Development Plan for the Silver Coast foresees investments of 2.8 billion euros

The Regional Plan of Territorial Planning of the Silver Coast (PROT-OVT), which will be presented in June, provides for the launch of a regional operator of broad band internet, strengthening the system of Medical Emergency Vehicles, a program of support for the installation of routes and pathways of places of touristy value, construction of facilities for the recovery of organic waste in the Silver Coast, the creation of the Regional Energy Agency in the West, programs related to renewable energies and studies on the Railroad of the West.

In a total investment of 2.8 billion, to be held by 2013, with some of the proposed investments to be supported by EU funds, through the NSRF.

The programme of implementation is now divided by areas: "the urban system and competitiveness" (1.08 billion), "environmental system" (547 million), and "system of mobility" (1.2 billion). In the system of governance-PROT OVT will be spent 2.2 million.

The five strategic priorities set out in the first versions of PROT have gone to four new names: "Winning the challenge of innovation, competitiveness and internationalization," "Strengthening territorial Vocations ensuring the framework of Environmental Sustainability", "Implementing the vision and enhancing the polycentric quality of urban life "and" Discovering the new countryside. "

Top 15 Reasons to invest in Silver Coast Property

The information below, reasons to invest in Silver Coast property, is focused on the economic considerations, future investments and infrastructure in the Silver Coast region of Portugal.

1. A Pricewaterhouse Coopers and a Place in the Sun report put the Silver Coast Portugal within the top three countries most likely to make you the most money in the next 10 years.
   
2. A report by the Strategic National Tourism Plan states that the tourism receipts will increase to 12 thousand million (12 billion) by 2015 and the report also concludes the Silver Coast will be one of the main growth areas.
   
3. Portugal and especially the Silver Coast have strict planning regulations that will ensure the low density of new developments and keep the supply and demand levels balanced.


4. Portugal is rapidly becoming centre stage for eco-investments within the Euro zone. And the Silver Coast is no exception with signs of renewable energy dotting the countryside.
   Investments into solar panel farms, wind turbines, wave turbines and eco-villages are attracting blue chip corporations and high net worth investors into the area.
   
5. According to Barclays bank the number of Irish and British citizens who plan to buy abroad will double in the next 5 years.
   
6. Until 2013 the EU plan to fund €8.8 million per day to improve the Portuguese economy and infrastructure.
   
7. Portugal can be seen as a low risk, established and safe investment environment.
   
8. Portugal has a long established tourism market and you will find close to 100% occupancy in the summer months in the most popular tourist spots, including Nazare, Sao Martinho do Porto, Foz do Arelho and Obidos.
   
9. Portugal, the UK and Ireland all adhere to the EU double taxation treaties allowing non-residential Portuguese property owners to avoid double taxation including capital gains tax and rental income tax.
   
10. The Portuguese banks encourage non-residents to take out a Portuguese mortgage and the process is relatively easy to obtain an 80% LTV interest only mortgage.
    
11. Terminal 2 at Lisbon airport was opened for business this year 2008 to increase the volume of low cost airline traffic to the capital.
    
12. A new TGV high speed rail link Lisbon to Madrid is planned for 2010 with completion by 2015. The TGV will reduce the journey from Lisbon to Madrid to 3 hours from currently 10 hours.
    
13. Two new modern state of the art shopping centres are to be built in Caldas da Rainha. One to be finished in spring 2008 and the other in spring 2009. One of these projects will be built be the Sonae Group. www.sonae.pt. They will consist of shops, supermarkets, cinemas and restaurants.
    
14. A Jurassic Theme Park is to be built in the town Lourinha with the construction to start in 2010 with the intention to attract more than 250,000 visitors a year.
    


15. Finally and most importantly 4 new 18 hole championship golf courses are currently under construction in the council's of Obidos and Caldas da Rainha. They are Royal Obidos, Falaesia del Rei, Rainha Golf and Bom Successo. All of these golf courses will include luxury villas and apartments plus 5 start hotels thus making the Silver coast area of Portugal a dominant force in the world of golf tourism.
    

MOVEPORTUGAL - INVESTMENTS
Tailor-made Solutions
Contact: steve[at]moveportugal.com

Why use a currency broker???

Many people do not plan or even realise the effect of currency fluctuations and take a significant risk with their finances when they buy property or invest abroad.
Currency fluctuations can affect a house purchase, savings or pension/mortgage payments, and every year many people lose money through lack of knowledge or good advice.

