1

Before you buy

Preparation — 3 documents you cannot ignore

NIF · Portuguese bank account · Lawyer / fiscal representative

NIF — Número de Identificação Fiscal Mandatory

The NIF is Portugal's tax identification number. It is required for any property transaction, opening a bank account and tax compliance. EU citizens can obtain it in person at any Finanças office; non-EU citizens must appoint a Portuguese fiscal representative.

Portuguese bank account Recommended

Not legally required, but many sellers and developers expect payment from a Portuguese account. It also simplifies post-purchase payments such as IMI (property tax) and insurance. Requires a valid NIF and proof of address.

Lawyer / fiscal representative Essential

In Portugal, the notary certifies the transaction but does not protect the buyer. An independent lawyer performs due diligence, checks the land registry, reviews the CPCV (Promissory Contract) and accompanies you to the deed. Non-residents must also appoint a fiscal representative.

IFICI tax regime (ex-NHR) Check eligibility

The old Non-Habitual Resident (NHR) regime ended on 1 January 2025. Its replacement, IFICI, is much narrower — it only applies to new tax residents working in science, technology, health or green energy under a qualifying contract, for 10 years. It no longer covers retirees or general remote workers. Consult a tax lawyer to check eligibility before deciding where to domicile your income.

Warning: Never sign a CPCV without an independent lawyer. The deposit (typically 10–20% of the purchase price) is forfeited if you withdraw without legal grounds. This is the most important protection you can have in the process.

2

Finding the property

Agent, buyer's consultant or broker — who works for you?

Property portals · Conflict of interest · In-person viewings

Estate agent (AMI licence)

Licensed by IMPIC under an AMI number. Represents the seller — their commission (typically 3–5% + VAT) is paid by the seller. Their interests are not necessarily aligned with yours as the buyer.

Buyer's consultant Recommended

Works on the side of whoever hires them. Analyses properties with technical criteria, accompanies viewings and negotiates on the client's behalf.

Main property search portals in Portugal

Idealista.pt — largest national coverage, including Lisbon, Porto and the Algarve.
Imovirtual.pt — strong on developer listings and new developments.
Casa.sapo.pt — aggregator with good regional and inland coverage.
Remax, ERA, Century 21, IAD — national networks with exclusive listings.

Portal prices are asking prices, not transaction prices. The typical negotiation margin in Portugal is 5–12% below the listed price.

Data insight: SISO's market dashboard covers 308 municipalities with real INE price data, transaction volumes and historical trends since 2015 — including VMAB (Bank Appraisal Median Value) for 182 of them. Access free →

3

Reservation & contract

The CPCV — Portugal's Promissory Purchase and Sale Contract

Deposit · Sinal · Legal obligations · Timeline

What is the CPCV?

The CPCV (Contrato-Promessa de Compra e Venda) is a legally binding promissory contract between buyer and seller, signed before the final notary deed. It fixes the price, the deposit and the completion date.

The deposit (sinal)

Typically 10–20% of the purchase price. If the buyer withdraws without legal cause, the deposit is forfeited. If the seller withdraws, they must return double the deposit. This is protected by Portuguese law (Art. 442 Civil Code).

Timeline after CPCV

The period between CPCV and the final deed (escritura) is typically 30–90 days — long enough for due diligence, mortgage approval and tax payment. The exact date is agreed between the parties.

What must be included in the CPCV

Full identification of both parties, full property description (including Caderneta Predial reference), exact price and payment terms, deposit amount, completion date, penalty clauses and any conditions precedent (e.g. mortgage approval).

Critical: Have your lawyer review the CPCV before signing. Check for encumbrances, outstanding mortgages, unpaid condomínio fees and planning permissions. Once signed with a deposit paid, exit without loss is very difficult.

4

Legal verification

Due Diligence — what to check before the deed

Land registry · Caderneta Predial · Licença de Utilização · Debts

Land Registry (Registo Predial) Mandatory

Obtained from the Conservatória do Registo Predial. Confirms ownership, encumbrances (mortgages, liens, easements) and any legal charges. Your lawyer requests the certidão permanente — a live online certificate.

