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Selling property in Portugal as a foreign owner doesn’t mean you’re obliged to use a real estate agent. Many owners choose to handle the sale themselves, while others prefer professional support—it all depends on your time, confidence, and familiarity with the process.
Still, understanding how property sales work in Portugal is essential, especially when it comes to documents, taxes, and legal steps.
Selling Property in Portugal: Step-by-Step Guide
Step 1 – Start the market analysis
The first step to selling your property in Portugal is understanding the market. While working with a real estate professional isn’t mandatory, their guidance can make the process far easier.
An expert can help you analyse current trends, compare similar properties, and set a competitive asking price. With the right insights, you’ll have a clearer picture of your home’s strengths, local demand, and the best strategy to attract serious buyers from the start.
Step 2 – Advertising your property
Once you’ve prepared your selling strategy, it’s time to promote your property. Quality photos, detailed descriptions, and visibility on the right portals make a big difference in attracting serious buyers. To legally advertise your home in Portugal, you must also have a valid Energy Performance Certificate, as it’s mandatory for all property listings.
Step 3 – Managing viewings
Once enquiries start coming in, be prepared to manage property viewings with flexibility and professionalism. Buyers often want to visit at different times, so having a schedule that accommodates their availability can help you secure more interest. Make sure the home is clean, well-lit, and presentable for every visit, as first impressions strongly influence offers.
If you’re working without an agent, you’ll handle all communication and tours yourself; if you have an agency, they’ll take care of coordinating and conducting the viewings on your behalf.
Step 4 – Signing the Promissory Contract
After agreeing on a price for selling property in Portugal with the buyer, the next step is signing the Promissory Contract (Contrato de Promessa de Compra e Venda – CPCV). This legally binds both parties to the sale and usually involves the buyer paying a deposit, often between 10% and 20% of the purchase price. The contract outlines all conditions of the transaction, deadlines, and responsibilities. Your lawyer or notary will review the documents to ensure everything is correct before you sign.
Step 5 - The Public Deed or Purchase and Sale
The final step is signing the Public Deed (Escritura Pública), which officially transfers ownership to the buyer. This takes place at a notary’s office or a designated public entity. Once both parties sign and the remaining balance is paid, the buyer becomes the legal owner of the property. The notary then registers the transaction, completing the sale. After this step, you’ll receive the final confirmation and the process is fully concluded.
What are the Documents Needed to Sell Property in Portugal?
The legal documents required for a property sale in Portugal can vary slightly depending on the type, age, and condition of the property. Your notary will guide you through the process and inform you of the exact paperwork needed. In most cases, you’ll be asked to provide documents such as:
- Passport or Portuguese ID
- Property ID Certificate (Caderneta Predial)
- Land Registry Certificate (Registo Predial)
- Use Permit (Licença de Utilização), when required
- Property floorplans
- Energy Certificate
- Any existing mortgage documents
If the property is part of a building, you’ll also need a condominium declaration confirming that there are no outstanding payments or debts related to the unit.
How Long Does it Take to Sell a Property in Portugal?
The time it takes for selling property in Portugal can vary depending on location, price, and market demand. In high-demand areas like Lisbon, Porto, and the Algarve, a well-priced property can attract offers within a few weeks. In quieter regions or rural areas, the process may take several months.
Once you accept an offer, the legal steps—from signing the promissory contract to the final deed—typically take 4 to 12 weeks, depending on how quickly documents are prepared and whether the buyer requires a mortgage. Overall, most property sales in Portugal are completed within 2 to 6 months, but the timeline can be shorter with proper preparation and realistic pricing.
Costs of Selling Property in Portugal: Taxes and Legal Fees
Capital Gains Tax
This is one of the most relevant costs of selling Property in Portugal: if you sell for more than you originally paid, the profit is subject to Capital Gains Tax (Mais-Valias). For residents—and for EU/EEA residents—only 50% of the gain is taxed, and it’s added to your annual income and taxed according to your marginal IRS rate, which ranges from 14.5% to 48%, plus a possible 5% solidarity tax. The same 50% rule applies to inherited properties.
For non-EU residents, including US and UK citizens, the tax is usually a flat 28% applied to the entire gain, regardless of income level.
Municipal Property Tax (IMI)
This is the annual tax you must pay as a property owner, and you won’t be able to complete a sale in Portugal if any amount is outstanding. It must be fully settled before the transaction can move forward.
IMI rates vary by municipality and usually range from 0.3% to 0.8% of the property’s taxable value (VPT), which you can find on your property’s ID certificate (caderneta predial).
Legal & Agency Fees
Real Estate Agency Commission: The commission varies depending on the contract you sign, typically ranging from 2% to 5% plus VAT, and is paid only after the sale is completed.
Legal Fees: These usually amount to 1% to 2% of the property value, depending on the complexity of the transaction and the services included.
Notary & Registration Fees: Costs can differ by region, but they generally range between €350 and €1,200 for the final deed and registration.
Other Costs of Selling Property in Portugal
The Energy Performance Certificate is mandatory for all property sales in Portugal and typically costs between €50 and €100, depending on the provider.
Get In Touch With a Portugal Property Specialist
Portugal Residency Advisors® has assisted numerous international investors in successfully investing in Portugal. Discover how our trusted, all-in-one solution makes your investment journey smart and simple.
How to Reduce Your Tax Liability When Selling Your Property in Portugal
Reinvest Your Profit
If you speak with a real estate professional, one common piece of advice on selling property in Portugal is to reinvest your profit. By reinvesting the proceeds into another permanent home, you may qualify for a capital gains tax exemption. The reinvestment must take place within 36 months after the sale, or up to 24 months before it. This exemption also applies to EU and EEA residents, as long as the funds are reinvested in a primary home in their own country under comparable tax rules.
