How to buy a house in Portugal: main steps

Key points

This guide sets out a practical sequence for organising a property purchase in Portugal. The exact documents, taxes and deadlines vary by property, financing and the parties involved, so confirm your own case before assuming a universal checklist.

1. Set your budget and financing capacity

Before searching for properties, work out how much you can spend, including available savings, any mortgage credit and additional costs such as IMT, Stamp Duty, registration, deed fees and moving costs. A mortgage simulation helps set a realistic price range before viewing properties.

Also consider costs that continue after the purchase, such as condominium charges, insurance linked to the mortgage and property maintenance. A budget that only covers the purchase price tends to understate the real cost of the transaction.

• Add acquisition costs to the property price, not just the purchase price.
• Confirm your financing capacity before negotiating an offer.
• Consider recurring costs after the purchase, such as condominium fees and insurance.

2. Search for and view properties, checking their characteristics

During viewings, record information about location, layout, area, condition, energy efficiency and sun exposure. Compare several properties before making an offer, rather than deciding on price alone.

Ask the advertiser or agent for the property's energy class; for buildings covered by the certification regime, this must appear in the listing. Also note questions about common areas, parking and condominium rules where relevant.

• Compare several properties before making an offer.
• Check the energy class shown in the listing where applicable.
• Note questions about common areas, parking and condominium rules.

3. Confirm the property's legal and tax status

Before going further, request the permanent land registry certificate to confirm who is registered as owner and whether any mortgages, attachments or other encumbrances are recorded. Compare this with the tax property record (caderneta predial), which identifies the property, its location and its tax value.

If you find differences between the registry, the tax record and the property itself, clarify them before signing any commitment. Inheritance, co-ownership or an existing mortgage may require additional documents and checks on your side.

• Request the permanent land registry certificate and confirm owners and encumbrances.
• Compare the tax property record with the registry and the actual property.
• Clarify any differences before signing any commitment.

4. Sign the promissory purchase and sale contract

The promissory purchase and sale contract (CPCV) sets the terms of the deal before completion, including price, deadline, payment method and deposit. The law requires written form and in-person recognition of the seller's signature for the contract to produce certain effects, so it should be prepared with legal support.

The deposit paid under the CPCV has legal consequences if either party fails to perform. Confirm any conditions that matter to you, such as obtaining mortgage credit, before making a final commitment.

• Put the promissory contract in writing, with recognition of the seller's signature.
• Clearly define price, deadline, payment method and deposit.
• Include relevant conditions, such as obtaining mortgage credit.

5. Pay IMT and Stamp Duty before completion

When buying property in Portugal, the buyer pays Municipal Property Transfer Tax (IMT), calculated on the higher of the purchase price or the tax value, and Stamp Duty, at a fixed rate of 0.8% on the same base. If you use mortgage credit, the financed amount is also subject to Stamp Duty.

These taxes are settled through a Modelo 1 declaration submitted via the Finance Portal or in person, and proof of payment is required before the deed or Casa Pronta appointment. IMT rates and any exemptions, such as the one available to first-time buyers under 35 for a primary residence, vary by value and property use — always confirm current figures with the Tax Authority before budgeting your purchase.

• Calculate IMT and Stamp Duty on the higher of price and tax value.
• Submit the Modelo 1 declaration before completion.
• Confirm applicable exemptions, such as IMT Jovem, with the Tax Authority.

6. Complete the purchase and register the property in your name

The purchase can be completed by public deed or through the Casa Pronta service, which handles the sale contract, any mortgage and the related registrations at a single counter. Bring all the documentation identified in the previous steps and proof of tax payment.

After completion, confirm that the land registry has been updated to show you as owner. Without this registration, your position towards third parties remains weaker, even if the contract has already been signed.

• Bring all documentation and proof of tax payment.
• Choose between a public deed or the Casa Pronta service, depending on your case.
• Confirm the land registry is updated to show you as owner.

7. After the purchase: update your records and review insurance

After completion, update your tax address on the Finance Portal and, where relevant, notify the condominium manager and service providers of the change of owner. Keep proof of tax payments and the final contract, which may be needed in the future.

If you use mortgage credit, the bank usually requires life insurance linked to the loan and may require home insurance; confirm the conditions before completion. Even without a mortgage, home insurance protects the property against risks such as fire or water damage.

• Update your tax address on the Finance Portal.
• Confirm insurance conditions required by the bank, if you have a mortgage.
• Keep the final contract and proof of tax payments.