Whoever has a Portuguese Fiscal Number is subject to legal and tax relations. For non-residents in Portugal, as not being in the country more than 183 days per year, being this way advisable to mandate a fiscal representative in the Country, as per the terms of the article 19º nº 4 of the LGT, which says the following: “Resident taxpayers abroad as well as those who, although residing in national territory, to be absent for a period of more than six months, as well as legal persons and other entities legally equivalent to cease activity, should, for tax purposes, designate a representative resident in national territory.” The Fiscal Representative is allowed to represent you before the Portuguese Fiscal Department and may be a natural or legal person resident in national territory.
In Portugal, banking activities are regulated by the Banco de Portugal. The role of this institution is to ensure the stability, efficiency and solidity of the financial system. Several financial institutions are prepared to finance products and services to citizens and companies, and support them making suitable decisions based on their needs. Concerning to the real estate financing acquisition, first home or other, the financial institutions are available to approve loans establishing some initial assumptions. Notwithstanding the fact that each case has a personalized treatment, the main rules are:
To Nationals - The loan term is defined according to the age of the applicant (if 2 bidders is considered the age of greatest applicant). - The maximum loan term is 75 or 80 years in some institutions. - The loan amount should be about 80% of the property’s appraised value or purchase price. Thus, the buyer must invest 20% equity. - The effort rate (the relationship between the amount of the benefit on the loan and the value of household income) should not exceed 35%. - In some cases it can be ordered guarantors in order to approve the loan - The interest rate consists of 2 components: the base rate (normally the Euribor (3 or 6 months) and the spread (bank margin) which also has to do with the risk. The current rates (including the 2 components) are fixed between 2, 30% and 3%. - The applicant may choose between a variable interest rate or a fixed interest rate - For the loan assessment the applicant must present some documents (copy of citizen card, IRS last liquidation statement, employment proof letter and salaries receipts, bank statements, proof of residence and others).
To Foreigners Nationals The banking system in Portugal also provides a range of financing solutions directed at foreign nationals. Basically, the methods of assessment are similar to those for nationals, varying only in the loan amount which will be around 65% of the property's appraised value or purchase value.
The Maxidomus Group, through its partner MaxFinance, will give you the full support and monitoring necessary to obtain the loan that most suits your investment.