Buying and registering property in Portugal

Buying property in Portugal is relatively simple for foreign buyers as the country offers an advantageous tax regime, a Golden Visa programme and has no restrictions regarding the type of property a non-resident can buy.

Here’s how it works in Portugal.

1. Find a property. 

Make a list of properties that match your preferences as a buyer. The city, district and your budget are the main things to take into account. Once you have found one or more options that interest you, a real estate agency or the property owner will arrange viewings. Don’t hesitate to ask your real estate agent any questions about the property, payment procedures or potential discounts.

2. Get a lawyer. 

Before buying real estate, you will need a lawyer to take care of all the necessary documentation.

3. Get a tax number and open a bank account. 

A tax identification number (número de identificação fiscal or NIF) will allow you to open a bank account to buy the property.

4. Sign the preliminary sales contract and pay the deposit. 

The preliminary sales contract (Contrato Promessa de Compra e Venda) is formalised by a notary. You will need to make a down payment from 10% to 30% of the price. Doing this reserves the property and takes it off the market. If the agreement is broken by the seller, they will have to pay you back double that sum.

5. Get the sales contracts notarised. 

All the agreements between parties must be certified by a notary.

6. Pay municipal real estate purchase tax.

The buyer of property in Portugal pays a transfer tax (Imposto Municipal sobre Transmissões, IMT) of 6–8% and stamp duty (Imposto do Selo, IS) of 0.8%.

7. Do the due diligence. 

Between the provisional and final sale agreements (1–6 months), your lawyer carries out the due diligence and gets the following documents:

• excerpt from the land register (Certidão de Teor), containing information regarding location and type of the property as well as all modifications to property ownership;
• tax registration of the property (Caderneta Urbana/Rustica Predial or Caderneta Predial) defining the surface area of the land, floor space and number of residential buildings;
• habitation licence (Licença de Habitação) issued by local authorities confirming the property meets regulatory standards (for a property built after 1951);
• technical certificate of the property (Ficha Técnica de Habitaçã) outlining the construction’s specifications and plans, contractor and supplier details (for buildings certified after 30 March 2004);
• energy performance certificate (Certificado Energetico) proving conformity with energy regulations.

8. Sign the final sales contract 

The signing of the final contract (Escritura Publica de Compra e Venda) takes place in the presence of a notary. At this stage, the buyer pays the remaining amount of the transaction.

9. Register your property and get the title deed. 

The transaction is considered closed as soon as the new owner’s name is recorded on the official land register (Conservatoria de Registo Predial). To get the title deed (Certidão de Teor), you must send certified copies of the sales contract to the land register and tax authorities.

Costs of buying and registering property in Portugal

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