Buying property in Portugal
Your Guide to Buying Property in Portugal
Buying a property in Portugal may differ from what you’re used to in your home country. The legal and regulatory processes here have unique aspects that require careful navigation. To ensure a smooth and risk-free experience, it’s essential to understand every step of the buying journey.
Explore the detailed information on this page or let us guide you personally. Schedule a call with our team, and we’ll be delighted to answer all your questions and provide expert advice tailored to your needs!
Buying steps
Follow the 7 steps
NECESSARY DOCUMENTS
Essential Documents for Buying a Property
Purchasing a property in Portugal is an exciting journey, and having the right documents ready is key to ensuring a smooth and successful process.
To make it easier for you, we’ve created a downloadable checklist of the required documents. Use it as your guide and stay one step ahead on your path to owning your dream property in Portugal.
PURCHASE COST
One-Off Costs
Purchasing property in Portugal involves certain taxes and additional expenses that are essential to finalize the transaction. Below, you’ll find a clear overview of these one-time costs to help you plan your budget with confidence.
IMT – "Imposto Municipal sobre Transmissões" (Municipal Property Transfer Tax)
IMT is a tax levied on the transfer of immovable assets in Portugal, such as the purchase of a property. It must be paid at the tax office before the property transfer is finalized.
The responsibility for ensuring the correct payment of IMT lies with the buyer or their lawyer, if authorized through a power of attorney. The tax rate varies depending on the nature and value of the property. For a detailed explanation of how IMT is calculated, read our full article on IMT – “Imposto Municipal sobre Transmissões” (Municipal Property Transfer Tax)
Note: This tax does not apply to properties owned by offshore entities.
Stamp Duty – "Imposto de Selo"
The “Imposto de Selo” (Stamp Duty) is 0,8% from the purchase price. When buying with a mortgage another 0,6% has to be paid over the value of the mortgage.
Notary and Registration Fees
The purchaser is responsible for covering notary and registration fees. Standard costs, including the necessary registrations in the Land Registry, are approximately €1,250. However, fees may vary, depending on the notary’s tariffs and your additional requirements, such as purchasing with a mortgage or requesting extra services.
Lawyer's Fee
Most lawyers charge 1% (+ VAT) of the purchase price. Their services include conducting all necessary researches and preparing the required documentation for both the Promissory Contract of Purchase and Sale and the Final Deed.
Agency Fee
In Portugal, the agency fee is typically paid by the seller. As a buyer, you will only incur agency fees if you have explicitly agreed with the agent or agency that they provide dedicated buyer services.
- IMT €
- Imposto de Selo €
Final costs to pay can differ depending on the use and registration of the property you buy. Always ask a lawyer to calculate the exact costs when you purchase a property.
New BUILT PROPERTIES
Buying off-plan
When buying an off-plan property, or property under construction in Portugal, the purchase costs are the same as when you would buy a resale property. The primary difference lies in the payment structure—off-plan properties typically require installment payments as construction progresses.
We offer a wide range of off-plan developments across Portugal. Our expert team is here to guide you through every step of the process, helping you find the perfect property to suit your needs and ensuring a smooth purchase.
Discover all available off-plan developments and explore the exciting properties we have for sale.
What our clients say…
faq
Frequently Asked Questions for buying property in Portugal
What are the key steps involved in buying property in Portugal?
The property buying process in Portugal typically involves defining your objectives, conducting research and budgeting, searching for properties, addressing legal and financial aspects, negotiating and making an offer, performing due diligence, and finally, closing the purchase by signing the contract. Each step is essential to a successful purchase.
Are there any restrictions on foreigners purchasing property?
There are no restrictions for foreigners to purchase a property in Portugal. It is necessary for foreigners to apply for a fiscal number in Portugal before purchasing a property.
How long does it take to complete a property purchase in Portugal?
A property purchase can be done quickly within 1-2 weeks, but more often it takes 3-4 weeks before a promissory contract is signed. This is due to the fact that most buyers choose to appoint a lawyer to perform the due diligence and draft a promissory contract. It often takes 2-3 weeks for the lawyers to perform this task.
Is it necessary to hire a lawyer when buying property in Portugal?
It is advisable to hire a lawyer when buying a property in Portugal. The lawyer is the person who can help you check the legal aspect of the purchase and draft the promissory contract with the necessary conditions to protect you as a buyer. However it is not mandatory to hire a lawyer. Lots of Portuguese buyers for example choose to not hire a lawyer upon their purchase.
Is a verbal agreement a valid agreement for the purchase of property?
A verbal agreement is not a valid agreement that would hold up in court. Only when signing the promissory contract both parties are obliged to fulfill all conditions written up in the contract.
What are the closing costs for a property purchase in Portugal?
Purchase costs ofter vary between 6% to 10% when buying a property in Portugal. In case of a purchase with a mortgage, purchase costs are up to 13% as then an additional imposto do selo + valuation costs + bank costs + translation costs and additional registration costs are applicable.
what are YOU looking for?
Find Your Dream Property in Portugal
Looking for the perfect property in Portugal? Let us help you turn your vision into reality! By filling out the form below, you give us the key details about your ideal home, whether it’s a charming countryside retreat, a modern apartment by the sea, or an investment opportunity in a development or resort.
💡 Why share your preferences?
- Receive handpicked property options that meet your needs.
- Save time — no need for endless browsing.
- Get expert guidance tailored to your purpose of purchase.
Simply let us know what you’re lookig for:
- Type of property: Villa, apartment, townhouse, plot or B&B.
- Preferred location: From the Algarve to the Alentejo.
- Budget range: So we can present options within your reach.
- Purpose of purchase: Holiday home, investment, or permanent residence.
Fill out your criteria today, and we’ll send exclusive opportunities to your inbox. Let’s find your dream property together!
🎯 Take the first step towards your new home in Portugal today!