Buying Property in Portugal: Legal Guide

Purchase Process

1. 1. Property Search: Identify properties through real estate agents, online platforms, or auction sites like e-leiloes.pt for judicial auctions.
2. 2. Obtain a NIF: Foreign buyers must obtain a Numero de Identificacao Fiscal (NIF), the Portuguese tax identification number required for all financial transactions.
3. 3. Open a Portuguese Bank Account: Required for property transactions and ongoing payments like utilities and taxes.
4. 4. Reservation Agreement: Sign a reservation agreement (Contrato de Reserva) with a small deposit (typically €5,000-€10,000) to take the property off the market.
5. 5. Promissory Contract (CPCV): Sign the Contrato de Promessa de Compra e Venda with a deposit of 10-30% of the purchase price. This legally binding contract outlines terms and completion date.
6. 6. Due Diligence: Verify property registration (Certidao Predial), check for debts and liens, confirm planning permissions, and review the Caderneta Predial (property tax document).
7. 7. Final Deed (Escritura): Sign the public deed before a notary. All parties must be present or represented by power of attorney.
8. 8. Registration: Register the property with the Land Registry (Conservatoria do Registo Predial) and update the tax records.

Foreign Buyer Requirements

Foreign buyers face no restrictions when purchasing property in Portugal. EU citizens can purchase freely, while non-EU citizens must obtain a NIF (tax number), which can be obtained through a fiscal representative if not residing in Portugal. Proof of funds and identity documents are required.