Portugal, like other EU countries, has its own system of taxation and legal procedures surrounding the purchase and sale of property. Our experienced sales team at Mapro Real Estate are happy to assist you through this, ensuring that when you make your decision, it will be an informed one. In this section we bring you a concise introduction to the Portuguese process of buying and selling, highlighting inherent costs and documentation.
As you enter the buying process for a property it makes good sense to find out as much as you can about its legal and financial status before making any commitment. Appointing an experienced local lawyer to verify the legal elements of a property prior to purchase will ensure peace of mind. Your lawyer will make the appropriate checks in the relevant institutions such as, the Land Registry, the Tax Office and the local council as to the property’s registration. A thorough check will be carried out on the property ownership and taxation history. For added buyer confidence, you can also appoint an independent surveyor to check the building’s structural condition. Once the property has been given a clean bill of health, the first step in the buying process can be taken in agreeing the contracts. A promissory contract (Contrato de Promessa de Compra e Venda) is drawn up outlining the terms and conditions of purchase. Usually a deposit will be exchanged. This contract should be registered and will be a binding contract before the final deed of purchase is signed. Portuguese law states that in the event that the purchaser defaults, the purchaser will lose their deposit. In the event that the seller defaults, then the buyers have the right to be compensated for double their deposit.