First-time buyers may apply for exemption from paying IMI (annual rates – similar to UK Council Tax). The request should be made, within 60 days from the signing of the deed of purchase and sale (escritura), at the tax office (Finanças) for the area where the property is located. Exemption is only granted on main [...]
Posts under ‘Property Purchase’
Completion of Sale / Escritura Publica de Compra e Venda
To complete, you (or the owner, or your/their solicitor) must make an appointment with the Notary. All parties involved in the purchase/sale must attend at the Notary’s office, unless you have granted someone power of attorney to act on your behalf (see below). If you don’t speak portuguese you must have a translator present, and [...]
Purchase Tax / Imposto Municipal Sobre Transmissão Onerosa de Imóveis (IMT)
You must pay any purchase tax (IMT) at least 3 days before you complete the sale and proof of payment must be shown to the notary.
There are 2 different scales for IMT, one applies to permanent residences and one for second homes, see below:
IMT for land only (prédio rustico) is 5%.
IMT for construction & urban [...]
Neighbours’ Right to Buy (Exercício de Direito de Preferência)
When a vendor has a purchaser for a rustic article (prédio rustico – land ) or a mixed article (prédio misto – an urban article inside a rustic article), and a price and date for completion is agreed, the vendor must inform all their neighbours (whose property borders the article for sale) by letter, [...]
Power of Attorney / Procuração
If it is not possible for you to be present to sign the Deed of Purchase and Sale Escritura Publica de Compra e Venda, you may grant someone Power of Attorney (Procuração) to act on your behalf.
The easiest way to grant a Power of Attorney is whilst you are in Portugal, through a solicitor or [...]
Professional Legal Advice for Purchasing Property
Foreigners, unable to speak Portuguese, or speak it to only a limited degree, often decide to rely on using some form of legal advice when buying property in Portugal.
Types of Representative
The two types of representatives you might approach are either a solicitador(a) or an advogado(a).
A solicitador(a), despite the similarity of the name to the English [...]
Documents Necessary for Purchasing Property in Portugal
Certidão de Teor showing if there are any outstanding mortgages on the property and if the property is registered in the owner’s name.
Caderneta Predial, from the Fiscal Department (Finanças), detailing the size of the property, its location and boundaries, and a brief description. In the case of land there may also be a drawing of [...]
Promessory Contract / Promessa de Compra e Venda
Once you see a property you like, and have your offer accepted, you will normally sign a promessory contract (Promessa de Compra e Venda) with the owner (in which you promise to buy the property, and the owner promises to sell it to you, at an agreed price and within an agreed timescale).
At this point [...]
Fiscal Number / Numero Fiscal de Contribuinte
You will need a fiscal (tax) number (Numero Fiscal de Contribuinte often abbreviated to Nº Contribuinte) for many purchases in Portugal, including property and vehicles, and in order to open a bank account. You will also need a tax number if you wish to work, or take up residence, in Portugal. A Portuguese fiscal number is [...]