Make sure you have the right start: by working with true professionals you'll soon see how simple purchasing a property in Portugal can be.

Once you've found your dream property, what next?

Fiscal Number

Before purchasing a property in Portugal (or opening a bank account), you will need a fiscal(tax) number (Numero Fiscal de Contribuinte). This can be applied for and immediately received at your local Tax Office (Repartição de Finanças). You need to provide your residency/identity card or passport and an address in Portugal to which the Tax Office can send your fiscal card (Cartão de Contribuinte). If you do not have a Portuguese address you will normally be able to use that of a lawyer, solicitor, estate agent or friend.

The next step of course is to make an offer. Our advice is to give as much positive information as possible to the vendor to support your offer. You should consider:

  • How quickly you wish to complete the purchase
  • If you need finance
  • How much deposit you are prepared to pay (construction companies in particular often offer discounts when a large deposit is paid)
  • If you wish to buy any of the fixtures &: fittings

Your offer should be discussed with us first - we usually know the client / owner very well and can help to negotiate a deal which is agreeable to both vendor and purchaser.

Buying a new home can be a daunting prospect, and even more so in a foreign country where the language and purchase laws are very different. However, with our help plus a reputable legal advisor there's no need for concern when buying a property in Portugal. Select a lawyer/solicitor who regularly carries out property conveyance and who is able to respond in a set timescale to your requests. A major benefit is that a lawyer can be given power of attorney, thereby saving you considerable time and expense travelling to Portugal to sign documents in person.

A lawyer will ensure that:

  • The property is duly registered in the Vendor's name.
  • There are no changes, mortgages or encumbrances registered on the property.
  • There are no fiscal debts, like Predial tax / Contribuição Autárquica.
  • The property was built in accordance with Portuguese regulations and that planning permission was granted by means of a document known as a habitation licence.

Most lawyers will help with the connection / re-connection of services such as gas, electric etc. This should be agreed during initial meetings.

The promissory contract is a preliminary contract drawn-up to cover the purchase of any property. It is 'promissory' because both parties effectively promise to enter into a final contract to buy / sell the property - known as the escritura (final deed) - which is done at a later stage, drawn up and signed before a public notary. This is the vital binding document signed by both parties. It identifies the parties, regulates the terms & conditions agreed (such as 'subject to mortgage'), the price, the completion date, and any other relevant conditions.

A deposit is also required upon signing the promissory contract. The amount may vary, but be prepared to pay a minimum of 10% of the agreed purchase price. It is advisable that this amount should never exceed 20-30%. This deposit is released / paid upon signing the promissory contract. In individual circumstances - and with most new-build properties - a separate payment structure will be advised and agreed.

If all the above formalities are fulfilled but the vendor then decides he/she no longer wishes to sell the property (i.e. breach of contract) you have two options:
(a) demand compensation equal to twice the amount of the deposit you paid
(b) force him to sell it to you by seeking an order of 'specific performance' of the contract. This is obtained by taking out legal proceedings against the vendor in court and involves a considerable amount of time, money and patience.

If, on the other hand, it is you who no longer wishes to proceed with the purchase, then your deposit is lost to the vendor, who can also try and force you to buy through the same system of 'specific performance'.

A promissory contract is not obligatory but, once signed, it becomes fully binding and must be fulfilled. After the promissory contract, we then enter the notarial deed of purchase and sale. Completion is known in Portugal as the 'Escritura Pública de Compra e Venda', the process through which ownership of the property is transferred to you. All the property documents must be submitted to the notary, together with proof of payment of tax on the transfer of the property known as 'IMT'. The escritura is signed at a notary's office on the same date it was agreed to finalize the purchase, and the balance of the purchase price is paid to the vendor at this time.

Even though you have become the owner of the property by signing the escritura, it is only by final registration of the property in your name which grants you full security of ownership, and protects you against the actions of any third parties.

The connection of water, electricity and telephone follows the acquisition of your house. You will be required to fill out new application contracts for the supply of these services to your property. You should ensure that there are no debts left by the previous owner before the signing of the escritura, or you will be liable for any outstanding payments.


Important Documents

Fiscal Number - Número de Contribuinte. A fiscal number is required for many transactions, such as opening a Portuguese bank account, purchasing a property etc. Non-resident individuals must empower a Portuguese tax resident person or company to carry out their fiscal representation before purchasing a property. Fiscal representation basically means that they will act in respect of your tax affairs with Portuguese revenue.

