The Process of Buying Property in Portugal (Zie Nederlands beneden)

Whether buying only land and needing planning permission for a new-build home, or buying a habitable house or renovation project, it is best to consult a professional for advice. 

Property law in Portugal is very specific !!


Summary of Necessary Documentation

You can do the following all yourself (not easy if you don't speak the language), or have a professional do it for you. The following documentation is always required before one can buy and live in a property. ·

1) Tax number ( numero de Contribuinte) ·
2) A Habitation License for any property which has been built after 1951 ·
3) A Certified insertion (Caderneta Predial) in the records of the local "Conservatorio" which is the Land Registry ·
4) A detailed "Caderneta Urbana" from the local "Financas" which is the Tax Office ·(If one has purchased rural property one will also need the "Caderneta Rustica" issued by "Financas") 
5)  Certidao de Teor from Financas which lists any debts hanging over the property

Everyone coming to Portugal should immediately apply for a Numero de Contribuinte (Tax number) This is easily done at the local Tax Office. One needs this number for just about anything - to open a bank account, to have electricity and /or water supply connected , to have a telephone installed etc. etc.

If one is buying land only and building from scratch, an architect´s plan must be submitted for approval by the Local Council and written consent to build (a licence) is required in most instances, This is relatively easy to obtain,  but sometimes lengthy time-wise, in being issued. One must bear in mind, and build into one's planning, the slow pace of the official paperwork processing machine in Portugal.

DIY Checklist:

One must ensure that the person(s) selling the property is/are legally able to do so, as many Portuguese who have inherited their rightful share of property after the passing away of parents, do not register this change of ownership with the tax office or conservatorio (land registry). Sometimes a property may be owned by, 12 inheritors each one having been designated a certain part of the land or house. When selling the whole property, all 12 owners plus spouses have to agree to this, as well as sign the documentation. This can be a very long-winded and complicated process (sometimes with inheritors abroad or at unknown addresses) .

Buying from owners in the process of divorce is a very difficult and treacherous element one might encounter. Divorce in Portugal is granted only years after application, so if things go wrong, you could wait a long time. 

NB: It is best to check thoroughly that all details on any paperwork pertaining to the purchase of a property in Portugal, are absolutely correct and that it all agrees with any other documents relative to them. 

Before buying also make sure to check carefully whether all documentation complies with the requirements of your specific Conservatorio (land registry) and Financas (tax office) as sometimes there are small local differences in the interpretation of the general rules. It is also wise to do some searches relating to any form of debt (loans, taxes, bills etc) that might be hanging over the property, as one inherits these all with the purchase, and once one has agreed to purchase there is no easy way of getting out of such encumbrances. 

After the whole process has run its course through the.....
1. searches, 
2. checking the documentation  
3. agreement and payment of the deposit
4. completion of the purchase ending with payment of the remainder of the purchase price and signing the deed
 ... you must have the property registered into your name at the Land Registry (Conservatorio).

The Escritura (Deed of Sale) is signed by all parties involved or can be carried out on your behalf by a power of attorney. Witnesses are also required to sign, but these can be recruited from amongst people present in the building. 

Considering inheritance law it is advisable to draw up a Portuguese will to avoid complications for your beneficiaries in the unfortunate case that you may pass away . 

It is as important in Portugal as in other countries to insure your property. It is wise to have a policy which includes cover for fire, flood, storm damage and earthquake damage.

Extra amounts to be Paid: ·
1) Purchase price of property ·
2) IMT Tax 2008 - Purchase Price of a main residence
    up to 87.500€ = 0%, 
    between 87.500€ and 119.700€ = 2% minus 1.750€, 
    between 119.700€ to 163.200€ = 5% minus 5.341€,  
    between 163.200€ to 272.000€ = 7% minus 8.605€, 
    between 272.000€ to 553.900 = 8% minus 11.325€ and 
    all property above 543.900 = 6%
    IMT Tax 2008 - Purchase Price of a second residence (holiday home)
    up to 87.500€ = 1%, 
    between 87.500€ and 119.700€ = 2% minus 875€, 
    between 119.700€ to 163.200€ = 5% minus 4.466€,  
    between 163.200€ to 272.000€ = 7% minus 7.730€, 
    between 272.000€ to 521.700 = 8% minus 10.450€ and 
    all property above 521.700 = 6%
    (Note: If one is buying land only (rustica) with or without a ruin, the Tax is 5% on the whole amount)
3) Notary Fees (for drawing up the Escritura and being present at the completion and registration at the Conservatorio) ·
4) Estate agent's fees approx 5% to 10%( if one has one) ·
5) Lawyers fees  approx 2% to 3% (if one has one) ·
6) Renovation costs (artisan @ 65 euros.....labourer 30 to 40 euro,  per man per day - Dec 2006)


If you are going to need a mortgage, try to get one agreed in principle before you start your property search. This could save you time and money. If you are choosing to finance the purchase with a mortgage, it is probably quickest and easiest to the loan against a property you own in the UK . Other avenues to consider are: loans from Portuguese or offshore banks. It is advised to shop around so as to secure a good deal. 

Once one has decided to purchase and an offer has been accepted, a kind of promissory
contract (Promessa) is drawn up and signed, and an agreed deposit , anything between 10% and 50%, paid.

Should you later want to withdraw you are likely to lose the deposit and be required to pay some
compensation towards expenses incurred by the seller. Should the seller withdraw however, he is liable by law to return to you, double the deposit paid, as compensation. 

"IMT" tax has to be paid prior to completion of the purchase. It works on a sliding scale: see note 2 above. 

Many people are persuaded to register the property at a price lower than the actual to save on tax as well as the seller saving on his capital gains tax. It is best to tread carefully here and a lawyer's advice should be sought if you are interested in following this route as it is punishable by law and is not ultimately much in your favour. See http://www.sundreamhomes.pt/properties/index.php?action=page_display&PageID=38

The above notes are presented in a general form and to the best of our knowledge, correct. We cannot guarantee that what has been written is infallible as rules change and interpretations differ. 

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De bovengenoemde notities worden aan u aangereikt naar eer en geweten en waarmee wij op de hoogte zijn. Tussentijds wijzigen (zoals regelgeving volgens de Portugese wet etc.) voorbehouden.

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