before the deeds or at the Notary’s office. Usually, the payment method will be a pre-ordered banker’s draft for the purchase balance, which will be handed over in exchange for the keys when the deeds are signed. Simultaneously the new owners’ names will be updated in the land registry.
We take the meter readings and give these to your lawyer with copies of the utility bills so new contracts can start after the deeds.

If you don’t have a lawyer then your property consultant will help set up the utility bills in your name. Many of our clients pop in for help or advice and some even 40 years after buying from us! Our Coffee is always brewing and we’d love to see you!
Interested in property management? We have negotiated special rates with Cerro Novo Administração de Bens Imoveis Lda which is an independent company located opposite our offices.
Whenever would like a complimentary valuation or to buy or sell then we are always here to assist.

PROPERTY MANAGEMENT

Our expert Property Management sister company will help you steer a course through administrative and legislative processes, maximising return on investment and ensuring a great guest experience.

KNOW MORE

ALGARVE HOLIDAY VILLAS

Our holiday rentals sister company helps maximise your property’s return on investment by reaching thousands of potential visitors on all the main accommodation booking portals.

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TAX BENEFITS

  • Non-Habitual Resident

    DOWNLOAD BROCHURE

    Non Habitual ResidencyThe Investment Tax Code, approved by Decree-Law 249/2009 of 23rd September, created the tax regime for non-habitual residents concerning Personal Income Tax (IRS). NHR attracts qualified non-resident professionals in high-value activities..

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  • Golden Visa

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    ARI - Residence permit for investment activityThe Portuguese Authorities launched the Golden Visa programme in October 2012, with the latest revision in January 2022, as a fast-track way for foreign investors to obtain a fully valid five-year residence permit.

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  • Passive Income or Retirement Visa.The Portuguese Authorities launched the D7 Visa programme in 2007 to encourage pensioners and people living on passive income to reside in Portugal.

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AFTER SALES

Do you need surveyors, architects, interior designers, currency companies or other services? We can help with all this as we pride ourselves with a full After Sales Service.

SELLING WITH CERRO NOVO

Since 1981 our dedicated team has focussed on giving our vendors the best services, from complimentary market appraisals to analysing documentation with good, sound advice. We have many well-qualified investors ready to buy due to our highly effective international marketing, which delivers excellent results.

DOWNLOAD BROCHURE

After the offer is made and the price negotiated, both parties, seller and buyer, sign a reservation agreement or letter of intent.

We advise you to appoint a Portuguese lawyer and make sure there is a power of attorney for selling, including additional powers to represent you fully if necessary. You will need to send your property documents to your lawyer for checking and updating.

The updated documents will be sent by your lawyer to the purchaser’s lawyer, including a copy of the officially stamped floor plans.

A draft of the promissory contract will be sent by your lawyer for your approval. You will then need to instruct your lawyer to sign the contract and receive the deposit on your behalf. Generally, 50% of the agency fee is settled on your behalf by your lawyer from the proceeds.

Before completion, the IMI property rates and condominium fees will need to be paid up to the date of the deeds. Copies of all utility bills with proof of payment will need to be sent to your lawyer.

The property will need to be in good condition and thoroughly cleaned, with any furniture and fittings inventory checked before completion. All property keys and key fobs will need to be handed over at the deeds on completion.

Cancellation of insurance, phone and internet contracts, as well as security alarm contracts should be activated well in advance. If you have finance, your bank will need to be advised well in advance as they will need to attend the deeds to cancel the mortgage. If you have an AL rental license, you should get advice as to when this should be cancelled.

Your lawyer will inform you when deeds are to be signed and the sale completed. Your lawyer will then pay the remaining amount of the agency fees on your behalf and probably hold back funds to cover any capital gains tax liability.

Instruct your lawyer as to where you wish payment to be made. If converting into another currency, it might be worth comparing a currency exchange company’s rate with your local bank.

The declaration of sale must be handed into the Inland Revenue office (Finançes) in the spring following the year of the sale. Usually, your lawyer or your fiscal representative will arrange this for you but always confirm with them.

PROPERTY MANAGEMENT

Our expert Property Management sister company will help you steer a course through administrative and legislative processes, maximising return on investment and ensuring a great guest experience.

KNOW MORE

RENTING OUT YOUR PROPERTY

Helping you rent your property for holiday rental investment income. Over 7.1m people choose the Algarve for their holidays each year, therefore many properties may provide lucrative income potential when correctly licensed.

