A step-by-step process of buying property in Portugal
Buying a property in Portugal can be lifechanging. Whether you’re buying an investment property, a home to visit in the holidays or a second home, understanding the buying process will put you in control.
Buying property in Portugal might seem daunting as an international buyer, but it’s actually quite straightforward, especially when you have the right professionals on your side.
From browsing properties to getting the keys, we’ll guide you through the process of buying a property in Portugal.
Initial planning
Regardless of how well acquainted you are with Portugal and where you want to buy, it will pay off to start your buying process with a bit of research.
Your first step is to determine the purpose of the property you’re looking to buy. Then, look into location. You might be looking to invest and rent out a property, and some regions are better suited than others. Will you be a full-time resident in your Portuguese property? It will all guide where and how you buy in Portugal.
Where to start your research:
- Portugal Property Guides
- Online property portals, like Your Overseas Home, Idealista and Rightmove Overseas
- Attend overseas property events (see below)
- Speak to a property lawyer
- Enquire with estate agents in Portugal
Portugal Property Guides has an array of content designed to assist you on the buying journey, both inspirational and informational. You can also make trusted connections at overseas property events.
Our sister brand Your Overseas Home hosts regular online events suited to those looking to buy in Portugal. Hear from and put your questions to legal experts, estate agents and currency specialists. Browse upcoming events today.
Property buying in Portugal: Your six-month countdown
From browsing online properties to getting the keys in hand, three to six months is a realistic and achievable timescale to buy a property in Portugal. You can absolutely take longer, especially if you’re still trying to decide which location you’d like to buy in.
What follows is a rundown of the Portugal buying process for resale property using a six-month timescale to the date you’d like to be able to take ownership of the property.
Six months to go
Sort out your money. You need to know how much you have to spend in Portugal if the currency you hold is not euros. Smart Currency Exchange can help you work out your budget and offers specialist services to property buyers that your high-street bank or app-only service can’t. These will allow you to lock in an exchange rate and protect your property budget from exchange rate movements.
Contact estate agents. Once they understand your requirements they can begin your property search. They will be your expert on the ground in Portugal, even introducing you to areas better suited to your requirements than you might have considered.
re an independent property lawyer. They’re an essential contact for foreign buyers in Portugal. If you show interest in a property while you are house hunting in Portugal, it’s likely that the agent will offer to put you in touch with their own friendly lawyer to assist with the sales process. There’s nothing to say that there’s any ill-intent here, but it’s always best to select and hire your own lawyer. That way you know that they are working entirely in your interests, without any conflicts.
Five months to go…
Begin your detailed search. It’s time to start browsing available properties for sale in Portugal. You should also think about how you will structure any purchase; for example if buying as an unmarried couple. You’ll be able to act quickly and decisively if you already have this in mind.
Attend overseas property events. Your Overseas Home hosts regular webinars and biannual events that you can tune in to from the comfort of your own home. You will get answers not just on buying property but also on moving to or retiring to Portugal if that is your plan.
Four months to go…
Start your property shortlist for homes that pique your interest. Once you have a shortlist, you can schedule your viewing trip.
Before you fly, reconnect with your professional team of currency specialist and lawyer to finalise all arrangements. If you find the right home, you may need to act swiftly.
Get your NIF number. The Portuguese Numero de Identificacao Fiscal, or NIF, is hugely important. It’s vital for big things like buying a property, applying for visas and smaller things, like buying a mobile phone. Your NIF can be issued by your local tax office (Finanças) or a citizen’s shop, or by opening a bank account in Portugal. most independent property lawyers will include this in their services to you.
[Download our free guide, Your Viewing Trip, for expert advice on what to ask & guidance on next steps]
Three months to go…
Make an offer on your dream property. Make sure to consult with your team of experts. If your offer is accepted, you may be asked to sign a reservation contract and pay a deposit for the property to be taken off the market. Your lawyer will be able to assist. They will now start to perform necessary due diligence checks, such as ensuring the property legally belongs to the owners and they have the right to sell.
Research any pressing matters. If there’s anything you need to take care of, such as legal, tax or inheritance issues and speak to specialists to help you deal with them, if necessary.
Begin arrangements for how you’ll pay for the property and transfer the money. You might want to use a forward contract via a currency specialist, which will fix an exchange rate for 12 months, protecting you from any fluctuations in the currency market.
At this point, it’s wise to book in a building survey for the property (if needed).
Top tip: Always consult your independent lawyer before signing anything
Two months to go…
Sign the deposit/promissory contract, which is locally known as the contrato de promessa de compra a venda. At this point, you pay the official deposit on the property. There’s no hard and fast rule on the value of this deposit. That said, 10-30% of the purchase price is quite standard, less the reservation deposit already paid.
Fix your exchange rate. You are now committed to paying out a substantial sum of money in euros. But what if your own local currency weakens against the euro? You will need to find thousands more. You can avoid that risk with the right product.
Get in touch with the notary. A notary is a vital part of your Portuguese property purchase. It’s their job to oversee the deal – your estate agent/property lawyer may be able to organise this on your behalf as they often have close relationships with local notaries.
Contact necessary companies to ensure utilities are all connected. Your estate agent may be able to assist you with this.
Plan removals. Don’t leave planning to the last minute or try to cram it all into your suitcase, organise an international removal company to take your belongings to your new property in Portugal.
One month to go (the final countdown)
Sign the final sales deed, locally known as the escritura. Both the buyer and seller must be present (or relevant parties with valid power of attorney). This must be signed in Portugal in the presence of a notary. After you have transferred the funds, the documents are read aloud and signed by both parties.
Pay the property purchase tax (IMT). It’s the notary’s job to ensure that this is paid before the property changes hands.
Receive your keys and move in. Your new life in Portugal awaits…
Register the property. While the property is legally yours after you sign the final deed, you must then, with the assistance of your lawyer, register the property with the local tax office and the Land Registry (Registo Predial).