Purchasing a property in Portugal is different than buying a property in your own country. Various laws/ procedures in Portugal are different.

Lighthouse are pleased to provide you, with the following information about the purchase procedure in Portugal.

  1. Instructing a lawyer
  2. Promissory contract of purchase or sale
  3. Final deed/Completion

Lawyer/Solicitor

To commence with your purchase, you will require the services of a qualified lawyer. We are more than Happy to recommend you a lawyers firm whom, we have used for many property transactions in the past and they are Bilingual . 

A "Procuração Pública" (Power of Attorney) could be given to your lawyer , saving you time and other expenses, as the lawyer can sign on your behalf.

Prior to the signing of the "CPCV - Contrato de Promessa de Compra e Venda" (Promissory Contract) your  lawyer will ensure that the property you wish to purchase is free of debt, any clauses and in the case of land purchase, that you are able to build on the land.

It is important to ensure that existing plans in the "Câmara Municipal" Town Hall/Council referring to the property corresponds with the existing construction. The vendor must be up to date with the payment of all charges (such as mortgage payments and utility Council tax bills) and must sell the property with vacant possession.

If you require financing for your property, an extra clause can be added into the "CPCV- Contrato de Promessa de Compra e Venda" (Promissory Contract) stating that the contract is subject to mortgage approval.

We can introduce you to our Mortgage Broker in Algarve, Quinta Finance, Portugal Mortgage solution.

Promissory Contract of purchase and sale

Once both parties have is agreed to a price, and the documents are in order, both parties will sign the promissory contract of purchase and sale.

All the terms and conditions agreed by both parties relating to the purchase will be drawn out in the CPCV(Promissory contract).

This contract can then be registered at the notary office arranged by the lawyer.

The buyer normally pays a deposit of between 10% - 30% to the seller at this stage.

With regards to the deposit, the Portuguese law states that if the buyer defaults, he will lose his deposit to the seller, however if the seller defaults then they are demanded to pay the amount double the amount of the deposit to the buyer.

Upon signing of the promissory contract your lawyer will release the deposit to the seller or the lawyer.

Then 3 to 12 weeks later, a date is agreed and stated in the contract for the Completion "Escritura Pública Final deed of conveyance.

Completion/Final deed 

The final deed is the contract that transfers the title of the property from the seller to the buyer. This final deed of conveyance is signed by both parties (or their lawyers) in front of a public or private notary, who confirms that all documentation is in order before all parties place their signature.

Property Transfer tax( IMT) Imposto Municipal sob transacções
The Portuguese Property Transfer tax must be paid at the Tax office (Finanças) before the transfer of the property takes place with the proof of transfer delivered to the Public Notary, this will all be handled by your lawyer.

Property Transfer Tax/ stamp Duty
Prior to the signing of the final Deed. The amount payable varies with the value of the property.

At this stage the payment should be transferred to the seller.

The final contract is read aloud and, unless the buyer understands Portuguese, the content has to be interpreted in the buyers language.

Once  the final deed has taken place, the property is legally yours, but the property still needs to be registered with the "Conservatoria do Registo Predial" (Land registry Office).

Transfer of Gas,Electricity, Water, Telephone
The lawyer would inform the utility companies for the change of name.