ONE Select Properties Mag 2024

Casting our gaze back to January 2022, it seemed like an era of abundant investment and seemingly effortless transactions. Yet,

prices and the emergence of unique prospects that might elude the casual observer.

In the vibrant tapestry of Portugal’s real estate market, particularly amidst the allure of Quinta do Lago and Vale do Lobo, we find ourselves at a juncture where challenges and opportunities dance in unison. The present scenario may be characterized by sellers pricing properties above their market value, creating an environment that demands strategic acumen from both buyers and agents alike.

As guardians of your real estate aspirations, we extend a cautionary note against succumbing to the allure of agents who promise the highest price or the lowest fee. Such temptations, though enticing, can prove to be a

false economy. In our commitment to transparency, we make it clear to buyers during valuations that an overly optimistic asking price may breed disappointment in the long run.

Embrace the challenge, and in doing so, discover the hidden gems that await discerning individuals like yourself.

Welcome to a realm where luxury transcends boundaries, and where challenges unveil the true essence of opportunity.

José Carvalho

COMPANY DIRECTOR

2023 & Beyond: Embracing The Horizon and Staying Proactive in 2024

In the ever-evolving landscape of luxury real estate, the Golden Triangle - encompassing the enchanting realms of Quinta do Lago and Vale do Lobo - has witnessed a transformation over couple of years. As we step into 2023, it became imperative to distinguish between a challenging time or an unfavourable one in this prestigious market.

Back in January 2022, the real estate market exuded an air of abundance, marked by seemingly effortless transactions. However, the subsequent evolution of the landscape has taught us that not all glittering deals from the past retain their lustre today. It’s crucial to shift our perspective from deeming it a bad time to buy to embracing the challenge as an opportunity to seize the extraordinary. It is during these testing times that the astute investor recognises the paradox—the best time to buy often unfolds when the journey is marked by hurdles. Reduced competition paves the way for declining prices and the emergence of unique prospects that might elude the casual observer.

We find ourselves at a juncture where challenges and opportunities dance in unison. Sellers are currently pricing properties above their market value, creating an environment that demands strategic acumen from both buyers and agents alike.

As guardians of your real estate aspirations, we extend a cautionary note against succumbing to the allure of agents who promise the highest price or the lowest fee. In our commitment to transparency, we emphasise during valuations that an overly optimistic asking price may breed disappointment in the long run.

As we set our sights on 2024, it is essential to adopt a proactive approach. Embrace the challenge, and in doing so, discover the hidden gems that await discerning individuals like yourself. Here are some strategies to navigate the luxury real estate market in the Golden Triangle:

Strategic Acumen Transparency and Caution

Develop a keen understanding of market dynamics, staying informed about current trends and pricing strategies.

Exercise caution when dealing with agents and prioritise transparency in all transactions. Avoid the allure of overly optimistic promises.

Long-Term Vision

Consider your real estate investments with a long-term vision. The challenges of today may well be the stepping stones to unparalleled opportunities in the future.

Welcome to a realm where luxury transcends boundaries, and where challenges unveil the true essence of opportunity. As we navigate the currents of the Golden Triangle real estate market in 2023, let us approach the coming year with a blend of strategic acumen, caution, and a keen eye for the hidden gems that await those who dare to embrace the challenge.

The NHR In 2024: What To Expect?

In an announcement in 2023, that garnered attention both locally and internationally, Portugal’s then Prime Minister, António Costa, declared the impending end of the special tax relief for new Non-Habitual Residents (NHR) in 2024. This decision marked a significant shift in Portugal’s taxation policy and has raised questions about its impact on foreign residents, real estate, and the economy.

António Costa cited several key reasons for this decision to terminate the NHR program. One of the primary motivations is to address what he calls “fiscal injustice.”

The NHR program, which initially aimed to attract foreign talent and investments, provided significant tax

benefits to eligible individuals, particularly in terms of foreign-sourced income. However, over the years, it has come under scrutiny for contributing to rising property prices, especially in sought-after areas like Lisbon and Porto. This inflation in housing costs has made homeownership increasingly challenging for locals, leading to concerns about affordability and fairness.

