Below you can find a short introduction to the main legal matters to take into consideration when buying a property in Portugal. This is not meant to be a complete guide and we highly recommend seeking independent advice from a lawyer in Portugal before you buy or sign any binding documents.
Who Can Buy Property in Portugal?
In general, anyone may purchase property in Portugal. There are no restrictions, although there are some things you will want to check on before signing any legally binding documents.
Firstly, once you have decided on that perfect piece of property, you will need to go to the Land Registry (Conservatória do Registo Perdial), there you can make sure the seller does have sole ownership of the property and that is free of any fees or mortgages. At this time you will receive a Registration Certificate that will be used when the notary approves proof of ownership and the right to sell.
You will also need the Property Tax document. This will certify the layout of the property and its fiscal information. This document will explain how much is to be paid annually in local taxes.
The last important document to obtain is the License of Use which you will can get a copy of in the local Town Hall. This will explain and approve the purposes of the property, giving the appropriate license, depending on whether the property is commercial or residential. This is also necessary for the Notary at the time of the deed signing.
Private Contract
The official Contrato Promessa Compra e Venda is the final contract or deed to verify your purchase of the property. It will be a collaboration of the documents mentioned above, explain the price with everything included and the terms of how the transaction will be completed. If you have not already paid a deposit, this will be the time; it is normally between 10-30%. Portuguese law has protection for both parties in case of some unexpected change. In the case that the buyer backs out they would lose the deposit, on the other hand, if the seller backs out they must return the deposit in double.
Signing the Title Deeds
To make the purchase of the property legally binding you will have to sign the title deed in the presence of a Portugaln notary and thereafter register the title deed in the register office.
The last step would be to register your property title deed at the regesiter office and this will have to be paid for at the notary upon signing the title deed.
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