The Purchasing Process

Buying a home in Portugal works differently than many people are used to from their home country. That’s why it’s helpful to know in advance what steps to expect and how the process is usually structured.

On this page, you’ll find a clear overview of the most important phases in the purchasing process. In the section What does Portugal House Hunters do for you? you can read how we support you in each step.

In broad terms, the buying process consists of three main parts:

Defining your wishes
Together we clarify where you want to live, what kind of property suits you best, and what is realistic within your budget and plans.

The search for a suitable home
Selecting, evaluating, and viewing properties that match your situation and future plans in Portugal.

The purchase process itself
From making an offer to the legal checks and the final transfer at the notary.

Defining your wishes

The first step in the buying process starts with getting clarity on what is truly important to you. In which region do you feel at home? Are you looking for peace and space, or do you prefer a lively atmosphere with amenities close by? Do you want a turnkey home, or are you open to a renovation project? And what should your ideal plot, surroundings, and accessibility look like?

In Types of Houses in Portugal, you will find an overview of the various types of properties available in Portugal.

Many people begin by browsing properties online. This helps you get a feel for prices, architectural styles, and locations. At the same time, it’s not always easy to accurately assess from a distance what is realistic within your budget and what is common in Portugal. It is often in this early phase that you start to build a realistic picture of what is possible and what may need adjusting.

By structuring your wishes step by step, we create a clear search profile. This forms the foundation for a targeted property search and prevents you from wasting time later on homes that ultimately don’t fit.

Curious about what we can do for you in this first phase? See more.

The search for your home

Once you know what you’re looking for and roughly where you want to live, the next phase begins: finding a property that truly matches your needs. It may seem straightforward online, but the property market in Portugal works differently than many people expect.

Homes are often listed through multiple agents at the same time, and there is no central website with a complete overview of all available properties. In addition, selling agents primarily represent the interests of the seller. This makes it harder to accurately assess from a distance what is realistic, what a property is really worth, and which important points deserve attention.

That’s why searching in Portugal usually requires a targeted approach and local knowledge, not just to find properties, but especially to recognise the right ones.

Curious how we can support you with selecting, evaluating, and organising viewings? We help with your search.

The purchase of your property

Buying a house in Portugal is an exciting step, but the process differs in several ways from what you may be used to in your home country. Below we explain step by step how it works, so you can move forward well prepared.

1. Legal due diligence
In Portugal, every purchase always starts with thorough legal research. A local lawyer checks the property for ownership rights, outstanding debts, tax arrears, and any legal restrictions. This is not optional in Portugal — it is an essential step that should never be skipped. We are happy to help you find a reliable lawyer who represents the buyer’s interests.

2. The preliminary sales contract (CPCV)
Once you agree on the price, the agreements are recorded in a Contrato de Promessa de Compra e Venda (CPCV), the preliminary sales contract. This document sets out all the conditions of the purchase. At this stage, you usually pay a deposit of 10% to 30% of the purchase price. After signing, both parties are legally bound by the agreement.

3. Mortgage
Even if you do not live in Portugal, in many cases you can obtain a mortgage from a Portuguese bank, usually up to a maximum of 70% of the purchase price. This requires income details, an identity document, and a valuation report, among other things. We are happy to discuss the options with you and can connect you with mortgage advisors who have experience with international buyers.

4. The notary deed (Escritura Pública)
The official transfer of ownership takes place at the notary, where the Escritura Pública is signed. This document formally makes you the owner of the property. The deed includes details such as the description of the property, the agreed purchase price, the method of payment, and an overview of the additional costs and taxes.
This is also the moment to check that all required documents are in place, such as the energy certificate and the most recent property tax assessments and any service charges.

5. Registration and taxes
After the notary deed, the property is registered in the land registry and with the Portuguese tax authorities. As the buyer, you pay transfer tax (IMT), notary fees, and registration duties. The amount depends on the purchase price and the type of property.

Transaction costs and taxes

When buying a home in Portugal, you will encounter several additional costs and taxes on top of the purchase price. It is wise to take these into account in advance so you have a realistic picture of the total budget required.

The main costs are:

IMT (Imposto Municipal sobre Transmissões)
This is the property transfer tax you pay when purchasing a home. The amount depends on the purchase price, the type of property, and whether it is your main residence or a second home.

Imposto do Selo (stamp duty)
This tax is paid at the time of transfer. The percentage is fixed by law and is calculated on the purchase price of the property (and potentially on the mortgage amount if you are financing the purchase).

Notary and registration costs
For drafting the notary deed and registering the property in the land registry and with the tax authorities, you pay fixed administrative fees. These can be slightly higher when a mortgage is involved or when additional registrations are required.

Lawyer’s fees
A lawyer usually handles the legal due diligence and checks all documents related to the purchase. Costs vary per case and depend on the complexity of the transaction and the work involved.

IMI (Imposto Municipal sobre Imóveis)
This is the annual municipal property tax. The amount is calculated based on the fiscal value of the property and varies by municipality.
Together, these costs form an important part of the total purchase amount. By factoring them in beforehand, you avoid surprises during the buying process.

Documentation when buying a home in Portugal

When buying a home in Portugal, document checks play a very important role. Unlike in some other countries, a large part of the security happens upfront: before you sign, it must be clear that the property is legally sound and correctly registered. That is why various personal and property-related documents are reviewed during the process.

Below you will find an overview of the most important documents involved.

Personal documents

To buy a home in Portugal, as a buyer you will need at least the following:

Identity document
A valid passport or national ID card.

NIF (tax number)
The Portuguese tax identification number is mandatory for every buyer. You need this number for the purchase itself, but also for opening a bank account and paying taxes related to the transfer.

Portuguese bank account
In practice, you will need to open a Portuguese bank account to purchase a property. This account is used to pay taxes, notary fees, and the final payment at the time of transfer. A local account is also usually required for future fixed expenses, such as the annual property tax (IMI).

Important property documents

In addition to your own details, the documentation of the property itself is carefully checked. These documents provide insight into the legal status, registration, and technical characteristics of the home.

Caderneta Predial
This tax authority document contains the fiscal details of the property, such as the registered value and type of use.

Certidão Permanente (land registry extract)
This shows who the current owner is, whether there are any mortgages or other encumbrances on the property, and how the plot is officially registered.

Licença de Utilização (usage permit)
For properties built after 1951, this permit is required to prove that the municipality has officially approved the building for residential use.

Ficha Técnica de Habitação
For newer homes, this document contains technical information about the construction and materials used.

Energy certificate
This certificate provides insight into the energy performance of the home and is mandatory when selling a property.

Important note: This information is for guidance only. For every property purchase or sale in Portugal, it is essential to be properly informed about the legal and fiscal implications, as laws and regulations can change. Always consult a qualified professional for advice tailored to your situation.