Property Ownership Before 1989
If your property was acquired before 1989, it’s fully exempt from capital gains tax in Portugal, whether you bought it yourself or inherited it, as long as the original acquisition date was before 1 January 1989.
So, if you’re selling inherited property in Portugal and the person who originally bought it acquired it before 1989, the capital gains tax exemption still applies when you eventually sell.
Deductible Expenses
When calculating capital gains, several selling-related costs can be deducted to help reduce the final costs of selling property in Portugal. This includes real estate agency commissions, legal and notary fees, the cost of the energy certificate, and any documented renovation or maintenance work carried out on the property.
You can also deduct municipal taxes or stamp duty paid when you originally bought the home. These deductions all help lower your taxable gain.
Selling Inherited Property in Portugal
Selling inherited property in Portugal involves two main tax considerations: Stamp Duty (Imposto do Selo) upon inheritance and Capital Gains Tax (Mais-Valias) upon sale.
How the Acquisition Value Is Calculated
When you sell inherited property in Portugal, the starting value used to calculate capital gains isn’t what the deceased originally paid. Instead, the acquisition value is the Taxable Patrimonial Value (VPT) registered with Finanças at the time the inheritance was reported.
This often works in your favor because the VPT is usually lower than market value, which reduces—or even eliminates—the taxable gain. This figure is then adjusted for inflation based on the year of inheritance.
How Capital Gains Tax Works
The tax you pay depends on whether you’re a resident of Portugal or not.
- Residents: Only 50% of the net gain is taxed and added to your annual income, which is then taxed at progressive IRS rates.
- Non-residents (post-2023 rules): Also taxed on 50% of the gain, now following the same progressive IRS rules used for residents.
You can reduce your taxable gain by deducting eligible costs, such as:
- Stamp Duty paid when inheriting
- Documented renovation or improvement expenses from the last 12 years
- Sale-related costs like agency commission, energy certificate, and legal fees
Key Exemptions and Special Rules
- Pre-1989 purchases: If the deceased originally bought the property before 1 January 1989, the sale is fully exempt from capital gains tax. You still need to report the transaction in Annex G1.
- Reinvestment relief: If the inherited home becomes your primary residence and you are tax-resident in Portugal, you may avoid capital gains tax by reinvesting the proceeds into another main home within the set timeline (24 months before or 36 months after the sale).
- Stamp Duty on inheritance: There’s no traditional inheritance tax. Direct family members pay 0%, while all other heirs pay 10% Stamp Duty on the inherited assets.
Advice on Selling Property in Portugal: Doing it By Yourself or Through an Agent
You’re not required to use a real estate agency to sell your property in Portugal, and the decision really comes down to your time, availability, and comfort with the process.
Selling property in Portugal on your own means taking care of everything—from preparing the house and capturing high-quality photos, to listing it across property portals and social media, managing enquiries, scheduling visits, and keeping track of all required documents. It can be done, but it demands time and constant attention.
If you ask many foreigners about their experience, they’ll often advice on selling property in Portugal through a local real estate agent makes everything much easier. A good Portuguese agency will take care of the full process for you—preparing the property, promoting it, listing it on their website, using their marketing channels, and presenting it to their network of interested buyers. It’s a much more streamlined way to sell, especially if you’re not in the country.
They’ll also carry out a valuation, guide you through each legal step, and even provide after-sales support if needed. For many sellers, having expert help saves time and ensures the sale runs smoothly.
How Can Portugal Residency Advisors Help You?
Finding the right real estate agent in Portugal can feel overwhelming—there are countless agencies, and many of them mainly work with local Portuguese buyers. That often means they don’t have access to the international investors who may be willing to pay a premium for the right home or lifestyle opportunity.
Portugal Residency Advisors® steps in to bridge that gap. We’re an all-in-one consultancy with years of experience helping international families and investors navigate both residency and real estate in Portugal. With a dedicated team on the ground in Lisbon, we guide you through every stage of the process.
Our approach is hands-on, transparent, and fully tailored to your needs, making your property sale or investment journey smooth, secure, and stress-free.
Frequently Asked Questions
Do foreign owners need a real estate agent to sell property in Portugal?
No. Using an agent is optional. You can sell the property yourself, but an agent can simplify marketing, viewings, and paperwork if you prefer professional support.
What taxes do I need to pay when selling a property in Portugal?
The main tax is Capital Gains Tax (Mais-Valias). Depending on your residency status, you may be taxed on 50% of the gain or at a flat 28% rate. IMI must also be fully paid before the sale.
Can foreign sellers qualify for capital gains tax exemptions?
Yes. If you reinvest the profit into a new primary home in Portugal—or, for EU/EEA residents, in your country of residence under similar tax rules—you may qualify for a full or partial exemption.
What documents do I need to sell a property in Portugal?
Common documents include the Caderneta Predial, Land Registry Certificate, Energy Performance Certificate, floor plans, ID, and a condominium declaration if applicable.
How do I avoid capital gains tax in Portugal?
You can avoid capital gains tax if the property was originally purchased before 1989, or by reinvesting the profit into another primary residence within the required timeframe (24 months before or 36 months after the sale). EU/EEA residents can also benefit if they reinvest in a primary home in their own country.
What are the legal fees for selling property in Portugal?
Legal fees usually run between 1% and 2% of the property price, depending on the complexity of the transaction and the services included.
How to sell property in Portugal as a UK resident?
UK residents can sell property in Portugal without restrictions. The main difference is taxation—capital gains are generally taxed at 28% on the full gain for non-EU sellers.
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