PURCHASING PROPERTY IN PORTUGAL
The purchasing of property in Portugal, as in any other country, requires a number of procedures and a careful analysis of the documentation, in order for the whole process of purchase and sale to run with the highest juridical safety for all involved. Therefore it is advisable to have the intervention of qualified professionals – lawyers and solicitors – who can, not only verify the situation of the properties (in fiscal terms, registration, possible existence of encumbrances or charges on the property, etc…) but also advise on the best solution.
Before the final transfer of the property, once an agreement is reached between the parties, it is advisable to grant a promissory contract of purchase and sale, through which the parties state the conditions of the deal (price, conditions of payment, value of deposit and others), safeguard their personal situation, as well as possible consequences added to the ones applied by the law in case of nonfulfilment.
Prior to the signature of the promissory contract of purchase and sale, the documentation of the property must be analysed, which is obtained at the Land Registry Department, Tax Department and City Hall, in some cases it is necessary to go to other entities, namely to caution possible preferential rights.
Once the promissory contract is signed, before the completion of the deal, the documentation has to be analysed again, to confirm if the property can be legally transferred.
Usually, the transfer of the property is made through a title deed, in a Notary Office, this entity is independent of the parties. However, it can also be done by a document certified by a lawyer or solicitor, or through the service “Casa Pronta” available in the Land Registry Departments.
After conclusion of the sale and purchase, the final registration must be done (or conversion, in case there was a provisional registration), by a formal request to the Land Registry Department. The service “Casa Pronta” also does the final registration subsequently to the transfer contract.
After completing the purchase, the buyer must communicate the acquisition to the Tax Department in order for the respective article to be inscribed or up-dated.
Regarding the purchase of property by citizens non-resident in Portugal, less familiar with the procedure of the Portuguese law, we emphasise the need to obtain juridical guidance by a lawyer or solicitor, whom will analyse the viability of the business and advice on the best way to safeguard the purchaser’s interests, avoiding future unnecessary problems, as long as they are duly supported and guided.    
Note that the current Portuguese law obliges foreign citizens to have a personal representative, whom represents the non-residents before the Portuguese fiscal authorities. There are companies that provide this service, nevertheless any person may be indicated as representative as long as they are willing to.

Documents necessary for the purchase and sale of property:  
• Identification documents of the vendors and purchasers: Identity card / Citizen card / Passport. In case of a company, is necessary the commercial certificate (or the access code), minutes (when necessary) and identification documents of the person that represents the company;
• Fiscal card;
• Power of Attorney with powers for the act as well as identification documents of the Attorney;
• Updated “Caderneta” (Property Fiscal Title)
• Updated Land Registry Certificate (or access code)
• Habitation License of the property or a certificate proving that it was built before the 7th of August of 1951 and therefore does not need the license;
• Proof of payment of Stamp Duty and IMT (Property Transfer Tax);
• “Ficha Técnica de Habitação” (document with the full description of the property, including plans, list of the materials used, suppliers, technicians, etc.), this only applies to properties which have the Habitation License issued or requested after the 30th of March of 2004 – according to law 68/2004 of 25th of March.  

Other documents:
From the 1st of January of 2009, all the properties which are sold or rented, must have an Energy Performance Certificate, which must be supplied by the current owner when signing the respective contract.

 In some cases, depending on the type of property, the location or other special circumstances such as the existence of possible rental, it is necessary to safeguard the legal preferences, of which, in some cases will be demanded proof of the respective communication.

 The parties shall indicate whether or not there was intervention of a Real Estate agent. If so, it must be identified, preferably with copy of the license registration.
    
The specific circumstances of the business, may demand the exhibition of other documentation.  

 For further explanation, please contact us.