We’ll list your property on our website and begin publicising it through our well-established channels, including our own long-term clients, to help you find right buyer for your real estate property.
By this point, we highly recommend you have your own lawyer or solicitor who should help you review and translate all the contracts and documentation, as well as serve as your intermediary at the notary when signing the final deed.
They will verify that all necessary paperwork is complete and advise you on any additional documents required.
Next, the buyer’s lawyer will conduct a due diligence report on their client’s behalf to ensure the property is legally sound.
After all the due diligence has been completed and we’ve found you the buyer, it’s time for the contract that legally binds the sale of your property in Portugal—the promissory contract, known as Contrato de Promessa Compra e Venda (CPCV) in Portuguese.
It’s signed by both parties, and the buyer typically pays a deposit of 10% to 30% of the agreed selling price.
This stage typically takes up to 30 days, though timelines may vary depending on the circumstances.
As the contract is legally binding, this deposit is non-refundable should the buyer withdraw from the deal.
As the seller, you should also be aware that you can also be heavily penalised if you choose to withdraw from the sale.
NOTE: If a buyer has the capital or funds ready to buy your property in Portugal, this step is entirely skippable.
Approximately 30 to 60 days after signing the promissory contract, the parties proceed to the final deed.
During this stage, the remaining balance is paid, and ownership of the property is officially transferred to the buyer through a public deed (escritura pública).
The process involves the seller, the buyer, both lawyers, and the notary.
Your lawyer will review the deed, confirm that everything is in order, and provide translation if needed.
Once the deed is signed at the notary, you have officially completed the process of selling your property in Portugal.
Selling Property in Portugal: Taxes, Costs, and Legal Fees
When selling property in Portugal, it’s important to understand that there are taxes and legal costs involved in the process.
These expenses can vary depending on your personal circumstances, how long you’ve owned the property, and whether you’re a Portuguese resident or a foreign investor.
Capital Gains Tax for Portuguese Residents
If you sell your property for more than you originally paid, the profit you make from the property sale is subject to Capital Gains Tax (Mais-Valias).
For residents in Portugal, 50% of the profit is subject to taxation. This is added to their annual income and taxed according to their IRS rate.
If the sold property was inherited, it’s also subject to the same 50% taxation, to be paid in the annual IRS tax declaration.
Capital Gains Tax for Non-Residents
This depends on whether you’re living in the European Union or not.
If you’re an EU resident, you’ll have to pay the capital gains tax on 50% of the profit, based on the marginal tax rates between 14.5% and 48%, with an additional solidarity tax of 5%.
Non-EU residents, including US and UK expats, usually pay a flat rate of 28% on the total gain.
Municipal Property Tax (IMI)
This the annual tax that you have to pay on property ownership. Importantly, you cannot sell your property in Portugal if this amount is pending: it must be fully paid before going through with the sale.
The rates vary by municipality, typically between 0.3% and 0.8% of the property’s taxable value (VPT)—something you can check on your property’s ID certificate (caderneta predial).
Legal & Agency Fees
Real Estate Agency Commission: The value depends on the contract you sign with the real estate agency. This typically varies between 3% and 5% (plus VAT), payable only once the sale is completed.
Legal Fees: Usually range from 1% to 2% of the property value, depending on the complexity of the sale and services provided.
Notary & Registration Fees: Depends on the location and the notary, but usually between €500 and €1000.
Fees: Not necessarily related to the sale, but something to keep in mind when organising your budget.
Other Potential Costs
Energy Performance Certificate: Mandatory for all property sales in Portugal, costing between €100 and €250, depending on the service provider.
Certificate of Habitation: If applicable, this document verifies that the property meets legal habitation standards.
Selling Your Property in Portugal: How to Reduce Your Tax Liability
Understanding the taxes and legal costs associated with a property sale is one step, but there are ways to reduce the tax pressure, ensuring you can plan and optimise the process of selling your property in Portugal.
Reinvestment as a Tax Resident
If you reinvest the profit of your property sale into the purchase of another permanent home in Portugal, you can benefit from an exemption on the capital gains tax.
It must occur within either 36 months after the sale or 24 months before it.
Reinvestment as a Non-Tax Resident
For EU or EEA residents, Portugal offers the same reinvestment benefit, provided that the proceeds are reinvested in a primary home within their country of residence under equivalent tax regulations.
Property Ownership Before 1989
If you acquired your property before 1989, you will be fully exempt from the capital gains tax.
Retirement Exemptions
Individuals aged 65 or over or those who are retired can reinvest the capital gain into specific financial products (such as life insurance or pension funds) within six months of the sale to be exempt from taxation.
Deductible Expenses
When calculating capital gains, several selling-related expenses can be deducted to reduce the tax liability:
Real estate agency commissions;
Legal and notary fees;
Energy certificate costs;
Documented renovation and maintenance expenses;
Municipal taxes or stamp duty paid during the purchase.
Maintaining accurate documentation is crucial, as all deductible costs must be supported by official invoices or receipts.
How to Sell Your Property in Portugal: Doing it By Yourself vs Choosing a Real Estate Agency
You don’t need a real estate agency to sell your property in Portugal.
It all ultimately depends on your preferences, time and availability.
Selling a property in Portugal by yourself will require you to:
Make sure the house is at its best, ensure it looks as attractive as possible, and take high-quality pictures and videos;
Reach out to real estate portals and put the property up by yourself on multiple websites and social media platforms;
Have plenty of availability for property visits and people constantly reaching out to you, flooding your phone and email with messages;
Keep track of every document necessary for the sale.
However, if you choose to sell with Portugal Homes, we will:
Take care of the entire selling process, including preparing the house, putting it on our website, and advertising it with our own channels and our portfolio of clients;
Conduct a property valuation and inspection.
Guide you through the entire selling process and even offer you After Sales support, if you wish.
Offer you our real estate market and expertise, invaluable to anyone looking to sell their property in Portugal.
Sell Your Property in Portugal with Confidence
At Portugal Homes, we bring you the tools you need to help you sell your property as quickly as possible, ensuring you get the best possible value.
Offering property valuation, market and legal knowledge, and our own pool of clients and connections, our team ensures you have a transparent and profitable experience from start to finish.
If you’re selling property in Portugal, let us handle it for you.
