Property In Portugal



The Process

Buying property in Portugal is easy with proper advice and guidance. Oceânico can help you to find:

  • The right legal advice to ensure legal and planning enquiries are conducted and a proper private contract negotiated
  • The right tax advice on the most tax efficient way to structure the acquisition of the property
  • The best mortgage advice from our panel of International and Portuguese lending partners, offering exclusive terms for Oceânico clients

These are the 4 short steps to owning your own place in the sun with Oceânico!


Step 1 – Reservation

Complete a Reservation Form and pay a Reservation Deposit in the sum of either €5,000 (for apartments) or €10,000 (for villas). This procedure allows the client to reserve the desired property for a limited period (basically until a contract is signed).


Step 2 – Inspection Visit

An inspection visit is designed to introduce clients to Oceânico's developments, properties and hospitality first hand and possibly confirm their decision to continue with Oceânico. These events are low key and offer the client the freedom to enjoy their time in Portugal and explore the local area.

We ask that clients book and pay for their own flights upon which we will provide a maximum of 3 nights' accommodation (either in a luxury hotel or in one of our own properties), airport transfers and transfers from your accommodation to our developments. We are also happy to arrange a complimentary round of golf on one of our seven championship courses in the Algarve or a spa treatment.

After your visit to Oceânico's developments the remainder of the time is yours.


Step 3 – Contract

The details previously given on the Reservation Form, together with the terms of purchase are then included on a simple contract with an English translation, in order that all parties understand the formal buying process. A copy of this is forwarded, to the client and their chosen lawyer. Upon signing the contract, an agreed Deposit, normally 20%, will also be required and the purchaser will be then legally bound to purchase the property. Some contracts may include stage payments, where properties are under construction.

At this point, it is important to note that a non-resident can purchase property without the assistance of a Lawyer or Solicitor, however it is highly recommended that one is used. The lawyer will then have the obligation to obtain, amongst other things, the following:

  • Confirmation of the correct identity of the Vendor
  • Precise description of the Property
  • Confirmation of clear title of the Property
  • Confirmation of the payment terms (including, if applicable, stage payments)
  • Date of completion of sale
  • Confirmation of applicable terms if the contract is breached

The Lawyer will also perform an analysis of all the relevant paperwork and execute the necessary searches to ensure that there are no outstanding debts and that the Property's utilization license is in conformity with both the description of the Property and the use that will be given to it.

Step 4 – Deed and Registration

Once your property is complete, a Deed (Escritura) is booked in a public Notary and the property is transferred to you on payment of the final balance due. The property is then legally yours!

The Transfer Deed for the Property (Escritura) is signed by the Vendor and the Purchaser (or by a Lawyer or Solicitor to whom powers of attorney have been granted by the Purchaser) at a Notary Office, in the presence of a Notary.

The Notary is an impartial public official who attests that the Property has all the documentation in place (namely habitation license), and that the Vendor is really its owner and then acknowledges that the price has been paid by the Purchaser.

If a Lawyer is not used, and unless the buyer understands Portuguese, the Notary will always insist on a verbal translation into the client's tongue, done by a capable translator.

Following the deed (Escritura) your Lawyer will arrange to have it registered in the local Land Registry Office. This normally takes just a couple of weeks.


Taxes and other costs

Fiscal Representation

Portuguese fiscal law requires that any non-resident should appoint a Fiscal Representative which will undertake to represent the purchaser before the Portuguese Tax Authorities.

Oceânico in its strive to assist clients with purchasing property, has arranged a special deal with Sovereign Trust to find the correct solution. We would mention that there are other Organizations with similar facilities therefore it is up to the individual to make the choice.

Property Transfer Tax

Property transfer tax (Imposto Municipal sobre as Transmissões Onerosas de Imóveis or IMT) is levied on the price of the Property or on its fiscal value if higher. The tax is due before the signature of the Deed.

Stamp Duty

Upon the signature of the Transfer Deed (escritura), Stamp Duty is also payable, at 0.8% of the purchase price.

Notary Fees

You should expect a cost of around €250 (fees may vary).

Registration fees

After the transfer deed is signed, the purchaser must register his acquisition in the local Land Registry Office. This has an administrative cost of €250 (unless the purchaser finances his purchase through a bank loan, in which case the mortgage also has to be registered, increasing the registration fees to €500).

Lawyer's fees

The normal charge should be between 1 and 2 percent of the property price, although it is not uncommon for some lawyers to charge a fixed rate.

Annual Property Tax (IMI)

Annual Property Tax (Imposto Municipal sobre Imóveis or IMI) is payable annually on the fiscal value of the property at rates varying from 0.2% to 0.5%, depending on the location of your Property.


Final Notes

Please note that Oceânico does not hold an interest in any particular mortgage lender and will always look to recommend a product which we believe to be in the best interests of our clients.

We recommend you seek independent legal and tax advice regarding your purchase. Please see the panel of independent Lawyers and Solicitors that have represented our clients in the past. You can also browse through the following sites for other Lawyers and/or Solicitors:

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