If you’re planning to buy a house in Portugal, understanding property registration is essential. It not only makes your purchase legally official but also protects your investment from potential disputes. Here’s a guide specifically for foreign buyers.
Why property registration matters
Property registration (Registo Predial) is carried out at the Land Registry Office (Conservatória do Registo Predial). Without it, the property is not legally in your name, which can:
- Complicate future sales;
- Prevent obtaining a mortgage;
- Increase the risk of legal disputes.
Registration ensures full legal protection, allowing you to sell, rent, or mortgage your property freely.
Steps to take after buying a property in Portugal
Once you’ve signed the deed (escritura), make sure to:
- Update your tax address on your Citizen Card (Cartão de Cidadão) or fiscal residence if you’re a foreign resident.
- Transfer utility contracts (water, electricity, gas, telecoms, insurance) to ensure uninterrupted services.
- Notify banks, employers, and healthcare providers of your new address.
- Check property registration with the Tax Authority and request any applicable IMI (municipal property tax) exemptions.
- Update vehicle registration if necessary.
- If the property is part of a condominium, inform the administrator of the new ownership.
Finally, consider mail forwarding to ensure all important correspondence reaches you.
What you need to register a property in Portugal
To register a property in Portugal, you’ll need:
- Signed public deed (escritura);
- Valid ID (Passport or Citizen Card);
- Portuguese Tax Number (NIF);
- Proof of IMT (property transfer tax) and stamp duty payment;
- Mortgage contract, if applicable.
Registration can be done personally or online, and a lawyer, notary, or solicitor can also handle it on your behalf.
Costs of property registration
Fees vary depending on property value and location, plus taxes already paid (IMT and stamp duty). Typical costs include:
- Property registration: €225–€375
- Mortgage registration: €225
- Declaration of Right of Pre-emption: €15
- Authenticated Private Document: €20
- Copy of mortgage contract: €43
If using a “Casa Pronta” service for multiple acts (purchase + mortgage), expect up to €700.
Taxes recap:
- IMT: calculated on the higher of purchase price or taxable value, progressive rates apply
- Stamp duty: 0.8% on property, 0.6% on mortgage over 5 years
For example, a €250,000 property with a €220,000 mortgage could cost around €8,257 including taxes and registration.
Deadlines
- Ideally, register the property within 15 days of signing the deed, especially for your primary residence.
- Check 30 days later on the Tax Authority portal and Land Registry to confirm the property is in your name.
Delays can lead to fines or complications in future transactions.
Tax benefits for foreign buyers
If you’re under 35 and buying your first home in Portugal:
- Full IMT and stamp duty exemption for properties up to €324,058
- Partial exemption for properties up to €648,022
- Access to public mortgage guarantees to finance up to 100% of the property value
You may also be eligible for a 3-year IMI exemption, extendable to 5 years under the “Mais Habitação” Programme. Criteria include:
- Property as your main residence;
- Taxable value ≤ €125,000;
- Household gross income ≤ €153,300.
Apply within 60 days of updating your tax address, either online or at the local tax office.
Key takeaways
Registering your property in Portugal is essential for legal security and peace of mind, and understanding costs, deadlines, and tax benefits can make the process much smoother.