Buying Property in Portugal

Be sure to have the following ready before searching for your new home

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• Legal & Administrative:

  • obtain a Portuguese tax number (NIF)

  • get a Portuguese real estate lawyer (I work with independent real estate lawyers)

  • open a Portuguese bank account to issue the mandatory certified bank drafts (cheques bancários)

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• Know your budget

  • if you need a mortgage, meet with a mortgage broker to determine how much you can borrow​

  • determine the amount of cash you will need up front for a down payment and closing costs

  • determine how much you will pay in taxes

    • progressive property transfer taxes (IMT) up to 7.5%

    • 0.8% Stamp Duty based on the purchase price or VPT

    • qualifying first-time buyers under 35 can access IMT Jovem exemptions

    • non-residents and foreigners will often be required to pay 30% down, more or less

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The Process

 

• ​accepted proposal

• real estate lawyer drafts the promissory contract (CPCV)

• the signed CPCV locks in your down payment under a strict double-deposit rule before ownership is legally finalized at the public deed (Escritura)

  • if you back out, the seller keeps your deposit​

  • if the seller backs out, they owe you double your deposi​​

• ​​​​your lawyer will go through all necessary legal documents

  • the habitation/usage license

  • the land registry certificate

  • the energy certificate

  • the tax registry

  • audit past condominium meeting minutes to ensure you do not inherit structural debts or pending building maintenance costs

  • and other legal documents