Legal Due Diligence in Portugal: What Your Lawyer Must Check Before You Buy

Buying property in Portugal? Before you sign anything, make sure your legal due diligence is airtight. Unlike many other countries, Portugal has no title insurance, and mistakes can be costly. This guide breaks down exactly what your lawyer must check to protect your investment.

Why Legal Due Diligence in Portugal Isn’t Optional

In countries like the US or the UK, property checks are often standardised. In Portugal, the stakes are higher:

• No title insurance exists – your lawyer is your only protection.

• Limited recourse if things go wrong – legal mistakes can be expensive to fix.

• Outdated or complex records – historical discrepancies, inheritance claims, and manual land registries can hide issues.

Think of legal due diligence as your property insurance. The law won’t protect you after a problem arises — your lawyer must do it before.

Due diligence goes beyond ownership verification. It covers the property’s legal standing, financial history, and compliance with planning laws. Only a proactive lawyer can ensure everything is correct.

Key Legal Documents Your Lawyer Should Review

1. Land Registry Certificate (Certidão do Registo Predial)

This is the property’s “identity card,” confirming:

• Ownership – is the seller the legitimate, sole owner?

• Mortgages or debts – any outstanding financial burdens?

• Legal restrictions – easements, liens, or shared rights of way.

Why it matters: Issues can arise from past owners, inheritance, or undeclared debts. Never assume ownership is clear.

2. Tax Records (Caderneta Predial Urbana / Rústica)

Issued by the Tax Authority, these show:

• Property size and classification – urban or rural, built-up area, land area.

• Official tax value (VPT) – affects annual IMI property tax.

Pro tip: Discrepancies between the tax record and the actual property may indicate illegal extensions or unregistered modifications.

3. Project Licensing and Habitation License (Licença de Utilização)

Your lawyer must verify:

• All construction permits were properly issued.

• The property was built according to approved plans.

• Habitation license is granted for legal occupancy.

Why it matters: Without proper licenses, you could buy a property that cannot legally be lived in or sold.

Invisible Pitfalls Most Buyers Miss

A thorough lawyer will uncover hidden issues, such as:

• Easements and Rights of Way – paths or access rights affecting privacy and resale value.

• Usufruct Rights – lifetime rights held by another person can prevent immediate occupancy.

• Heritage or Agricultural Restrictions – protected land rules may limit renovations or conversions.

Even seemingly minor issues can impact your lifestyle, future plans, and property value.

Town Hall Records: The Local Check You Cannot Skip

National records aren’t enough. Your lawyer should check the local Câmara Municipal:

• Unlicensed buildings, garages, or pools.

• Permits for utilities like water or electricity.

• Past renovations that lack municipal approval.

Local records often reveal the true legal status of older or rural properties.

Choosing the Right Lawyer: Red Flags & Must-Haves

Look for a lawyer who:

• Specialises in real estate law for international buyers.

• Speaks fluent English and communicates clearly.

• Is independent, with no ties to the seller or developer.

• Provides clear, comprehensive reports.

Pro tip: Ask how many property transactions they’ve handled for international buyers in the past year. Fewer than 10? Keep looking.

Final Thoughts: Due Diligence Is a Strategy, Not a Checklist

Investing €500,000, €1 million, or more in Portugal is exciting — but skipping proper legal checks is risky.

A great lawyer:

• Anticipates problems before they arise.

• Interprets hidden signs in legal and municipal records.

• Strategizes to protect your investment.

Thorough legal due diligence today ensures you can enjoy your dream home tomorrow — without legal nightmares.

Ready to buy in Portugal? Protect your investment with a trusted legal-first strategy. Book a consultation or download our free Legal Buyer’s Checklist at Private Luxury Collection