Selling a house in Portugal involves more than simply finding a buyer. There are several legal, tax, and practical steps that are important to consider in advance to avoid delays, unexpected costs, or legal issues. Here are the main questions you should answer before proceeding:
1. What is the real value of the property?
Do a realistic appraisal—compare it to other similar homes in the area. Real estate platforms help, but it can be helpful to hire a specialist.
Also consider whether you are in a rush to sell. The more urgent you are, the lower the price may need to be to attract buyers.
2. Do you want to sell alone or with the help of an agency?
Selling alone can save you on real estate commissions, but it involves more work: marketing, viewings, contact management, and documentation.
If you choose to sell through a brokerage, check the agency's reputation, costs (commissions + VAT), and what services they offer (advertising, photography, contact information, legal advice).
3. Do you have all your documents in order?
Before any transaction, it's essential to ensure the property has all the necessary documents up to date:
Property Registration Certificate — verifies ownership, jurisdiction, and any existing charges.
Urban Registration — describes tax data, market value, boundaries, and property identification.
Energy Certificate — mandatory; indicates energy efficiency.
Housing License / Usage License — depending on the property and the work performed.
Housing Technical File — if applicable (when the property was built or underwent work after March 30, 2004).
Declaration of No Debt to the Condominium — since April 2022, it has been mandatory for building units under a horizontal property regime.
4. Tax Charges and Associated Costs
If there are capital gains (the difference between the purchase price and the sale price), you should know how they are calculated and when there are exemptions (for example, if you reinvest for your own permanent home).
Expenses for documents, deeds, registration, agency fees, etc.
5. Specific obligations if the property is in a condominium
Request a statement of charges from the property manager—it should include existing debts, their nature (ordinary or extraordinary), due dates, and amounts. The condominium has a deadline (10 days) for submitting this statement.
Inform the property manager about the sale of the house and the buyer's new details.
Check for approved construction work in the condominium that may result in costs for the new owner.
6. Condition of the house and image for sale
Before viewings, arrange the house, correct minor defects (cracks, paint, etc.), and improve the overall presentation—good photographs make a difference.
Being transparent about defects or needed construction avoids problems later.
The beneficiaries of this measure are young people up to 35 years old who do not own their own home or who have not owned one in the last three years, as long as they are acquiring their first home for permanent residence.
If, for example, they already own a property or a fraction of it, the exemption is no longer valid. In the case of a couple, if only one of the members meets the requirements, the exemption will be granted only on the part of the property corresponding to the eligible beneficiary.
What about income?
To access the benefit, the buyer must have their own income and declare it on their Income Tax, that is, they cannot be a dependent. However, the exemption is not conditional on the value of this income, as the measure does not consider the buyer's financial capacity.
Instead, the Government set limits based on property value. Therefore, only house purchases up to 316,772 euros are completely exempt from IMT, corresponding to the 4th bracket of this tax. For properties between R$316,772 and R$633,453, the exemption is only valid up to the value of R$316,772, with ITBI being charged on the excess value. For properties above R$633,453, there is no exemption.
How to get the benefit?
At the time of purchase, when filling out the IMT Model 1 declaration, simply mark that you meet the requirements for exemption. If there are two buyers, each must complete their own declaration. The computerized system will automatically process the benefit.
In addition to the ITBI exemption, beneficiaries are also exempt from IOF and registration fees, charges paid at the time of the deed and mortgage, if there is real estate financing.
Conditions and exceptions
The exemption remains as long as the property remains the buyer's permanent home for the next six years. Otherwise, the benefit will be revoked and the tax must be paid to the Tax Authorities.
However, there are exceptions. The exemption is not lost in the following cases:
Sale of property.
Changes in the household, such as the birth of a child or a divorce.
Moving the workplace to a distance greater than 100 kilometers.
In these cases, the owner may stop living in the property, but cannot leave it unoccupied. The house must continue to be used for residential purposes, for example through rental.
Selling a house in Portugal involves more than simply finding a buyer. There are several legal, tax, and practical steps that are important to consider in advance to avoid delays, unexpected costs, or legal issues. Here are the main questions you should answer before proceeding:
1. What is the real value of the property?
Do a realistic appraisal—compare it to other similar homes in the area. Real estate platforms help, but it can be helpful to hire a specialist.
Also consider whether you are in a rush to sell. The more urgent you are, the lower the price may need to be to attract buyers.
2. Do you want to sell alone or with the help of an agency?
Selling alone can save you on real estate commissions, but it involves more work: marketing, viewings, contact management, and documentation.
If you choose to sell through a brokerage, check the agency's reputation, costs (commissions + VAT), and what services they offer (advertising, photography, contact information, legal advice).
3. Do you have all your documents in order?
Before any transaction, it's essential to ensure the property has all the necessary documents up to date:
Property Registration Certificate — verifies ownership, jurisdiction, and any existing charges.
Urban Registration — describes tax data, market value, boundaries, and property identification.
Energy Certificate — mandatory; indicates energy efficiency.
Housing License / Usage License — depending on the property and the work performed.
Housing Technical File — if applicable (when the property was built or underwent work after March 30, 2004).
Declaration of No Debt to the Condominium — since April 2022, it has been mandatory for building units under a horizontal property regime.
4. Tax Charges and Associated Costs
If there are capital gains (the difference between the purchase price and the sale price), you should know how they are calculated and when there are exemptions (for example, if you reinvest for your own permanent home).
Expenses for documents, deeds, registration, agency fees, etc.
5. Specific obligations if the property is in a condominium
Request a statement of charges from the property manager—it should include existing debts, their nature (ordinary or extraordinary), due dates, and amounts. The condominium has a deadline (10 days) for submitting this statement.
Inform the property manager about the sale of the house and the buyer's new details.
Check for approved construction work in the condominium that may result in costs for the new owner.
6. Condition of the house and image for sale
Before viewings, arrange the house, correct minor defects (cracks, paint, etc.), and improve the overall presentation—good photographs make a difference.
Being transparent about defects or needed construction avoids problems later.
March 21, 2025
