Buying a home in Portugal, question by question.
Every question from the guide, on one page. Taxes, contracts, credit, documents and fees. Each answer stands alone; the full article is one click away.
The buyer's guide
The questions buyers actually ask, answered by people who accompany purchases every day. No figures that change each year: where the law moves, we explain the mechanism and point you at the current value.
- 01
What buying a home in Portugal costs beyond the price
Taxes, bank fees, deed and registration: what you actually pay beyond the asking price when buying a home in Portugal, and where to check the figures.
- 02
Why mortgage approval before you search changes everything
Mortgage approval sets your real budget, makes your offer credible and shortens deadlines. What the bank assesses and what can still go wrong before the deed.
- 03
How a mortgage works in Portugal
From application to deed: what the bank assesses, the property valuation, fixed or variable rate, spread and deadlines. Where to confirm current terms.
- 04
What is IMT and how is it calculated
IMT is paid by the buyer before the deed and applies to the higher of price or rateable value. How the calculation works and where the current rates live.
- 05
The three documents that prove what you are buying
The three documents that describe a Portuguese property: the tax record, the land registry certificate and the use licence. What each one proves.
- 06
What the CPCV is and what to check before you sign
The CPCV does not transfer ownership, but it fixes the deposit, deadlines and liabilities. What to check in the documents and clauses before signing.
- 07
The deed: what happens and what to bring on the day
What happens on the day of the deed when you buy a home in Portugal: who attends, which documents to bring, and what must be settled first.
- 08
Energy certificate: when it is required and what the classes mean
An energy certificate is required to sell or let a home in Portugal, and the class must appear in the listing. What the class measures, and what it does not.
- 09
Who pays the estate agency commission in Portugal
In Portugal the commission is paid by whoever signs the mediation contract, almost always the seller. When it falls due, and what a buyer should never pay.
- 10
How to check that an estate agency is legitimate
An AMI licence is public and searchable in the IMPIC register. What to check, what the mediation contract must contain, and the warning signs to watch for.
- 11
Buying a home in Portugal as a foreigner or non-resident
Foreigners can buy property in Portugal without restriction. What changes is the NIF, fiscal representation, the mortgage and signing from abroad.
- 12
What it costs to keep a home: IMI, condominium fees, insurance
The yearly cost of owning a home in Portugal: IMI, condominium fees, insurance and upkeep. What each one is, what makes it vary, where to check current rates.
What buying a home in Portugal costs beyond the price
- Besides the deposit, how much cash do I need to buy a home?
- You need the deposit plus the purchase taxes (IMT and stamp duty), plus the mortgage costs (valuation, bank fees and stamp duty on the loan), plus the charges for the deed and registrations. None of it is financed by the bank. The exact amount depends on the price, the municipality, whether it will be your permanent residence and which bank you use, so the calculation is done case by case, with the Portal das Finanças IMT simulator and the bank's FINE in front of you.
- Will the bank lend me the money to pay the IMT?
- No. IMT and stamp duty on the acquisition are paid by the buyer, out of own funds, before the deed, and proof of payment is required at signing. The loan is against the property, not against the transfer taxes. Counting on the bank to cover the taxes is the most common budgeting mistake among first-time buyers.
- Who pays for the deed, the buyer or the seller?
- As a rule, the buyer. The charges for the act, registering the purchase and, where there is a loan, registering the mortgage in the bank's favour all fall to the buyer. The parties can agree otherwise, but that agreement has to be written into the promissory contract, not settled verbally. The amounts appear in the published fee schedules of Casa Pronta and the registries.
- What does having a consultant on the buyer's side cost?
- At Stonest Partners, nothing for the buyer. The fee comes from the selling side, as it does in estate agency generally. What changes is which side of the table your adviser sits on: a buyer's consultant works the buyer's interests, from how the shortlist is built through document checks to the deed itself.
- Do I lose my deposit if I pull out of the purchase?
- If the buyer breaches the promissory contract without legal justification, yes: the deposit paid is forfeited to the seller. If the seller is the one in breach, the law allows the buyer to demand double the deposit handed over. That is why the financing terms and the document checks have to be settled before the promissory contract is signed, not after.
Why mortgage approval before you search changes everything
- Can I make an offer without having my mortgage approved?
