PORTUGAL BUYING GUIDE

BUYING a home in Portugal involves a well-established two-stage legal process — a promissory contract followed by the final deed — that differs noticeably from the one-step exchanges many UK and Northern European buyers are used to. Recent changes to property transfer tax for non-resident buyers also make it more important than ever to understand the costs involved from the outset. The good news is that, once you know the sequence, the Portuguese system is transparent and well-regulated throughout. Here’s what to expect as a buyer..

OUR INTRODUCTORY MEETING WITH YOU
We’ll always arrange to have a brief meeting with you (before) we start viewing. This will ensure that we now completely understand your property requirements. We’ll also outline to you all of the associated costs involved with your purchase, including IMT transfer tax and stamp duty, as well as explaining the role of the Notary and Land Registry in your buying process ahead.

VIEWING YOUR SELECTED PROPERTIES
We’ll arrange for you to view as many properties as is required. If we don’t have the most suitable property for you, we’ll then also search our other partner agent property listings on your behalf. This expands your search for a suitable property.

MAKING AN OFFER ON YOUR PROPERTY
We’ll negotiate the offer on your behalf. Assuming that an offer is accepted, you can then choose your legal representative. We can provide a list of some locally based bi-lingual lawyers who can carry out the necessary due diligence at the Land Registry, deciding which one may be best to represent your interests quite independently.

THE PROPERTY RESERVATION PROCESS
Once your offer is accepted, we’ll ask you for a (to hold on behalf of the buyer) reservation holding deposit, typically €5,000 – €10,000 (this can be more for properties of €600,000 and above). This will reserve the property for a period of approximately 4-6 weeks and prevent any other agent/s from marketing it. During this period your lawyer carries out due diligence, checking the title (Registo Predial), the tax registration (Caderneta Predial) and any encumbrances, while you obtain a Portuguese tax number (NIF) and open a local bank account, both required before completion.

YOUR EXCHANGE OF THE CONTRACT
Once due diligence is complete, a Promissory Purchase and Sale Agreement (CPCV) is signed, whereby the buyer pays a further deposit, typically 10-20% of the purchase price (minus the reservation holding deposit), directly to the vendor/s, confirming the balance will be paid within the agreed timescale. Typically it’s about 6 – 8 weeks after this stage. Both buyer/s and seller/s sign the agreement, along with an inventory of any furniture included in the sale price. Note; this stage can always take place without the (buyer/s or seller/s) even needing to be present in Portugal, via Power of Attorney.

SIGNING OF THE PROPERTY TITLE DEEDS
Either (or both) parties can assign a Power of Attorney to their lawyer/s to act on their behalf. If not, both buyer/s and seller/s are required in person to sign the final Deed (Escritura Pública) before a Notary in Portugal. This is where the final balance of funds is paid to the vendor/s, after which the deed is registered at the Land Registry (Registo Predial) to formally confirm your ownership.

THE ENERGY PERFORMANCE CERT (EPC)
We’ll also ensure that your property has a valid Certificado Energético (Energy Performance Certificate), which is a legal requirement before any property can be advertised or sold in Portugal.

SOME OTHER USEFUL INFORMATION
Your lawyer is also responsible for registering the change of utilities (water and electricity) into the new owner’s name, and will confirm your ongoing liability for the annual property tax (IMI), which is based on the property’s official rateable value. It is always advised that all buyer/s use their own independent legal representative/s.

OTHER COSTS INVOLVED IN PURCHASING
Approximate one-off costs when purchasing any property in Portugal will always include-
IMT transfer tax: Up to 8% on a sliding scale for resident buyers of a primary home; a flat 7.5% applies to most non-resident buyers under 2026 rules
Stamp Duty: 0.8% of the declared property value
Legal fees: Around 1% – 2% of the purchase price
Notary / Land Registry fees: Around €700 – €1,500, depending on property value