Property Purchase in Portugal

For most investors, the procedures follows the steps below:

1. Tax and Budget planning:

Taxes and fees are mostly paid by the buyer and vary throughout Portugal’s regions. They typically include the following:

• Property transfer tax that varies from 1% to 8%, depending on the purchase price
• Stamp duty of 0.8%
• Notary costs, title deed tax and land registration fee of 1% to 2.5%

2. Obtain a NIF

Obtaining your Portuguese Tax ID Number and opening a local bank account will simplify much of the process.

4. Mortgage terms

If you’re considering applying for a mortgage, only those that are 30 years old or younger can negotiate a 40-year mortgage. 

5. Reservation agreement and Letter of Intent

This agreement grants you total control when purchasing the property. For example, it can prevent the seller from continuing to list the property. Our lawyers will draft a Letter of Intent that protects your rights should your’s or the seller’s circumstances change. 

6. Perform Due Diligence

An experienced real estate lawyer will make it their priority to ensure the purchase is flawless. They will investigate things like hidden debts, the asset’s quality and explore tax relief. This step also allows for negotiation of the price and other terms. 

7. Sign a Promissory Agreement

 Make a down payment as a guarantee for both parties.

8. Sign a Purchase Deed

 The parties meet to sign the property’s purchase deed at the Public Notary’s Office.

9. Taxes and fees

Once the property is purchased, it’s essential to register the property with the tax authorities, settle all necessary taxes, contract utility bill companies and obtain insurance.