Wednesday, 20 September 2017
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4805Notaries and Conservatórios soon will have to include bank account and cheque numbers used in property purchases, if Portugal adopts new EU regulations, according to a report in Jornal de Negócios.

The Tax Authority will be keen to thwart money laundering by making it easier to identify the money trail used to buy property. The move is part of a package of new regulations under the catch-all excuse attributing the rules to ‘new European guidelines to prevent money laundering and terrorist financing.’

If the measures become law in Portugal, and the likelihood is high, it means that property transaction ‘escrituras’ will have to include cheque and account details: or if payment is done by bank transfer, buyers will have to provide the issuing bank and the account number.

Currently, notaries do not have to verify payment details, which can enable simulated deals to take place.

With the new measures, the notary will be required to certify the manner in whcih payment has been made and also will be obliged to confirm the receipt of funds used to buy property, although details of how this last point will be achieved have not been released.

Rental contracts over €2,500 a month also are included in the planned regulations.

Comments  

0 #5 2.Sugars.in.my.tea 2017-04-23 08:46
Quoting mj1:
I trust a suitcase of cash will be ok? :P

..No, no, the thing to do is wave a public sector contract or a road-toll franchise in front of the Notary :lol: :lol: :lol:
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+1 #4 Peter Booker 2017-04-21 07:49
With even lawyers collaborating in the falsification of purchase prices of property, I expect that this measure is designed to tighten up details on price displayed and price paid; this area is a well-known tax dodge.

Thirty years after Portugal joined the EEC (now the EU), it is high time that they got around to regularising their tax arrangements. But it is interesting that the pressure comes from the EU and not from Portugal itself.
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0 #3 CHARLY 2017-04-21 06:08
In my opinion and in practice the only "exception" on this rule are the "arrangements for Chinese golden pass clients" (they have some secret channels to make payments for real estate purchases via-via-via). And of course the cash-rule is also covering the "normal" real estate transactions
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+2 #2 Ed 2017-04-20 22:33
Quoting mj1:
I trust a suitcase of cash will be ok? :P

I am not sure of the new cash limit laws cover property transactions, but with a fine of 25% of the value, I would not like to risk finding out.

See: http://algarvedailynews.com/news/9041-cash-transactions-of-over-3-000-to-be-fined-25#comment-8942

Ed
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+4 #1 mj1 2017-04-20 22:15
I trust a suitcase of cash will be ok? :P
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