Selling Property in Portugal — A Guide for Canadians

Selling a home in Portugal is not hard, but it is not the same as selling one here. Different paperwork. Different taxes. And if you live in Canada, two tax systems that both want to hear about it.

This page covers the whole thing in order. If you are buying rather than selling, read the buyer’s guide instead.

How do you sell a property in Portugal?

There are two big moments. Everything else is getting ready for them.

The promissory contract. In Portuguese it is the Contrato de Promessa de Compra e Venda, or CPCV. It is binding. The buyer usually puts down 10 to 30 percent here. If the buyer walks away without a legal reason, they lose that money. If you walk away, you normally have to give back double.

The final deed. The Escritura Pública. You sign in front of a notary, the buyer pays the rest, and the sale gets registered at the land registry. That is the day it stops being yours.

From an accepted offer to the deed is usually 30 to 90 days.

What documents do I need to sell?

Get these together before you list. Missing paperwork is the most common reason a sale drags.

  • Certidão Permanente — your land registry certificate. It proves you own it.
  • Caderneta Predial — the tax record for the property.
  • Licença de Utilização — the habitation licence. It says the place is legal to live in.
  • Certificado Energético — the energy certificate. This one is required, not optional.
  • Ficha Técnica da Habitação — only for newer builds.
  • Condo documents — if the place is part of a building.

Living outside Portugal? You will also need your Portuguese tax number (NIF), a fiscal representative, and a power of attorney if you are not flying over to sign.

What taxes do you pay when you sell property in Portugal?

The big one is capital gains tax. In Portugal it is called mais-valias. You pay it on your profit, not on the sale price.

If you live in Portugal, only half your gain gets taxed, and it is added to your income. If you live somewhere else, a flat rate applies instead. In some cases non-residents can ask to be taxed at the regular rates, which is sometimes cheaper.

Tax rates and rules change. Do not plan a sale on the numbers you read online, including these. Get an accountant to run yours before you list.

How is the gain worked out?

Take what you sold it for. Subtract what you paid for it. Then subtract the costs you are allowed to claim.

Those usually include renovations with proper invoices, your agent’s commission, the energy certificate, legal fees, and some of what it cost you to buy in the first place.

Keep the invoices. No invoice, no deduction. People lose real money here.

Do Canadians pay tax in Canada too?

Yes. Canada taxes you on income from anywhere in the world, so the sale has to be reported here as well.

You will usually get a foreign tax credit for what you already paid Portugal, so you are not taxed twice on the same money. But your gain is worked out in Canadian dollars, not euros. If the exchange rate moved between the day you bought and the day you sold, your Canadian tax bill moves with it — even if your euro profit stayed the same.

That is worth planning before you sign, not after.

What does it cost to sell a property in Portugal?

As the seller you normally pay:

  • The real estate commission, usually around 5 percent plus VAT
  • Capital gains tax on your profit
  • Legal fees, if you use a lawyer
  • The energy certificate, if you do not have one yet
  • Mortgage discharge fees, if there is still a loan on it

The buyer pays the transfer tax and the stamp duty, not you.

Can I sell from Canada without flying over?

Yes. Plenty of people do. You sign a power of attorney so someone in Portugal can handle the deed for you.

Three things to line up early if you are selling from here: your Portuguese bank will run compliance checks, you need a plan for moving the money home, and you need to know what you are reporting to the CRA. None of it is hard. All of it takes longer than you expect.

How long does it take to sell a house in Portugal?

Two to four months is normal, start to finish.

  • Getting your documents together: one to three weeks
  • On the market: one to four months
  • Contract to deed: 30 to 60 days

Rural places and higher-priced homes usually take longer. So does a home with a paperwork problem nobody found until a buyer’s lawyer went looking.

How do you set the asking price?

Price it too high and you do not get a slow sale. You get no serious offers at all, then a price cut, and then buyers wondering what is wrong with it.

A good price looks at what similar homes actually sold for, what foreign buyers are doing right now, the condition and the paperwork, and where the euro sits against the dollar. That last one matters more than people think when your buyer is coming from Canada or the States.

What goes wrong when Canadians sell in Portugal?

Listing high to “test the market”. The market does not need testing. It tells you by not calling.

Leaving the tax until the end. By then your options are gone.

Not checking the paperwork first. The buyer’s lawyer will find it. Better that you find it.

Unsorted inheritance. If the place came to you through family and the estate was never properly settled, sort that out before you list. It stops sales dead.

Assuming it works like it does here. It does not, and that is the mistake underneath most of the others.

Where do you start if you’re selling from Canada?

Buying as well as selling? The buyer’s guide covers that side.