If you are buying a resale property, your lawyer will ensure that the title deeds, habitation licence and caderneta urbana (which defines the size of the property and its boundaries) are all in order. A survey will also need to be carried out at this point.

A 10 per cent deposit is usually required when you sign the preliminary contract, which sets out the terms of the sale – including a completion date. If you back out of the purchase after signing the preliminary contract you will have forfeited your deposit. If the vendor backs out after signing you will be due 20 per cent compensation.

On completion, the balance of the purchase price plus all fees must be paid, and then both parties sign the escritura (title deeds) before a Notary Public. Ownership is then officially transferred. The transfer of title then needs to be lodged in the land registry and the local tax office.

When buying an off-plan property, a small deposit is usually paid, followed by a series of stage payments.

Portugal enjoys one of the warmest climates in Europe. Average temperatures by season are:

• Spring: 20 – 25 °C
• Summer: 25 – 32 °C
• Autumn: 20 – 25 °C
• Winter: 15 – 20 °C

In Portugal you drive on the right and overtake on the left. You must also give way to trams when they overtake you and as they approach you from the right.

Speeds in Portugal are measured in kilometres per hour (kph). The speed limit for motorways is 120kph, for open roads it is 90kph and in urban areas it is 50khp. There is also a minimum speed of 40kph enforced on motorways.

When parking, your car must be facing the same direction as the traffic, the exception being if a road only allows parking on one side of it.

Tourists may take a vehicle into Portugal for a maximum of 180 days within a single calendar year. Anyone wishing to bring a vehicle into the country for longer must apply to Portuguese Customs so that it can be imported legally.

When driving in Portugal you must carry your driving licence, the vehicle's log book, a valid MOT certificate and proof of insurance at all times.

Greenwich Mean Time is observed in Portugal, meaning that there is no time difference from the UK.

The population of Portugal is approximately 10.5 million (July 2005 estimate). Around 11.7 million tourists visit the country each year.

Portuguese, the official language, is ranked as the eighth most spoken language in the world, with an estimated 210 million Portuguese-speaking people worldwide. It is the third most spoken western European language after English and Spanish.

Portugal changed its national currency from the Escudo to the euro between January and March 2002.

Wages in Portugal tend to be significantly lower than those in some other EU member states, which has had the effect of keeping the overall cost of living low. The cost of living in Portugal can be half of that in France or Germany, and even a bit cheaper than in Greece, depending on individual tastes. Dining out, alcoholic beverages, meat, fish, fruits and vegetables are relatively inexpensive.

Cars are more expensive to purchase than in many other western European countries, as are electronic consumer goods like computers and CD players.

The current exchange rate is around €1 = £0.74

Residents of Portugal are subject to taxation on their worldwide incomes, capital gains and inheritances. Non-residents are generally only subject to taxation on their Portuguese-sourced income.

For tax purposes, a foreign national is considered a resident if he or she stays in Portugal for more than 183 days during a tax year (January 1 to December 31). The 183 days are not required to be consecutive.

Anyone who owns and maintains a permanent home in Portugal may be considered a tax resident as well, regardless of length of stay, residence permit or work permit status.

Portuguese tax residents are liable for income taxes on their worldwide income at progressive rates from 12 per cent on income of up to €4,266 (2004 figure) to a maximum of 40 per cent on annual income above €53,323 (2004 figure). Interest paid by Portuguese banks is considered taxable income.

Some pensions are tax-exempt up to specified amounts and depending upon overall income.

Portugal is a signatory to Double Tax Treaties with many nations, which may result in tax concessions in Portugal or an individual’s country of origin.

Residents of Portugal are also subject to certain other taxes, including VAT, vehicle sales tax, stamp tax, rental property tax, taxes on real estate transactions and more.

Telephone

The telephone service in Portugal is provided by Portugal Telecom (PT), formerly government-owned but now privatised. Telephone communications are generally of a very high standard, although fixed-line coverage is not as widespread as mobile coverage.

Direct dialling abroad is possible from most areas. In a few remote regions, it may be necessary to obtain operator assistance for international calls.

Public telephones are available in most towns and in all Post Offices. Calls from public telephones can be made with cash and CrediPhone cards, which can be purchased at many retail outlets and Post Offices nationwide.

Some restaurants and bars have public telephones from which international calls can be made.

Mobile phone use is prevalent throughout Portugal, and is significantly greater than residential fixed-line use. There are several mobile phone service providers to choose from, among them Vodafone, Optimus and TSM.

