Buying a House in Portugal
Buying property in Portugal is relatively straightforward for foreigners — there are no restrictions on foreign ownership. The process involves a promissory contract, notary deed, and several taxes.
Get a NIF
Required before any property transaction. If you don't have one yet, this is your first step.
Open a Portuguese bank account
Needed for the mortgage (if applicable), utility transfers, and IMI tax payments. Most banks require NIF, passport, and proof of address.
Find a property and make an offer
Use Idealista.pt or Casa Sapo. Consider hiring a buyer's agent. Once agreed, a reservation deposit (usually 5-10K EUR) may be paid.
Hire a lawyer (advogado)
Strongly recommended. They check the property registry (Conservatoria do Registo Predial), verify no debts or liens, review contracts, and attend the notary deed.
Sign the CPCV (promissory contract)
Contrato de Promessa de Compra e Venda — a binding agreement. You typically pay 10-30% as a deposit (sinal). If the seller backs out, they owe you double.
Documents needed
- NIF
- Passport/ID
- Proof of funds or mortgage pre-approval
Get a mortgage (if needed)
Portuguese banks typically lend 70-80% LTV for non-residents, up to 90% for residents. Process takes 4-8 weeks. Compare rates at Bankinter, Millennium BCP, Novo Banco.
Pay IMT (property transfer tax)
IMT (Imposto Municipal sobre Transmissoes) is paid before the deed signing. Rates are 0-8% depending on property value and whether it's primary residence. Use the AT simulator.
Pay Stamp Duty (Imposto de Selo)
0.8% of the purchase price or tax value (whichever is higher). Paid at the same time as IMT.
Sign the Escritura (notary deed)
Final signing at a notary (Cartorio Notarial) or Conservatoria. Both parties (or their representatives with power of attorney) must be present. The property is officially yours after this.
Documents needed
- NIF
- ID/Passport
- CPCV
- IMT payment receipt
- Stamp duty payment receipt
- Caderneta predial (from Financas)
- Certidao do registo predial (from Conservatoria)
- Energy certificate
- Habitation license
Register the property in your name
The notary submits the registration to the Conservatoria do Registo Predial. This is your legal proof of ownership.
Transfer utilities
Water (Camara Municipal or local provider), electricity (EDP, Galp, etc), gas, internet. Each requires NIF and proof of ownership.
Pay IMI annually
IMI (Imposto Municipal sobre Imoveis) is the annual property tax. Rates are 0.3-0.8% of the tax value. Paid via Portal das Financas in May/August/November.
Watch out
- ●Always check the Conservatoria (land registry) for liens, mortgages, or legal disputes before signing anything
- ●The caderneta predial (tax office record) and the actual property must match — check measurements and boundaries
- ●Budget for total closing costs of 7-10% on top of the purchase price
Track this in the app
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