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By LiveAlgarve on 6th February 2025 - 4-5 m. reading time
Selling a property in Portugal can be a smooth and profitable process - if you know what to expect. If you’re a local homeowner or an international investor, understanding the legal, financial and practical aspects of selling property in Portugal is crucial. In this guide, we’ll walk you through the entire process, from pricing your property correctly to handling taxes and finding the right buyers.
1. Understanding the Portuguese Real Estate Market
Before listing your property, it’s essential to understand the current market conditions. Portugal has a dynamic real estate market, influenced by factors such as:
- Location: Properties in Lisbon, Porto and the Algarve tend to attract international buyers, while inland regions have a slower market.
- Market Demand: Urban areas and coastal regions remain popular with both locals and expatriates.
- Tourism Influence: Short-term rental laws impact the market in high-tourism areas.
Research recent sales in your area to set realistic expectations. A real estate professional can provide a comparative market analysis (CMA) to help you determine the best price.
2. Preparing Your Property for Sale
To attract serious buyers, ensure your property is in its best condition. Here’s how:
- Declutter & Depersonalise: Remove personal items to allow buyers to envision themselves in the space.
- Make Necessary Repairs: Fix leaky faucets, cracked walls, or broken tiles to avoid negotiation issues.
- Enhance Curb Appeal: First impressions matter! A fresh coat of paint, well-maintained landscaping and clean windows can boost appeal.
- Stage for Photos & Viewings: Professional photography and virtual tours help attract buyers online.
3. Setting the Right Price
Pricing your property competitively is crucial. Overpricing can lead to long selling times, while under-pricing may result in financial loss. Consider:
- Recent sales of similar properties
- Current market trends
- Unique features of your property
A real estate agent can provide an accurate valuation based on market conditions.
4. Legal Documents & Requirements
Selling a property in Portugal involves legal documentation. Ensure you have:
- Land Registry Certificate (Certidão do Registo Predial) – Confirms ownership and legal status.
- Title Deed (Escritura or Caderneta Predial) – Official record of property ownership.
- Energy Certificate (Certificado Energético) – Required for listing and selling.
- Property Tax Document (IMI Statement) – Proof of up-to-date municipal property tax payments.
- Habitation License (Licença de Habitação) – Confirms the property is legally habitable.
Missing documents can delay the sale, so work with a lawyer to ensure everything is in order.
5. Taxes & Costs When Selling
Selling property in Portugal comes with tax obligations:
- Capital Gains Tax: Residents are taxed on 50% of the gain at progressive income tax rates, while non-residents face a flat 28% tax. However, exemptions exist if reinvesting in another property.
- Real Estate Agent Fees: Typically 3%–6% of the sale price plus VAT (23%).
- Notary & Legal Fees: Vary but are typically around €1,000–€2,000.
Plan for these expenses to avoid surprises during the selling process.
6. Finding the Right Buyer
To sell quickly and at the best price:
- List with a Reputable Agent: They have access to serious buyers and market insights.
- Use Online Portals: Websites like Idealista attract both local and international buyers.
Be prepared to negotiate and accommodate viewings at flexible times to attract serious offers.
7. Closing the Deal
Once you have an interested buyer:
- Sign a Promissory Contract (Contrato de Promessa de Compra e Venda - CPCV): This secures the deal with a deposit (usually 10%).
- Finalise at the Notary: Both parties sign the final deed (Escritura Pública de Compra e Venda) in front of a notary.
- Receive Payment & Transfer Ownership: The buyer pays the remaining balance and ownership is officially transferred.
Conclusion
Selling property in Portugal is a structured but manageable process. We recommend working with a real estate agency to ensure a smooth transaction with maximised financial gain.
If you have any questions about selling property in Portugal, feel free to reach out - we’re here to help.
Found this blog useful? You might like this YouTube video: Selling Property in Portugal Made Easy
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