Many people would like to realize their dream of owning a property in Portugal, with us, officially state licensed Real Estate Agency in Portugal, at your side this would be possible, we are happy to advise you and are looking forward to guide you in this very exciting dream realization.

After the right property has been found we definitively recommend hiring a lawyer. We strongly advise to never seek advice from just anyone, always choose a qualified lawyer. There are some basic steps that are important for buying a property in Portugal and that are usually carried out by a lawyer. Here is an example of what a lawyer will do for you:

What do I need if I want to buy a property?

Your lawyer will apply for a tax number for you.

What happens once you find the right property?

Your lawyer will check for you if ownership registration documents are correct. It is also checked if the property is free of (bank) debts, (government) claims or outstanding taxes, further if the local authority has approved architectural plans and its project matches what the customer is purchasing.

What are the next steps after all the documents of the property are checked?

You will sign the so-called “contrato promessa da compra e venda”, the Promissory Contract, you promise to buy and sign the final contract of sale(“Escritura”, Deed) based upon the conditions mentioned in the Promissory Contract. Although it is not forbidden to buy without Promissory Contract(hence go straight to Deed) this contract is used in almost all property change of ownership rights transactions and naturally is legally binding, it specifies in its clauses all the arrangements agreed upon to come to signing Deed including amounts others the agreed date for completion and payment scheme.

To which amount are advance payments agreed in the preliminary contract?

Although there are no legal implications about the amount of an initial payment, 99% of all Promissory Contracts run with a down payments of 10% of the total purchase price. The Promissory Contract will naturally be signed by both parties either in person or by their legal representatives in possession of a Power of Attorney to so.

What costs does a buyer have to pay besides the purchase price?

Payment of property transfer tax, the so called “IMT”. For urban real estate there are fixed rates and scales up to an amount of € 550.836,—, above this amount applies a rate of 6%. If the purchase of a property is by a permanent resident of Portugal, there is a small discount.

Building plots, commercial and service properties pay 6.5% and rustic land 5%.

What is the stamp duty at the notary?

The stamp duty is 0.8% of the price declared for the property in Deed

Notary transmission of the documents "Escritura", goes on as before?

At the notary office the transfer of change of ownerships rights of the property is officially celebrated in the “escritura”, Deed, signed again by both seller and purchase or their legal representatives. For this act at the Notary a fee of approximately € 325 to € 450 is due, payable by purchasing party.

Who will take care of registration at the land registry?

Registration in the land registry is normally done by your lawyer. A registration fee of € 225 to € 250 will be charged at the Land Registry Office.

Who will take care of the registration at the tax department?

Your lawyer will also take care of registering at the local tax office. The name of the purchaser(s) is linked to the property in the matrix register of this public entity.

Do I have to open a bank account in Portugal?

Yes, a bank account is needed to at least be able to be used for paying utilitity services(eg. water, electricity, gas, insurance). You can ask your lawyer to open one or of course open a bank account yourselves .

Who else do I have to pay when owning a property?

Property owners pay an annual property tax called “IMI”, which is a percentage of the property valuation amount carried out by the tax department. Urban real estate pay 0.3% to 0.5% of this registered real estate valuation and rural land 0.8%.