Buying a property in Portugal: step-by-step guide and common mistakes to avoid

Portugal remains one of the most attractive destinations for international property buyers. According to the latest data (Idealista, 2025), international demand continues strong in regions such as Madeira, the Algarve, and the Azores, with buyers from France, the UK, the USA, and Germany leading the way.

But while Portugal offers security, lifestyle, and investment potential, buying properties here requires careful and thoughtful planning. The process involves several legal and financial steps where a mistake can cost time, money, or even the deal itself.

In this article, we explain the essential steps of the property acquisition process and highlight the most common mistakes you should avoid.

Essential steps in the property purcha

Define your budget and secure financing
Assess your financial capacity, simulate bank loans, and define the amount of personal funds available, considering a potential down payment  of around 10 to 20% and additional expenses such as taxes (IMT and Stamp Duty), legal, notary and registration fees.

Search and select the property
Choose the property according to your criteria, schedule visits, and assess both its physical and legal conditions.

Document analysis and due diligence
Review all the property’s documentation (land registry, tax certificate, utilisation license, energy certificate) and check for charges and encumbrances such as mortgages, liens, usufructs, or debts over the Property or the Vendor.

Negotiation and purchase offer
Draft and submit a purchase proposal setting the basic terms of the deal (price, inventory, expected timings). Once accepted, the deal moves forward.

Promissory Contract of Purchase and Sale (CPCV)
While not mandatory, the promissory contract is highly recommended and usual, being widely used to fix terms such as price and its payment method, deposit amount, deadlines, guarantees and penalties for both parties, securing the transaction until the final deed.

Mortgage approval (if applicable)
If bank financing is needed, the bank will appraise the property and, if approved, issue the mortgage contract with its respective terms and guarantees.

Deed and completion
The acquisition is formalized at the notary or public registry office. At this stage, the buyer pays the balance purchase price, taxes and fees. It officially transfers the ownership right over the Property, being registered before the Land Registry and enforceable to third parties.

Post-acquisition formalities
Update utility contracts (water, electricity, gas) and ensure registration of the new ownership before the national authorities.

 It is highly advisable to have legal support from the very beginning of the process to ensure compliance and protect your investment.

The most common mistakes when buying property in Portugal

Even when following the right steps, buyers — especially international ones — often fall into avoidable traps. Here are the most frequent mistakes:

Not performing proper due diligence
Skipping a full legal/documental check (land registry, licenses, charges) can expose buyers to hidden debts, unclear ownership or illegal construction that may jeopardize the property’s ownership right.

Underestimating additional costs
Focusing only on the purchase price while ignoring taxes (IMT, Stamp Duty), condominium fees, potential renovation costs, or ongoing expenses.

Choosing based solely on the purchase price
Neglecting location, accessibility, infrastructures, neighbourhood quality or resale potential often leads to regret.

Skipping technical inspections
Overlooking building issues (infiltrations, structural defects, electrical systems) that later translate into unexpected (and uncounted for) expenses.

Not understanding the financing process/technicalities
Assuming optimistic scenarios for interest rates or failing to compare bank offers can result in financial stress.

Buying emotionally
Rushing into a purchase without secure or seek clarification with the abovementioned matter, without comparing alternatives or waiving a calm and informed negotiation can lead to poor decisions.

How to Avoid These Mistakes

Always work with a specialised real estate lawyer.

Request all certificates and documents before signing any contracts.

Calculate total costs with conservative projections.

Hire an independent inspector for a technical evaluation.

Compare financing options and prepare for interest rate changes.

Take time — visit multiple properties and decide rationally.

Portugal is a prime destination for lifestyle and investment, but buying a property here requires preparation and caution. By following each step carefully and avoiding the common mistakes listed, buyers can enjoy a secure, transparent and rewarding acquisition process.

At MATLAW, we support national and international clients throughout the entire process — from due diligence to final deed — ensuring legal security and tax efficiency at every stage.