Buying in Portugal
Couple meeting with a Portuguese real estate agent while purchasing a property in Portugal, reviewing contracts and planning their home purchase.
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Portugal has long welcomed international buyers, and there are no restrictions on foreigners purchasing property. The buying process is straightforward, transparent and well established. Once you've found your perfect property, a purchase can often be completed within 6 to 10 weeks, provided all the necessary documentation is in order.
Before purchasing, you will need a Portuguese tax number (NIF – Número de Identificação Fiscal) and are advised to appoint an independent Portuguese lawyer to guide you through the transaction.
The buying procedure is normally done in 3 stages - Reservation, Promissory and Final Deed.
Reservation – once a price has been agreed, your lawyer will ask you to put down a reservation fee of typically between €6,000 and €10,000. This is fully refundable and stays in your lawyer’s account, not with the vendor.
The reservation shows the vendor that you are serious about the purchase, and they will usually agree to remove the property from the market for 2-4 weeks so that the lawyers can carry out legal checks on the property's documentation, etc.
The vendor's lawyer will forward all the property documentation to the buyer’s lawyer, who will then perform due diligence and prepare the contract.
Promissory Contract – Once the due diligence on the property has been completed by your lawyer, the promissory contract (Contrato Promessa de Compra e Venda) is prepared. This is the second stage and the first legal contract signing for the vendor and you as the buyer. At this point, the purchase/sale is legally binding for both parties. Under Portuguese law, should a buyer withdraw from the purchase, they lose their entire deposit. If the vendor pulls out, then the vendor must pay double the amount of the deposit to the buyer.
A 10% - 30% deposit is normally made, inclusive of the reservation fee already paid. This is usually carried out within 2-4 weeks of reservation.
Final Deed – The final deed (Escritura) is the last stage of contract signing and is the transfer of ownership to you, which is signed at the notary’s office.
The remainder of the funds are paid in full, and your lawyer will register you as the new owner in the Land Registry (Registo Predial), utility bills are also changed into your name. The final deed date is typically confirmed at the reservation or promissory stage.
If a buyer or seller cannot be present, then they can give power of attorney to their legal representative.
As multi-award-winning real estate agents in Portugal, we're perfectly placed to help you find your ideal property, whether you're looking for a holiday home, investment property or a permanent residence.