Buying Property in Portugal
The process to buy a property in Portugal is quite straightforward and is typically split into 3 stages; Reservation, Promissory and Deeds.
The process
Currency required to purchase: Euros (EUR)
Overview of Costs
Incurred by
Transfer Tax
6%
Buyer
Legal Fees
2 - 4%
Buyer & Seller
Stamp Duty
0.8%
Buyer
Estate Agent's Fees
3 - 5%
Seller
- Once a property has been identified, negotiations have taken place and the sale price has been agreed, the buyer typically places a ‘reservation deposit’ of around €6000 with their lawyer to demonstrate intent to purchase, and the seller will take the property off the market. The lawyer will also draw up a reservation form which is then signed by the buyer and seller.
- The nominated lawyer will then complete checks on all associated property documents and provide a report which is typically finalised around 2 weeks from when the reservation has been completed. If the buyer is happy to proceed with the purchase, both parties will enter into a promissory agreement ('Contrato Promessa de Compra e Venda’), which outlines the terms of the deal, such as the agreed price, completion date and details of the buyer and seller. A deposit of usually 30% of the purchase price then must be paid at the promissory stage.
- On completion day, the Public Deed will be signed by both parties in the presence of the appointed Notary, who will oversee that all relevant documents have been completed, fees have been paid and the balance has been settled according to the provisions set out at the promissory stage. The property can then be registered in the new owner´s name and the exchange is concluded.
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