Step 4: The Legal Process of Buying Property in Portugal

Step 4: The Legal Process of Buying Property in Portugal

Once you’ve found your dream home in Portugal, the next big step is understanding how the buying process works. The good news is that Portugal has a safe and clear system for home purchases — especially when you have a trusted real estate agent and a good lawyer on your side.

Here is the legal process explained in simple, easy-to-follow parts.

Making an Offer

After you choose your property, your agent will help you make an offer.
If the seller agrees, both sides accept the price and terms.

Your lawyer will then check the property to make sure:

• the seller truly owns it

• there are no debts

• the land records match

• all documents are correct

This protects you from problems later.

The Promissory Contract

The next part is the Promissory Contract (Contrato de Promessa de Compra e Venda).

You pay a deposit when you sign. Most deposits are between 10% and 30%.

If the seller cancels, they must return double your deposit.
If the buyer cancels, they lose the deposit.

This contract shows both sides are committed to the sale.

The Final Deed and Payment

The last legal step is signing the Deed of Purchase and Sale (Escritura).
This happens in front of a notary.

During this part:

• you pay the remaining balance

• the home becomes officially yours

• your lawyer registers the property in your name

After this, you are the legal owner.

Property Taxes You Will Need to Pay

When you buy a home in Portugal, you must pay:

• IMT – the transfer tax (one-time)

• Stamp Duty – a small percentage of the price

• IMI – yearly municipal property tax

Your lawyer or agent will help you with each tax so nothing is missed.

Buying With Confidence

With the right team, the buying process is simple and stress-free.
A trusted real estate agent and a good lawyer will guide you through every step.

Full 8-Step Series Recap (All Steps)

Here are all 8 steps in the full Portugal buying journey, with links to each guide:

Full guide to Step 1: NIF for Canadians Buying Property in Portugal

Full guide to Step 2: How Canadians Can Open a Bank Account in Portugal

Full guide to Step 3: Best Areas in Portugal for Canadian Buyers

Full guide to Step 4: The Legal Process of Buying Property in Portugal for Canadians

Full guide to Step 5: Moving and Settling in Portugal for Canadians

Full guide to Step 6: Investing and Renting Out Property in Portugal

Full guide to Step 7: Residency and Golden Visa Options for Canadians

Full guide to Step 8: What Life in Portugal Is Like for Canadians

FAQs: The Legal Process of Buying Property in Portugal

Do Canadians need a lawyer to buy property in Portugal?

While it’s not legally mandatory, having a lawyer is strongly recommended. Your lawyer checks ownership, verifies documents, reviews contracts, protects your deposit, and ensures the entire purchase is legally secure.

What happens after I make an offer on a property?

Once your offer is accepted, your lawyer begins due diligence. They confirm the seller owns the property, verify there are no debts, check land records, and ensure all documents are correct before you move forward.

What is the Promissory Contract in Portugal?

The Promissory Contract (CPCV) is a legally binding agreement between the buyer and seller. You pay a deposit—usually 10% to 30%—and both parties commit to completing the sale.

What happens if the seller backs out after signing the Promissory Contract?

If the seller cancels, they must return double your deposit. This protects buyers from unexpected changes.

What happens if the buyer backs out after signing the Promissory Contract?

If the buyer cancels, they lose their deposit. This ensures both sides enter the contract seriously.

How much is the deposit for buying a home in Portugal?

Most deposits range from 10% to 30% of the purchase price and are paid when the Promissory Contract is signed.

What is the Deed of Purchase and Sale?

The Deed (Escritura) is the final legal step. It’s signed in front of a notary. At this moment, you pay the remaining balance, receive ownership, and your lawyer registers the property in your name.

When do I officially become the owner of the property?

You become the legal owner immediately after signing the Deed and completing the payment. Your lawyer then updates the land registry with your name.

What taxes do Canadians need to pay when buying a home in Portugal?

There are three main taxes:

• IMT (one-time transfer tax)

• Stamp Duty (a small percentage of the price)

• IMI (annual municipal tax)
  Your lawyer or agent will calculate these and help make sure nothing is missed.

How long does the buying process usually take?

Most purchases take 4–8 weeks, depending on how quickly documents are prepared and due diligence is completed. With financing, the timeline may be slightly longer.

Can I buy a home in Portugal without being in the country?

Yes. Many Canadians buy remotely using a power of attorney. Your lawyer can sign documents on your behalf and guide you through the entire process from abroad.

Is the Portuguese buying process safe for foreign buyers?

Yes. Portugal has a transparent legal system with strong buyer protections. With a trusted agent and a good lawyer, the process is safe, clear, and straightforward.

Ready to Make Portugal Your Home?

If you’re ready to take the next step, I’d be happy to guide you through every part of the process — from finding the right home to signing the final papers.