FAQ

We listed the frequently asked questions about buying a property in Portugal for your convenience.

Please click below on the category and the information will show.

Disclaimer: All information provided on this website is for information purposes only. Despite the care and attention we devote to the content within this website, Home Key Portugal makes no guarantees of any kind and cannot be held liable for any outdated or incorrect information.

BUYING INFORMATION

Any house in Portugal that is being commercially advertised for sale (or rent) has to have an Energy Performance Certificate. The objective is to reduce energy costs, improve insulation and preserve the environment. Rating goes from A+ (excellent) to G (lowest efficiency grade). The seller is responsible for obtaining the certificate before the sale.

If your land is fenced, there is no doubt about what belongs to the property. For unfenced land, the boundaries can be indicated with small landmarks, like rivers, roads, stonewalls, upright placed stones. You can check the boundaries at the following website: https://www.dgterritorio.pt/cadastro/cadastro_geometrico_da_propriedade_rustica__cgpr_/consultar_seccoes_cadastrais/

We can understand that you see a big blank space between the moment of finding your dream property and the moment you actually are in your new home drinking a nice vinho tinto. We give you a step by step overview of what you need to do after you agreed on the purchasing price with the seller.

If you purchase via a real estate agent, they can guide you through the process. They will act as a bridge between the seller, notary and you. Still then, we advise you to do the following.

  1. Hire a lawyer
    If you hire your own lawyer, this person will help you through the entire process, check all paperwork and let you know if something is not right.
  2. Get your finances sorted
    You need to prepare to pay a 10% down payment of the purchase price when signing the promissory contract. If you arranged a mortgage in your country of residence for this purchase, the bank needs to see the promissory contract to make the money available to you. The rest of the payment is due at the day of the escritura (signing the actual purchase contract).
  3. Get a fiscal number (NIF). This number is a personal tax identification number of Portugal and is needed to buy a property. You can obtain this number in the tax office (Financas) in any city of Portugal. You need to bring your passports/ID card, address details, and a bank statement of the country of residence.
  4. Send your personal details to the real estate agent/lawyer/solicitor that will handle the purchasing process. In order to make the contracts they will need:
  •  Copy of your ID/Passport
  • Marital status (If married they need the same details from your spouse)
  • Portuguese fiscal number
  • Address in country of residence
  1. Open a Portuguese bank account (the real estate agent or lawyer can help you with this)
  2. After the escritura is done, you will be left with the key to your new home!
    To connect electric (EDP) and water you need to go to the offices and set up an account. Again, the real estate agent or lawyer can assist you with this.

We made a list for you of the expenses involved when buying in Portugal. Please keep in mind that laws and rates are subject to change over time. Always ask us for a detailed quotation of all costs involved before starting the buying process to know exactly what to expect.

  • Transmission Tax (IMT)

For urban construction this is 1% of the purchase value (until € 92,000) and any value above that is charged with 2%. Rural land is charged with 5% of the purchase value. Industrial building are charged with 6,5% of the purchase value.

Example: when you buy a house of € 90,000 the IMT will be 1%: € 900

When you buy a piece of land of € 25,000 the IMT will be 5%: € 1,250

If you buy a mixed property (both with registered house and land) the notary will assign a value to the house and the land and charge the accompanying taxes.

  • Stamp Tax (Imposto de selo)

This tax is 0,08% of the purchase value.

  • Registrations

Your property need to be registered on your name after the deed. Costs of this registration will vary for urban articles and rural articles. Costs per article are between: € 250,- and € 500,-

  • Purchase Assistance Package

In all cases it is advised to ask a lawyer to help you with your property purchase. Ask her to find out if there is a mortgage on the property, if there are any issues with registration/owners, unpaid property taxes, illegal buildings, etc. Make sure the lawyer speaks and writes in good English so she can translate the contracts and all other important documents for you. If you hire the expert team of Home Key Portugal we can offer you full assistance for € 750,-  https://homekeyportugal.com/full-purchase-package/

  • Solicitor / Notary Costs

The solicitor / notary assembles all paper work and makes the promissory contract and final purchase contract. She schedules the day and time of the escritura, where the seller and buyer come together to sign the purchase contract. These costs are around € 500,-

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