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RENTING OUT YOUR PROPERTY

Helping you rent your property for holiday rental investment income. Over 7.1m people choose the Algarve for their holidays each year, therefore many properties may provide lucrative income potential when correctly licensed.

rental services

PROPERTY MANAGEMENT

Our sister company offers advice, services, and fiscal representation to help you manage your Algarve home or investment, 24x7, 365 days a year.

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ALGARVE HOLIDAY VILLAS

Our holiday rentals sister company helps maximise your property’s return on investment by reaching thousands of potential visitors on all the main accommodation booking portals.

VIEW HOLIDAY VILLAS

LONG TERM RENTALS

We can help expose your property investment to seasonal or long term approved tenants to help you achieve the best rates of return as required.

VIEW LONG TERM RENTALS

FREQUENTLY ASKED QUESTIONS

We have years of experience helping purchasers and vendors. These are some of the most frequent questions and we look forward to answering any further queries.

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It is extremely important to prepare all finances before searching for a property, especially gaining pre-approval if buying with a bank loan. Appointing an experienced licensed Real Estate agency and a Portuguese registered Lawyer, who can apply for a fiscal number and open a bank account, are highly recommended.

Offers are often made within 5 - 10% of asking prices. Any lower and vendors might not take the offer seriously, but if you really want the property, it’s better to offer the asking price or close to it to avoid disappointment.

Property values have increased well over the last five years, with exceptional appreciation over the COVID years. In 2021 we had our highest sales volume in 40 years, with the start of 2022 being even stronger.

The IMT Transfer tax and IS Stamp Duty depend on the value and whether the property is a permanent or second home residential property (Max 6.8%), or (8.3%) over €1.000.000, touristic property (Max 7.3%), rustic (Max 5.8%)or commercial property (Max 7.3%). Plus, Notary, Registration and Lawyers’ fees (Approx 1% - 1.5%).

A Portuguese fiscal number, copy of ID, proof of profession and proof of income, proof of residence with an original utility bill, and a deposit of around €250 are needed.

Ask your CN property consultant for details of brokers and banks as finance is available up to the age of 75. LINK to simulator

We will ensure the purchase or sale goes through smoothly, but hiring a lawyer is highly recommended and allows you to leave a power of attorney. The lawyer will also conduct searches and prepare a promissory contact, as well as dealing with payments. The buyer will pay a non-refundable deposit of 10-20%, but this can be any amount agreed. The remaining payment is made on completion when signing the deeds.

The vendor instructs the agencies and pays the estate agency fees.

As the Notary does not represent any party in Portugal, unlike in countries such as France, instructing an independent lawyer is highly recommended but not mandatory. Your property consultant will have a list of lawyers recommended by our clients.

Most nationalities travelling to Portugal from outside the EU/EEA/Switzerland and staying for longer than three months will need to apply for a residence permit. British citizens can stay up to three months in every six months without a VISA.

Yes, Golden Visas are available for touristic classed properties, as well as some residential properties inland.

Applying for an NHR visa with favourable tax rates is often possible for applicants who haven’t been a resident for five years. Tax on private pensions can be 10%.

We can help change the utility contracts into your name, recommend property management & insurance companies, arrange repairs/building quotes and are always available to help with general advice.

We recommend existing management companies if vendors are happy with the services; otherwise our sister company will give you preferential rates for management services. The cost depends on the service but starts at €50 per month.

As long as the exterior façade or the roof of the property is not altered then it is only necessary to inform the Town hall of your intention.

Internal alterations can be made without planning permission, but when renting or selling the property should have an officially approved project with alterations included.

For short term lets a Local Accommodation (AL) licence is required. Our sister company can provide this service for £580 including council tax and VAT. (Link) 18. The town hall makes an inspection, and a license is granted for the official amount of bedrooms.

The Town Hall makes an inspection and the licence is only granted for the official amount of rooms.

Taxes change, but rental income for non residents is presently taxed at 28%. IVA must be charged on income over €12.500 per annum. However, residents are taxed according to their total income declared.

Six months in Portugal and then six months outside before you can bring it in again. It must have an MOT of the country it’s registered in.

Yes, of course! Please speak to Hanneke, Robert or Ana as we will be pleased to arrange a tailor-made package to promote your property.

Our market valuations are complimentary, but there can be a charge for probate, insurance and other valuations.

If the property is your primary residence, then you have the option to reinvest the total sales value into another primary residence. You have to reinvest within the EU either two years before or three years after the Deeds. (Since BREXIT reinvesting in the UK isn't possible) Capital gains tax depends on your residency but with a secondary home a non-resident pays 28% of the gain after deductions. Please ask your property consultant for more information.

How may we help you?

We will be happy to receive your enquiry and contacts, so that our experienced and friendly staff can assist you.