- You can, but you start at a disadvantage. The seller has no way to confirm you can pay, and on a contested property that usually decides it. If you proceed anyway, insist that the promissory contract includes a clause making it conditional on obtaining credit, with a defined deadline and return of the deposit if the bank refuses. Without that clause, a refusal becomes your breach and the deposit is lost.
- Does the bank's approval guarantee I can buy that specific house?
- No. Approval assesses the buyer, not the property. The bank will still commission a valuation and check the property's registry and documents. If the valuation comes in below the price, the bank lends against the lower figure and the gap must be covered with your own funds or the price renegotiated. If there are uncancelled mortgages, area discrepancies or a missing use licence, financing may not go ahead on that particular property.
- How long does mortgage approval last?
- It has an expiry date, set by the bank and stated in the decision and in the FINE. It is not open-ended and it does not freeze the terms forever. If it lapses before you find a property, the process is redone and the rate, spread and amount may no longer be the same. Confirm the period in writing with your bank and plan your search inside it.
- Should I get approval from more than one bank?
- It is common and useful, because it lets you compare offers through the FINE, which presents terms in a standardised and therefore comparable format. Compare the rate, the term, the charges and the linked products such as insurance or salary domiciliation, not just the spread. Bear in mind that each application involves checks on your credit position and repeated paperwork, so two or three done properly beat many done in a rush.
- What happens if the bank values the house below the asking price?
- The bank lends against the lower of price and valuation, so the difference becomes yours to fund. There are three ways out: cover the gap with your own money, renegotiate the price with the seller using the valuation as leverage, or walk away. If the promissory contract is already signed without a clause covering this, your room to manoeuvre is far smaller. It is one reason to check figures and documents before signing rather than after.
How a mortgage works in Portugal
- How long does mortgage approval take?
- It depends mostly on how complete the file is. With the paperwork in order, the decision about the borrower is usually quick; what stretches the timeline is the valuation, the registry checks and requests for missing documents. Expect two separate steps: approval of an amount, which can be done before choosing a property, and final approval tied to the specific home, which only starts once you find it. Gathering everything before submitting is the most effective way to shorten it.
- Will the bank lend 100% of the property value?
- As a rule, no. The bank finances a percentage of the lower of purchase price and appraised value, and that percentage is capped under the Banco de Portugal macroprudential recommendation, more tightly for a second home than for a main residence. The difference is your deposit, paid from your own funds. On top of that come IMT, stamp duty, the deed and registrations, which are also not financed. Check the percentage in force on the Banco de Portugal website and the actual amount in your bank's offer.
- The bank's valuation came in below the price. What happens?
- The bank recalculates the loan on the appraised value, the lower of the two, and the financed amount falls. The gap has to be covered from your own funds. There are three routes: renegotiate the price with the seller using the report as leverage, challenge the valuation with the bank if there is a factual error such as wrongly recorded areas or layout, or seek a second valuation at another lender. If none works and you have already signed a CPCV with no financing clause, your deposit is at risk.
- Fixed or variable rate: which should I choose?
- The right question is not which turns out cheaper, since that is only known at the end. It is how much payment variation your budget can take. If a significant rise in the instalment would cause real strain, a fixed or mixed rate buys predictability and that cost is justified. If there is slack, variable tends to carry a more competitive spread and a lower early repayment fee, which matters if you plan to overpay or sell within a few years. Always compare on TAEG, and ask more than one bank for the same simulation.
- Can I switch banks after my mortgage is approved?
- Yes. An approval commits you to nothing until the contract is signed, and running offers from several banks in parallel is standard practice. Compare using each bank's FINE side by side, looking at the TAEG and the bundled products, not just the spread. After completion you can still move the loan to another lender, but then the cost of releasing the old mortgage, a new registration and a new valuation all weigh on the maths.
What is IMT and how is it calculated
- Is IMT paid before or after the deed?
- Before. Whoever executes the deed will require proof that IMT and stamp duty have been assessed and paid, and will not proceed without it. Plan to have the money available in the week of the deed, because these taxes are not covered by the mortgage.
- Is IMT calculated on the price or on the rateable value?
