Legal Information

Before you can buy a property in central Portugal you must obtain a Personal Fiscal Number (numero fiscal de contribuinte) this is obtained from the local tax office for  7.5 Euros and is a simple procedure. You can use the address of a friend, agent or solicitor when you apply. You will need identification .i.e. passport, identity card etc. Your solicitor can help you.

Promise to Buy:
Once you have agreed to buy your solicitor will draw up a preliminary contract which will be signed by both parties, the buyer will pay a deposit (usually 10% unless the property is new and then it is normally less) A further completion contract (escritura) will be signed with the Notary.

What tax do you pay on the purchase of a property?

Permanent Residences:

Declared Value of property % of Tax payable    
 Under € 92,407 0%    
 From € 92,407 to € 126,403 2%    
 From € 126,403 to € 172,348 5%    
 From € 172,348 to € 287,213 7%    
 From € 287,213 to € 574,323 8%    
 Over € 574,323 6%    

Second Homes/ Holiday Homes:

Declared Value of property % of Tax payable
 Under €  92,407 1%
 From € 92,407 to € 126,403 2%
 From € 126,403 to € 172,348 5%
 From €  172,348 to € 287,213 7%
 From € 287,213 to € 574,323 8%
 Over € 574,323 6%

The purchase tax (IMT) must be paid at least 3 days before the completion of the sale and proof pay payment shown to the Notary.

Other legal Costs/Fees:

Notary Fees, usually 2.5% of the value of the property
Solicitors Fees, can vary but usually between 1 to 3% of the transaction.

Documents you will need:

Property Registration Certificate
This should be issued in the presence of the Notary, this is proof of ownership. A solicitor can handle this for you and check that the property title is clean.

Local Council Tax
 A form of council tax, or IMI (Imposto municipal sobre imóveis), is charged to all property owners and is calculated on the value of your property. IMI can range from 0.2% to 0.5% of the property value for new builds and 0.4 to 0.8% for older properties, this is paid annually.