In short:
The full journey from offer to key involves seven steps: from due diligence and the preliminary purchase contract (CPCV) to financing, taxes and the final deed (escritura) at the notary. The entire process typically takes two to four months. In this article we walk you through every step, including the pitfalls we encounter in over thirty years of hands-on experience.
You’ve found your dream property, but what actually happens after the offer? The Portuguese buying process may look similar to what you’re used to at home, but it differs on crucial points. It’s precisely in those differences that the pitfalls hide. In this article we take you through the seven steps from offer to key, so you sit at the table with confidence rather than question marks. Whether you’re looking for a holiday home or relocating to Portugal permanently.
Step 1: Making your offer
In Portugal it’s common to offer five to ten percent below the asking price, but that depends on the location, market conditions and your budget. Generally, there is less negotiation in Portugal than in many other countries. Submit your offer in writing, including your price, conditions and any financing contingency. Also specify which movable assets are included.
What many buyers don’t expect: during negotiations and until the signing of the preliminary purchase contract (CPCV) the sale continues. The property stays listed and other interested parties can also make an offer. This sometimes leads to surprising situations. We recently had clients where the seller decided to increase the asking price on all websites by more than fifty percent right after accepting the offer. That’s his right, but it caused our clients considerable stress. This is exactly why it’s important to stay level-headed and not let yourself be pressured.
Never pay a reservation fee without written agreements on refund terms. Before we make an offer, we always request the key documents upfront: the land registry extract (certidão permanente), the fiscal record (caderneta predial), the energy certificate (certificado energético), the usage licence (licença de utilização/habitação) and the floor plans (plantas). This way we know where we stand before the offer is even made, and the due diligence can start immediately.
Step 2: Due diligence
Once your offer is accepted, due diligence begins. We recommend everyone involve a lawyer at this stage. Portuguese regulations around property ownership and permits are complex, especially with older buildings, and you want this information before you commit legally.
You verify whether the seller is actually registered as owner, whether there are mortgages, seizures or easements on the property, and whether the permit status is correct. This information comes from the certidão permanente do registo predial, the Portuguese land registry, which can be requested online for fifteen euros.
Since January 2024, the obligation to present the usage licence (licença de utilização/habitação) and the technical file (ficha técnica da habitação) at the time of transfer has been abolished (Simplex Urbanístico). Instead, there is a duty to inform: the notary or lawyer must explicitly warn the buyer that the property may not have the required urban planning permits. This sounds like a simplification, and administratively it is, but it makes your own due diligence even more important. Because the risk shifts to the buyer. Important to know: despite this simplification, the licença de utilização/habitação is still required when financing through a bank or when applying for an alojamento local (short-term rental licence). Banks can still demand these documents, and without a valid usage licence you won’t get a tourist rental permit.
For apartments there’s an additional requirement: the legal obligation to request a condominium declaration. This shows whether there are outstanding homeowners’ association contributions and what charges rest on the apartment. The association must issue this declaration within ten days. As a buyer you can waive it, but then you also take on any outstanding debts. That’s a risk you should weigh carefully.
Allow one to four weeks for this phase, depending on the complexity of the file. With inheritance sales, multiple owners or unpermitted renovations it can take longer.
Step 3: The preliminary purchase contract (CPCV)
The CPCV (Contrato de Promessa de Compra e Venda) is the preliminary purchase contract. Once you sign, you are legally bound. In Portugal these contracts are often drawn up by the seller’s agent’s lawyer, which in our view creates a conflict of interest. Having your own lawyer prevents this.
Upon signing you pay a deposit (sinal) of typically ten percent. If you withdraw outside the contingency clauses, you lose this amount. If the seller withdraws, they must pay back double. The CPCV must meet specific formal requirements: personal recognition of signatures and certification of the relevant building or usage permit. This formal requirement still exists, even after Simplex. Without the correct formalities the contract can be challenged.
The CPCV typically sets a deadline of sixty to ninety days until the final deed (escritura). During this period the financing must be secured, all paperwork must be in order and taxes are prepared.
Include financing and due diligence findings explicitly as contingency clauses with clear deadlines. Always pay the sinal by bank transfer. The legal consequences of the CPCV are significant. Always engage your own lawyer.
Step 4: NIF and Portuguese bank account
Don’t have a NIF (Número de Identificação Fiscal) and Portuguese bank account yet? Then this is the time to arrange it. Both are virtually indispensable for signing the deed. We recommend sorting this out at the start of your property search through our relocation services. Don’t underestimate the timeline: due to bureaucracy, opening a bank account sometimes takes longer than expected.
If you are from outside the EU and a non-resident, you will also need a fiscal representative. This is something to check early with the Finanças or your legal advisor.
Step 5: Securing the financing
The bank now does its final assessment based on the valuation (avaliação) and the complete file. You receive a FINE (Ficha de Informação Normalizada Europeia) with the mortgage terms.