- On the higher of the two. If the rateable value shown on the caderneta predial is above the declared price, the VPT is the base for the tax. That is why it is worth reading the caderneta before agreeing a price.
- Who is exempt from IMT?
- A permanent own residence whose value falls within the first band pays no IMT. There is also an exemption regime for young buyers purchasing a first permanent own residence, subject to an age limit, a value ceiling and the condition of never having owned another home, plus reliefs linked to urban rehabilitation. All of these can lapse if the use of the property changes within the legal period. The limits in force should be checked on the Portal das Finanças.
- Where can I see this year's IMT rates?
- In the IMT simulator on the Portal das Finanças, which applies the table in force on the day you use it, and in the consolidated text of the IMT Code published in the Diário da República. The tables change with the state budget, so figures copied from articles, including from estate agency sites, go out of date without notice.
- Do I pay more IMT if I buy the property to let?
- Yes. The secondary housing table, which covers buying to let or buying a second home, carries higher rates than the permanent own residence table. And if you buy declaring it as your permanent own residence and then let it within the period set in law, the relief lapses and the tax becomes due, with interest.
- Will the bank lend me the money for the IMT?
- As a rule, no. A mortgage finances a percentage of the property value as assessed by the bank, and the purchase taxes fall outside it. IMT, stamp duty, the deed and registration come from your own funds, which is why the savings you need are always more than the deposit.
The three documents that prove what you are buying
- Where do I get the caderneta predial of a house I want to buy?
- Normally you ask the seller or the agency, and that is how it should work: the owner obtains it instantly on the Portal das Finanças. A non-owner can request a certidão de teor matricial at a tax office or online, stating a legitimate interest and paying the applicable fee. In practice, a seller who will not produce the caderneta is a signal worth taking seriously.
- Does the land registry certificate expire?
- Access works through a code valid for a limited, renewable period, and while the code is live you always see the current position. A printed PDF does not do that: it evidences only what was registered on the day it was produced, and a new entry may have been filed the next day. Ask the seller for the code, or take out the certificate yourself.
- Is the taxable value (VPT) the value of the house?
- No. The VPT is a tax calculation figure, produced by a formula with coefficients (area, location, quality, age), used to charge IMI and as the floor reference for IMT. It can sit well above or well below the market price, especially where the last assessment is old. Do not treat it as an estimate of what the house is worth, or of what you could resell it for.
- Can I buy a house without a use licence using a mortgage?
- As a rule, no. The notary will not execute the deed without it and the bank will not release the funds. The known exception is buildings predating the date from which the licence became compulsory, where a municipal certificate attesting the building's age is produced instead. Check with the municipality before assuming your case falls within the exception.
- The listing area does not match the caderneta. Is that serious?
- It depends on where the difference comes from. Listings often quote gross construction area, which includes common parts and is larger than the private gross area on the caderneta, in which case the gap is purely definitional. If instead there are real habitable square metres that appear in no document (an enclosed balcony, a converted attic, an outbuilding), then there is unauthorised work. That affects the bank's valuation, the IMI and any future sale, and the seller should regularise it before the deed.
What the CPCV is and what to check before you sign
- Can I buy a house without a CPCV?
- You can. A CPCV is not compulsory and, if both parties are ready, you can go straight to the deed or to an authenticated private document. In practice this rarely happens, because the buyer needs time for the bank to finish the valuation and formalise the loan, and the seller wants security during that wait. The CPCV exists to cover that gap.
- How much deposit is usual?
- No percentage is set by law. The amount is negotiated and reflects the balance of power: the larger the deposit, the more secure the seller and the more exposed the buyer. Bear in mind that the deposit comes out of your own funds, not the loan, and that the bank lends against the lower of the purchase price and the valuation. Work out your total own funds before fixing the deposit, not afterwards.
- What if the bank refuses the mortgage after I have signed the CPCV?
- It depends entirely on what the contract says. If it contains a clause making the transaction conditional on loan approval, with a defined deadline, the contract falls away and the deposit is returned on the terms set out there. If it does not, the bank's refusal is your problem and the seller may keep the deposit. Never sign a CPCV with your mortgage still pending unless that clause is in it, in writing.
- Does the CPCV have to be signed before a notary?