In an emergency dial 112.

Post

Most Post Offices (Correios) are open from 8:30 am until 6:00 pm, Monday to Friday.

Postage stamps can be purchased in certain retail outlets in addition to Post Offices.

Television

Portugal uses the PAL 625 system.

Local television broadcasting is limited to approximately five Portuguese stations, which are also available on cable networks. Many news programmes and movies on cable are broadcast in English with Portuguese subtitles. Cable TV is available in most metropolitan areas.

Satellite reception, with privately owned dishes, is also available.

Radio

Local AM and FM stations offer a full range of American and Portuguese music as well as extensive newscasts in Portuguese.

Government

For some decades, Portugal was a dictatorship led by António de Oliveira Salazar, whose refusal to relinquish the country’s colonies in Africa resulted in expensive and unpopular wars. A bloodless coup in 1974 ushered in a new democracy and independence for all the country’s former colonies.

Portugal’s president is Prof. Dr Aníbal Cavaco Silva, and its prime minister is José Sócrates.

On taking office, Mr Sócrates said his priority would be to boost the economy by investing in training and technology. His government also faces the major tasks of bringing the budget deficit under control and halting the rise in unemployment.

Portugal has benefited greatly from membership of the EU, which it joined in 1986, becoming a diversified and increasingly service-based economy. Portugal is a peaceful and comfortable place to live.

The services sector now contributes nearly two-thirds of Portugal's GDP, with agriculture making up around six per cent and industry the rest. The country’s main exports are machinery and equipment, clothing, wood and cork, footwear, mining equipment and wine.

Over the past decade, successive governments have privatised many state-controlled firms and liberalised key areas of the economy, including the financial and telecommunications sectors.

In recent years, Portugal has had one of the fastest-developing economies in the EU. However, post-EU enlargement, it is under increasing pressure from less developed countries in the east, with cheaper workforces, which look likely to attract investment that might otherwise have flowed into Portugal.

Relations with the UK have always been good, and the UK has been the single highest investor in Portugal for the last few years.

Government spending on healthcare in Portugal is higher than the EU average. A national health service was created in the late 1970s, but poor facilities and long waiting lists mean that access remains unequal. Because of this, spending by individuals on private healthcare is also high.

British residents are entitled to Portuguese healthcare on production of a European Health Insurance Card. However comprehensive travel and medical insurance is always advised.

EU development funds amounting to nearly €23 billion are helping to transform Portugal's transport infrastructure. Projects include privatising TAP, the national airline, building a light train track and developing new road links.

Education from the ages of six to 15 is mandatory in Portugal. Some 85 per cent of school-aged children attend free state schools, in which the curriculum is taught exclusively in Portuguese. Those aged from 15 to 18 can then take secondary education courses geared toward vocational study, or further their academic interests. The children of EU citizens may attend Portuguese state schools free of charge.

Universities offer bachalareto (undergraduate degrees) and liceniatura as well as Mestrados and MBA (full postgraduate degrees). Portuguese universities are amongst the best in Europe. Many Portuguese university students choose to study abroad, as space is limited locally.

The many private schools offer a variety of courses, ranging from the International Baccalaureate (IB) programme, which includes PYP, MYP and Diploma, to the GCSE examination system.

All schools in Portugal are required to satisfy the requirements of the Portuguese national system.

EU citizens do not require a visa to enter Portugal. Passports are required for all foreigners, except for EU nationals (excluding the UK: British nationals are required to have a passport) and citizens of Iceland, Norway, Malta, Switzerland and Liechtenstein, who may use valid National ID cards.

Residency

EU citizens are not required to have a residence permit or a work permit in Portugal, but a residence permit may be useful as proof of residence for obtaining a local driver's licence, for tax purposes, and so on.

Only EU nationals may apply for a residence permit from within Portugal. All others must apply at a Portuguese consular office abroad.

The following documentation is required to support applications for a residence permit:

• Passport or identity card
• Two current passport-type photographs
• Notarised letter from employer stating expected duration of employment (if intending to work)
• Proof of health insurance
• Criminal record check

There are two kinds of residence permit in Portugal, both issued by the Immigration and Border Control Department. A short-term residence permit is valid for stays of from 90 days to a year. A long-term residence permit is valid for a period of five years, and may be renewed automatically for up to 10 years. Beyond that, the applicant must apply in person for renewal. The applicant's passport (if required) must be valid for the entire duration of his or her residency.

Residence permits for EU citizens are rarely denied unless there is a criminal history or contagious health issue.