The existing NHR beneficiaries registered up until December 31, 2023, can continue benefiting from the previous regime for the full 10-year period.

The new regime, dubbed “NHR 2.0,” is set to take effect from January 1, 2024, mirroring most of the original

benefits, excluding those pertaining to pension income. Alongside, the revised program will have a different scope of beneficiaries.

The new regime will also span 10 years, applying to individuals becoming tax residents of Portugal (with no residency in the country for the previous 5 years), and will feature a 20% rate for employment/freelance and exemptions for various foreign-sourced income categories, including dividends, interest, capital gains, and rents.

However, for those considering relocating to mainland Portugal under “NHR 2.0,” eligibility appears to hinge

on employment in start-ups, involvement in research and development, or engagement in governmentrecognized qualified positions.

While we provide a comprehensive guide to understanding the NHR visa program and its implications, it’s crucial to emphasize that we do not offer eligibility assessments or application services.

As developments unfold, individuals are encouraged to stay informed through official channels and seek professional advice for personalized assistance in navigating potential alterations to the NHR tax regime.

Sell Your Property The Smart Way With ONE Select Properties

If you’re considering selling your property, you’re likely aware of the numerous decisions and agreements that come into play. One crucial choice that can significantly impact your selling experience is whether to opt for an exclusive sales agreement. When you work with ONE Select Properties, a leading name in the real estate industry, you’re not just making a decision about how to sell your property – you’re gaining access to a tailormade marketing strategy and a network of buyers that can elevate your selling process.

THE DISTINCTIVE ADVANTAGE OF AN EXCLUSIVE SALES AGREEMENT

The concept of an exclusive sales agreement might sound restrictive at first, but in reality, it opens doors to a faster, more streamlined selling experience. At ONE Select Properties, our years of expertise have shown that properties listed under an exclusive sales

agreement tend to sell twice as fast as those under a simple sales agreement. Nationally, statistics reveal that a remarkable 77% of properties marketed exclusively are sold in under 3 months, as compared to 55% under a simple sales agreement.

So, what sets an exclusive sales agreement apart? One word: simplicity. With an exclusive agreement, you deal with a single point of contact – us. This approach fosters a privileged relationship with our dedicated team, ensuring that your sales process remains transparent and hassle-free.

TAILORED MARKETING STRATEGY FOR YOUR UNIQUE PROPERTY

Your property is not just another listing – it’s a piece of real estate with its own story, character, and appeal. ONE Select Properties understands this perfectly. As

a part of our exclusive sales agreement, we collaborate closely with our clients to create a marketing strategy that aligns with the property’s distinct features and the seller’s objectives.

We offer an extended reach to a national and international network of buyers. With an exclusive sales agreement, your property takes centre stage, enjoying heightened visibility and attention. Gone are the days of getting lost in a sea of listings. Instead, your property shines as a rarity, drawing potential buyers in.

CRAFTING YOUR UNIQUE MARKETING JOURNEY

When you partner with us for an exclusive sales agreement, your property benefits from a meticulously crafted marketing journey. Here’s a glimpse of what you can expect:

Social Media Spotlight: We showcase your property on our active social media platforms, including Instagram, Facebook, and LinkedIn, ensuring it’s in the spotlight for potential buyers to discover.

Visual Showcase: High-quality visuals matter. Our professional camera and drone footage result in stunning videos that not only capture your property’s essence but also elevate its appeal.

Online Prestige: Your property will feature on renowned International real estate websites in key markets, such as Rightmove, Luxury Estate, Financial Times, James Edition, Mer et Demeures.

Print Presence: Our strategic partnerships with local and international print media land other high-profile platforms ensure your property’s presence in quality publications.

Local Impact: Display windows in our offices strategically located in key areas ensure your property remains visible to those passing by.

Transparent Updates: After each property visit, you receive updates on potential buyers’ interactions, keeping you well-informed throughout the process.

