Portugal » The Purchase Process

Property purchase in Portugal is a regulated process. Once you’ve sourced a suitable mortgage and found the right property make a formal offer through the selling agent.

Once a price has been agreed both buyer and seller sign a preliminary contract, usually a Contrato de Promess de Compra e Vende. This document will specify all terms and conditions pertaining to the property transaction. A deposit of between 10 – 30 percent is required at this preliminary stage. If the buyer defaults, he loses the deposit. If the seller defaults on the contract, he will have to refund the equal of double the deposit paid by the purchaser.

A Government official (Notario) is responsible for the legalities of the purchase itself and acts on behalf of both the buyer and seller. Most purchasers feel it essential to instruct an English-speaking solicitor to act solely on their behalf to oversee the whole process.

The buyer will have to apply for a fiscal number, (numero fiscal de contribuente), the equivalent of a UK national insurance number, from the local tax office. Your solicitor can arrange this for you.

Once all conditions as set out in the original contract have been met, the final deed is drawn up and signed by both parties at a public notary office (the notario). The buyer must pay a transfer tax called IMT (imposto municipal sobre transmissões onerosas) before the purchase goes ahead.

The notario will witness the signing of the final deed and the “escritura” is registered at (Conservatória do Registo Predial, the local land registry office, and at the local tax office (Repartição de Finanças).