How to Buy Property in Portugal – A Broker’s Guide

Buying property in Portugal is an exciting step—whether you’re planning a relocation, a second home, or a long-term investment. But if you’re coming from the UK, the US, or almost anywhere else, the process here might surprise you.

As a broker working daily with international buyers, I know how confusing the Portuguese system can look from the outside. So here’s a clear, step-by-step guide to how it really works—and how to avoid the most common mistakes.

Step 1: Understand the Buyer Journey

In Portugal, buying property is more relationship-driven than transaction-driven. It’s not just about scrolling through property portals—it’s about knowing where to look, who to trust, and how the process works.

Most buyers start with Idealista or Rightmove, but here’s a secret: many of the best homes never appear online. Off-market deals are common, especially in the luxury segment, and they’re only available through brokers with the right connections.

Step 2: Learn the Legal Buying Process

Once you’ve found the right property, here’s how the process typically unfolds:

1. Agree Terms – Negotiate price and conditions with the seller.

2. Sign the Promissory Contract (CPCV) – A legally binding contract where you pay a deposit (usually 10%). Walking away at this stage usually means losing that deposit.

3. Due Diligence – Your lawyer checks ownership, debts, licenses, and zoning. This is where issues are caught before it’s too late.

4. Final Deed (Escritura) – You sign at the notary, pay the balance and taxes (IMT, stamp duty), and become the legal owner.

💡 Pro Tip: Always hire an independent lawyer to protect your interests.

Step 3: Why You Need a Buyer’s Agent

In Portugal, the listing agent represents the seller—not the buyer. Without a buyer’s agent, no one is obligated to protect you.

A buyer’s broker will:

• Negotiate the best possible price for you

• Provide access to exclusive off-market properties

• Coordinate with your lawyer, mortgage broker, architect, or surveyor

• Spot red flags early and help you avoid costly mistakes

Step 4: Avoid the Most Common Mistakes

Here are the pitfalls I see most often:

• Using the listing agent only – They work for the seller, not you.

• Underestimating timelines – Due diligence can take several weeks.

• Buying without legal habitation or proper licenses – This can delay or block future rentals and renovations.

• Assuming rental income is guaranteed – AL (short-term rental) licenses are regulated and not always available.

Having someone who knows the market can save you stress, money, and sleepless nights.

Step 5: Unlock the Off-Market Advantage

In the luxury market, the best opportunities are never publicly advertised. They’re sold privately through trusted networks, brokers, and referrals.

If you rely only on property portals, you’re seeing just the surface of what’s available. Building relationships with local professionals is the key to unlocking this hidden inventory.

Final Thoughts

Buying property in Portugal is an incredible opportunity—if you know how to navigate the system.

✅ The process is unique and legally detailed.
✅ You need both an independent lawyer and a buyer’s agent to protect your interests.
✅ The most exclusive properties are often off-market, so don’t just rely on online listings.

If you’re ready to start your search, you can book a free consultation to discuss your plans and get expert support.

And don’t miss our next guide: The Top 5 Mistakes Expats Make When Moving to the Algarve—a must-read if relocation is on your radar.