- It does not have to be executed before a notary, but where the promise concerns a building or unit already built or under construction, the law requires the signatures to be witnessed in person and the existence of a usage or construction licence to be certified, which is done by a notary, lawyer, solicitor or registry office. Many contracts include a waiver of these requirements. If you sign with a waiver, understand that you are giving up a protection the law grants you as buyer.
- If I pull out of the purchase, do I lose the deposit?
- As a rule yes, if the withdrawal has no basis in the contract or in law. The default rule is that a buyer in breach loses the deposit and a seller in breach returns it in double. There are exceptions: a condition set out in the contract that was not met, such as a mortgage refusal, or a breach by the seller, such as a charge he undertook to remove and did not. If you are considering pulling out, read the contract before communicating anything.
- Does the CPCV protect me if the seller sells the house to someone else?
- An ordinary promissory contract gives you a right to compensation and, unless it has been excluded, to specific performance, but it does not appear on the land registry and does not materially prevent a sale to a good-faith third party. To be enforceable against third parties, the contract must be executed in the required form and entered in the registry, which has to be expressly agreed with the seller. Where the property has already been handed over, the promissory buyer may also enjoy a right of retention, which is a strong guarantee.
The deed: what happens and what to bring on the day
- Can I complete the deed without being there?
- Yes, through a power of attorney with specific powers to buy that particular property. It must follow the legal form required and is normally executed before a notary. If granted abroad it needs legalisation or an apostille and, if in another language, a translation. Sort this out well in advance: a badly drafted power of attorney, or one with insufficient powers, is enough to stop the act going ahead that day. If there is a mortgage, tell the bank, because it must also accept the power of attorney for the loan.
- Who chooses the notary, the buyer or the seller?
- As a rule, whoever bears the costs of the act chooses, and those normally fall on the buyer. With a mortgage, however, the bank usually nominates the notary, desk or solicitor it works with, because they prepare and register the charge. It is not an arbitrary imposition, and refusing it usually delays the booking. If you have a reason to prefer another venue, raise it early, not in the week of the deed.
- How long is there between the promissory contract and the deed?
- It depends on the bank and on the state of the paperwork, not on a fixed rule. What weighs on it: the property valuation, the issue and validity of the mortgage offer, obtaining missing documents from the seller, and cancelling old charges. The deadline is whatever the promissory contract says, so negotiate it with slack and provide for an extension. A tight deadline turns an administrative delay into a breach with consequences for your deposit.
- Do I need a lawyer at the deed?
- It is not compulsory. The notary or solicitor formalising the act guarantees legality and the identity of the parties, but is impartial and does not defend your interest. Checking the registry certificate, the tax record, the habitation licence and whether they agree with one another is a different job, and it is done beforehand, not on the day. It can be done by a lawyer, a solicitor or a buyer-side adviser. What must not happen is nobody doing it.
- What happens if a document is missing on the day?
- It depends on the document. If proof of payment of transfer tax and stamp duty is missing, or the registry certificate shows an encumbrance still to be cancelled, the act does not go ahead. If something is missing on the seller's side, the postponement is attributable to whoever failed and the promissory contract sets out what follows, including deadlines and the fate of the deposit. Do not agree to sign on a promise that the document will turn up later. Rebooking costs days; signing over a problem can cost the whole purchase.
Energy certificate: when it is required and what the classes mean
- Who pays for the energy certificate, the buyer or the seller?
- The seller pays. The obligation to hold a certificate belongs to the property owner and exists before the property is advertised. The buyer hires nobody and pays nothing, and should receive the certificate at no cost. If you are asked to pay for the certificate of the home you are buying, someone is passing you an obligation that is not yours.
- Can I buy a house that has no energy certificate?
- You should not proceed with the matter unresolved. The certificate is mandatory for the sale and the seller must have one. If it does not yet exist when the promissory contract is signed, insist that the CPCV sets a delivery deadline before the deed and the consequences of missing it. A verbal promise leaves you with no argument on the day.
- Is a house with an F energy class a bad buy?
- Not necessarily. An F class says the building consumes a lot for the comfort it delivers, which is common in older uninsulated construction. If the price already reflects that and the improvement measures listed in the certificate fit your budget, it can be a good buy. The mistake is paying an efficient-home price for a home that will need work.
