Purchasing property in Portugal is a straightforward process, which can usually be completed within four to six weeks.

Below is a concise guide to the key steps for both private and corporate purchases.

Buying a Privately Owned Property – what’s required?

1. Letters of Intent: A non-binding summary of agreed terms drafted by your agent.
2. Due Diligence: Your lawyer checks the property documents to ensure it’s free of debts and fit for sale.
3. Promissory Contract: A binding contract signed with a 10% deposit. If the vendor withdraws, they return double the deposit; if the buyer withdraws, the deposit is lost.
4. Final Deed (Escritura): Signed at a notary, transferring ownership. Remaining balance and taxes are paid, and the property is registered in the buyer’s name.

Costs

• Legal Fees: 1-2% of property value.
• IMT (Transfer Tax): 6-7.5%, varying by value.
• Stamp Duty: 0.8%.
• Notary & Registration: €2,000-€2,500.

Buying Property via Corporate Structure – what’s required?

1. Letter of Intent: As above.
2. Due Diligence: Includes checks on the corporate entity.
3. Share Purchase Agreement (SPA): Sets terms; a 10% deposit is paid.
4. Transfer of Shares: Remaining balance paid and shares transferred.

Costs

• Legal Fees: 1-2%
• IMT & Stamp Duty: Usually not applicable.
• Property Management: €3,000-€5,000.

KYC Requirements

KYC procedures are mandatory to prevent financial crimes. Be prepared to provide:

• ID and proof of funds.
• Disclosure of political exposure (PEPs).

Additional Tips

• Engage a good lawyer.
• Keep documents updated.
• Understand tax implications.
• Expect KYC checks.

Running Costs

Ongoing costs vary by property type and location. Resort homes like Quinta do Lago have higher maintenance costs. Rural homes are more self-sufficient. New builds are energy-efficient and cost less to maintain.

For more information or tailored advice, do not hesitate to reach out to a member of our team.

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