PROPERTY BUYING PROCESS IN PORTUGAL

Step 1: Get Prepared

• Set Your Budget
  In addition to the purchase price, plan for extra costs—typically around 6–10%—to cover taxes, legal fees, and other expenses.

• Build Your Support Team
  It’s highly recommended to work with a local real estate agent, independent lawyer, and mortgage broker (if needed)—especially if you're purchasing from abroad.

• Get Your NIF (Número de Identificação Fiscal)
  A Portuguese tax number is required for any financial or legal transactions. If you're not a resident, a fiscal representative can assist in obtaining one.

Step 2: Finding the Right Property

• Partner with a Licensed Agent
  A knowledgeable agent will help you understand the market, arrange viewings, and guide you through the process from start to finish.

Step 3: Making an Offer

• Negotiating Terms
  Your agent can help you negotiate the price and conditions of the sale.

• Optional Reservation Agreement
  To secure a property, it’s common to pay a reservation fee (typically between €5,000–€10,000, though this may vary).

Step 4: Promissory Contract (Contrato de Promessa de Compra e Venda)

• Legal & Technical Checks
  Your lawyer will carry out due diligence—reviewing ownership, debts, licenses, and planning permissions. A survey may also be arranged at this stage.

• Signing the Agreement
  This legally binding document outlines the agreed terms of the sale.

• Paying the Deposit
  A 10–20% deposit is standard. If the buyer backs out without legal grounds, this amount is typically non-refundable. If the seller withdraws, they must return the deposit and pay an equal amount in compensation.

Step 5: Mortgage & Financing (If Applicable)

• Financing Options for Non-Residents
  Most banks offer mortgages up to 60–70% of the property's value, depending on your financial profile.

• Bank Valuation
  If you're financing, the bank will carry out a valuation of the property.

• Required Documents
  Generally includes proof of income, identification, tax returns, and other financial documents.

Step 6: Final Legal Checks

• Final Verification
  Your lawyer will confirm the property is legally clear of debts, liens, or other encumbrances before closing.

Step 7: Signing the Deed (Escritura)

• Final Payments
  The remaining purchase balance, taxes, and any final fees are paid at this stage.

• Deed Signing at the Notary Office
  The final contract is signed in the presence of a notary.

• Property Registration
  Once signed, the property is registered in your name at the Land Registry.

Step 8: After the Purchase

• Set Up Utilities
  Transfer electricity, water, gas, and other services into your name.

• Optional Insurance
  Consider arranging home insurance for peace of mind.

Typical Costs to Expect

• IMT (Property Transfer Tax): Up to 7.5%, depending on property type and value
• Stamp Duty: 0.8% of the purchase price
• Notary & Registration Fees: Approximately 1–2%
• Legal Fees: Generally 1–2% of the property value

What Documents Will You Need?

• Passport or valid ID
• Portuguese NIF
• Proof of address
• Income documentation (for financing)
• Marriage certificate (if applicable)

Why Work With a Real Estate Agent?

• Local Market Knowledge – Navigate the property market with expert guidance
• Efficiency – Save time with coordinated viewings, paperwork support, and negotiations

Frequently Asked Questions

Can non-residents buy property in Portugal?

Yes! There are no restrictions on foreign property ownership in Portugal.

How long does the buying process take?

On average, it takes 2 to 3 months, though this may vary depending on financing or legal processes.

What are the ongoing property costs?

• IMI (Municipal Property Tax): Typically 0.3–0.5% of the property's taxable value
• Utilities & Maintenance: Varies by property
• Condominium Fees: If applicable, for shared developments or apartments