- Does the energy certificate expire?
- Yes. It has a validity period and the expiry date is printed on the document itself. Check it first: an expired certificate is no good for a sale and must be reissued by a qualified assessor. Validity is not the same for every type of building, so the date on the document is the only reliable answer for that property.
- Can the energy class improve after renovation works?
- It can. Replacing windows, insulating the roof or changing the hot water system alters the calculation. For the new class to be on record, a fresh certificate must be issued by a qualified assessor once the works are finished. If you plan to sell or let later, or to apply for grants or credit with terms tied to energy performance, updating it is worth doing.
Who pays the estate agency commission in Portugal
- I am the buyer. Do I have to pay the agency a commission?
- As a rule, no. The commission is owed by whoever signed the mediation contract, and in a home sale the signatory is almost always the seller. If you are asked for commission as a buyer, ask to see the document you signed that creates that obligation. No document, no obligation. The one case where a buyer pays is when the buyer is the agency's client, having signed a contract for a property search.
- Is the commission paid at the promissory contract or at the deed?
- It depends on what the mediation contract says. The general rule is that the fee falls due when the sale is concluded, that is, at the deed. But it is valid to agree that part is paid on signature of the promissory contract, and many contracts do exactly that. Anyone selling should read that clause before signing, because it decides whether they owe a fee on a deal that has not yet closed.
- Is VAT charged on the agency commission?
- Yes. Estate agency work is a supply of services, so VAT at the rate in force is added to the commission, invoiced to the agency's client. When comparing agency proposals, always compare on a VAT-inclusive basis, since some quote with VAT and others without. The applicable rate should be checked on the Portal das Finanças, as it can change with the state budget.
- If I have my own consultant, does the seller pay two commissions?
- No. The seller pays the commission they contracted for, and only that one. When the buyer arrives with another firm, the two agencies split that same commission between them, what the market calls a share or co-mediation. For the buyer, the effect is having someone on their side without the price of the house going up and without paying a fee.
- The agency asked me for a reservation fee. Is that the commission?
- No, they are different things. A reservation fee is money handed over to take the property off the market while the promissory contract is prepared. Before paying it, insist in writing on who holds the money, in which account it sits, whether it is deducted from the price at the deed, and on what terms it comes back if the deal does not proceed. Without that document, transfer nothing.
- Can I negotiate a better price if I buy without an agency?
- You can try, but it is not automatic. In a private sale the seller saves the commission, and that saving only reaches the buyer if the buyer explicitly negotiates for it. Weigh the other side of the ledger: with no agency involved, nobody is checking the tax register entry, the land registry certificate, the registered charges or the habitation licence. That is where costs far larger than the saved commission tend to surface.
How to check that an estate agency is legitimate
- How do I find an agency's AMI number?
- Ask for it. The law requires the AMI number to appear on documents, in advertising and at the premises, so it is usually in the website footer, in the listings and on the shopfront. If you cannot find it, ask by email so there is a record. With the number, or with just the tax number or company name, search the IMPIC public register of mediators and confirm the holder and the licence status.
- Does the AMI licence belong to the person or the company?
- The company. The AMI licence is held by the mediation company, not by the individual agent. A property agent works under the licence of the agency they are contracted to. So if someone tells you \"I have an AMI\", the next question is which company and which number, and then you check the company in the IMPIC register.
- Do I have to pay an agency anything to view properties?
- No. Viewings are not paid for. The mediation commission is owed by whoever engaged the agency, and in Portugal that is almost always the seller. If you are asked for a viewing fee, a buyer registration payment or a retainer with no written contract behind it, treat that as a warning sign and ask for the contractual basis in writing before paying anything.
- The agency asked me for a reservation payment before the CPCV. Should I pay?
- Not without knowing exactly who receives the money, on what basis, and under what conditions it is returned, all in writing. A reservation payment is not the deposit, it does not replace the promissory contract, and on its own it does not secure the property for you. Never transfer to an agent's personal account. If the document put in front of you does not say who receives it, when it is returned and in which cases it is not, do not sign.
- The agency says it will handle my mortgage. Is that allowed?
