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Looking for your dream Property in central Portugal ? You are on the right website ! Excellent investment opportunity in central Portugal

Before you will find your dream house in Portugal you should find at first good :

Professional Legal Advice

Foreigners, unable to speak Portuguese, or speak it to only a limited degree, often decide to rely on using some form of legal advice when buying property in Portugal.

Types of Representative

The two types of representatives you might approach are either a solicitador(a) or an advogado(a). . If you don't speak Portuguese yourself, take an independent Portuguese translator, or reliable Portuguese speaking friend, to do these checks.

Fiscal Number

Numero Fiscal de Contribuinte

To purchase property in Portugal, you need a fiscal (tax) number Numero Fiscal de Contribuinte. That's simple procedure.You apply in local tax office Repartição de Finanças with your passport or identity card. Cost about 7 euros. Your lawyer can do it for you too (cost more). Tax office will send your fiscal card Cartão de Contribuinte to your Portuguese address (better to your lawyer address). You need your number immediately to prepare :

Power of Attorney

Procuraçã : Necessery for your lawyer to complete the Deed of Purchase and Sale; Escritura Publica de Compra e Venda .

Promessory Contract

Promessa de Compra e Venda

Once you like to buy your dream property normally you will sign a promessory contract Promessa de Compra e Venda. You promise to buy the property, and the owner promises to sell it to you.You have to pay a deposit normally 10% of the purchase price. If you fail to complete the purchase you will lose your deposit, and if the owner fails to complete the sale they must repay you twice the amount of your deposit. Better if your lawyer will sign a promessory contract for you before he will check the registration of the property in the local land registry where full detail of the property from its beginning and all its history and all ownership will be recorded.

Necessary Documents

1.Certidão de Teor- showing if the property is registered in the owner's name and if there are any outstanding mortgages on the property.
2. Caderneta Predial, from the Fiscal Department (Finanças), detailing the size of the property, its location and boundaries, and a brief description. In the case of land there may also be a drawing of the plot.
3. Confirmation from the Tax Department (Finanças) confirming that all the rates bills (IMI) are paid. This is important as any outstanding IMI tax will stay with the property and be the responsibility of the new owners.
4. Proof of payment of IMT.
5. Ficha tecnica de habitação; houses built or altered after 31 December 2003 should have a Ficha tecnica de habitação, containing information about the property such as builder's details, type of materials used and suppliers, etc.
6. Identification documents and tax numbers of the owners and buyers.
7. Power of attorney and the representative's identification document and tax number (if applicable).

Purchase Tax

Imposto Municipal Sobre Transmissão Onerosa de Imóveis (IMT)

You must pay any purchase tax (IMT) at least 3 days before you complete the sale and proof of payment must be shown to the notary.

Update January 2007: There are now 2 different scales for IMT, one applies to permanent residences and one for second homes, see below:

IMT for land only (prédio rustico) is 5%.
IMT for construction & urban properties not for habitation (eg Armazens) is 6.5%.
For mixed land (predios mistos) the rustic part attracts the flat rate of 5%, with the urban part rated either as the chart below or 6.5%.

IMT on other properties is on a sliding scale based on the value of the property (as of January 2008):


  Purchase price
  Percent of
  purchase price
  Tax Band
  (reduced by)
  up to 87,500   0   0
  87,500 - 119,700   2   1,750
  119,700 - 163,200   5   5,341
  163,200 - 272,000   7   8,605
  272,000 - 543,900   8   11,325
  over 543,900   single rate of   6%


  Purchase price
  Percent of
  purchase price
  Tax Band
  (reduced by)
  up to 87,500   1   0
  87,500 - 119,700   2   875
  119,700 - 163,200   5   4,466
  163,200 - 272,000   7   7,730
  272,000 - 521,700   8   10,450
  over 521,700   single rate of   6%


Paying for your property

You need to open a Portuguese bank account to pay for the purchase of property, taxes, lowyer, etc. and utility bills, rates, etc. that you will need to pay when owing a property in Portugal.You can also transfer the money to the bank account of your lawyer to purchase the property for you . For the details ask your lawyer.

Completion of Sale

Escritura Publica de Compra e Venda

To complete, you (or the owner, or your/their solicitor) must make an appointment with the Notary. All parties involved in the purchase/sale must attend at the Notary's office, unless you have granted someone power of attorney to act on your behalf (see below). If you don't speak portuguese you must have a translator present, and you must take with you all the relevant documents (your solicitor will normally organise this). You and the sellers will be read the Deed of Purchase and Sale (Escritura Publica de Compra e Venda) which you will then all sign. You must now pay the balance of the purchase price.

The property is now yours, but you must still take an official copy of the escritura.

IMI (Council Tax)

Isenção de Imposto Municipal sobre Imóveis

First-time buyers may apply for exemption from paying IMI. The request should be made, within 60 days from the signing of the escritura, at the Finanças for the area where the property is located. Exemption is only granted on main residences (not on second homes or holiday homes). The period of acquisition is counted either from the date of acquisition (for a property which is not new) or emission of the municipal license of use (for a newly-built property).

  Patrimonial Value     Exemption in years  
  Up to 157.500 euros     6
  Up to 236.250 euros     3

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Source of those informations:

Buying Property in Portugal - by Gabrielle Collison