When transferring funds abroad people should consider the exchange rate, the costs involved in transferring large amounts of money and the personal service that foreign exchange companies are able to give.

There are a number of currency exchange services that these companies can offer to help clients moving money abroad. Along with competitive exchange rates, you have the option to:

1. Purchase a forward contract. We can fix the exchange rate for your purchase up to one year in advance
2. Make a same-day, urgent payment
3. Use our market watch service. We monitor the currency market for you and let you know when it reaches a pre-agreed rate
4. Set up regular transfers to cover, for example, mortgage payments or living expenses

The first mistake most people make is assuming their bank is the best option for transferring large sums of money. However, most banks charge hefty transfer fees and offer poor exchange rates. Savings can be between 0.5% and 3% of the amount being transferred.

This can mean that on a one-off transfer of €150,000, a bank may cost up to £2,000 more than a currency broker.

For further information here are a couple currency brokers that MovePortugal recommend.

http://www.worldfirst.com/
Tel: 0800 0305015
Contact: Elisabeth Dobson

http://www.sgm-fx.com/
Tel: +44 (0) 207 220 1740
Contact: Daniel Collier

Portugal - Buying Guide Tax & Finance

It is important for those of you who will be purchasing a property in Portugal in the near furture to understand the buying process and the buying costs of the unique Portuguese system.

I would like to introduce myself as the resident FA (financial adviser). I have been living in Portugal fo the last 6 years and have been running a independant financial consultancy business in Portugal for the last 3 years supporting non-resident individuals and companies in rasing finance, providing fiscal representation and developing tax efficency structures.

The great team at MovePortugal have kindly let me put a simple but informative buying guide together for their prospective clients and allowing me to respond to your questions relating to tax & finance in Portugal.

STEP BY STEP

1. Use a Portuguese licensed real estate like MovePortugal.com
   
2. Obtain a fiscal number using a professional fiscal representation company.
   
3. Find a regulated qualified lawyer


4. Make a reservation offer to take the property off the market. This is normally non-refundable and made on the basis that a 'Promissory Contract' will be drawn up in the next 30 days.


5. The lawyer will then collect all the house documents to check everything is in order and if you are applying for a Portuguese mortgage it is advisable that you get an offer from the bank before the Promissory Contract is made.
   
6. Promissory Contract: this is drawn up by your lawyer and signed by the seller and the buyer. The conditions are negotiable, if you are taking finance I reccommend that the contract is made for 90 days until the deed of purchase.


7. Provisional Registration: this is only made when a mortgage is being used for financing the purchase. This means that the bank will make their first legal charge on the property at the local notary.


8. Property Transfer Tax (IMT): this tax is paid normally by the lawyer on your behalf a few days before the final deed.


9. Final Deed: this is made at the local notary and the seller and buyer (or the lawyer with a power of attorney) are present along with a bank representative (only when there is a mortgage).
   

PROPERTY TAXES

Property Transfer Tax (IMT)

>85,500 1%............0

85,500 – 117,200 2%............855

117,200 – 159,800 5%............4,371

159,800 – 266,400 7%............7,567

266,400 – 511,000 8%............10,231

511,000 + 6%............0

Example: Property price is €200,000 therfore....

200,000 x
7% = 14,000

14,000 - 7,567 = €6433

Stamp Duty
Property stamp duty = 0.8% x purchase price

Mortgage stamp duty = 0.6% x loan amount



LEGAL FEES
Provisional Registration (notary & registration of banks first legal charge, mortgage only)€650 (approx.)



Final Deed Registration (notary & registration of final deed) - €750 (approx.)



Lawyers Fees
1% - 1.5%


BANKING FEES (applicable for mortgages only)........


Valuation & arrangement fee
€500 (approx.)


Bank legal fee
€250 (approx.)

IN CONCLUSION

Property value from
€100,000 - €150,000
5% Buying costs (including
mortgage)



Property values from €150,000 - €200,000
5.5% - 6%
buying
costs (incl. mortgage)

Property Values from €200,000 -
€250,000
6.5%
- 7% buying costs (incl. mortgage)

Property values
from
€250,000 -
€350,000
7.5% - 8% buying costs (incl. mortgage
costs)

Property
values from €350,000 - €500,000
8% - 10% buying
costs
(incl. mortgage)

Coming soon a Glossary of important house documents that you should know the name of.

_________________

Steve Clarke

Mortgage Adviser (CeMAP)