Published on and written by Cyril Jarnias
Buying a property in Portugal can be a great idea, but the market is much more technical than it seems. Multiple registry systems, new laws shifting responsibility to the buyer, mandatory certificates, complex taxation, and risks of scams… Nothing is insurmountable, provided you approach your project with a real checklist.
Before committing, check these 25 essential points based on current Portuguese rules, explained in plain language.
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1. Confirm who really owns the property
In Portugal, the only legal proof of ownership is the Certidão do Registo Predial (or Certidão Permanente Predial), issued by the Conservatória do Registo Predial.
This document, accessible online through the official portal Predial Online (www.predialonline.pt) or the Justiça portal, summarizes the identity of current and past owners, a description of the property, and all registered encumbrances (mortgages, seizures, easements, disputes).
Fake documents circulate, and an old extract may hide a recent mortgage or litigation. The Certidão Permanente, costing around €15 and updated in real time, is a minimal investment to secure hundreds of thousands of euros.
This first check answers three vital questions:
– Is the person selling actually the legal owner?
– Is the property encumbered by mortgages, seizures, or usufructs?
– Are there any legal proceedings or notations of irregularities?
If the slightest inconsistency appears between this certificate, the seller’s identity, and other documents, it’s an immediate red flag.
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2. Cross-reference Registo Predial and Caderneta Predial
Two different registries describe the same property: the Registo Predial (land registry) and the Caderneta Predial (tax registry, issued by Finanças).
The Caderneta Predial Urbana or Rústica summarizes the cadastral area, permitted use (residential, commercial, agricultural land…), the VPT (tax value used as a basis for taxes), the owner’s identity, and the status regarding local taxes.
The information in both documents must be strictly consistent: same owner (same spelling and same NIF), same description of the plot or unit, same type of property. If there’s a discrepancy, either the property hasn’t been properly updated, or someone has an interest in muddying the waters. In either case, your lawyer must demand written explanations from the authorities before proceeding further.
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3. Check the Licença de Utilização (use license)
The Licença de Utilização (or habitation license) is issued by the Câmara Municipal and certifies that the building was constructed according to the approved project and is legally usable for the indicated purpose (residential, offices, commercial, etc.).
For any building constructed after 1951, this license is generally mandatory. It is particularly crucial for condominium apartments: without it, you could end up with a “tolerated” but non-compliant home, difficult to finance through a bank, lease legally, or resell.
You must request from the municipal planning department:
– a copy of the use license;
– confirmation that there are no enforcement orders or compliance procedures underway;
– consistency between the license, the plans, and the actual condition of the property.
Since the so-called Simplex Urbanístico reform (DL 10/2024), the notary is no longer required to verify this license at the time of the deed. The responsibility for ensuring the property is legally compliant now rests with the buyer and their lawyer. Failing to do so means accepting to take on any illegal constructions or hidden defects yourself.
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4. Check urban planning compliance and the PDM
Beyond the license, you must verify the property complies with the Plano Diretor Municipal (PDM), the municipality’s urban plan. This document determines buildable zones, protected agricultural or ecological areas (REN, RAN, AUGI), maximum heights, permitted uses, etc.
For an apartment, this mainly involves checking: electrical installations, plumbing, wall condition, presence of mold, safety devices, and thermal insulation.
– that the building was indeed authorized as a residential building;
– that visible modifications (balcony enclosure, mezzanine addition, etc.) do not create an urban planning violation.
Land located in ecological or agricultural zones may be unbuildable or subject to strong constraints, with risks of demolition for unauthorized constructions.
Your lawyer must request from the town hall:
– the building permit file (processo de obras) and its amendments;
– any decisions related to the plot (classification as a special zone, regularization procedures, etc.).
This check ensures that what you see matches what the town hall actually authorized.
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5. Demand a valid Certificado Energético
The Certificado Energético is mandatory for any sale or rental in Portugal. Without this document, issued by a technician accredited by ADENE, the owner faces fines that can reach several thousand euros, and the transaction does not comply with the law.
This certificate indicates an energy class from A+ (very efficient) to F (very energy-intensive) and is generally valid for 10 years for a home. It must be available even before the listing is published: the real estate ad must mention the class, and the SCE number must appear on the contract.
For the buyer, the stakes go well beyond legal compliance:
– a poor class (F or G) means high bills and often the need for insulation, heating, and window upgrades;
– at the European level, new rules will progressively make holding poorly rated homes more costly (renovation requirements, rental restrictions, etc.).
