Buying Guide Details
Buying Property in The Azores
Where to buy property in The Azores
Property buyers are starting to look to the Azores as one of the next European hotspots. Located 1,500 kilometres from Lisbon, in the middle of the Atlantic, the islands have a pleasant year-round climate and some stunning scenery. The archipelago is made up of nine islands: Sao Miguel, Pico, Terceira, Faial, Sao Jorge, Flores, Santa Maria, Graciosa and Corvo.
Sao Miguel is the largest and most populous, and its capital Ponta Delgada is home to a quarter of the entire Azores population. Property development is well underway here and it is already home to one of Europe’s best golf courses (as well as some others) and a marina and will soon boast a casino. Conservation laws mean new developments are limited and will be of a high quality.
There are further courses on the islands of Terceira and, imminently, Faial. Water sports fans are catered for with a wide selection of activities including sailing, deep-sea fishing and windsurfing, and the islands’ harbours and marinas are well-known in the nautical fraternity.
Resale property in the Azores can be purchased quite inexpensively on the smaller islands, both rural and coastal properties. There are ferry routes and air services linking the islands, some of which only operate during the main tourist season, meaning that property buyers can ultimately choose just how busy or remote the location of their property in the Azores is.
The Process of Buying Property in The Azores
- The first step is usually a verbal agreement between the property buyer and seller, after which the property buyer’s lawyer should carry out all necessary checks – title, building licence, etc
- A preliminary contract is then signed, which lays out the terms of the sale, including the completion date. At this point a deposit is paid, usually of 10%. This deposit is forfeited if the buyer backs out, and if the seller withdraws he/she must pay the buyer double the value of the deposit, i.e. 20%
- On completion both parties sign the deeds (escritura) in front of a notary and ownership is transferred. The balance of the purchase price plus all fees and taxes must be paid before the escritura can be signed
- As soon as possible after signing the deeds, the transfer of title should be lodged in both the land registry and the local tax office
- If buying property in the Azores off-plan, a smaller deposit is usually required, followed by stage payments. This depends entirely on the developer
- When buying property in the Azores that is resale, make sure a survey is carried out in addition to usual checks.
Homes Overseas Property Club
Homes Overseas has joined forces with a collection of IFA specialists to form the Homes Overseas Property Club (HOPC), designed for existing and prospective overseas property homeowners.
The Club – which has access to international lawyers in no fewer than 43 different countries - has been set up in order to guide people through some of the various issues relating to buying and maintaining a property overseas. It offers advice on a range of topics, including financial, legal, insurance, taxation, property management and foreign currency matters.
For further information please telephone 0845 838 7142 or email info@homesoverseaspropertyclub.com
Fees & Taxes
- Transfer tax can be anything up to 8% depending on the value of the property in the Azores. This must be paid before the final documents are signed
- Legal fees tend to be around 2%
- Agents’ fees can be anywhere between 1% and 10%, although the average is around 3%
- Allow around 2.5% for notary and land registry fees and up to 0.8% for annual local taxes
- Fees and taxes can vary greatly depending on the municipality, so be sure to get your lawyer to check out the relevant legislation thoroughly
- VAT at the current rate of 19% may apply. Get your lawyer to find out what fees this affects.