The procedure for buying a property in Portugal

The first step involves monitoring the market and selecting options of interest. You can choose from a wide range of properties, such as:
- Apartments for €530,000 in Porto (116 m², 3 bedrooms, 2 bathrooms

- Apartments for €720,000 in Lisbon (76 m², 3 bedrooms, 2 bathrooms)
- Villas for €1,650,000 in Cascais (288 m², 5 bedrooms, 4 bathrooms)

After selecting suitable properties, you need to inspect them to evaluate their condition and location.

At this stage, it is advisable to hire a professional appraiser to analyze the property's value and identify any potential issues. 

You should also consult a lawyer to verify the property's legal status and history to avoid future complications.

To purchase property in Portugal, you will need a tax number (número fiscal de contribuinte, NIF). You can obtain it in one day from the tax office. 

Non-residents will need a fiscal representative who can obtain the number on their behalf. This service costs from €150 per year.

To reserve the chosen property, you must make a deposit of 10–30% of the property's value. The preliminary sale agreement should outline the terms of the deal and be drafted in Portuguese. 

If you withdraw from the deal, the deposit is non-refundable; if the owner withdraws, they must return the deposit double.

Before signing the final agreement, you must pay the municipal property transfer tax and stamp duty. 

These taxes should be paid one or two days before signing the contract.

The transaction is concluded at a notary's office. At this stage, you must provide proof of payment for the remaining amount and taxes.

Documents for the transaction include tax payment receipts, personal documents of the seller and buyer, and documents confirming the property's condition and purpose.

Payments can be made in several ways: through an intermediary company, to the seller’s account.

Or using a bank account within the EU or third countries.

After signing the contract, the documents are sent to the property registry (Conservatória do Registo Predial), where the property is registered in the new owner’s name.

A registration certificate is issued as confirmation, which the notary receives within one to two weeks.

• Stamp duty: 0.8% of the property value
• VAT: 23% for new builds
• Property transfer tax: 0–8% of the property value, depending on various factors Realtor services: Paid by the seller, 5% of the price + VAT
• Lawyer’s fee: about 1% of the purchase price

• Notary fee: from €250 to €1500
• Fiscal representative’s fee: from €150 per year
• Property registration: from €225 (urgent registration doubles the cost)
• Utility account re-registration: about €100

The property purchase process in Portugal can be carried out remotely if you have a trusted representative or lawyer in Portugal acting on your behalf.

Mercury Estate specialists handle the entire property purchase process in Portugal, from property selection to preparing a complete set of documents "turnkey," and assist our investors by providing a full range of concierge services.