It is prudent to verify the certificate’s authenticity and validity, and to cross-check it with a technical inspection: a certificate inconsistent with reality (e.g., single-pane windows claimed as double-glazed) is another sign of a suspicious file.
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6. Ensure no debts follow the property
In Portugal, certain debts follow the property, not the owner. Buying without identifying them means taking them on yourself.
Three areas to systematically check:
To avoid inheriting the seller’s debts, it is essential to obtain a Declaração de Dívida from the condominium management attesting to no outstanding condominium fees. You must also check with Finanças that all property taxes (IMI) are paid, as unpaid IMI creates a tax lien on the property. Finally, the Certidão from the Registo Predial lists mortgages, seizures, and other charges; all debts identified during due diligence must be settled at signing, often by direct deduction by the notary from the sale price.
Here again, it is imperative not to rely on oral statements. Proof of payment of IMT, IMI, stamp duty, and certificates of no debt must be written and recent.
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7. Understand acquisition taxes (IMT, stamp duty, etc.)
The main tax item upon purchase is the IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis), equivalent to a transfer tax. It is calculated on the higher value between the price in the deed and the tax value (VPT), which prevents under-declaration.
IMT follows a progressive scale, with a fixed stamp duty of 0.8% on the price (and possibly 0.6% on the loan). Exemptions exist for first-time buyers of a primary residence, especially young buyers up to a certain price.
A simplified diagram helps visualize the main cost items.
Example of acquisition cost structure
| Item | Basis of calculation | Indicative range |
|---|---|---|
| IMT (transfer tax) | Price or VPT (higher), progressive scale | 0% to approx. 7.5–8% |
| Stamp duty (purchase) | Price or VPT (higher) | 0.8% |
| Stamp duty (loan) | Loan amount | 0.6% (if > 5 years) |
| Notary + registration fees | Property price | approx. 1.5–2% |
| Lawyer’s fees | Property price | 1–1.5% excl. VAT |
In practice, most buyers should budget 6 to 10% of the purchase price to cover taxes, notary, registrations, and lawyer. In Lisbon and sought-after areas, budgeting 8 to 10% is realistic.
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8. Assess the overall real cost of the project
Beyond mandatory fees, you must include:
When buying a property outside France, do not forget several additional costs: bank processing and valuation fees if financing, mandatory insurance costs (such as home insurance or life insurance required by the bank), any renovation work following inspection (masonry, electrical, gas, insulation, damp treatment), as well as translation and authentication fees for foreign documents (apostille, certified translations).
Many disappointments arise because the buyer did not add up these lines before signing a promissory contract, underestimating the real cost of their investment.
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9. Obtain (and understand) local financing
Portuguese banks readily lend to non-residents, but with specific conditions:
– loan-to-value (LTV) ratio generally limited to 60–75% for non-residents;
– requirement for a down payment of 25–40% of the price;
– total monthly payments (including all your credit) capped at around 30–35% of your net income.
The standard application includes passport, NIF, proof of address, bank statements, proof of income and assets, credit report, annual tax return, and existing loan statements, all translated into Portuguese and sometimes apostilled.
The procedure follows several steps: simulation, pre-approval, property valuation by a bank-appointed expert, formal offer, then simultaneous signing of the loan and the deed of sale before the notary. Typically count 2 to 3 months from the initial request to funds release.
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10. Demand a thorough legal due diligence
Contrary to what is often assumed, the Portuguese notary only performs a formal check of the deeds and certain fiscal documents on the day of the escritura. The in-depth verification of the property’s legal history (titles, registries, litigation, urban planning) falls to the lawyer.
A serious due diligence cross-checks at a minimum:
Before acquiring a property, it is crucial to verify these four key points to secure your transaction.
Check the four main registries: Registo Predial, Caderneta Predial, tax registry, and commercial registry if applicable.
Verify building permits, compliance with the PDM (Municipal Master Plan), and any enforcement orders.
Search for any ongoing court proceedings related to the property or the seller themselves.
Skipping any of these steps means accepting a “residual risk”: an overlooked mortgage, a disputed easement, an illegal construction, a hidden family co-ownership… Many serious disputes arise precisely from a partial check.
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11. Choose an independent lawyer, not the seller’s
The safest reflex is to hire your own lawyer, registered with the Portuguese Bar Association and specialized in real estate, ideally French-speaking. Fees are generally between 1 and 1.5% of the price (excluding VAT), sometimes with a minimum flat fee.
This professional:
The notary assists you from the promise to the final signing:
Titles, charges, permits, and urban planning compliance are verified.
Drafting or correcting the CPCV (promise) and the escritura.