ONE SELECT PROPERTIES: GOING ABOVE AND BEYOND

At ONE Select Properties, we believe in providing a comprehensive service that goes beyond the ordinary. When it’s time to sell your property, remember that choosing an exclusive sales agreement with ONE Select Properties isn’t just about selling – it’s about crafting a unique selling experience that’s tailored to your property and your aspirations. With a focus on efficiency, visibility, and collaboration, we’re here to make your property shine in the real estate market.

Meet The ONE Team

We do more than simply help you buy and sell real estate. As an independent real estate agent we provide a personal service for property in the Algarve that makes the One Select Properties team a pleasure for you to do business with – whether you are a buyer or a vendor.

We know that people prefer to do business with those they like and trust. Many of our clients from around the world who come to us to talk about Algarve property remain friends long after their sale or purchase has been successfully concluded.

We believe that the strength and length of our relationships is the true measure of our success, rather than the number of villas and houses we sell.

JOSÉ CARVALHO - COMPANY FOUNDER & DIRECTOR

José joined the prestigious resort of Quinta do Lago in its very early days in 1979, in 1985 that decided to settle and join the Real Estate team at Quinta do Lago SA. He became the Sales and Marketing Director as well as a Board Member. In 2009, he stepped down from this position to pursue his own ambitions. José’s knowledge and understanding of the real estate market here are second to none. He saw an opportunity to go ONE step ahead, and ONE Select Properties was born. What does ONE Select Properties mean to you? “To bring an entire new level of service to clients, whether they are buyers or sellers. People do business with whom they like and trust.”

SOFIA CASTRO - COMPANY FOUNDER & MANAGER

ONE to ONE. That’s what attracted her to this partnership in excellence. “Working with the best real estate the Algarve has to offer, based on an understanding of total professionalism. Listening to the client. Building trust.”

Originally hailing from Oporto in the north, she soon was won over by the Algarve’s unique charms. She also settled in the Quinta do Lago and Vale do Lobo areas and made a name for herself on a wide range of interior design projects. An eye for details that count.

Like José, she is excited about the Algarve’s future, and how ONE Select Properties can become the ONE name you remember in a bustling property market.

CATARINA CARVALHO - MARKETING MANAGER

Born and raised in the serene Algarve until the age of 16, Catarina ventured to the UK to pursue her 6th form and university studies in fashion management. Her professional odyssey led her to Belgium and the Netherlands, where she thrived in the vibrant world of fashion.

Despite her global endeavours, Catarina remains deeply rooted in her family’s business, nestled in the tranquil corners of the Algarve, where familial bonds are cherished. With only three in their close-knit circle, Catarina embraces the importance of continuity in the family legacy. Her journey reflects a harmonious blend of cultural richness, academic pursuits, and a commitment to her roots.

The Buying Process

The ONE Select Properties team will always work with you in order to find the property that matches all your requests. Once the right property is found, your representing agent will act as a mediator in the negotiation process and after a mutual value is agreed, a proposal is outlined by the vendor’s representative.

Private Ownership

1

Promissory Contract Signing

When looking to purchase property in Portugal the buyer must acquire a Portuguese Tax Number, which can be done with the aid of the appointed lawyer. Once drafting and agreeing upon the terms and conditions of the buying contract, the promissory contract can be signed. This is signed by the buyer and the vendor, or their representatives, which is also normally accompanied by a 10% deposit based on the total purchase value agreed. At this stage a deadline is usually set for the signing date of the final deed. If either party defaults in the completion of the final deed, a compensation is then in place with this deposit.

As price and timing is agreed upon, both parties will usually appoint a local lawyer and formal property documentation will be sent to the buyer, in order for the representing lawyer to perform due diligence and prepare the buying contract.

2

Final Deed Signing (escritura)

Before signing the final deed, which usually takes place in a public notary, the buyer must pay IMT (Property Transfer Tax). Both parties can either be present or give power of attorney to their legal representative. Upon signature of the final deed the buyer will pay the remaining property purchase balance, alongside notary and registration fees.

3

With the purchase and deed complete, the representing lawyer will help the buyer complete their registry in the Land Registry, as well as changing all utility bills to the new owner’s name.

