You Just Found a Property in Lagos - Now What?

Found your dream property in Lagos? Learn the full buying process — from reservation and due diligence to deed signing and registration in Portugal.

By LiveAlgarve on 17th October 2025 - 4 m. reading time

So, you’ve found a property in Lagos you like and want to buy. What happens next?

It could be a sea-view villa in Porto de Mós or an apartment near the marina, but knowing what happens after you say “this is the one” can save time, money and stress.

This post walks you through that scenario, based on current procedures and costs at the time of writing (October 2025). 

Secure a Reservation (Sometimes!)

Once you’ve made an offer that the seller accepts, the first move is typically a reservation or “holding” agreement but it isn’t always necessary - occasionally vendors are quite happy to proceed without this.

• Purpose: it removes the property from the market for a short period (usually 14–30 days) while contracts and due diligence are prepared.
• Deposit: normally €5,000–€10,000, paid to the estate agent’s client account or the seller’s solicitor, depending on the arrangement.
• Refundability: refundable only under agreed terms (for instance, if title checks fail).

Tip: Ensure you receive a signed reservation form outlining the amount, conditions and deadline.

“I Need a Lawyer”

The inevitable stage. A qualified local lawyer (advogado) is essential. Even if you’re fluent in Portuguese, you’ll need one for:

• Verifying title and land registration (Conservatória do Registo Predial)
• Checking habitation licence (Licença de Utilização) and energy certificate
• Confirming building legality and absence of encumbrances or debts
• Drafting and reviewing contracts in both Portuguese and English
   

If you’re abroad, you can give your lawyer Power of Attorney (Procuração) to sign on your behalf.

Fees generally range from 1–1.5 % of purchase price, depending on complexity. Usually on properties exceeding €500,000, lawyers work using a set fee, rather than percentage of purchase price.

Conduct Due Diligence

Your lawyer and real estate agent will gather the critical documents before any contract is signed:

• Caderneta Predial (tax document) – confirms ownership, plot details, fiscal value
• Certidão do Registo Predial – property registration extract
• Energy Performance Certificate – mandatory for sale
• Licença de Utilização / Construction Permit – confirms legal use of the building
• Plans & boundaries – checked against the Land Registry and Câmara Municipal records
   

This stage ensures the property is fully legal and free of liens — especially vital in coastal or rural areas around Lagos, where zoning rules (POOC / RAN / REN) can restrict usage.

Sign the Promissory Contract (Contrato de Promessa de Compra e Venda – CPCV)

This is the binding sale agreement signed once all checks are complete.

• Deposit: typically 10 % of the agreed price (can be higher in off-plan deals).
• What it defines: sale price, completion date, included fixtures/fittings, and any conditional clauses (finance, permits, etc.)
• Legal effect: if the buyer withdraws without cause, the deposit is forfeited; if the seller withdraws, they must refund double the deposit.
   

At this point, both sides are contractually committed, and your lawyer registers a pre-sale interest with the Land Registry for protection.

Get Your Portuguese Tax Number (NIF)

Every buyer must obtain a Número de Identificação Fiscal (NIF), if you’re reading this, you may already have one.

• Your lawyer can obtain this in a few days from the Autoridade Tributária (Tax Office).
• It’s needed for contracts, utilities, and tax payment.
• Non-residents will also need a fiscal representative (which can be your lawyer or accountant).
   

Prepare Funds and Final Tax Payments

Before completion, ensure your funds are in Portugal and ready for transfer. This step and its timing is particularly important, especially when you’re converting currency into Euros (€). A favourable exchange rate can save you tens of thousands in a property transaction. 

For a full breakdown of taxes, head to our dedicated Property Taxes in Portugal page.

Sign the Final Deed (Escritura de Compra e Venda)

The final deed of sale is signed in front of a Notary or Casa Pronta official.

• Funds are transferred (usually via a Portuguese bank cheque or escrow).
• You receive the keys and official title.
• The deed is then registered with the Conservatória do Registo Predial to formalize your ownership.

Within a few weeks, you’ll receive proof of registration — your final, legal title deed.

The Final “Now What?”

After completion, your lawyer or real estate agent can help with:

• Utility transfers (water, electricity, gas, broadband)
• Local property tax registration (IMI) — paid annually, typically 0.3–0.45 % of patrimonial value
• Insurance and condominium setup (if applicable)
• Optional fiscal registration if you plan to rent the property (AL licence or long-term lease)

If renting short-term, confirm that your zone in Lagos still permits Alojamento Local (AL) registrations — the Câmara Municipal de Lagos periodically updates approved zones.

A Note on Financing, Renovation, or Rental Strategy

If financing locally, Portuguese banks typically lend up to 70 % LTV for non-residents. If you are under the age of 35, there are schemes in place with IMT exemptions on smaller properties, and increased LTV options.

If planning to renovate, ensure the works are notified to the Câmara (simple communication or licence request).

If letting the property, decide early whether it will be short-term (AL-licensed) or long-term; 2026 tax reforms may reward moderate long-term rents with lower IRS rates.

Conclusion

Buying a home in Lagos remains straightforward when you understand the process, but Portugal’s legal steps differ from those in the UK, northern Europe or the US.

With clear due diligence, the right legal support and a reputable estate agency (us!), you can go from “offer accepted” to “keys in hand” in as little as 6–10 weeks.

If you’ve just found your ideal property, our team can guide you through every next step, from reservation to registration, ensuring your purchase is fully compliant, transparent and stress-free.