Buying and selling property in Portugal
The purchase and sale of property in Portugal involves a series of legal steps and formalities, from the signing of the preliminary contract of sale (contrato-promessa) to the public deed and the land registration, all of which are decisive for the legal certainty of the transaction. We advise both buyers and sellers on the negotiation, review and formalisation of purchase and sale contracts, on checking the registry and planning status of properties, and on liaising with notaries, registry offices and the other bodies involved in the process. We look at the stages of the process, and the precautions to take at each one, in more depth in the article: Buying and selling property in Portugal – process guide.
Property investment by non-residents
Portugal continues to attract foreign real estate investment, whether for own residence, rental or resale. The non-resident investor nevertheless faces a tax and procedural framework different from that applicable to residents. Since 25 May 2026, the acquisition of property intended for residential use by non-residents is, as a rule, subject to a flat IMT rate of 7.5%, in place of the normal progressive rates and without entitlement to the usual exemptions and reductions, although there are exceptions provided for by law, in particular for those who let the property at a moderate rent or become tax resident in Portugal within a certain period. We detail the tax regime applicable to the foreign investor, including these exceptions and the capital gains tax regime, in the article: Foreign investor – buying property in Portugal.
Preliminary contract of sale
The preliminary contract of sale is, in most cases, the first binding commitment between buyer and seller, and the deposit (sinal) provided for in it has its own legal regime in the event of breach by either party. Proper drafting of the preliminary contract, in particular, the deposit clauses, time limits, conditions precedent and penalties, is decisive in preventing future disputes. We explain the legal regime of the deposit, the consequences of breach and the precautions to take when drafting the preliminary contract in the article: Preliminary contract of sale – what you need to know.
Construction defects and construction guarantees
Anyone who buys a new property, or has a property built or renovated, has legal guarantees against construction defects provided for in the Civil Code. As a rule, the guarantee period is five years from delivery of the works (Article 1225 of the Civil Code); where the purchaser is a consumer and the property is new, this period is extended to ten years for defects affecting structural elements, under the regime introduced by Decree-Law No. 84/2021. We support clients commissioning works (donos de obra) and purchasers in claiming for defects against the contractor or developer, including through the courts where necessary. We detail the guarantee periods applicable to each type of defect and the claims procedure in the article: Construction defects – guarantees and time limits for claims.
Delays in the works and contractor default
A delay in completing works, whether new construction or renovation, can have significant legal consequences for the client commissioning the works, including the right to compensation or, in more serious cases, termination of the construction contract. We assess the applicable contractual clauses and the remedies available in each specific situation. We look in more depth at the rights of the client in the event of delay, and the steps to take, in the article: Delays in the works – rights of the client.
About Araújo & Associados
Established in 1980, with offices in Porto and Lisbon, Araújo & Associados provides legal advice to clients from more than 31 countries, in Portuguese, English, French, German and Spanish, supporting real estate transactions by residents and non-residents throughout the country.
Frequently asked questions about real estate law in Portugal
Is it mandatory to enter into a preliminary contract before the purchase and sale deed?
It is not legally mandatory, but it is common and advisable practice, especially where there is a gap in time between the initial agreement and the deed, as it allows the parties to be bound and a deposit, time limits and conditions of the transaction to be fixed in advance, pursuant to Article 410 of the Civil Code.
Can a non-resident buy property in Portugal without restrictions?
Yes, there are no general restrictions on the acquisition of property in Portugal by foreign nationals. Since 25 May 2026, however, a non-resident buying residential property is, as a rule, subject to a flat IMT rate of 7.5%, higher than the progressive rates applicable to residents, save for exceptions provided for by law.
How long do I have to claim for construction defects in a new house?
The general guarantee period is five years from delivery of the works, pursuant to Article 1225 of the Civil Code. Where the purchaser is a consumer and the property is new, this period is extended to ten years for defects affecting structural elements of the building.
What happens if I withdraw from a deal after paying the deposit?
Pursuant to Article 442 of the Civil Code, a party who withdraws from the deal after paying a deposit forfeits that amount to the other party; if it is the seller who defaults through fault, the buyer is, as a rule, entitled to twice the deposit paid.
Contact us
For more information on real estate transactions, purchase and sale contracts or construction, or to book a legal consultation, you can contact us through our Porto or Lisbon offices, by telephone, email or via the form on the website. We provide legal advice in Portuguese, English, French, German and Spanish.