Complete guide to buying and selling property in Portugal

1. The real estate market in Portugal

In recent years, Portugal has become one of the most sought-after destinations for both national and international buyers. Political stability, a mild climate, safety, and a high quality of life have all contributed to the appreciation of property values in various regions of the country.

Cities like Lisbon, Porto, Braga, and Faro attract investors with their cultural and tourism offer, while quieter areas such as the Alentejo or the Douro appeal to those seeking peace and a slower pace of life.

By working with experienced professionals like Engel & Völkers, it’s possible to gain a clear overview of market opportunities and access properties that are not always publicly listed.

2. How to start the buying process

Before making any investment, it’s important to have a clear plan. Buying a property is a long-term commitment that requires financial planning, research, and professional guidance.

Essential first steps:

• Define your budget

• Choose the ideal location

• Research mortgage options

• Evaluate personal and family needs

• Work with certified real estate professionals

Proper planning prevents hasty decisions and ensures every stage of the process is handled confidently.

3. Choosing the right location

Location is one of the most decisive factors in buying a property. Whether for personal use or investment, elements like accessibility, safety, service availability, and appreciation potential must be considered.

Major cities offer a dynamic urban lifestyle and easy access to transport, schools, and services. Coastal and rural areas, on the other hand, are perfect for those seeking tranquillity and quality of life. To find suitable options, consulting an expert in buying a home helps align goals and expectations.

4. Required documentation for purchasing property

Having all documentation in order is one of the most critical aspects of the entire process. Missing paperwork can delay or even prevent the purchase from going ahead.

Commonly required documents:

• Valid ID card or passport

• Tax Identification Number (NIF)

• Proof of address

• Income statements

• Bank documentation (for mortgages)

• Updated property registration certificate

• Property tax registration

For a detailed overview of this stage, check the requirements listed in documentation for property purchase.

5. The promissory contract of purchase and sale (CPCV)

The promissory contract of purchase and sale is a legally binding document that formalises the commitment between buyer and seller before the final deed.

This contract sets out:

• The agreed sale price

• Payment terms

• The deadline for the deed

• Penalties for non-compliance

The signing of the CPCV is typically accompanied by a down payment, which serves as a guarantee that the deal will proceed. It’s highly advisable to have this contract reviewed by a lawyer or real estate consultant.

6. Mortgage and financial planning

For many families, buying a home involves taking out a mortgage. Comparing offers, analysing interest rates and related costs is key to ensuring long-term financial stability.

Key considerations:

• Fixed or variable interest rate

• Annual Percentage Rate (APR)

• Additional costs and mandatory insurance

• Required down payment percentage

A real estate consultant can help compare options and secure advantageous terms from financial institutions.

7. The advantages of working with real estate consultants

The Portuguese real estate market is competitive and constantly evolving. Having experienced real estate consultants by your side can be decisive in finding the right property and avoiding unnecessary risks.

Main benefits include:

• Access to exclusive listings

• Legal and financial support

• More efficient negotiations

• A smoother buying and selling process

Moreover, working with an experienced real estate team ensures support at every stage — from the initial search to the signing of the deed.

8. Buying an off-plan apartment

A growing trend in Portugal is purchasing an off-plan apartment. This option allows buyers to customise some aspects of the property and, in many cases, secure better pricing.

However, it’s essential to:

• Check the developer’s reputation

• Confirm delivery schedules and permits

• Review contractual guarantees

• Monitor construction progress

Working with specialised agents ensures legal and financial security throughout the process.

9. Additional costs and taxes when buying property

Beyond the purchase price, buyers must consider additional costs that form part of the transaction. These vary depending on the property type and region but should always be factored into the financial plan.

Common costs:

• Property Transfer Tax (IMT)

• Stamp Duty

• Notarial deed

• Land registration

• Legal and agent fees

Being aware of these expenses prevents unpleasant surprises and ensures a more accurate financial projection.

10. The importance of saving and planning

Buying a property is a long-term investment. Setting clear goals and preparing financially is crucial for a sustainable purchase. A practical way to get started is to develop a savings strategy based on saving money, adjusting expenses and building a buffer for unexpected costs.

Even small, consistent steps can make a big difference over time and ease the path to homeownership.

11. Understanding the selling process

Although this guide focuses primarily on buyers, understanding the selling process can also be valuable — especially for investors. Selling a property in Portugal involves steps such as valuation, documentation, marketing, and negotiation.

Main stages of selling:

• Professional property valuation

• Preparation of legal documents

• Market promotion strategy

• Negotiation and signing of CPCV

• Notarial deed of sale

Understanding these steps helps buyers recognise good opportunities and make better investment decisions.

12. The notarial deed and handover of the keys

The notarial deed marks the final stage of the real estate transaction. At this point, ownership is officially transferred to the buyer. The deed is signed at a notary office with all parties present.

Once the deed is signed, the final payment is made, keys are handed over, and the new owner officially takes possession of the property. The land registry should be updated immediately to ensure legal ownership.

FAQ — Guide to buying and selling property in Portugal

What documents are required to buy a property in Portugal?

You’ll need a valid ID, NIF, proof of income, and property documentation. It’s also common to work with a lawyer to ensure legal security.

How long does the buying process take?

It depends on the complexity of the transaction. On average, it can take between 1 and 3 months from signing the CPCV to completing the deed.

Is it mandatory to hire a lawyer?

It’s not mandatory but strongly recommended, especially to ensure all contracts and documents comply with legal requirements.

What taxes will I have to pay when buying a house?

The main taxes are IMT and Stamp Duty, plus notary and registration fees.

Can I buy a property off-plan?

Yes, it’s common in Portugal, particularly in urban areas. It’s essential to check the developer’s credibility and contractual guarantees.

Why should I work with a real estate consultant?

Because they offer access to exclusive opportunities, provide legal support, and make negotiations and the buying process faster and safer.

Final note

This guide was created to offer a clear, practical and comprehensive overview of every step involved in buying and selling property in Portugal. From setting a budget and choosing the right location to signing the deed, each decision directly impacts the success of your investment. Careful planning, access to accurate information, and the support of experienced professionals are key to ensuring each stage runs smoothly and securely.

Buying a property is not just a transaction — it’s a life project. Whether it’s for a permanent home, an investment, or a lifestyle change, choosing the right property requires attention to detail and deep market knowledge. That’s why working with a specialised team with local expertise can make all the difference.

Engel & Völkers  is ready to support buyers at every stage of the journey: from tailored property searches to legal and financial assistance, ensuring transparency and peace of mind in every investment. If you’re ready to take this important step, get in touch with one of our consultants and turn your goal of owning a home in Portugal into reality.