Buying a car in Portugal

Purchasing a car in Portugal is generally a lot easier process than importing, and dealers are more likely to have parts in stock for models they frequently sell than for models imported from other countries.

New car from a dealer:

A dealer with a new vehicle in stock should be able to put you on the road within 1-2 days. They should provide the necessary documentation (temporary documents substituting the livrete and título de registo de propriedade), their sales receipt, and the manufacturer’s guarantee. You will also need compulsory motor insurance. The dealer will normally arrange for issue of the official documents (livrete and título de registo de propriedade), which should be sent to you within the validity of your temporary documents.

Second hand vehicles and documentation:

The minimum documentation required for sale of a used vehicle is the livrete, título de registo de propriedade, and a completed form for registration of the change of ownership (Requerimento – declaração para registo de propriedade / contrato verbal de compra e venda, modelo 2). The local civil registry (Conservatória do Registo Civil) provides this form. Other documents worth consulting are the road worthiness inspection certificate (IPO), and the service record (Livro de Revisões). A formal receipt of sale, giving the details of the car, the seller and the buyer with annexed photocopies of the livrete and título de registo de propriedade, is also advisable, as is a written sales contract to clarify the terms of sale. Your lawyer could draw up a simple contract for you.

The form to register change of ownership (contrato verbal de compra e venda, literally verbal contract for sale and purchase) needs to be completed and signed by both the buyer and the seller. It identifies the vehicle, the previous owner, the new owner, and whether there are any reservations on the transfer of ownership (outstanding payments or partial ownership). The signatures do not need to be notarised if both buyer’s and seller’s identification are shown when the form is deposited at the civil registry, this should be a Passport or Identity Card. Normally payment of the registration fees may be by cheque.

Legally the new purchaser is responsible for registration of the change of ownership within 30 days of the sale. However, if this is not done the seller remains the registered owner and may be liable for accident damage or traffic fines incurred by the new owner. It is therefore advisable for both the seller and buyer to register the change of ownership at the time of sale. This can be done at the same time as exchange of payment for the keys and documentation. The buyer will need his or her own vehicle insurance before driving. When you purchase a new car against the trade-in of a used vehicle, the dealer will ask you to sign the change of ownership registration form and to hand over the traded-in vehicle documents and keys. Ideally, the dealer should sign and register the form as purchaser. However, they may ask you to sign the form with the purchaser’s name left open, for completion when they find a final buyer.

Transfer of Documents

To transfer vehicle documents into your name you need to go to the local Conservatória. Both the purchaser and the seller need to complete a form along with providing ID, the old documents. The buyer is responsible for the cost of transferring documents into their name (circa 70 euros).

You can also download and print off the form from www.dgrn.mj.pt. Make sure you print the 2 sides on one sheet (back and front) and not on two separate pages (which the conservatória won’t accept). The Conservatória will give you a stamped document valid for a period of 120 days to confirm that you have applied for the new documents, in case the police stop you. If after 120 days you still haven’t received a notice to collect the new documents, go back to the Conservatória and query if it is there and if not they will stamp another document for you.