Information for Buyers: A Step-by-Step Guide to Buying Property in Portugal

Information for Buyers: A Step-by-Step Guide to Buying Property in Portugal

Step 1 – Making an Offer

The first step in purchasing property in Portugal is finding a property you love and making an offer. Some negotiation may be required and your estate agent will guide you through this process. It’s essential to work with a licensed estate agent, such as Panoramic Properties, who can ensure you understand the entire process and make the experience as smooth as possible.

Once a price is agreed upon, you’ll need to hire a Portuguese lawyer. Your lawyer will review all documentation to ensure that everything is legal, up-to-date, and that the property is free from any legal complications.

Step 2 – The Promissory Contract and Deposit

The next step is signing the Promissory Contract (Contrato Promessa de Compra e Venda). This is a legally binding agreement between you and the seller that confirms both parties’ commitment to completing the sale.

The contract will include all the terms and conditions of the sale and must be signed in the presence of both legal representatives. At this stage, you will need to pay a deposit, typically 10% of the purchase price.

Be aware of the following:

• If you, as the buyer, pull out of the sale after this point, you will forfeit your deposit.
• If the seller withdraws from the deal, you are entitled to twice the deposit as compensation.

Step 3 – Legal Checks & Paperwork

The time frame from signing the promissory contract to final completion can range from 4 weeks to 4 months, depending on the agreement between both parties.

During this period, you will need to obtain a Portuguese fiscal number (Número Identificaçâo Fiscal ). Your lawyer will also perform a series of essential legal checks, ensuring that the property is free of debts or encumbrances. In addition, your lawyer will gather the following official documents:

• Habitation License (Licença de Habitaçâo) – confirms that the property is suitable for living.
• Property Registration Document (Certidão de Teor) – verifies ownership and legal standing of the property.
• Property Tax Document (Caderneta Predial) – shows the tax status of the property.
• Energy Certificate – rates the energy efficiency of the property.

Once all checks are completed and the paperwork is in order, you’ll be ready for the final stage: completion.

Step 4 – Completion

Completion day marks the official transfer of ownership. You (or your appointed representative) will meet with the seller and a Notary (Notário) to sign the Deed of Sale (Escritura de Compra e Venda). At this stage, you must ensure the balance of the purchase price has been transferred, and you will also need to pay any outstanding taxes and fees.

These include:

• Property Transfer Tax (Imposto Municipal Sobre Transmissão Onerosa de Imóveis – IMT)
• Notary and registration costs
• Stamp duty
• Legal fees

If you’re unable to attend the signing in person, you can authorize your lawyer (or another representative) to act on your behalf by granting them Power of Attorney (Procuração Pública), which can be arranged by the notary.

Once the deed is signed and all taxes are paid, the Notary will submit the necessary registration details to the Land Registry (Conservatória do Registo Predial).

At this point, the property is officially yours!