Property for Sale in Albufeira, Algarve, Portugal – Buy Golf and Beach Property Overseas

Forte do Vale, Albufeira, Algarve

THE RESORT

Property Prophets are proud to present their new properties for sale in Portugal. Forte do Vale is a new and luxurious Apartment Hotel with an excellent location in Albufeira, near the region’s famous beaches and international golf courses.

Forte do Vale has 125 apartments, including studios, one and two bedroom apartments, all of them with a modern design, elegant decor and fully equipped. All the balconies and terraces are equipped to provide all the comfort and rest to its guests. The site facilities also include bar, games room, Outdoor swimming pools, restaurant, and spa so that you can relax and keep in shape.

Guests have easy access to the famous Albufeira beaches, the Pescadores beach, Oura beach, Santa Eulália beach, etc. Forte do Vale is only a five minute walk from the entertainment areas, supermarkets, excellent restaurants and shops.

Apart-hotels are a great investment giving holiday clients the space and flexibility of an apartment with all of the benefits of having the facilities of a 5 star hotel on site. The complex has been built to an extremely high standard by a very reputable Portuguese builder with over 30 years construction experience.

The apartments are freehold and the owners can sell at any time. There is a fantastic rental management programme available to owners, giving them 6 weeks use per year. The apartments come fully furnished and the hotel management company will be responsible for replacements due to damage or breakages caused by the paying guests.

Forte do Vale is only 5 minutes from the beach and within 10 minutes of at least nine golf courses, 6 of which are championship courses, and Faro airport is only a 30 minute drive away with its regular year-round service from all major UK airports.

THE DEAL

Property Prophets has negotiated a deal for our clients with the developer, and for a limited time only, the developer will provide:

• A 20% gifted deposit, giving 20% instant equity from the banks present valuations, done in April 2009 (proof available upon request).
• Within 7 working days of the public deeds being signed, a cash-back refund of 9% of the purchase price will be credited into the buyers Portuguese bank account. A further 2% will be paid in year 2.
• All closing costs will be paid, saving around 10% of the purchase price.

There are 125 apartments available in total, and the 20% discounted prices start from:

• €169,600 Studio Apartment (6 available) from 48sqm to 69sqm plus a terrace area of 8sqm.
• €234,400 One Bedroom Apartment (113 available) from 66sqm to 79sqm plus a terrace area of between 7sqm and 12sqm.
• €264,800 Two Bedroom Apartment (6 available) from 87sqm to 109sqm plus a terrace area of between 7.9sqm and 12sqm.

Please click here for an interactive online “viewing trip”

Please also view are Construction Pictures (button above) for more photographs.

Location

Albufeira, Algarve, Portugal (South Coast)

Construction Schedule

The development is completed and running as an apart-hotel already with good occupancy. A show apartment is available for viewing.

Facilities And Maintenance

Forte do Vale has the following facilities on-site:

• Indoor and Outdoor Swimming Pools
• Bars
• Restaurant
• Conference Rooms
• Lounge and TV Areas
• Shops
• 500sqm Health Centre with Spa
• Jacuzzi
• Gymnasium
• Sauna
• Steam Room
• Treatment Rooms
• Squash Court

Payment Terms

The first step in the buying process is to reserve an apartment and sign the reservation & rental management agreement, paying the 1% reservation holding deposit to the lawyer (this is fully refundable on the deeds or if the loan is refused by the bank.

Then, if you are applying for a mortgage in Portugal, our mortgage broker in Portugal will take you through the whole process and provide you with a list of all of the documents required by the bank for analysis. If the mortgage is approved and confirmation is given by the bank and you want to proceed with the purchase, bank accounts must be opened within the bank and all bank fees must be paid to the bank, amounting to approximately €870 (including taxes). These costs are fully refundable at deeds. If the mortgage is refused, the 1% reservation deposit will be returned to you by the lawyer.

Our mortgage broker will then apply for your fiscal number (Tax Number in Portugal) via Atlantic Property Tax Consultants. To get this tax number, you will be given an authorization document from Atlantic to sign and appoint them to act as your fiscal representative. Their advance fees are due to be paid and also annual fees will apply every year. Their advance fee is approximately €262.80 for a couple or €176.40 for a single person (including the cost of the tax card). These costs are fully refundable at deeds.

Then, Power of Attorney must be given to the lawyer, Dr Paulo de Brito da Mana who will act on your behalf, for the purchase of the property in Forte do Vale. We will take you through the procedure and supply you with the required version.

