Below is a brief description of what is involved in buying a property in Portugal. You can find more information on how we can assist you in What Portugal House Hunters can do for you?. This section will outline what Portugal House Hunters can do for you at each phase.
There are several phases to distinguish:
Where do you want to live? What type of property do you want to buy in Portugal? These are personal preferences that require you to research what is available for sale.
In Types of Houses in Portugal, you will find an overview of the various types of properties available in Portugal.
Additionally, you can look at websites of selling real estate agents in Portugal. This will give you insight into what is for sale in Portugal and the prices being asked. Based on this information, you can establish an initial list of preferences and a budget. This can be challenging due to the distance and limited knowledge of the local market.
Curious about what we can do for you in this inventory phase? See more.
Numerous websites are available online showcasing properties for sale, primarily in Portuguese, with some offered in English and a few in other languages.
Unlike some markets, a property in Portugal can be listed by multiple real estate agents, which often means they prioritize the seller’s interests over those of buyers. The market can lack transparency, and there are no centralized platforms similar to what you might find in other countries.
We are here to assist you in navigating the local housing market and finding your ideal property. For more information, see We help with your search.
The process of purchasing real estate in Portugal has some key differences compared to other countries, particularly for international buyers:
Legal Due Diligence: It is common practice in Portugal to engage a lawyer who will conduct thorough due diligence on the property. This includes checking ownership rights, taxes, and any debts associated with the property. This preliminary research is essential before you sign any purchase contract.
Preliminary Purchase Contract (Contrato de Promessa de Compra e Venda): Once you agree on a price, a preliminary purchase contract is drafted. This document outlines all the terms of the sale. The buyer typically makes a deposit, usually between 10-30% of the purchase price. This contract binds both parties to the agreement.
Mortgage (if applicable): In Portugal, non-residents can obtain mortgages for property purchases, typically up to 70% of the purchase price. The process involves applying for a mortgage through a Portuguese bank, with requirements such as proof of income, identification, and a property appraisal.
Notarial Deed (Escritura Pública): The final transfer of ownership takes place at a notary’s office, where the Escritura Pública is signed. This document confirms the sale and officially makes you the owner of the property.
The deed must include a description of the property, details regarding any mortgages or costs associated with the house, the agreed-upon sale price, payment methods, as well as the taxes and fees related to the sale. This is also a good opportunity to verify that all necessary documents are in order, such as the energy certificate, any insurance policies, and the latest invoices for taxes and community fees.
Registration and Taxes: After the notarial deed is signed, the property must be registered with the land registry and tax authorities. The buyer is responsible for paying the property transfer tax (IMT), notary fees, and registration costs.
In Portugal, the process is more formal with a greater emphasis on legal due diligence and the involvement of a lawyer, while in many other countries, the notary plays a central role in the transaction.
When purchasing property in Portugal, it’s important to be aware of various transaction costs and taxes that may apply:
IMT (Imposto Municipal sobre Transmissões): This is the property transfer tax, and the rates vary based on the value of the purchase price.
Imposto de Selo (Stamp Duty): This tax is paid by the buyer at the time of transfer.
Notary and Registration Fees: These costs vary depending on the notary office and may increase if you secure a mortgage or utilize additional services.
Legal Fees: Lawyer fees typically range from 1% to 1.5% of the property’s purchase price.
Real Estate Agent Commission: The seller is responsible for paying the real estate agent’s commission.
IMI (Imposto Municipal sobre Imóveis): This is an annual municipal property tax that is calculated as a percentage of the property’s value and can vary by type and municipality.
Being informed about these costs can help you budget effectively for your property purchase in Portugal.
When conducting real estate transactions in Portugal, several documents are required. Below is an overview of the key documentation requirements:
Identification Documentation:
For Non-Portuguese Buyers: A valid passport is required.
For Portuguese Citizens: A copy of the identity card (Bilhete de Identidade) suffices.
NIF – Número de Identificação Fiscal (Tax Identification Number):
Everyone purchasing property in Portugal must obtain a NIF. This number is essential for tax filings, opening a bank account, and other financial transactions.
Documents from the Seller:
If your lawyer approves the above documents, you will proceed with the purchase process, which will involve the following two documents:
Note: This information is indicative. It is crucial to be well-informed about the legal and tax implications for each purchase and sale of real estate in Portugal, as laws can change. Always consult an expert for advice.
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