Buyers guide

Buying property in Portugal should be a transparent process and you, as a buyer, are completely protected during the whole journey.

Step One: Finding the right property

Portugal offers a wide variety of property for all tastes and budgets including great value renovation projects to multi-million euro mansions. Engaging Boutique Properties’ expertise is the first step that you need to take to find the perfect property. We will listen to you carefully and offer a bespoke service making sure that all your requirements are taken into account in a transparent and realistic manner.

We provide buyers with a full service providing tailored advice on locations, schools, services, investment potential day-to-day living, and insider insights as well as trusted contacts for mortgage brokers, designers, lawyers, surveyors, and contractors. With our dedicated skillset and our access to over 98% of the Portuguese real estate market, if the right property is out there, we will find it.

Step Two: The legal process & due diligence

Once we have helped you find the perfect place, the next steps are the reservation, due diligence, and the promissory agreement. It is often customary to make a refundable deposit of 5,000 to 10,000 euros to the legal representative of the seller in order to take the property off the market and begin making the legal arrangements.

The due diligence stage is the time to investigate every aspect of the property purchase and make the terms of sale crystal clear. Building surveys are not required by law in Portugal but are advisable especially for older properties. We can put you in touch with reputable surveyors as well as contractors that will help you fulfil your visions if you wish to do any additional work.

The next stage is the promissory agreement which is the first official binding document that is to be signed by the buyer and seller, it is usually accompanied by a downpayment of 10-20% of the purchase price.

Step Three: deeds and registration

Due to the exhaustive middle phase, the final purchase phase tends to pass relatively trouble-free. The final public deed of the property needs to be signed and witnessed by a notary, the full property purchase amount is transferred, and the property must be registered with the land and tax registry.

Extra costs to consider:

We offer our clients a transparent service and will make sure you have an understanding of any additional fees involved in your property purchase from the outset. Any commission due will be paid by the seller but here are some of the buyer’s costs:

• IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis) is a property purchase tax of 1-6% that varies depending on the property purchase price and the intended use of the property.
• Notary and registration fees these vary according to the purchase price but expect to pay an average of €400 for the notary and €250 for the registration.
• Stamp Duty the rate is 0.8% regardless of the purchase price plus an additional 0.6% of any mortgage amount borrowed.

IMI (Imposto Municipal Sobre Imóveis) is a form of council tax that is paid annually on the total value of the property. For urban properties, it is between 0.3 & 0.45% and for rural property, it is 0.8%. A higher amount is required for offshore property ownership by non-individuals.