Land Registry - Registro Perdial. A search will be made to check the land registry title at the local municipality. Where appropriate, checks on licences and permissions will be made.

Tax department document - Repartição de Finanças. A search will be made to ensure tax registration on the property; also that there are no charges which may adversely affect the property.

Habitation Licence - Licença da Habitação/Utilização. Properties for habitation must have a habitation licence, confirming the property has been constructed in accordance with the plans submitted to the Camara (local council). Properties built before 1951 are exempt from this requirement. Properties for other uses (e.g. storage) will have a utilisation licence, not a habitation licence.

House Passport - Ficha Técnica. This is a relatively recent requirement, which came into effect on 16th August 2004. All houses completed after 30th March 2004 must have a 'ficha técnica' which gives technical details of the construction type, all materials etc. The builder of the property provides this document.

Energy Certificate - Legal requirement, as from January 2009, for all properties which are sold or rented.


Taxes and additional costs

IMT Property Purchase Tax

Prior to completion of the transaction the purchaser is required to pay a property transfer tax called IMT to the Finanças (similar to paying Stamp Duty in the UK). On properties for habitation the tax rate varies according to the acquisition price of the property (a sliding scale based on the value of the property ) and can go up to a max of 6%. On land on which one cannot build the applicable rate is 5%. For building land or other types of properties the applicable rate is 6.5% (08.2016). The minimum amount of IMT to be paid is based on the Finanças valuation of the property (property ratable value), even if the final sale price was actually lower.(See tax-table)

Stamp Duty (until 2017)

In addition, a so-called 'Stamp Duty' of approximately 0.8% must also be paid.

AIMI (from up 2017)

see tax table (click on it, please)

Notary Fees

Notary fees and registration fees should not exceed €1,000.00 (one thousand euros).

Lawyer Fees

Lawyer fees should be between 1% and 1,5% of the final sale price.


The Golden Visa Programme launched by the Portuguese Authorities in October 2012 is the best investor visa scheme in Europe. It is a fast track for citizens from non European countries and family members to obtain a fully valid residency permit in Portugal and to travel freely in the vast majority of the countries in Europe (Schengen area).

Who can request a a residence permit for investment activities?
Third country nationals who either carry out investment activities personally or through a company that lead to, at least one of the following situations in Portuguese territory for a minimum of 5 years.

       Property Investment

  • Acquisition of property with a value of minimum € 500.000
  • Acquisition of property above € 350.000 for property more than 30 years old or located in areas of urban renovation.

Capital Investment

  • Transfer of funds with a value equal or above € 1,000.000 with total freedom to invest in Portugal
  • Transfer of funds above € 500.000 for capitalization of small and medium size companies

·        Transfer of funds above € 350.000 for research activities. Investment amount may be reduced by 20% (€ 280,000) in case such investment is made in low density population areas

  • Tranfer of funds above € 250.000 for artistic or cultural activities

       Job Creation

  • Creation of at least 10 jobs without minimum investment value. Investment amount may be reduced by 20% (8 employees) in case such investment is made in low density population areas

Requirements on the investments

Provide evidence of having the ownership of real estate property by public deed or promissory share-purchase agreement of the property, with a declaration of an authorized financial institution to exercise its activity in Portugal. An up-to-date certificate issued by the real estate registry.

Provide evidence of having invested the minimum amount required, including stocks or shares of companies. Confirmation by an authorized Portuguese financial institution. An up-to-date certificate issued by the Commercial Register.

Creation of jobs
Provide evidence that minimum 10 jobs have been created and the employees registered in the social security.

Requirements for the investor

  • The investment has to be kept for at least 5 years
  • Funds for investments should come from abroad
  • Entry in Portugal with a valid Schengen Visa
  • Portuguese Fiscal number
  • Declaration from the Tax- department and Social security proving the absence of debts
  • Absence of references in the Portuguese Immigration and the Schengen services
  • Absence of conviction of relevant crime
  • Criminal record of the country of residency
  • Health insurance valid in Portugal
  • Proof of income and address
  • Minimum stay in Portugal, 7 days during the first year and fourteen days during each subsequent period of two years

What are the costs involved?

  • Processing fee € 514,80 + € 80,20 per family member
  • Initial Golden Visa € 5,147.80
  • Renewal of Golden Visa € 2,573,90

Countries of the Schengen Area

Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, The Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland


Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, this information does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error or omission.