Buyer's Guide to Portugal

In order to buy a property in Portugal, you will need an NIF number (Fiscal Number) so that the Portuguese Tax Authorities can identify you. With your fiscal number you can open a bank account, buy property & pay tax.

Upon finding your ideal property your real estate agent will prepare a letter of intent & contact the lawyer. The letter of intent is to secure the property while the lawyer is preparing the promissory contract.

Before signing the promissory contract, your lawyer will check the current ownership of the property & ensure it is free of charges & debts. The vendor must be up to date with the payment of all charges (such as mortgages) or debts (such as utility bills) & must sell the property with vacant possession.

Upon signature of the promissory contract you will have to pay a deposit which by Portuguese law is a minimum of 10% of the purchase price. If the vendor fails to fulfil delivery of the property per the contract, you will be entitled to a refund of twice the amount of your deposit. If on the other hand you as the buyer are unable to fulfil the contract, the vendor is entitled to keep the deposit amount without any refund to you being necessary.

If you require financing for your property, an extra clause can be added into the promissory contract stating that the contract is subject to mortgage approval.

Other useful points for you to consider are:

If you are purchasing a new property, you should be provided with a copy of the certificate of completion of works and also the licence of first occupation.

If you are buying an off-plan property, the vendor is obliged to make certain information available to you. This includes copies of the relevant maps & architecture plans, registration details, building license and a completion date along with the consequences of non-compliance with the terms of the Promissory Contract. You should also receive a copy of the bank guarantees to cover funds paid over to the vendor by the purchaser prior to completion should there be any problems with the development.

If buying off-plan, once the work is complete and the money and or mortgage is in place, you will be able to sign the Title Deed (Escritura P�blica de Compra e Venda) at a Portuguese Private or Public Notary. This transfers ownership of the property to you. If your lawyer has power of attorney, he can sign this on your behalf. The Title Deed must then be entered into the Portuguese Official Registry records so that your ownership is fully protected against third parties. The change of owners must then also be passed on to the Portuguese Tax Authorities.