Tax Record (Caderneta Predial) Mandatory

Issued by Autoridade Tributária. Contains the property's fiscal registration, VPT (taxable value used for IMI and IMT calculation), permitted use and area. Essential for verifying that the physical property matches its legal description.

Usage Licence (Licença de Utilização) Essential

Confirms the property is legally approved for residential use. Buildings constructed before 1951 are exempt. Absence of this licence can block mortgage approval and future resale. Verify at the local Câmara Municipal.

Outstanding debts & condominium

Confirm there are no unpaid IMI (property tax), condomínio fees or utility debts. In Portugal, property debts can transfer to the new owner. Request written confirmation from the seller's lawyer and from the condominium administrator.

Certidão permanente (land registry) — up to date, no encumbrances
Caderneta predial — matches the physical property and deed description
Licença de utilização — valid and for residential use
Energy performance certificate (Certificado Energético) — legally required for all transactions
Outstanding IMI payments confirmed as zero
Condominium fees paid up to date (written confirmation)
No pending planning or demolition orders

5

Completion

Notary Deed & Acquisition Costs

IMT · Stamp Duty · Notary · Legal fees · Total cost estimate

The Notary Deed (Escritura Pública)

The final act of the purchase is the notary deed, signed at a licensed notary office (cartório notarial) or at the Casa Pronta service (a one-stop municipal service). All parties sign in person (or via power of attorney). Ownership transfers at this moment and the deed is registered at the land registry.

Acquisition taxes and costs

Cost	Basis	Rate / Amount	Notes
IMT — Property Transfer Tax	Purchase price or VPT (whichever is higher)	0–8%	Progressive rates. Urban residential: 0% up to ~€97K; max 8% above ~€1M. Primary residence: lower rates. Land and rural: flat 5%.
IS — Stamp Duty	Purchase price	0.8%	Fixed rate on all property purchases. Paid before the deed.
Notary & Land Registry	Fixed fees	€500–1,500	Varies by property value and complexity. Land registry certificate: ~€20.
Lawyer fees	Negotiated	1–1.5% or fixed	Highly recommended. Covers due diligence, CPCV review and deed accompaniment.
Mortgage stamp duty (if applicable)	Loan amount	0.6%	Only applies if purchasing with a mortgage.
Typical total acquisition costs		6–10%	Of purchase price. Budget 8% as a prudent working estimate.

Note: IMT and IS must be paid to the tax authority before the deed is signed. Your lawyer or notary will issue the payment slips. The bank (if there is a mortgage) generally coordinates this. Keep proof of payment for your records.

6

After the purchase

Post-purchase obligations & ongoing costs

IMI · Condominium · Utilities · Income declaration

IMI — Annual Property Tax

IMI (Imposto Municipal sobre Imóveis) is an annual tax levied on the taxable value (VPT). Urban residential properties: 0.3–0.45% per year (set by each municipality). Billed in April (amounts up to €100), in two instalments (€100–€500) or three (above €500).

Condominium fees

If the property is in a condominium (apartment building or gated development), monthly or quarterly fees are charged for maintenance of common areas, lifts, gardens and security. Confirm the current fee and any planned extraordinary works before purchase.

Utilities transfer

Electricity, gas, water and internet contracts must be transferred to your name after the deed. Your lawyer or the notary can advise on the process. The IBAN of your Portuguese bank account is usually required for direct debit.

Tax declarations & rental income

If you rent the property, rental income must be declared in Portugal (even as a non-resident). Rates vary: 25% for non-residents on net rental income, or 28% under the simplified regime. If you become a tax resident and qualify for IFICI (see above), you may benefit from reduced rates.

You are now a property owner in Portugal. Keep all purchase documentation (CPCV, deed, tax receipts) in a safe place — they are needed for any future resale and for calculating capital gains tax (mais-valias) at disposal.

Buying property in Portugal
as a foreign national

Download the Buyer's Guide

Your PDF is downloading