Buying property in Portugal is a clear and transparent process, ensuring that you, as a buyer, are fully protected throughout. Portugal Homes is dedicated to simplifying your journey of purchasing property in Portugal and providing support at every step.
If you are an expat, the process comprises obtaining a Portuguese tax number, opening a Portuguese bank account, engaging legal assistance, finding a property, making an offer, signing contracts, and completing the transaction before a notary.
With Portugal Homes, investing in this market is a straightforward process, as we support you every step of the way.
Once you find your ideal property, there are three main steps to complete:
Upon agreeing on a price, a reservation secures the property, preventing other offers.
A fee (€6,000-€20,000) is paid, and a two-page document is signed under legal supervision. This 15-30-day period allows due diligence on property licences.
Once you find your dream property for sale in Portugal and agree on a price with the seller, the first step is to make a reservation and demonstrate your intent to purchase the property.
This accomplishes two main goals: First, it prevents other parties from making higher offers, as the property is removed from the market. Second, it gives your lawyer time to verify the property licences and ensure everything is in order.
Typically, a reservation fee of €6,000 to €20,000 is acceptable, and lawyers are usually given 15 to 30 days to complete their work. However, the cost and the timeline are negotiable at the time of sale; nothing is fixed at this stage.
When you are ready to make a reservation, you must sign a simple two-page document with your lawyer and pay the reservation fee.
This legally binding contract details all sale terms and property specifics.
Upon agreement, 10-60% of the purchase price is typically paid. It's registered with the authorities and strongly protects the buyer; if the seller breaks the contract, they must pay double the received amount.
After your lawyer has completed their checks on the real estate documents, they will provide you with a report about the property.
They will request a promissory contract (contrato-promessa de compra e venda) from the seller, outlining all the critical points of the sale and providing a complete overview of the property. Along with this contract, they will share their thoughts and advise you on any required changes.
When you and the property seller agree on the promissory contract, you will pay a second amount, typically a percentage of the sale price, which usually ranges from 10% to 60% of the final sale price.
At this point, the contract is legally binding, making it difficult for the seller to withdraw from the sale. According to Portuguese law, if a seller withdraws from a promissory contract, they must refund the buyer double the amount already paid.
This provision offers reassurance to the buyer, as the severe penalties for backing out effectively discourage sellers from doing so.
Signing the deed officially transfers ownership. For off-plan, the lawyer verifies licences and debt-free status.
For ready properties, the full amount (minus the reservation fee) is paid, and the property is registered in your name. If the buyer has the funds available, the Promissory step can be skipped, and the full purchase price (minus the reservation fee) can be paid at the Deed stage.
This process is straightforward, as much of the work is completed in the second step, the Promissory phase.
If the property you purchased in Portugal was off-plan, your lawyer will check at this stage to ensure all necessary licences are in place and the property is free of any debts.
Once everything is certified, you can complete your purchase and pay the remaining amount. Your lawyer will then register the property in your name, and you will own the freehold of a property in Portugal.
If you have the necessary funds to purchase a ready-for-sale property in Portugal, you can skip step 02 and proceed directly to step 03, signing the deed (escritura).
However, it's important to note that not everyone can access the full amount within 15 to 30 days, which is why a promissory contract is signed in approximately 90% of property transactions.
Investment Insights
In Portugal, while it's not legally required for buyers to engage a lawyer when purchasing property, it's highly recommended.
A lawyer safeguards your interests by conducting thorough due diligence, including verifying property titles, checking for existing debts or encumbrances, and ensuring all legal documentation is in order.
This legal oversight helps prevent potential issues and provides peace of mind throughout the transaction.
While not mandatory, legal counsel is highly recommended. Lawyers protect your interests by reviewing contracts, ensuring clear title, and navigating regulations. We collaborate with leading legal experts.
You'll require a Portuguese tax identification number (NIF), valid ID, proof of income/financing, and property documents provided by the seller.
While not mandatory. A Portuguese bank account simplifies transactions, including down payments, closing costs, and ongoing expenses. We can assist with account setup.
A habitation licence is mandatory for residential properties, particularly in Lisbon where conversions from commercial to residential are common.
This one-off levy represents a percentage rate of up to 8% of the purchase value and must be paid before the signing of the deed. Exemptions or reductions may apply in cases of low asset value, the establishment of a mortgage for a primary residence, or in property transfers between spouses and to heirs.
Stamp Duty is a tax applied at a fixed rate of 0.8% on the value of the property deed. Municipal Property Tax (IMI) is charged annually to the property owner, with a variable rate depending on the municipality where the property is located.
Find your Dream Home in Portugal Today
Browse for PropertiesThe details of investing in the Portuguese real estate market are many, but so are the years of experience that we have here, at Portugal Homes.
Finding the right property in Portugal is easier when you have the right team.With our expertise, you save time and money, gain exclusive market insights, receive legal and tax support, and benefit from a team who prioritise your best interests every step of the way.
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A big thank you to Maria Duclos from the Portugal Homes agency. Her support throughout the process, her great availability, her dynamism but also her listening skills, her empathy and her patience are all assets that allowed the realization of our project.
Family Smith
from Kenya
Looking for an apartment in Portimão to settle my family and me, my advisor Louis was able to help me in my research with kindness. I recommend.
Nuno das Casas
from Kenya
Simon Hobson has been wonderful to work with and we did not feel pushed in any way. Thank you Portugal Homes!
Nuno das Casas
from Kenya