In some cases this phase can be completed before signing the CPCV, which gives you extra certainty as a buyer. However, the selling party is not obliged to cooperate. In practice the final approval usually takes place after the CPCV.
Despite having everything checked by a lawyer, the bank can be stricter on certain points. Think of a valuation that comes in lower than the purchase price, or a bank that still demands the usage licence. Allow two to eight weeks and don’t forget the stamp duty on the loan (typically 0.6 percent). Bank conditions and timelines vary. Consult a mortgage specialist for advice.
Step 6: The escritura at the notary
The transfer tax (IMT) and stamp duty (0.8 percent) must be calculated and paid before the deed. IMT is levied on the higher of the contract price or the fiscal value (VPT). If the property is in a protected or rehabilitation area, a public announcement for the right of first refusal must be placed (ten business days waiting period).
On the day itself, everyone goes to the notary: buyer, seller, lawyers, agents and, if you have a mortgage, the bank. If you don’t speak Portuguese, you are legally required to have someone present who can translate.
Then the moment arrives: signatures are placed. The bank hands over the cheque to the seller, the notary reads the deed, and the respective parties sign. Legally, ownership of the property transfers at that moment. The land registry registration (registo predial) follows afterwards.
What the lawyer checks at the deed (escritura):
- That buyer and seller are correctly identified, that spouses co-sign where required and that representatives hold a valid power of attorney. With international buyers this is especially important.
- That the certidão permanente, caderneta predial, certificado energético, licença de utilização/habitação and plantas that we requested before the offer are still current and match the actual situation. This is re-checked just before the escritura.
- That the property is transferred free of mortgages, seizures, easements or other encumbrances, unless agreed otherwise.
- That IMT and stamp duty (0.8%) have been paid. Without payment the escritura cannot proceed.
- That all agreements from the CPCV have been fulfilled: delivery date, included inventory, legalisations, permits and debt-free delivery. This prevents last-minute surprises.
- That there is clarity on what is legal and what is not. With virtually all older properties in Portugal there is something that is not fully legalised. Not a dealbreaker, but you need to know before you sign.
- For apartments: that there are no outstanding homeowners’ association contributions (condomínio) and that a recent declaration is available. These debts can otherwise end up with the buyer.
- For financed purchases: that the mortgage deed, bank conditions and property transfer are correctly aligned.
Step 7: The key
You receive the key. For the client this is the moment, but honestly for us too. That smile makes all the stress worth it. After the transfer you put utility contracts in your name, arrange insurance and inform the homeowners’ association manager if you’ve bought an apartment. Keep all fiscal receipts carefully.
What fits your situation?
If you’re buying with cash:
You skip step 5 (financing), which significantly shortens the process. But due diligence and the CPCV remain equally important. Without a bank looking over your shoulder, your own lawyer needs to check even more carefully.
If you’re financing through a Portuguese bank:
Make sure the financing clause in the CPCV is watertight. Without a contingency clause you lose your sinal if the bank says no. Also have the bank review the property documentation early.
If you plan to rent out (alojamento local):
Despite Simplex you still need the licença de utilização/habitação for a rental licence. Check this during the due diligence phase, not afterwards.
Common mistake: Signing the CPCV without your own lawyer because the selling party “has already arranged everything.” What to do instead: Always engage an independent lawyer who represents your interests and adds contingency clauses.
What we see in practice:
- Buyers who transfer a reservation fee without written agreements on refund terms. If the deal then falls through, disputes arise over repayment.
- Selling agents who push for quick decisions (“there are other interested parties”), when staying calm is exactly what’s needed.
- Files that stall because “source of funds” documentation is missing. Start gathering this early.
- Banks that still demand the usage licence after Simplex, surprising buyers who thought this was no longer required.
Frequently asked questions
How long does the entire process from offer to key take?
On average two to four months, depending on financing, the complexity of the file and the notary’s availability. Cash purchases go faster.
Is a lawyer mandatory when buying property in Portugal?
No, but we recommend it to everyone. The regulations are complex and the CPCV has legal consequences that are easy to underestimate without a specialist. Read more about our buying process.
What happens if the bank rejects my mortgage after the CPCV?
If you included a financing contingency clause, you can dissolve the CPCV without losing your sinal. Without that clause you lose your deposit.
Do I need a Portuguese bank account?
In practice, yes. Nearly all payments related to the deed run through a Portuguese account. Start arranging this early.
What is the difference between CPCV and escritura?
The CPCV is the preliminary purchase contract in which you promise to buy. The escritura is the final deed at the notary, through which ownership officially transfers.
Devagar se vai ao longe. Slowly but surely you get far.
Want to know what these steps look like for your situation? Schedule a no-obligation introductory call and we’ll work out the best approach together. No sales pitch, just thirty minutes of honest advice.
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