1

Structure Due Diligence Corporate Ownership

With the required legal documentation shared, your appointed representative lawyer will preform the essential due diligence. This will allow for the buyer and the lawyer to understand the exact status of the company to be acquired, in regards to matters like, maintenance fees practiced, ongoing costs, warranties, company legal representation as well as present procedures followed.

2

Share Purchase Agreement Signing

3

Remaining Purchase Balance

Upon agreement of the final terms and conditions of the Share Purchase Agreement, the remaining balance can either be transferred to the buyer’s lawyer’s account or via any other agreed form of payment to the vendor, completing the transfer of company ownership When dealing with the purchase of a corporately owned property, a Share Purchase Agreement is drafted and agreed upon by both parties. Once a consensus is reached, both in regards to the property value and the terms and conditions of the agreement, a 10% deposit is transferred from the buyer to the vendor. At this stage a deadline is usually set for the signing date of the final deed. If either party defaults in the completion of the final deed, a compensation is then in place with this deposit.

4

To complete the new company proprietorship, the appointed company management team will transfer the shares of the ownership to the new UBO (Ultimate Beneficial Owner). Any other remaining tasks will be organised by the management company.

IMT STAMP DUTY, NOTARY & REGISTRATION

IMT is a municipal real estate transaction tax, which occurs when there is an alteration to the property ownership. This tax varies according to the type (country or urban), location (mainland or autonomous) and purpose of the property (permanent or second home). To calculate the IMT, the below formula can be used; applying the relevant rate and portion to be deducted, that can be consulted further on the Portuguese Tax Office Portal.

IMT = Property Value noted in Deed

* Tax Rate

* Tax Deductions

The Buying Costs Costs On Purchase

Stamp duty in Portugal is currently at a fixed rate of 0.8% on the agreed sales value. Notary and registration fees can vary dependant on the chosen lawyer, however should amount between €1,000 to €2,000. These values are to be paid by the purchaser prior to signing the notary deed and registration of transition into the new buyer’s name.

TAX RATES

MUNICIPAL PROPERTY TAX

The Municipal Property Tax is an annual fee appraised and updated by each municipality, dependant on property location. Urban properties are levied at a rate between 0.3% and 0.5%, whilst rustic properties have a rate of 0.8%. The appraisal value is registered by the Portuguese Tax Authorities and the overall total property tax value payments are done in instalments.

CAPITAL GAINS TAX

On the sale of property, in Portugal, there is Capital Gains Tax (CGT) to be paid at a rate of 28% for non fiscal residents and 25% on nonresident companies. Residents are taxed 50% CGT, which is then included in the individual’s annual income tax return. If the funds are reinvested for a permanent residence, within 3 years of the date of sale, anywhere in the EU/ EEA area, CGT will not apply.

Costs After Purchase

AIMI

ADDITIONAL MUNICIPAL TAX

Created in 2017 and applied to those who own more than 1 property, it is different to the IMI and to be paid separately, in a single instalment usually in September. AIMI is levied on the combined total value of the rateable value of properties, applicable on all urban residential property or land destined for construction. For corporately owned properties a flat rate of 0.4% is applied, whereas for privately owned properties there are 3 different classifications of AIMI:

Please Note: The

INHERITANCE TAX

Between close relatives there is no inheritance tax in Portugal, i.e. parents/ children and spouses. However on gifts, 0.8% stamp duty is calculated based on the Property’s Rateable Value. Any other situations of inheritance or gift will be subject to stamp duty at a rate of 10.8% of the Property’s Rateable Value.

Selling Your Property

AN UPDATED MARKET APPRAISAL

The ONE Select Properties team will visit you at your property to meet and discuss your intended goals and priorities, resulting in an informed and competitive valuation.

The more information you can give us at this point, the better we can help in meeting your objectives. We will openly explain how we work and share with you our

thoughts on how we can best achieve your required results.

We will follow up with you on the next convenient business day with confirmation of our valuation and discuss further your property and needs. You will receive a ONE Select Properties seller’s letter/email confirming our conversation in writing.

PREPARING YOUR PROPERTY

There are various details that can be thought and considered to enhance your home and even improve the sale price. Such as:

De-clutter as much as possible;

Complete any outstanding maintenance and repairs that can be obvious to potential buyers; Gardens, landscaping and pool area looking their best.