Deposit, balance payment, and debt settlement are managed.
A power of attorney allows you to avoid traveling if necessary.
It is strongly discouraged to settle for the “agency’s legal advisor” or a lawyer recommended by the seller: the risk of conflict of interest is obvious. Your lawyer should only defend your interests.
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12. Verify the license and solidity of the real estate agent
Any agency or agent operating legally must hold an AMI number, issued by IMPIC. This number must appear on storefronts, business cards, ads, websites and be easily searchable.
You can then verify its authenticity on the official IMPIC website (impic.pt):
Minimum amount in euros of the mandatory liability insurance coverage to check the validity of a license.
A missing AMI number, an excuse like “in the process of renewal,” or a number that doesn’t appear in the official database justifies keeping your distance. Working with a pseudo-agent without a license means giving up the protection of the Portuguese legal framework.
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13. Protect yourself against the most common scams
Real estate scams in Portugal follow recurring patterns:
Several indicators should raise suspicion: properties listed 20 to 30% below market price with no clear reason; a refusal to show the Registo Predial or Caderneta; a request for an immediate down payment into a personal account without a signed promissory contract; documents provided only as photocopies with no certainty of authenticity; and promises to combine a property purchase with visa or residency facilitation.
The countermeasure is simple: obtain the Certidão do Registo Predial yourself on Predial Online, verify the agent’s AMI, have your lawyer analyze the original documents, and never transfer money without a written contract or into an account that is not clearly identified as the seller’s or a secure escrow/professional account.
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14. Carefully analyze the Contrato de Promessa (CPCV)
In Portugal, it is common to sign a Contrato de Promessa de Compra e Venda (CPCV), a legally binding promissory contract, accompanied by a deposit often between 10 and 30% of the price.
A well-drafted CPCV should:
The contract must precisely identify the property (Registo Predial, tax matrix), state the price, payment schedule, and suspensive conditions (credit, mortgage, licenses). It must also set a deadline for the escritura, with conditions to be met (license, regularization, energy certificate), and stipulate the consequences of delay or default (loss of deposit for the buyer, double restitution for the seller, penalties).
Once signed, if you withdraw without a valid contractual reason, you lose the deposit. Hence the importance that all critical checks be done beforehand or, failing that, be incorporated as very explicit suspensive conditions.
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15. Audit the property technically, not just legally
Legal due diligence is not enough. Since recent reforms, the state and notaries check material compliance of buildings much less. Structural defects, dangerous installations, or clandestine extensions will no longer be flagged by the authorities: it is up to the buyer to identify these risks.
An independent technical inspection allows, among other things, to:
For a secure acquisition, check structural integrity (especially for reinforced concrete buildings from the 1960s–1990s, more prone to corrosion); inspect electrical and gas installations against specific regulations; identify moisture, thermal bridges, and insulation anomalies that will harm comfort and energy bills; and verify the actual conformity between the built structure and the approved plans.
The idea is simple: the cost of a thorough inspection is a fraction of that of a major undetected defect (structure, framework, waterproofing, code upgrades).
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16. Secure the purchase of a property in a condominium
In an apartment, the condominium adds a layer of risks if poorly managed. You must request from the condominium manager:
Before buying, check the condominium bylaws, the latest meeting minutes (for major works or conflicts), the seller’s declaration of no outstanding charges, and the status of the reserve fund for major repairs.
The minutes often reveal recurring structural problems (leaks, faulty elevator, facade needing renewal) whose cost later falls on all co-owners.
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17. Scrutinize annual costs after the purchase
A good checklist does not stop on the day of the deed. You must anticipate:
Annual IMI (property tax) is calculated on the VPT with a municipal rate of 0.3% to 0.8%. AIMI applies to real estate assets exceeding €600,000 (single) or €1.2 million (couple). Add income tax on rental income, as well as condominium fees and contributions to the reserve fund.
Many investors forget the impact of these items on the net profitability of their project, especially in large cities where the VPT increases regularly.
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18. Anticipate the consequences of new European energy efficiency rules
The European directive on the energy performance of buildings is being transposed in Portugal. In the medium term, it will impose: stricter energy performance standards for new buildings, assessment of the energy performance of existing buildings, and necessary improvement measures.
– the creation of “renovation passports” to plan work over several years;
– progressive renovation obligations for the most energy-intensive buildings;
– increased transparency on performance and work needs.
Buying a property rated F or G exposes you to costly renovation obligations, with budgets estimated at several tens of thousands of euros for insulation, joinery, and heating work.
