The process of purchasing real estate in Portugal.
Once a real estate item in Portugal is selected, purchase registration and transaction start. Registration consists of several stages:
1. It is necessary to sign CONTRATO DE PROMESSA DE COMPRA E VENDA (preliminary agreement for the purchase of real estate in Portugal). It
will identify the terms and conditions of the transaction and the date of signing ESCRITURA PUBLICA (final contract of purchase of real estate in Portugal) in Notaries office.
2. The margin should be paid. It constitutes 10% of the value of the real
estate item in Portugal. To do this, the buyer should obtain Tax-payer Identification Number
(NÚMEROCONTRIBUINTE) in the local fiscal authority (FINANÇAS), as well as open an account in a Portuguese bank. This will require the following
documents:
• Passport;
• Tax-payer Identification Number (número contribuinte). It is to be
obtained in the local fiscal authority.
• Proof of address (for example, the bill for utility payments, translated into
Portuguese (or English).
• Reference from work or a copy of a state registration of business
activities, etc. The reference should contain information on salary and
position.
• The account would be opened in case of making a deposit (from 50 to
500 euros).
If the real estate buyer wants to arrange a mortgage, he should make pre- registration (REGISTO PROVISÓRIO) in CONSERVATÓRIA DO REGISTO PREDIAL (local authority of Cadastral Registration of Real Estate in Portugal).
3. One should pay tax on the transfer of property (IMPOSTO MUNICIPAL SOBRETRANSMISSOES DE IMOVEIS - IMT) in the local fiscal authority.
4. Signing the final contract of real estate purchase in Portugal (ESCRITURA PUBLICA). To do this, one should submit the following documents:
• Receipt of payment of IMT;
• Documents, identifying the personality of both parties;
• Documents relating to the subject:
a) LICENÇA DE UTILIZAÇÃO - a document issued by the local municipality (CÂMARA MUNICIPAL DO CONCELHO) that shows the purpose of the real estate item (for a living, for construction, business).
b) CERTIDÃO DE TEOR - a document describing the property in Portugal, its street address and details of all the operations that were committed with the item. This document can be obtained from the local authority responsible for Cadastral Registration of Real Estate in Portugal (CONSERVATÓRIA DO REGISTO PREDIAL).
c) CADERNETA PREDIAL - a document confirming the registration of property in the fiscal authority. It contains information on the cadastral value of property in Portugal, a detailed description of its condition and information about the owner and his fiscal number. This is a kind of facility’s passport. It should be issued by the local branch of fiscal authority.
d) It is necessary to get the Technical passport of the real estate item (FICHA TÉCNICA DE HABITAÇÃO) that contains a description, specifications and plans. It is available only for buildings with year of construction after March 30, 2004.
e) If the mortgage is needed a copy of the pre-registration (REGISTOPROVISÓRIO) is provided.
5. In conclusion, one should register the real estate purchase in CONSERVATÓRIA DO REGISTO PREDIAL (authority responsible for cadastral registration.) If the mortgage is executed the real estate in Portugal is transferred from the prior register to the final one.