Buying a Property in Portugal

Some useful tips when buying a property in Portugal

Tax Number / Fiscal Number (Numero Fiscal de Contribuinte)

In order to purchase property in Portugal you will need a fiscal number which is obtainable from the nearest tax office (Ministerio de Finanças) You will need a proof of identity (your residency card, identity card or passport) and an address in Portugal so that the tax office can send your fiscal card (Cartão de Contribuinte). If you do not have a Portuguese address you can use that of a solicitor or a friend. When you move into your property, remember to change your details to the new address!

Bank Account

It is advisable to open a Portuguese bank account, so that any bills that arise during the buying process can be paid locally. You will need your passport, birth certificate,and some proof of address in the U.K. (such as utility bills). Transfer of large amounts of money can then be sent from your U.K account to your Portuguese one.

Promissory Contract (Promessa de Compra e Venda)

When you have chosen a property and have agreed a price, you will sign a Promissory contract (Promessa de Compra e Venda) with the owner. This states that you promise to buy the property, and the owner promises to sell it to you, at an agreed price and within an agreed timescale.

You then pay a deposit (normally 10% of the purchase price) and agree on a date to complete the purchase. If you withdraw from the purchase you will lose your deposit, and if the owner fails to keep their side of the bargain, they must repay you twice the amount of your deposit. It is highly recommended that you employ a Portuguese solicitor to handle the contract.

Purchase Tax (Imposto Municipal - IMT)

You must pay the purchase tax (IMT) before you complete the sale.

Purchase tax for plots of land is 5%, for building land 6.5%. IMT on other properties is on a sliding scale based on the value of the property: Purchase price of up to 80,000 euros is zero rated.

Continental Portugal

Permanent Residence
Purchase Price (euros)	% of Purchase Price	Adjustment (reduce by euros)
Up to €89,700	0	0
€89,700 - €122,700	2%	€1,794.00
€122,700 - €167,300	5%	€5,475.00
€167,300 - €278,800	7%	€8,821.06
€278,800 - €557,500	8%	€11,608.95
over €557,500	single flat rate of 6%	-
Non Permanent Occupation
Purchase Price (euros)	% of Purchase Price	Adjustment (reduce by euros)
Up to €89,700	1%	0
€89,700 - €122,700	2%	€897.00
€122,700 - €167,300	5%	€4,578.06
€167,300 - €278,800	7%	€7,924.00
€278,800 - €534,700	8%	€10,712.05
over €534,700	single flat rate of 6%	-

(correct as of January 2009)

The official original, together with figures for Madeira and Açores, can be found here (pdf).

Completion of Sale (Escritura Publica de Compra e Venda)

All of the parties must agree a date to complete, and make an appointment with the Notary. Everyone involved in the purchase/sale must attend at the Notary's office, (unless you have granted your solicitor power of attorney to act on your behalf). You must have a translator present so that you understand what the notary reads to you. Your solicitor must ensure that all the relevant documents are present. You and the sellers will be read the Deed of Purchase and Sale which everyone will sign. At this point you must pay the balance of the purchase price. The property is now yours, but you must still take an official copy of the escritura to the land registry (Conservatória do Registo Predial) to have the property registered in your name. If the property is to be your main residence you will normally be able to claim exception of the local council tax (IMI) for up to the first 6 years, depending on the value of the property -

Value of property up to 150,000 euros - 6 years exception Value of property up to 225,000 euros - 3 years exception

(correct as of September 2006)

Note - All of the above information is for use as a guide only. Check all details with your solicitor.

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