Azores Real Estate - Azores Property - Azores Cottage

To what country does the island of Santa Maria belong?

Since the day of its discovery by Portuguese seafarers at the beginning of the 15th century, Santa Maria, like the rest of the Azores islands, has belonged to Portugal and has therefore been part of the European Union since 1986. However, the Azores enjoy an autonomous status within Portugal, having their own regional parliament. The political situation is very stable, there is no independence movement.

What is the island's economic position?

Although there is no industry as such on Santa Maria, its economy is in fine health. Unemployment is virtually at zero. Apart from the building industry, administration, fishing and agriculture, Air Traffic Control is the major contributor, as civil air traffic across the entire North Atlantic – from the shores of Europe to the shores of America – is regulated from Santa Maria.

How high is the cost of living?

The cost of living on Santa Maria, especially in terms of basic food items and services, ranges from lower to very much lower than that of other parts of Europe. A kilogram of bread, for instance, costs 1.00 Euro, an espresso in a bar costs 40 Cent, a male haircut 5 Euro and a wash, cut and dry costs 7 Euro for the ladies. A year's third party car insurance for a car with a 2,446 cc engine costs 144 Euro. (All figures from August 2009.) The island's mild climate means a lot less needs spending on heating and winter clothing. The living standard of the islanders has been steadily rising for years, whilst that of those in many EU member states has been falling.

How good is health provision in event of illness?

The island has a newly built hospital, and its four general practitioners hold their surgeries within it. Specialists in various fields hold regular surgeries on Santa Maria in turn, and, in urgent cases, the Portuguese health insurance pays the flight to the main island or to Lisbon, as well as a fixed amount for accommodation. In an emergency, a military aircraft arrives in the shortest of time from the island of Terceira to fly the patient to either the main island or to Lisbon.

Is there enough drinking water?

Santa Maria has a wealth of bounteous springs so, unlike many other Atlantic islands, there is no shortage of drinking water.

Is there any danger of tsunamis?

No such event has ever occurred in living memory. Nonetheless, there is an early warning system. In any case, country properties on Santa Maria are never found less than 110 yards (100 metres) above sea level.

How high is tax on land and buildings?

Unlike in other countries, Sweden for example, tax on land and buildings is low in Portugal. A renovated country property costs 80 to 100 Euro per year in tax.

What are the costs of water, refuse disposal and electricity?

One cubic metre of water costs 36 Cent, the monthly standing charge for the water meter is 1.20 Euro and is collected together with the 2.00 Euro per month refuse disposal charge. One kilowatt hour of electricity costs 10 Cent. (All figures as at August 2009.)

What does it cost to install a telephone line, a DSL connection, and do mobile phones work on the island?

Installing a telephone line is free, and the monthly standing charge is 9.99 Euro. The monthly cost for DSL connection starts at 14 Euro. Mobile phone signals can be received almost everywhere on the island.

What is the procedure for acquiring property?

The vendor and the purchaser conclude a preliminary contract of sale, which comes into effect upon down payment of (normally) 20 percent of the purchase price.

As a preliminary to making an entry in the Land Register (Escritura), the purchaser applies for a tax number at the local tax office (upon providing proof of identity) and pays the real estate transfer tax (IMT) on the stated purchase price. No real estate transfer tax is payable on properties for permanent use, for the others the tax is 1 percent of the stated purchase price.

The true size of the land is frequently well understated in the documents relating to it. However, security is provided by the official cadastral survey map, by the description of the plot in the documents which names the neighbours on all points of the compass as well as by the boundary stones.

The purchaser's and vendor's documents, plus the updated documents pertaining to the plot, are submitted to a notary's office (Cartório Notarial). As the notary's office on Santa Maria sometimes occasions waiting periods, we often go to a Cartório on the main island – the Escritura can be made by any notary's office in Portugal. The Escritura is made in your personal presence, or in the presence of someone you have authorised to act for you. For those who do not speak Portuguese, the presence of an interpreter is required.

The Escritura and the land register extract cost together between 300 and 500 Euro. The land register extract is following the Escritura and is produced in the land registry on Santa Maria (Conservatória do Registo Predial).

Is there any danger of being swindled, the house being sold to more than one person etc.?

Unlike in Spain, for instance, selling a house to more than one person and such like is ruled out in Portugal because the property documents are inspected by the land registry as well as by the tax office. Already at the stage when the real estate transfer tax is paid, the name of the purchaser and the vendor are recorded and the updated particulars are entered into the documents relating to the property.

How do I know if a property is unencumbered?

In Portugal, every type of encumbrance, such as a mortgage, is entered in the documents relating to the property. This means that if no encumbrance is entered in the documents, then no such encumbrance exists.


Back to top