Before undertaking any major renovations you can choose to consult with ONE Select Properties, who will advise if these are necessary or if you could be over-capitalising – some buyers may prefer to make big alterations themselves.

THE ULTIMATE MARKETING PLAN

At ONE Select Properties, we pride ourselves on the high quality of our photography and videography that displays each property at its best. We will arrange for a professional visual portfolio and a detailed description. Furthermore, we will work on displaying your property information on the ONE Select Properties website and present it to our select network of estate agents and clients, as well as, on major property portal sites to give your property, the best exposure and publicity.

Alongside, we will communicate with our vast network of registered buyers and local search agents, together with, print media and property columnists. However, if you would prefer a low-key, off-market sale, our experience is also second to none in bringing this type of transaction to a satisfactory conclusion.

Throughout all the marketing activities and process, we will keep you updated so that any necessary changes can be swiftly implemented.

Fair Market Value Evaluation

Property/Corporation Documentation Review

Updated Market Overview

Home Enhancing Guidance

High Quality Media Package

Social Media Activity

Print and Digital Media Presence

Exposure In 30+ International Real Estate Platforms

Daily Updates on Potential Buyer Visits

Comprehensive Reach To Buyers Worldwide

Continuous Link Between Lawyers, Financiers and Notaries

Personalized Marketing Plan

Nestled amidst breathtaking sea and resort views, this 6 en suite bedroom villa offers an unparalleled experience of elegance and sophistication.

Villa June

QUINTA DO LAGO | REF. 2363

EXCLUSIVE WITH ONE

This townhouse has been tastefully refurbished with neutral tones and contemporary

EXCLUSIVE WITH ONE

This property epitomises luxury living, showcasing a sun-drenched terrace that commands breathtaking panoramas of the picturesque lake.

Apartment Rosie

QUINTA DO LAGO | LAKESIDE VILLAGE | REF. 2380

Villa Marianne

Meticulously designed, the spectacular villa seamlessly blends distinctive architectural elements with breathtaking interior design.

Villa Mabel

QUINTA DO LAGO | REF. 2392

This exceptional luxury villa commands an expansive elevated plot, affording breathtaking, panoramic vistas.

Villa Liana

QUINTA DO LAGO | REF. 2383

This residence boasts a central, prime location, elevating convenience without compromising on the tranquillity of the surroundings.

Apartment Pearl

QUINTA DO LAGO | LAKESIDE VILLAGE | REF. 2387

EXCLUSIVE WITH ONE

Plot To Build

ENCOSTA DO LOBO | REF. 2278

This plot enjoys a fabulous location in an elevated position within Encosta do Lobo, only a short distance from Vale do Lobo and Quinta do Lago.

PERMITTED 485 M2 above ground

BUILD AREA

PLOT AREA

VIEWS

343 M2 basement

1050 M2

Sea, Countryside

Twnh. Mar

VALE DO LOBO | REF. 2343

Plot To Build

VALE DO LOBO | REF. 2339

PERMITTED 250 M2 above ground

BUILD AREA

PLOT AREA

VIEWS + basement 970 M2 Beach, Resort

Indulge in the timeless allure of coastal living with this remarkable villa, a true gem set on a sprawling 1380m2 plot.

Villa Casey

VALE DO LOBO | REF. 2388

EXCLUSIVE WITH ONE

Apartment

Recently renovated, this apartment boasts a fresh and contemporary interior, designed to provide a comfortable and inviting living space.

Maya

DUNAS DOURADAS BEACH CLUB | REF. 2362

This modern gem boasts an array of luxurious features, including a private pool, a beautifully landscaped

and

Townhouse

This charming villa is set within the exclusive The Crest condominium and enjoys an excellent location with a perfect sun exposure and beautiful countryside views.

Villa Melodie

THE CREST | REF. 2350

We do more than simply help you buy and sell real estate. As an independent real estate agent we provide a personal service for property in the Algarve that makes the ONE Select Properties team a pleasure for you to do business with – whether you are a buyer or a vendor.