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Home › Jackson-Stops
offices › International property › Portugal
A step-by-step guide to purchasing
property in Portugal
It is advisable to negotiate through a Government licensed Estate
Agent (Mediador Autorizado) who has an AMI Number and whose
conduct is subject to enforceable rules. Our Associate offices
have all the appropriate licences to conduct real estate in
Portugal and abide by the Jackson-Stops & Staff charter
of good practice.
Prior to Viewing
Before making the journey to Portugal, it is advisable to ensure
that sufficient funds are available to cover the deposit. Normally
this is 10% of the purchase price. A cheque from a foreign bank
account can take up to 10 days to cash, therefore, it is advisable
to have a credit card available so as not to risk losing your
preferred property.
Personal Visits
We recognise the realities of purchasing property abroad, and
we appoint a personal consultant to familiarise you with the
process involved, thereby, taking the hassle out of finding
a property to match your requirements.
Most importantly, our advice is ‘come and see for yourself’.
While we don’t offer free flights and accommodation, as
this might put you under an obligation, we can arrange your
visit. If you require this service, we would use our contacts
to find the best value flights and accommodation and, once your
travel details are confirmed, your consultant will select properties
that best meet your requirements. The consultant will then prepare
a shortlist of these properties enabling you to achieve in 2
or 3 days what would normally take 2 or 3 weeks, therefore,
by the time you arrive, the hard work is done!
Choosing a lawyer
The procedures and legal acts involved in acquiring a property
in Portugal can seem complicated, we aim to hasten the process
and explain the basics.
Using a UK based lawyer can often substantially increase your
legal costs and most certainly delay the sales process. It is
worth remembering that prior to any contract being signed, the
following legal procedures must have been completed.
Always use an independent Lawyer or Solicitor (Advogado or Solicitador)
who are fully qualified and whose conduct the Portuguese Law
Society controls, and can provide documentation in the language
of the purchaser. Never use a lawyer who is acting for the vendor
or a Lawyer who shares the same office as the vendor’s
lawyer. You can give your Lawyer or anyone else specific Power
of Attorney to sign documents on your behalf, but closely monitor
procedures to ensure that the proper steps are being taken,
without excessive delay. Lawyer’s fees are generally between
1.5% and 2% of the purchase price of the property.
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A lawyer must be appointed to conduct a report on the
entire property. The report must include details of land
classifications and any future municipal development plans |
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A lawyer will need to inform the Land Registry that
the property is in the ownership of the new owner and
is free of charges and embargoes and is up to date with
payments of local contributions and community charges
etc. |
Searches
Having chosen a property, your Lawyer should search the local
Land Registry (Conservatoria do Registo Predial) to confirm
that the vendor (Vendedor) has clear title of ownership and
that no one else has rights, charges or mortgages over the property.
Your Lawyer must also check that the property registered conforms
to the actual building and plot size being sold to the purchaser.
Fiscal Number
Your Lawyer will apply for a fiscal number (numero de contribuinte)
at the local Tax (Finanças) office, this document is
mandatory and you must have one in order to purchase a property.
The fiscal number will come in the form of a card, which you
will need for payment of annual property taxes, supply of services
to the property or to open a Portuguese Bank Account.
Tax Document
Your Lawyer will obtain from the vendor the official tax document
(caderneta predial) relating to the property and will check
that the description of the property (number of rooms, area
of house, area of land, etc.,) is the same as in the Land Registry.
Usage Licence
Your Lawyer will obtain a copy of the usage licence (licença
de utilizaçao) from the local Town Hall (Camara Municipal).
For residential property, you will also need a Habitation Licence
(licença de habitaçao), which confirms the town
hall has inspected the property and that it complies with the
planning permission and building regulations. Non-residential
licences need to stipulate the appropriate commercial or industrial
use.
If purchasing a plot of land for the construction of a future
home, it is important for the property to have either a building
licence, or the possibility of obtaining a licence, subject
to architectural plans submitted to the authorities, and that
the land is registered for building purposes and not as agricultural
land.
Planning permission can also be based on a previously granted
licence for construction, or a building such as a ruin, which
is also classified as being an acceptable basis on which a licence
can be granted.
We strongly recommended the following enquiries be made:
Ask your lawyer to examine the local development plan to ensure
that there are no developments or construction planned for the
area. All this does add to the legal expenses, but it cannot
be stressed enough that in making these enquiries you will fully
understand all the obligations you are taking on in making this
investment. It should not be assumed that Portuguese laws and
building regulations are the same as those required in your
own home country.
Contract
A Promissory Contract of purchase and sale will be drawn up
by your Lawyer (Contracto de Promessa de compra e venda) and
must be signed by you and the vendor, it should include:
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Identification of the parties |
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Identification of the property |
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Agreed terms and conditions of the contract |
Normally, at this stage, you pay the vendor a deposit of 10%
of the full purchase price, the contract can be signed in front
of a Notary and is legally binding on both the purchaser and
the vendor. If the purchaser defaults the deposit is forfeited
and if the vendor defaults, the purchaser is paid double the
deposit (if a clause of specific execution is included, the
vendor cannot withdraw and the purchaser can legally force the
vendor to sell).
Registration
Finally, the purchaser’s lawyer registers the property
with the local Land Registry in the name of the new owner.
Following Completion
When the registered owner of a property changes, utility companies
require the new owner to arrange contracts. You must appear
in person at the relevant provider’s offices, this will
invariably be extremely time consuming, however, for a reasonable
charge, your Lawyer can deal with these transfers on your behalf.
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