The hidden bureaucracy traps when buying a property in Portugal, and how to avoid them (plus a comparison with the UK, Brazil and the USA)
Buying a property in Portugal is exciting, the sunshine, the lifestyle, the promise of a new beginning. But beneath all that charm lies a maze of bureaucracy that can catch even experienced investors off guard.
If you’ve bought property before in the UK, Brazil, or the USA, the process in Portugal may look familiar at first glance… until it isn’t.
At Plus Portugal, we guide clients through every stage of the buying journey and know precisely where even savvy buyers stumble. Here’s what really happens behind the scenes, what to watch out for, and how to make your move to Portugal a smooth and secure experience.
The Portuguese buying process, and where people go wrong
Every property transaction in Portugal begins with a NIF (Número de Identificação Fiscal), your Portuguese tax number.
The good news is that you can obtain it online. The bad news? If you’re not used to the Portuguese administrative system, even something as simple as a NIF application can become surprisingly frustrating. Without it, nothing else can move forward.
The next step is the Contrato de Promessa de Compra e Venda (CPCV), the promissory contract.
Here’s the crucial difference: unlike in the UK or the USA, this document is legally binding. Once you sign and pay the deposit, you’re committed. If you withdraw, you forfeit your deposit; if the seller withdraws, they must return double the amount.
That’s why due diligence must take place before signing the CPCV. You’ll need to check:
Ownership details at the Registo Predial (Land Registry),
The Caderneta Predial (property tax record), and
Confirmation from the local council that the property has a valid Licença de Utilização (occupancy licence) or an equivalent certificate of lawful use.
Usually, estate agencies provide some of these documents. However, if you’re used to the detailed property packs offered by solicitors in the UK, including conveyancing searches and environmental reports, you may be surprised. In Portugal, such detailed reports are not standard unless you request and pay separately for an inspection or technical survey. At Plus Portugal, we assist you throughout the conveyancing process, ensuring all necessary checks are completed so you’re fully informed and prepared before committing to your purchase.
Common bureaucratic traps
Unregistered Renovations
Many older homes in Portugal have undergone renovations or extensions that were never officially declared to the municipality. These “invisible changes” can delay your mortgage approval or even block the final deed transfer. Always ensure that every construction is registered correctly and accurately reflected in the official records.
Taxes and Hidden Costs
In Portugal, taxes must be paid before the purchase is finalised. The main one is IMT (Property Transfer Tax), which varies according to the property type and price, along with Stamp Duty at 0.8%.
When you add notary, registration, and legal fees, the total cost typically increases by around 7–10 % above the purchase price.
Language Barriers and Translation Issues
Contracts are drafted in Portuguese and often contain legal terminology that doesn’t translate neatly. Relying on automatic translation tools can lead to serious misunderstandings. It’s always advisable to work with a bilingual professional who can ensure the documents say exactly what you think they do.
How the process differs around the world
The United Kingdom
In England and Wales, a purchase only becomes legally binding when contracts are exchanged and signed. Buyers may withdraw before that point if issues arise during conveyancing searches.
Because of the property chain system, transactions can fall through at the last moment, which is frustrating, but usually not financially disastrous.
Plans for reform aim to make the process faster and more transparent by obliging sellers and agents to disclose key information earlier and introducing legally binding agreements once an offer is accepted.
Brazil
As in Portugal, anyone, including non-residents, can buy a property. However, signing the deed (escritura pública) at the notary does not transfer ownership until it’s registered at the Cartório de Registro de Imóveis (Land Registry).
You’ll also need to pay the ITBI tax before registration, and ownership is only transferred once this step is complete.
A CPF (tax number) is required, similar to Portugal’s NIF. Purchases can be formalised either through a promissory contract followed by the final deed, or directly through the deed itself.
The United States
Each state has its own regulations, but most transactions are closed through escrow, which is managed by a title or settlement company.
Owning property does not grant residency, so if you plan to stay for more than 90 days, you’ll need to apply for an appropriate visa.
While surveys are not always mandatory, they’re strongly recommended to confirm boundaries and avoid future disputes. Buyers typically purchase title insurance to protect against hidden ownership claims.
An Individual Taxpayer Identification Number (ITIN) is required for tax purposes, much like Portugal’s NIF.
Although the process is faster, it depends more heavily on private intermediaries than Portugal’s public notary system.
You’ll also encounter local taxes, such as documentary stamp tax or real property transfer tax (RPTT), which vary by county and state.
Avoiding bureaucracy traps when buying in Portugal
The best defence against the pitfalls of buying abroad is preparation and local expertise.
At Plus Portugal Property Consultancy, we protect our clients by partnering with a trusted professional network and by:
Personally inspecting and pre-vetting each property before presenting it to clients
Confirming all registry and licensing status
Coordinating with notaries, tax authorities, and reputable law firms
Managing every document in both English and Portuguese
Handling the bureaucracy from start to finish
Recommending reliable professionals for every stage of the purchase
Our role is to ensure you never sign a document you don’t fully understand and that your investment remains safe at every step.
Buying in Portugal should be an exciting chapter in your life, not a bureaucratic battle.
Relocate with confidence. Invest with clarity.
Disclaimer
This article is intended for general informational purposes only and does not constitute legal, financial, or tax advice. Regulations and requirements may change, and procedures can vary by municipality or individual circumstances. Before proceeding with any property transaction in Portugal or abroad, always seek guidance from qualified legal and financial professionals.