Financing this Development

Mortgage conditions have been agreed with a leading Portuguese bank for mortgages up to 80% of the valuation (subject to status). The way this deal has been structured allows buyers to obtain a mortgage of up to 100% of the purchase price, enabling you to own one of these stunning, modern apartments in one of Europe’s most desirable second home and holiday destinations for a very small initial outlay.

• For this mortgage deal, the bank will be using the 3 month Euribor rate plus a spread of 2.5%. This spread applies because these are buy-to-let touristic apartments.
• The term of the mortgage is a minimum of 5 years and a maximum of 30 years.
• The maximum age at the end of the repayment period is 75 years old.
• The loans are calculated on an affordability basis.
• All of your existing liabilities including any mortgage / rent payments, personal or car loans, credit cards and ongoing child maintenance payments, together with your proposed Portuguese mortgage payments must not exceed 40% of your gross monthly income.

TAXES

The apartments are owned by the client freehold, so all taxes due are based on a personal level.

As a non-resident, if you receive a rental income in Portugal, a withholding tax of 15% of the income is withheld at source and paid directly to the Portuguese tax revenue service by the management company. An accountant will explain taxation further to you as they can put in a claim to the revenue for expenses such as:

• Apartment maintenance expenses
• Condominium fees
• Council Tax (IMI) annual payment
• Tax services etc.

TAXES ON RE-SELLING YOUR APARTMENT

Non-resident individuals are taxed at a flat rate of 25% of the net gain. An accountant can explain this further concerning allowable deductions etc.

PROPERTY CLASSIFICATION

These properties are classed under Portuguese Law as commercial, so you can sell the property at any time keeping the profits derived from appreciation.

These properties are also SIPP compatible via Syndication and therefore, tax efficient. Please note though, that personal usage is not allowed if purchased through a SIPP, and bank mortgage conditions may be different if purchasing via a SIPP. We recommend that you get further advice from a qualified Financial Advisor or Accountant.

Legal Information

TAX REPRESENTATION SERVICE

Atlantic Property Tax Consultants are a leading consultancy company, specializing in property taxation and fiscal representation services for non-resident individuals and companies. They operate through their main office in the Algarve where they have a dedicated team of qualified tax consultants ready to deal with your tax affairs related to your property.

Portuguese tax legislation (art. 130 IRS Code) states that all non resident individuals and companies must empower a Portuguese tax resident company registered as their fiscal representatives.

In practical terms, this means that the entity appointed as fiscal representative will be responsible for dealing with the non-resident tax affairs. Practical situations where a fiscal representative is relevant:

• Obtain a fiscal number and card
• Open a bank account or apply for a mortgage
• Signing any contracts or deeds
• The payment of the property transfer tax – IMT – which must be settled before completion of any property
• Register the property at the local tax office upon completion
• Appraise the valuation performed by the Inland Revenue on the property, which will determine the property rateable value – VPT – and request a revaluation if necessary.
• Pay the yearly instalments of council tax – IMI – which needs to be paid by every property owner in Portugal.
• Compute and submit tax returns regarding rental income or capital gains.

LAWYERS

All buyers can use their own lawyers to check everything is in order if they want to, but to centralize all deeds at the same time, the lawyer being used for all clients for their purchase will be Dr Paulo de Brito da Mana, who is based in Albufeira, Portugal, and has been a lawyer for over 23 years and knows the deal inside out as he has been involved with checking that all of the relevant documents from the developer are in place and correct as he has also been responsible for putting together all of the contracts for this deal.

Our mortgage brokers have worked with him for over 7 years in Portugal, on numerous deals and found him to be very professional in his dealings with all clients, banks, other lawyers, developers etc.

Property Management

The General Manager of this hotel will be Paulo Martins, a highly regarded manager with over 20 years experience in the hotel and leisure industry. Mr Martins is currently responsible for running three other hotels in the Algarve. He works with all of the major international tour operators and is an Executive Board Member of the Algarve Tourism Board.

The average rental return over the first 7 years is calculated at 7.23% with occupancy averages growing from 55% in the first year, to 82% in the 7th year.

About the Immediate Vicinity

Albufeira is the tourist capital of the Algarve and is located in the centre of the Algarve, its population is approximately 40,000. With 23 beaches, its cliff-lined coast has been a huge attraction to millions of tourists and its pulsating nightlife attracts visitors from all over the world. The sun and the golf are the two biggest attractions, but Albufeira is also famous for its many restaurants, bars and clubs.

Once a small fishing village, Albufeira is remembered in history for the Great Earthquake of 1755 which saw most of the old town destroyed, including its castle, but some of the old charm still remains along the narrow back streets.