What is necessary for the Deed of purchase and sale of a property in Portugal?

Formalizing the purchase and of a property in Portugal can be a complex and bureaucratic process, requiring close attention to important details in order to avoid issues at the time of execution of the Deed. Although the requirements may vary depending on the specifics of each transaction, below is a summary of the main documents and information that are generally required at this stage:

1. Requirements related to the Identification of the Parties

• Valid Identification Document: Citizen Card, equivalent document issued by a European Union country, or Passport;

• Tax Identification Number (NIF): mandatory for all parties, regardless of nationality or place of residence.

• Determination of the Parties Executing the Deed:

− Companies: a valid Permanent Commercial Registry Certificate must be provided in order to confirm who has authority to bind the company.

− Inheritance situations: identification of the heirs of the deceased property owner is needed, typically requiring, among other documents, the Death Certificate and the Certificate of Heirship.

− Individuals: indication of marital status and, when applicable, the relevant matrimonial property regime, which is essential to determine who must intervene in the deed and to whom the property belongs or will belong. This analysis is particularly important in cases involving foreign nationals or marriages celebrated outside Portugal, as the applicable law must be assessed.

2. Requirements Related to the Property

• Tax Department Certificate: issued by the Portuguese Tax Authorities, this document identifies the property owner, the property’s areas, and its tax registration value;

• Land Registry Certificate: obtained from the Land Registry Office, it contains essential information regarding the legal status of the property, including the existence of any liens, charges, or encumbrances;

• Energy Certificate: issued by a certified technician, it can sometimes be waived depending on the nature of the property or situations provided for in the applicable law;

• Use License: issued by the Municipal Council, it defines the permitted use of the property. It is not required for rural properties or for urban properties built prior to 1951. In all other cases, and since the approval of the Urban Planning Simplex, it is no longer mandatory for the deed, even though its analysis remains advisable in order to verify the property’s compliance with applicable urban planning regulations;

• Technical Habitation File: applicable to residential urban properties built or subject to works after March 2004. Although its presentation is also no longer mandatory, reviewing this document continues to be relevant for legal certainty and client protection;

• Proof of Preemptive Rights: whenever the law grants certain entities or individuals a right of first refusal over the acquisition of the property, documentation evidencing compliance with such rights must be presented.

3. Requirements related to the payment

• Taxes: prior to the execution of the Deed, it is necessary to assess the taxes to be paid by buyer, who must also obtain the necessary documents for its payment next to the Tax Authorities;

• Notary and Registration Fees: at the time of execution of the Deed, the costs associated with the preparation of this instrument and its registration must be paid.

The Deed of purchase and sale of a property involves several specific legal aspects and potential risks that must be properly safeguarded. VPA is available to provide assistance at all stages of the process, ensuring full legal compliance and providing its clients with the necessary peace of mind.