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Find out about legal aspects and costs
The acquisition of a real estate asset in Portugal by a foreign citizen is a simple and fast process.
Follow these recommendations before purchasing:
Main documents for the conclusion of the deed of purchase and sale:
- Civil and tax identification documents of the intervening parties;
- Certificate of the content of the land description and the inscriptions in force issued by the Land Registry Office;
- Updated property certificate (caderneta predial) or certificate of the content of the land register;
- Proof of payment of IMT;
- Proof of payment of Stamp Duty;
- Use permit (where applicable);
- Infrastructure certificate (where applicable);
- Promissory contract of purchase and sale of the property;
- Energy and Indoor Air Quality Certificate for Buildings (issued by ADENE);
- Mortgage Extinction (where applicable).
Expenses when buying a property in Portugal
- One time instalment
- Rates to be applied (updated annually):
- Rustic properties – 5%.
- Urban Properties (except for housing) and other onerous acquisitions – 6.5%.
- Formula of calculation
IMT = Deed value or taxable patrimonial value – VPT ( whichever is higher) X Rate to be applied
- The VPT is the administrative value of the property ascertained by the Tax Authority
- The tax table includes situations of payment exemption
- Evaluating the price of a property.
- Bank charges (in case of a mortgage).
- Real estate agent’s commission.
- Expert fees (if it is necessary to carry out an assessment of the condition of the property or plot of land).
- Translation of documents.
- Municipal Property Tax (IMI):
Annual instalment. The rate to be applied is defined by each municipality.
IMI – Taxable Asset Value X Applicable rate.
The Tributary Patrimonial Value is that which appears in the land register.
Fees to apply :
- Rural buildings – 0.8%:
- Urban buildings – 0.3% to 0.45%.
- Property management