Energy is therefore not a secondary criterion: it affects resale value, rental possibilities, and future compliance costs.
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19. Know your rights… and responsibilities as a foreign owner
The Portuguese framework is very open: there is no general restriction on property purchases by foreigners, whether EU nationals or not. You can hold 100% of the property directly, buy alone or in joint ownership, acquire a home, land, or commercial space, on the mainland or the islands.
However:
Buying a property no longer alone grants the right to a Golden Visa; real estate options have been removed in favor of other investments (funds, culture, research, jobs). Owning a property does not confer a residence permit, but it can support an application. Additionally, tax obligations (IMI, possibly AIMI, and tax on rental income) apply regardless of your country of residence.
Acquisition in Portugal is not conditional on nationality, but it takes place within a legal environment that applies equally to Portuguese and foreigners.
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20. Immediately update the registries after the deed
Signing the Escritura Pública de Compra e Venda is not enough: the transfer must be registered in the official registries.
After the deed, several steps must be taken quickly:
To formalize your property purchase, first register as the owner at the Registo Predial (Conservatória). Then update the Caderneta Predial with Finanças so that the IMI is issued in your name. Finally, verify, via an updated Certidão Permanente, that the registration has been completed and that no unexpected charges have been added.
The law provides a legal deadline (often 60 days) for these registrations. A delay can lead to fines, but more importantly, complications in case of resale, inheritance, or litigation.
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21. Ensure the seller is up to date with all obligations
Before proceeding to the deed, your lawyer must confirm that:
Before signing, ensure the seller has paid IMT, IMI, and stamp duty; that water, electricity, gas, and utility bills are not overdue; and that any obligations for remedial work (illegal construction, code upgrades) are satisfied or guaranteed by holdbacks on the price or specific contractual commitments.
The principle is simple: you only sign once you are sure that nothing from the past will burden your future as an owner.
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22. Properly frame money flows (deposits, payments, escrow)
The most explosive problems arise from poorly framed payments. A few prudent rules:
Down payments made upon signing the CPCV must be stated in the contract with bank details, amounts, and consequences in case of breach. Avoid payments to unidentified personal accounts: prefer a professional account of the lawyer or agency, or even an escrow account. Every significant payment (deposit, balance) must be supported by written receipts and integrated into the deed’s accounting, which the notary records in the *escritura*.
This financial-accounting rigor is all the more essential if you buy remotely or by power of attorney.
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23. If buying off-plan, strengthen protection at every stage
Buying off-plan (VEFA) requires an even stricter checklist:
For an off-plan purchase, check the financial and legal strength of the developer (commercial registry, accounts, delivery history). Ensure all permits and authorizations (construction, urban planning) have been obtained. Demand a bank or insurance guarantee for any deposit over €5,000. Link payments to concrete construction milestones (foundations, shell, roofing) rather than fixed dates. Finally, include delay penalties and the possibility of contract termination in case of excessive delay.
Scandals of unfinished developments or failed developers often originate from buyers who paid large sums too early, without sufficient guarantees.
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24. Do not underestimate the complexity of local regulations
Portuguese real estate law is a stack of texts: civil code, urban planning laws, decrees on energy performance, specific rules for gas, electricity, tourist rentals, etc. New laws, such as the Simplex Urbanístico or housing measures, regularly modify the distribution of responsibilities between the state, sellers, buyers, and professionals.
Concretely, this means that a purchase that seemed “simple” on the surface may involve:
– specific constraints if the property is located in a protected, coastal, or sensitive area;
– obligations for diagnostics, code upgrades, or work in the near future;
– interactions with other legislation (anti-money laundering, agency reporting obligations, foreign investment controls).
This complexity reinforces the value of a lawyer + technician team to cover the full spectrum of risks.
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25. Adopt an overall strategy rather than ticking isolated boxes
A checklist only makes sense if it is part of an overall vision:
– What is your goal (primary residence, second home, rental investment, long-term)?
– What holding period are you aiming for (quick resale, inheritance, retirement)?
– What are your acceptable risk scenarios (major works, exposure to tax reform, urban planning risks)?
Property, registries, licenses, energy, debts, taxation, financing, agent, lawyer, contracts, technical inspection, condominium, and post-purchase obligations form an inseparable whole. Treating them separately, without an overall strategy, is like ticking boxes without understanding what you are actually buying.
However, by integrating them into a coherent action plan, you transform a sometimes opaque market into a controlled opportunity. Portugal remains one of the most open countries to foreign buyers, but this ease of access now comes with a clear requirement: take your role as an informed and well-advised buyer seriously.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
