⎯⎯ FAQs: Frequently Asked Questions About Buying a Home in Portugal
Direct answers.
No jargon.
And we answer everything bluntly and without jargon.
⎯ FAQs About Buying a House in Portugal
You have the questions, we have the answers.
Buying a property in Portugal, and in particular Lisbon or Cascais, doesn't have to be a headache. Many clients ask us a number of questions related to these purchases and the process, so we've created this compendium of frequently asked questions about buying a house in Portugal. And, of course, the answers to them.
"We believe in transparency and in defending the rights of every buyer."
I hope you find the answer to your questions. If you don't find an answer that satisfies you, don't hesitate to contact us, always without obligation. We're here to answer your questions
01 ⎯ Our Service
What we do
and how we work.
What exactly does Living Local do?
Living Local's buyer service is an independent buyer representation agency. We work exclusively for you.
We manage the entire buying process on your behalf: research, property analysis, visits, negotiation, legal due diligence and follow-up until the deed. Think of us as your representative in the property market - but instead of charging by the hour, we're paid by the seller.
How much does it cost to hire Living Local?
In the overwhelming majority of cases, nothing. Our commission is paid by the seller, not the buyer. This is the standard model in the Portuguese property market: the commission is already incorporated into the sale price and is distributed among the agencies involved.
In exceptional cases, where it is not possible to agree a commission with the seller, we apply a fee of 2% to the buyer, previously agreed in writing. Legal fees associated with the purchase are also included in our service.
Where in Portugal can I buy from Living Local?
We believe that knowledge and experience in each location is important in helping our clients acquire the best possible property. That's why we only offer our services in regions where we have an on-site presence that guarantees this quality.
At the moment we're all over the Lisbon region: The city of Lisbon, Cascais, Estoril, Sintra, Comporta and Ericeira. If you have any questions about your area of interest, please ask us.
02 ⎯ The Search and the Criteria
Finding a property
right for you.
I still don't know exactly what I want. Can you help?
Yes, and it's more common than you might think. Many of our clients arrive with a general direction, not a closed list of criteria. Part of our job is to help you clarify what you're really looking for, what's realistic for your budget and location, and what you might be overestimating or underestimating.
That's exactly what the first conversation is about. No commitment, no pressure.
Do you have access to properties that aren't on public platforms?
Yes. We have an extensive network of contacts cultivated over the years with exclusively off-market properties.
Where in Portugal can I buy from Living Local?
Yes. Over more than a decade in the Cascais and Lisbon market, we have built up a network of contacts with agents, owners, developers and architects. This gives us regular access to properties for private sale that never make it onto Idealista, Imovirtual or any other public platform. These properties are only shared with qualified buyers from our network.
03 ⎯ The Buying Process
From the first conversation
to the deed..
How does the buying process work in Portugal, step by step?
The process has five phases with Living Local: initial conversation, research, visits, negotiation and closing. We describe each phase in detail on our How We Work page.
In legal terms, the main milestones are: verbal agreement in principle → CPCV with down payment → notarial deed with transfer of ownership.
What is the CPCV and why is it important?
The CPCV - Contrato Promessa de Compra e Venda - is a legally binding contract signed by both parties, with a down payment (usually between 10% and 20% of the purchase price).
It works as mutual protection: if the seller withdraws, he is obliged to return double the deposit. If the buyer withdraws, he loses the deposit. Living Local negotiates the terms of the CPCV in your favour - terms, conditions and penalties designed to protect the buyer.
How long does the process take?
The search phase varies - some clients find the right property in days; others take months. From the accepted offer to the deed, the usual timeframe is 60 to 90 days. For cash purchases, the process can be completed in 15 to 30 days.
04 ⎯ Financing
Mortgages, residents
and non-residents..
Do Portuguese banks grant mortgages to non-residents?
Yes, but the conditions are different. Non-residents can typically finance between 60% and 70% of the property's value (LTV), compared to the 80% to 90% usually available to residents. Interest rates and documentation requirements are also more demanding.
We work with independent credit brokers who research all the banks on the Portuguese market to find the best conditions for your situation.
Is there a difference between financing a first home and a second home?
Yes, a significant difference. For first homes in Portugal, banks allow a higher LTV (up to 90% in some cases) and can apply more favourable conditions. For second homes or investments, the LTV is typically limited to 70% and the approval conditions are more restrictive.
Transfer tax (IMT) also varies - the first permanent home benefits from exemptions and reduced rates that do not apply to second homes or investment properties.
Can Living Local help you get funding?
Yes, we work with a selection of trusted independent credit intermediaries and financial consultants who support our buyers in the financing process. From analysing creditworthiness to negotiating the best conditions with the banks. If you need financing, we'll introduce you to the right professionals for your situation.
05 ⎯ Costs and Taxes
What you will pay
beyond the price.
What are the transaction costs when buying a property in Portugal?
IMT - Municipal Transfer Tax. A progressive rate that varies according to the value of the property and the type of use. For permanent dwellings, the first ~€97,000 are exempt; above that, progressive rates of up to 7.5% apply for properties over €1,000,000.
IS - Stamp Duty. 0.8% on the purchase price. In the case of a mortgage, IS also applies on the value of the loan.
Deed and registration - Notary fees and land registry. Usually between €700 and €1,500.
As a reference, for a property worth €500,000 as a permanent home, the transaction costs are usually between 5% and 7% of the purchase price.
What is IMI and how much does it cost?
IMI is the annual property tax levied by the municipality where the property is located. The rate applies to the Taxable Asset Value (VPT) - typically lower than the market value - and is between 0.3% and 0.45% for urban properties.
For a property with a VPT of €300,000, the annual IMI is usually between €900 and €1,350. Owners of permanent homes with incomes below certain thresholds can benefit from a temporary exemption for the first few years after purchase.
What are condominium fees and when do they apply?
Condominium fees apply to flats and houses in gated communities - they cover the upkeep of common areas (gardens, swimming pool, lifts, security). The amount varies depending on the amenities and condition of the building.
In Cascais and Lisbon, monthly fees are typically between €50 and €300 for standard buildings, and can be considerably higher for luxury condominiums. We always recommend consulting the condominium's minutes and accounts as part of due diligence.
Do I need to take out home insurance?
Yes - multi-risk home insurance is compulsory for properties with a mortgage and strongly recommended in any case. It covers structural damage, fire, flood and civil liability.
For properties in a condominium, always check that the condominium already has collective insurance for the common parts - in many cases it is necessary to supplement this with individual insurance for the interior of the unit.
What is the NHR / IFICI scheme and does it still exist?
The Non-Habitual Resident (NHR) scheme was closed to new applications at the end of 2023. It was replaced by the IFICI - Tax Incentive for Scientific Research and Innovation - with a more restricted scope, aimed at researchers, university professors and certain categories of qualified professionals.
Anyone who registered as an NHR by 31 December 2023 will keep their benefits for 10 years. If you arrived in Portugal after that date, we recommend consulting a tax lawyer to assess the options available to you.
What about the Golden Visa - is it still possible through the purchase of property?
No. Property investment was removed as an eligible route for the Golden Visa in October 2023. The routes currently available include investment in qualified funds, job creation and transfer of capital to research or the arts.
If your goal is to obtain Portuguese residency through investment, we recommend consulting an immigration lawyer to assess the alternatives currently available. If you wish, we can recommend some trustworthy names.
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