How to Buy a Property in Portugal: Essential Documents

Buying or selling a property involves a series of procedures and gathering essential documents to ensure a legal and transparent transaction. This article provides an overview of the documentation needed to buy a property in Portugal and avoid surprises.

DOCUMENTS RELATED TO BUYERS

1. National Buyers
   • Citizen Card or Identity Card and Tax Identification Number (NIF)
   • Proof of marital status and marital regime
   • Proof of habitual residence
   • Proof of profession
   • Proof of the Portuguese bank account (IBAN) to be used for purchase
   • In case the buyer is a legal entity: corporate card, commercial certificate or power of attorney.
2. Foreign Buyers
   • The first step is to obtain a Portuguese tax number (NIF), which can be obtained at the local finance office while waiting. Proof of identity and proof of address are required to apply for one. This tax number is also necessary to open a Portuguese bank account and to connect utilities such as water, electricity, phone, etc. How to Get the Fiscal Number (NIF)
   • Residents from outside the European Union, Norway, Iceland, and Liechtenstein can only apply for the NIF through a fiscal representative. A person with Portuguese residency or citizenship can become a fiscal representative of a foreigner - this can be a lawyer, an accountant, or a foreign friend. The fiscal representative must be present when the foreigner submits their documents. Furthermore, correspondence and access passwords to the Finance Portal will be sent to the address of the fiscal representative.
   • Valid passport or, for EU citizens, a Citizen Card.
   • Proof of residence, profession, and Portuguese bank account to be used for payment.
3. National or Foreign Buyers Using Financing
   • Proof of income (last three salary receipts)
   • IRS declaration from the last year and settlement note
   • Bank statements from the last 6 months
   • Declaration of financial commitments (other loans or financial obligations).
   • Employment contract declaration issued by the employer

DOCUMENTS FROM SELLERS AND PROPERTY

1. Identification Documents of Sellers
   • To initiate the property sale process, sellers must provide their identification documents, which typically include the Citizen Card or Identity Card and the Tax Number. If it is a company, present the Commercial Registration Certificate of the company.
2. Caderneta Predial
   • The "Caderneta Predial" is a document that presents the fiscal and registration status of the property, including relevant information such as its location, description, areas, identification of owners, and patrimonial value. This document is necessary to calculate the taxes associated with the purchase, such as the Municipal Tax on Onerous Property Transfers (IMT).
3. Updated Permanent Property Registration Certificate

   • The "Certidão Permanente de Registo Predial" is a document issued by the Land Registry Office that provides information about the legal status of the property, including: Current ownership, Description of the property,Existence of mortgages or encumbrances, Other rights or burdens that may affect the property.
     This certificate is essential to verify the legitimacy of the seller and ensure that the property is free of debts or legal issues. Issued by the Land Registry Office, this certificate is valid for six months. Ensuring that this documentation is up-to-date and accurate is crucial for the legal security of the transaction, as it can confirm the existence of any burdens or encumbrances on the property.

4. Usage License
   • The Usage License is a document that specifies the type of usage for which the property is authorized, whether residential or non-residential. This license is issued by the Municipal Chamber of the area where the property is located. Ensuring that the property has the appropriate usage license is vital, as it can affect the buyer's ability to use the property as desired.
5. Deed
   • The Deed is a legal document that certifies a contract carried out in the presence of two witnesses and is issued by the National Notary where the transaction occurred. This document is crucial for formalizing the sale of the property and verifying the conditions of the previous transaction, if applicable. It also references the Usage License.
6. Energy Certification
   • The Energy Certificate is a document that classifies the energy performance of the property, assigning it an efficiency class that ranges from A+ (very efficient) to F (inefficient). This certificate, issued by a qualified expert, assesses the energy efficiency of the property and provides recommendations for improvements.
7. Property Plan
   • The Property Plan is a document that provides detailed details about all the areas of the housing. It is crucial for providing precise information to buyers, especially if they are seeking financing for the purchase of the property.
8. Housing Technical Data Sheet (FTH)
   • The Housing Technical Data Sheet contains detailed information about the technical and functional characteristics of the building, necessary only for properties built after March 2004. It provides a comprehensive view of the structure and characteristics of the property, which can be valuable for buyers wanting to better understand what they are acquiring.
9. Distrate
   • If there is a Mortgage associated with the property, the Distrate proves the extinction of the mortgage associated with the property. It is issued by the bank upon request made with 10 business days in advance.
10. Declaration of No Debts to the Condominium

         This document must be provided by the condominium administrator and includes details about the monthly fees and extraordinary expenses.

Buying Without a Habitation License: A Risky Proposition

The recent simplification of urban planning licenses in Portugal has made buying and selling properties easier in some respects. Notably, the requirement for a 'Ficha Técnica da Habitação' (FTH) and a 'Licença de Utilização' (Habitation License) when signing the Preliminary Purchase and Sale Contract (CPCV) has been lifted.

While this may seem like a time and cost-saving measure, it's crucial to understand the potential risks. The Habitation License, in particular, is a vital document certifying that a property meets all building regulations and safety standards. Buying without this license could lead to significant problems down the line, such as:

-Legal Issues: The property might not have the necessary permits or approvals, making it difficult to sell or rent in the future.

-Insurance Complications: Insurers may refuse to cover the property or charge higher premiums due to the lack of a Habitation License.

-Renovation Restrictions: If you plan to renovate, you may encounter obstacles or additional costs without the proper documentation.

As an experienced buyer's agent, we strongly advise against purchasing a property in Portugal without a Habitation License. While it may seem tempting to avoid the extra paperwork, the potential consequences far outweigh any short-term

Whether you're looking to buy a property, sell a property, or need legal assistance, REMAX Cidadela can help. Our experienced agents and lawyers can provide you with the support you need to make informed decisions and achieve your goals.

Ready to start your adventure in Lisbon or Cascais? Contact RE/MAX Cidadela today.
Avenida 25 de Abril 722, C-9, Cascais or Avenida 25  de Abril 890, Cascais,
+351 214826710,    ppettermann@remax.pt

Discover your perfect home with RE/MAX Cidadela. Download our property buying guide and get expert guidance:  GUIDE FOR BUYERS
RE/MAX Cidadela: Your key to a life by the sea in Cascais since 2004

  -----------------------------------------------------

By Pedro Pettermann and Sol deAlós

Brokers at RE/MAX Cidadela in Cascais and Lisbon 

Making dreams come true: Over 4,500 families have found their perfect homes with our team