Selling a house: common mistakes to avoid if you want the best price

Selling a house in Portugal might look straightforward at the moment. The property market is performing at record levels, with prices continuing to climb — reaching €6,059 per m² in Lisbon and €4,060 per m² in Porto in February 2026. At the same time, falling interest rates are encouraging more buyers back into the market, increasing competition for available homes.

Even with high demand for property in Portugal, sellers still make avoidable mistakes that can slow the process down or reduce their final profit. Let's look at the most common errors when selling a house and how to avoid them, helping you secure the best possible price while handling each stage of the sale.

All the essential documents for selling a house

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If you’re getting ready to sell a house in Portugal, it pays to organise all the necessary documents early on. Having the paperwork in order helps avoid delays, last-minute stress and awkward surprises when a buyer is ready to move forward. It also means you can respond quickly to requests from solicitors, banks or the notary when it’s time for the deed signing.

Here are the key documents you’ll need.

1. Permanent property certificate (Certidão Permanente do Registo Predial)

   This document sets out the legal history of the property, including details of mortgages, charges, liens or inheritances. 

   1. It can be requested online through the Registo Predial Online platform for €15, or in person at the Land Registry Office for €20. 
   2. The certificate is valid for six months and is mandatory for completing the transaction.

2. Urban property registration certificate (Caderneta Predial Urbana)

   Issued by the Portuguese Tax Authority via the Finance Portal, this document contains the property’s tax details, including its location, size, registered owner and Taxable Asset Value (VPT). 

   1. The VPT is used to calculate IMI (Municipal Property Tax) and IMT (Property Transfer Tax). 
   2. It can be obtained free of charge online or at a local tax office and is valid for 12 months.

3. Building permit or usage licence (Licença de Utilização)

   Issued by the local council, this confirms that the property was built in line with the approved plans and is authorised for residential use. 

   1. It is not required for buildings constructed before 7 August 1951, as this predates the relevant legislation.

4. Technical data sheet for the dwelling (Ficha Técnica da Habitação)

   This document outlines the technical and functional characteristics of the property. 

   1. It is only compulsory for properties built, reconstructed, or significantly altered after 30 March 2004. 
   2. If required, it can be requested from the developer, the local council or the relevant public body.
5. Energy certificate (Certificado Energético)
   An energy certificate is mandatory when selling property in Portugal. 
   1. It rates the home’s energy efficiency on a scale from A+ to F and is valid for 10 years. 
   2. Costs generally range between €28 and €65, depending on the property type. 
6. Mortgage release (Distrate de Hipoteca)
   If there is an active mortgage on the property, the bank must issue a document confirming that the loan has been settled and the mortgage cancelled. 
   1. Some banks provide this free of charge, while others may charge €100-€200. Without this document, the sale cannot be completed.

Finally, it is now compulsory to present a declaration of no debt from the condominium at the time of the deed. 

• This statement, issued by the building’s management, confirms whether there are any outstanding service charges linked to the property and specifies the current monthly fees. 
• The seller is responsible for requesting it, and the condominium management typically has up to 10 days to provide the document.

What are the tax implications of selling a house?

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If you’re selling a house in Portugal, the main tax to think about is capital gains tax. Capital gains are simply the profit you make on the sale — the difference between what you paid for the property (plus certain costs and improvements) and what you sell it for.

Capital gains tax for residents

For Portuguese tax residents:

• 50% of the capital gain is subject to IRS (personal income tax).
• This amount is added to your annual income and taxed at the progressive IRS rates, which currently range from 14.5% to 48%, depending on your total taxable income.

So in practice, you’re not taxed on the full gain, only half of it, but the final rate depends on your overall earnings in that tax year.

When can you be exempt?

There are situations where you may not have to pay capital gains tax:

• If you reinvest the proceeds from the sale into another main and permanent residence (either in Portugal or within the EU/EEA, under certain conditions), within the legal time limits.
• If the property was purchased before 1989, when the current capital gains rules came into force.

Even if you qualify for an exemption, the sale must still be declared in Annex G of your IRS tax return.

Taxation for non-residents

If you’re not a tax resident in Portugal, the rules differ slightly.

Residents in the EU or European Economic Area (EEA):

• 50% of the capital gain is considered for tax purposes
• Progressive IRS rates apply, as with residents

Residents outside the EU or EEA:

• 100% of the capital gain is taxed
• A flat rate of 28% applies

If you’re living abroad, it’s also worth checking whether a double taxation agreement exists between Portugal and your country of residence, as this can affect how and where the gain is ultimately taxed.

Selling a house: common mistakes when calculating transaction costs

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When selling a house in Portugal, the sale price looks great on paper. In reality, transaction costs, taxes and admin fees can chip away at that figure if you haven’t planned properly. These are the five mistakes that come up time and again.

1. Forgetting to cancel the mortgage. If the property still has a mortgage attached, it’s not enough to pay off the loan. 

   You also need to formally cancel the mortgage at the Land Registry. This involves requesting a distrate and registering the cancellation, which typically costs around €50.

2. Ignoring ongoing property expenses

   Until the sale is officially completed, you remain responsible for all ongoing costs linked to the property. That includes water, electricity, gas, condominium fees and any maintenance charges.

   It’s easy to assume these will be settled at closing, but legally, they sit with you until ownership transfers.

3. Overlooking capital gains tax exemptions

   Capital gains tax can take a sizeable portion of your profit, but there are legal ways to reduce or even avoid it. If you reinvest the proceeds from the sale into a new main and permanent residence within the required timeframe, you may qualify for exemption from income tax on the gain. 

   Not factoring this in when planning your sale could mean paying more tax than necessary.

4. Being unaware of additional property taxes

   Some sellers forget about the Additional Municipal Property Tax (AIMI). AIMI applies to individuals and companies that own urban properties or building land with a combined Taxable Asset Value (VPT) above €600,000.

   Progressive rates range between 0.4% and 0.7% for individuals and companies, and can reach 7.5% for entities based in recognised tax havens. If you own more than one property, it’s worth checking how your total VPT is calculated.

5. Underestimating the estate agent’s commission

   If you’re using an estate agent, the standard commission in Portugal is around 5% plus VAT. This is usually paid at the time of the deed, although some contracts allow for payment when the preliminary purchase and sale agreement is signed. 

   It’s important to read the agreement carefully so you know exactly when and how the commission becomes due.

Are there any costs associated with the paperwork for selling a house?

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Selling a property in Portugal isn’t just about agreeing a price and signing the deed. There are several administrative and tax-related costs tied to the paperwork, and they can add up if you’re not prepared.

Some of the most common expenses include:

• Permanent property certificate
• Energy certificate
• Mortgage cancellation
• Municipal documents, such as the usage licence if you don’t already have a valid copy

On top of these administrative costs, you may also need to factor in:

• Capital gains tax
• Estate agent (real estate mediation) commission
• Additional mortgage-related fees

Before putting your home on the market, it’s sensible to sit down and calculate the full picture. When you account for certificates, taxes, commissions and possible bank fees, the difference between the sale price and what you actually receive can be significant.

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