Checklist for buying property in Portugal: steps for a safe purchase

If you’ve been scanning listings in the Algarve, eyeing up townhouses in Lisbon, or thinking about a slower pace in the Alentejo, having a clear checklist for buying property in Portugal makes the whole process far less daunting. 

The system for buying a house in Portugal isn’t especially complicated, but it is formal and paperwork-heavy. 

Get your Portuguese NIF

You’ll need a Número de Identificação Fiscal (NIF) before doing anything official. It’s essential for signing contracts, paying taxes and setting up utilities.

Non-EU buyers are usually required to appoint a fiscal representative, at least initially.

Open a Portuguese bank account

While not legally mandatory in every case, in reality, opening a bank account in Portugal makes everything smoother. You’ll need it to:

• Transfer the deposit
• Pay IMT (property transfer tax) and Stamp Duty
• Set up direct debits for utilities and condomínio fees

Portuguese banks will ask for your NIF, ID and proof of address.

Appoint an independent property lawyer

This is where you don’t cut corners. Always use an independent Portuguese lawyer who acts solely for you, not the agent or seller.

They’ll:

• Check all documentation
• Confirm the property is legally registered
• Ensure there are no debts or charges attached
• Oversee contracts and completion

Check the Land Registry Certificate

Ask for the Certidão do Registo Predial, or property registration, from the Conservatória do Registo Predial.

This confirms:

• The legal owner
• The property description
• Any registered mortgages, liens or charges

Check the Title Certificate

The Caderneta Predial, issued by the tax office (Autoridade Tributária), shows:

• The property’s tax value
• How it’s registered for tax purposes

The details here must match the Land Registry record. If they don’t, that discrepancy needs resolving before you proceed.

Confirm the Usage Licence

The Licença de Utilização proves the property is approved for residential or commercial use. This is especially important with:

• Rural homes
• Converted agricultural buildings
• Renovated older properties

Obtain the Energy Certificate and technical documents

The Certificado Energético is mandatory for sale and rates efficiency from A+ to F. Many older Portuguese homes score low, so factor in insulation or heating upgrades. If the property was built after 2004, it should also have a Ficha Técnica de Habitação (FTH), or property technical file, detailing construction materials and systems.

Sign the preliminary contract

The Contrato de Promessa de Compra e Venda (CPCV) is the binding reservation contract. At this stage:

• You typically pay a 10–20% deposit
• A completion date is fixed
• Penalties for withdrawal are defined

If the seller pulls out, they usually return double the deposit. If you withdraw without legal grounds, you lose it.

Pay IMT and Stamp Duty

The cost of buying property in Portugal only begins with the asking price. Before signing the final deed, you must pay:

• IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis)

(Starting in 2026, Portugal plans a flat 7.5% IMT on most residential property purchases by non-residents)

• Stamp Duty (Imposto do Selo)

You’ll need proof of payment for completion. Rates depend on the purchase price, property type and whether it’s your primary residence. Budget roughly 6–8% of the purchase price for taxes and fees, sometimes more for second homes.

Sign the final deed and register the property

The Escritura Pública is signed before a notary or at a Casa Pronta office.

After signing:

• The property must be registered in your name
• Utilities and, if relevant, condomínio fees should be transferred
• You become liable for annual IMI (Imposto Municipal sobre Imóveis), Portugal’s council-style property tax

Stay in the know about living in Portugal as a foreigner—get our weekly newsletter for the latest travel, legal, and lifestyle news.