- Only if it is registered with Banco de Portugal as a credit intermediary, which is a separate authorisation from the AMI licence. Banco de Portugal keeps a public register of those intermediaries and it is free to search. Holding an AMI does not authorise anyone to broker credit. Alternatively, arrange the financing directly with the banks and come to the market with approval already in hand.
Buying a home in Portugal as a foreigner or non-resident
- Can a foreigner buy a house in Portugal?
- Yes, with no nationality restriction and no need for a residence permit. The process is the same as for a Portuguese buyer: promissory contract, taxes, deed and registration. What you do need is a Portuguese tax number, obtained from the tax authority before making an offer, and in practice a Portuguese bank account for the payments.
- Do I need a fiscal representative in Portugal?
- It depends where you live. People resident outside the European Union and the European Economic Area must, as a rule, appoint a fiscal representative with an address in Portugal to receive tax authority notices. EU and EEA residents are not required to. There is also the option of a waiver by signing up to electronic notifications. The regime has changed more than once: confirm on the Portal das Finanças or at a tax office.
- Can I buy a house in Portugal without travelling?
- Yes, through a power of attorney with specific powers to sign the promissory contract and the deed on your behalf. If signed abroad it must be notarised and legalised, with a Hague Convention apostille where the country is a signatory, or by the Portuguese consulate where it is not. The powers must cover the exact act: an incomplete power of attorney is refused on the day of the deed.
- Does buying a house in Portugal give you residency?
- No. Property acquisition is no longer a route to a residence-by-investment permit, and buying a home never replaced a visa or residence permit on its own. You can own property in Portugal without living there, and live there without owning. If the goal is to live in Portugal, confirm the rules in force with AIMA or a lawyer before buying.
- Do Portuguese banks lend to non-residents?
- They do, but with stricter criteria. As a rule they finance a smaller share of the property value than for a resident, which means more of your own capital up front, and they require proof of income with documents from your home country, often with certified translation and apostille. Financing and debt-service limits vary by bank and follow the macroprudential recommendation in force from Banco de Portugal: confirm current figures on the Portal do Cliente Bancário and with the bank.
What it costs to keep a home: IMI, condominium fees, insurance
- Who pays the IMI in the year I buy the house?
- Whoever owns the property on 31 December of the year the tax relates to. Buy at any point in the year and the whole of that year's IMI is yours, with the bill arriving the following year. Nothing stops buyer and seller agreeing a pro-rata split in the promissory contract, but that is a private arrangement: as far as the tax authority is concerned, the owner on the reference date is the debtor.
- Do the previous owner's condominium arrears become mine?
- The procedure exists precisely so this is not left hanging: the law provides for a declaration from the condominium manager on that unit's outstanding charges to be produced at the deed, and the buyer may state in writing that they waive it. Do not waive it and do not sign without seeing it. If there are arrears, require them settled before the deed or deducted from the price, and confirm with your lawyer or the notary how already approved but unpaid levies are treated.
- Do I have to pay the condominium fee if I never use the lift or the pool?
- Yes. In a building under horizontal property, contributing to common-part expenses is a legal obligation, not a service subscription, and it is split by your unit's thousandth share. There is one exception with its own rule: expenses relating to parts that serve only some owners are borne by those owners, where the title deed or a resolution of the meeting says so. Check the title deed before assuming it applies to you.
- Do I have to buy the insurance from the bank that gave me the loan?
- No. The bank can require buildings cover on the property, and usually life cover, but it must accept policies from another insurer provided the cover is equivalent to what it requires. What changes is the total price: many loan offers discount the spread when the insurance stays with the bank, and that discount normally disappears if you leave. Compare the annual insurance cost added to the cost of the loan, not the insurance on its own.
- How much should I set aside each year for maintenance?
- There is no honest percentage that fits every home, and be wary of anyone who offers you one. What drives the figure is specific: the age of the building, the state of the roof and the plumbing, the age of the boiler and the air conditioning, whether you are in a condominium with a reserve fund covering the common parts or in a house where everything is yours. Do the opposite of an average: list the equipment, estimate the years of life left in each item and its replacement cost, divide by those years. That gives you a defensible number of your own instead of a rule of thumb.
We answer this every day. We will answer your case too.
Stonest accompanies buyers with approved credit, from choosing the home to the deed, at no cost to the buyer. If your question is still open, ask a person.