Buying Property in Portugal: Simplified Legal Steps for a Smooth Transaction
- mouniamikou
- 26 août 2023
- 3 min de lecture
Dernière mise à jour : 11 mai 2024
Portugal's breathtaking landscapes and thriving real estate scene have captured the attention of people around the world seeking new homes or investment opportunities.
If you're thinking about buying property in Portugal, you're embarking on an exciting journey. Let's go through the legal steps together to ensure your real estate transaction is hassle-free.
Here are the 7 steps to seamlessly buy a property in Portugal:
Step 1: Getting Ready and Settled
Before you dive into the Portuguese property market, take a moment to prepare.
Think of it as doing your homework. Learn about current market trends, different neighborhoods, and the types of properties available. And don't forget about budgeting – make sure you consider not only the property's price but also any extra fees and taxes that might come your way.
Step 2: Diving into Due Diligence
Due diligence means doing your homework.
It means making sure the property's ownership is genuine and finding out if there are any unexpected debts or legal problems connected to it. It's like making sure everything is as it seems.
It is recommended to rely on a lawyers expertise to carry on the due diligence process. This expert will know what documents to request, how to get them and what they mean.
Step 3: Putting Promises in Writing
Imagine making a promise on paper – that's the promissory contract.
In portugal it is usually referred to as "CPCV". It lays out all the important details: how much you're paying, how you'll pay it, and any conditions that need to be met before the deal is complete. It's a good idea to have a legal expert review it before you sign to make sure everything is in order.
Step 4: Paying taxes
Owning property means dealing with taxes.
Before the next step, you should request the issuance of the "Guias" and pay 2 taxes :
a Property Transfer Tax (IMT) and
a Stamp Duty (Imposto de Selo).
Step 5: The Grand Finale – Deed
The notary deed is like the big finale of a show.
In Portugal, it is reffered to as "Escritura". It's where you, the seller, and a legal official meet to make everything official. By signing the deed, the property's ownership is transferred to you.
In Portugal notaries and lawyers have each the power to instrumente a deed.
Step 6: Taking Care of the Details
And don't forget to register the property as yours with the Land Registry and with the Tax authority.
Step 7: The Adventure Continues
Congratulations, you're now a property owner in Portugal!
But remember, owning property comes with responsibilities. This includes paying property taxes and following local rules. If you plan to rent out your property, you can also consider using property management services to help.
In Conclusion: Your Path to a New Home
Buying property in Portugal is more than just a transaction – it's a journey. Armed with these legal steps, you're well-prepared to make informed decisions and navigate the process smoothly. Remember, a legal expert is your partner, making sure your journey is secure, exciting, and full of possibilities.
Ready to Take the Next Step?
Select your Trusted Guide
Think of your lawyer as your guide through unfamiliar territory.
Me and my team of Portuguese lawyers are here to guide you through the process of buying property in Portugal.
We're there to help you understand Portuguese real estate law and make sure you're protected. With our help, you'll tackle the legal aspects of property buying with confidence.
Feel free to reach out – your dream property is closer than you think!
Mounia Mikou