The Buying Process

Portugal is one of the most popular locations for buying overseas homes in Europe. You wish to purchase a charming countryside house in a beautiful tranquil valley, a modern luxurious villa offering sweeping views of the Atlantic Ocean, a lovely flat in the historical part of Lisbon. We will find your future property. BHP’s portfolio offers a wide selection of properties for all needs, wishes and dreams. If not, just submit your research criteria and we will prepare a special individual selection for you.

It is also important to note, that our database includes properties that are not displayed on our website for confidentiality reasons.

General steps of buying property in Portugal

1. Once you identified the property you want to purchase you will need to make an offer. Usually this will be done via the real estate agent who will proceed to negotiate the best deal for both parties – buyer and vendor. Once the offer is agreed we recommend you to sign a reservation agreement with a deposit with your own lawyer as a proof of your intention to complete the purchase. The property will then be taken from the market by the vendor. Then the buyer’s lawyer should check all relevant legal documents of the property and the owner.

2. We recommend now to set up a Promissory Contract (Contrato Promessa de Compra e Venda) as soon as possible. The contract will establish in detail all details about procedures and conditions of the sale – like the agreed price, payment terms, buyer and vendor etc. At this point a deposit is paid, usually 10-20% of the total purchase price agreed. This contract can be signed personally by the parties or by the lawyers acting for them, based on a power of attorney. This deposit is forfeited if the property buyer backs out; if the vendor withdraws he must pay the buyer double the value of the deposit.

3. Both parts sign the Public Deed (Escritura) in front of a Portuguese Notary who will check all the documents and ensures that the buyer has paid the Purchase Tax (IMT). The balance of the purchase price plus all fees and taxes must be paid before the Escritura can be signed. With the Escritura and all transaction completed, the buyer’s lawyer will then proceed to register the new owner of the property with the Finance Department and the Land Registry.

4. At this stage you are the owner of your property in Portugal.

NOTE: This is only a general introduction to the process, for more details please contact us info@besthomesofportugal.com

The Buying Costs

1. Transfer Tax (IMT)

This is the Portuguese Property Purchase Tax (Imposto Municipal sobre Transmissões onerosas de Imóveis). The IMT tables for Portugal Continent – one for permanent residence and the second one for rental or holiday homes are modified yearly.

For the purchase of rustic or agricultural land the tax applicable is always 5%.

For the purchase of urban or commercial property the tax applicable is always 6,5%.

2. Stamp Duty, Notary and Registration Fees

The rate of Stamp Duty (Imposto do Selo) – 0,8%

The Notary and registration fees need to be paid for the process of certification of the documents, confirming you as the owner of the property and are usually expected to be between 1%-1,5% of the purchase price.

3. Lawyers Fees

We very much advice our clients to seek the assistance of an independent Portuguese government registered lawyer who will assist you through any legal and notary matters relating to the purchase of a property in Portugal. We can recommend one of our Legal Partners with remarkable local knowledge in the Portuguese property purchase process. These experts will provide you service in your native language.

4. Agency Fees

In Portugal the agency fees are always paid by seller’s part. We highly recommend you to use a licensed estate agent who will help you to avoid irregularities and complications that might arise during the purchase process.