Property Purchase Guide in Portugal 

After choosing to invest in one of our exclusive real estate opportunities and agreeing to the terms, you should appoint a lawyer to advise and represent you throughout the purchase process.

✅ Tax Number (NIF)

To buy property in Portugal, you must first obtain a Portuguese tax number (NIF). Your lawyer can assist you with the application or handle the process on your behalf.

✅ Seller Documentation

The developer or seller must provide all required legal documentation, including:

• Land Registry Certificate

• Tax Registration Certificate

• Habitation Licence

• Approved architectural plans from the local municipality

• Technical Housing File (Ficha Técnica da Habitação)

• Energy Performance Certificate

✅ Financing (Mortgage Options)

Foreign buyers are eligible to apply for mortgages in Portugal. Our sales team can provide contacts for reputable local mortgage providers who regularly work with international clients.

✅ Ownership Structures

Property in Portugal can be purchased:

• in your personal name, or

• through a corporate structure.

Each option has different tax implications. We strongly recommend consulting a local tax specialist to determine which structure best suits your needs.

✅ Purchase Costs and Taxes

Several taxes and fees apply when purchasing property in Portugal. These vary depending on the type of property, its taxable value, and the ownership structure chosen.

✅ IMT — Property Transfer Tax

IMT is a variable‑rate tax applied to property purchases.

Private Ownership

• Residential properties up to a certain value are taxed on a sliding scale up to 6%

• Above that threshold, the rate is 7.5%

• Plots of land for construction are taxed at 6.5%

Corporate Structure

• No IMT is payable

✅ Stamp Duty

Private Ownership

• Charged at 0.8% of the purchase price

Corporate Structure

• No Stamp Duty is payable

✅ Legal Fees

Legal fees typically range between 1% and 2% of the purchase price.

✅ IMI — Annual Municipal Property Tax

Private Ownership

• Annual rate between 0.5% and 0.8% of the property’s taxable value

Corporate Structure

• Annual rate between 0.3% and 0.45%

✅ AIMI — Additional Municipal Property Tax

AIMI applies to the combined taxable value of all properties owned by the same individual or company.

Private Ownership

• The first portion of value is exempt

• Above that threshold, rates range from 0.7% to 1.5%

Corporate Structure

• Fixed rate of 0.4%

• No exemption applies

✅ Rental Income

Any rental income generated from your property must be declared to the Portuguese tax authorities in your annual tax return.

✅ The Purchase Process

1. Reservation Agreement

A reservation agreement will be prepared outlining:

• what is included in the sale

• the agreed purchase price

• the expected exchange and completion dates

A signed copy will be sent to your lawyer for reference.

2. Promissory Contract (CPCV)

Your lawyer will:

• conduct all necessary legal due diligence

• confirm the seller has clear title

• ensure there are no outstanding charges or encumbrances

They will then prepare the Promissory Contract, a legally binding agreement between buyer and seller. It includes:

• identification of both parties

• property details

• payment schedule

• completion date

• any special conditions agreed

The CPCV is signed before a lawyer or notary. At this stage, the buyer typically pays a deposit into the lawyer’s client account.

3. Completion (Deed of Purchase and Sale)

On the agreed completion date:

• the official deed is signed at the notary office

• the remaining balance is paid

• the notary records the transaction

After completion, your lawyer registers you as the new owner at the Land Registry.

✅ Inheritance and Capital Gains Tax

Portugal offers a range of attractive tax benefits for residents and investors. To fully understand the options available to you, we recommend consulting a local lawyer or tax specialist.

If you would like an introduction, our sales team will be happy to assist.