1. Step by step real estate law process in Portugal
The steps to buying a property in Portugal have some nuances compared to neighboring European countries. Here are the key stages of the real estate purchase process:
Search for a House
Searching for real estate abroad can seem daunting, but there are several solutions today that greatly facilitate your search!
- International Platforms: Use international search platforms like Green-acres.com, which brings together listings from many real estate agencies, all translated into your native language!
- Hire a House Hunter: More costly but less time-consuming, you can hire a local house hunter. They will find properties that match your criteria, saving you time in your search.
Make an Offer
You can conduct viewings remotely through a representative, but it’s best to see your future home in person! When you find the perfect house, it’s time to make an offer. This should include:
- The price of the property.
- The timeframe for signing the promissory contract (see below).
- The timeframe for signing the sale.
- The deposit paid at reservation and upon signing the promissory contract.
- Any other special conditions (such as refunding the deposit if the sale is canceled).
Make a Reservation
In Portugal, when you want to purchase a property, you can make a reservation, either with an honor pledge letter or by paying a defined amount. This latter option is common when the property is in high demand or when the promissory contract is signed several weeks later. Be sure to verify the recipient of the payment—it should be the real estate agency or lawyer, request a receipt, and confirm that the deposit will be refunded if the sale is canceled.
Due Diligence
Buyers are encouraged to conduct due diligence. This includes checking for encumbrances and debts associated with the property, building permits, etc., conducted by a lawyer specialized in real estate law. This step ensures that the property is free from any disputes.
Sign the Promissory Contract
If the offer is accepted, a promissory contract (Contrato de Promessa de Compra e Venda) is signed, binding both parties and typically involving the payment of a deposit. This crucial step secures the agreement between the buyer and the seller.
Sign the Deed of Sale
Once everything is in place, the deed of sale (Escritura Pública de Compra e Venda) is signed in front of a notary. This notarial deed constitutes the legal proof of the transaction.
Register the Property
You must then register the property at the land registry office (Conservatória do Registo Predial). This registration guarantees legal recognition of the property.
You are now the owner of your house!
2. Costs related to the purchase of a property
Transfer tax (IMT)
IMT is payable when buying a property. The rates of this tax vary depending on the type and value of the property. IMT is a cost to be expected when acquiring a property in Portugal.
Stamp duty (Imposto do Selo)
A stamp duty of 0.8% applies to the purchase value of the property at the time of the transaction. This fee is an additional fee that buyers must pay at the time of sale.
Notary fees
The choice of notary is up to the buyer, who will also pay the fees, so don’t hesitate to compare the cost of the services beforehand!
Agency fees
Unlike other European countries, agency fees are paid by the seller. Also, and except in exceptional cases, you will never be asked for agency fees for a property purchase in Portugal.
3. Building regulations
Building permit
Any construction or renovation project must obtain a building permit (Licença de Construção) from the local municipality. This permit ensures that the buildings comply with urban plans and local regulations.
Building Standards
Constructions must comply with the safety and quality standards defined by law. These standards aim to guarantee the safety of buildings and the durability of constructions.
5. Property taxes in Portugal
Municipal Property Tax (IMI)
IMI is an annual tax calculated on the tax value of the property. Rates range from 0.3% to 0.45% for urban properties and up to 0.8% for rural properties. This tax is payable annually and contributes to local finances.
We have a full article on real estate taxes that you can check out here!
6. Inheritance and inheritance tax
Portuguese inheritance laws provide that direct heirs (spouses, children) have automatic rights to part of the inheritance, even in the presence of a will. To avoid the forced heir rule, foreigners are advised to stipulate in their will that the law of their home country applies.
Check out our article on the subject here!
Portugal property law in 2025
The legal framework for real estate in Portugal is designed to provide robust protections for owners, tenants and investors. Understanding these laws and regulations is essential for anyone considering getting involved in the Portuguese real estate market. For personalized and more detailed advice, it is recommended to consult a lawyer specializing in real estate law in Portugal.
