A Buyer's Guide to Buying Property in Portugal

Buying a home in Portugal is an exciting prospect—whether you're seeking a sunny holiday retreat, a permanent move, or a smart investment. However, the process here works differently to the UK, Ireland, North America, and other markets. Understanding each step, and having the right people by your side, can make all the difference.

At The Buyer's Agent Algarve , we act solely for buyers—never for sellers—helping you navigate the entire process with confidence, clarity, and without unnecessary stress. Here's what you need to know.

1. Property Search & Research

Most buyers start their journey online—scrolling through listings on portals like Idealista, Kyero, or Rightmove Overseas. These are useful for getting a feel for prices and styles of properties, but the sheer volume can quickly become overwhelming.

Before falling in love with a villa or apartment, it's important to refine your search by asking yourself a few key questions:

• What matters most—proximity to the beach, golf courses, or an airport?

• Do you want to be in the heart of a lively town or somewhere peaceful and secluded?

• What are your non-negotiables—number of bedrooms, outdoor space, sea views, parking?

• Are you looking for a lock-up-and-leave holiday home or a property for year-round living?

Many buyers spend months (or even years) searching independently, only to realize that their ideal home was in an area they hadn't even considered.

This is where The Buyer's Agent Algarve can save you time and frustration. We offer a fee-free, no-pressure chat by phone or video call to help you clarify what really matters to you. With our deep local knowledge, we can suggest areas you might not have thought of, highlight the pros and cons of each, and access properties across the entire market —including those that are off-market or quietly listed with private sellers.

2. Negotiation

Once you've found the right property, the next step is to secure it at the best possible price and terms. Negotiation in Portugal is rarely just about the number—it can involve timelines, inclusions (furniture, fixtures), or works to be completed before handover.

Many overseas buyers understandably feel at a disadvantage here, not only because of the language barrier, but also because the local market works differently. Sellers' agents are paid to get the best result for the seller—not for you.

That's why having an experienced buyer's agent is so valuable. We negotiate solely on your behalf , using comparable sales data, market insight, and our understanding of the seller's position to get you the fairest possible outcome. Sometimes it's about securing a lower price; other times it's about protecting you from unfavorable conditions or delays.

3. If the Property is Held in a Corporate Structure

It's not uncommon in Portugal—especially for higher-value properties—for ownership to be held via a company, often registered in another country. There can be legitimate reasons for this, including historical tax structures, inheritance planning, or privacy.

If you are buying a property held in a corporate structure, the purchase process may differ:

• You may be buying the shares of the company rather than the property itself. This can change the legal and tax implications.

• A specialist lawyer will need to conduct in-depth due diligence, reviewing company accounts, liabilities, and compliance history, not just the property title.

• The transaction could affect the taxes payable on purchase, both in Portugal and in your home country, so independent tax advice is essential.

We work with experienced Portuguese lawyers and cross-border tax advisers who can guide you through this type of transaction—ensuring you fully understand the implications before committing.

4. The Promissory Contract

Once an offer is accepted, your chosen lawyer will begin due diligence checks —verifying the seller's legal right to sell, checking for charges or debts attached to the property, confirming planning permissions, and ensuring there are no restrictions that could affect your ownership.

When these checks are complete, a promissory contract is prepared. This is a legally binding agreement signed by both parties. It sets out the agreed terms of the sale, the completion date, and other important conditions. At this stage, you will pay a deposit—usually between 10–30% of the purchase price, depending on the terms agreed to when negotiating.

If the seller later withdraws without valid reason, they must return your deposit in double . If you withdraw without valid reason, you forfeit your deposit.

We ensure you have clear timelines, reliable communication, and access to trusted legal professionals so this step runs smoothly.

5. Final Deed

The last stage is the signing of the Deed before a notary. Here, the remaining balance is paid, relevant taxes and fees are settled, and the property title is transferred into your name.

At this point, you will also pay:

• IMT (property transfer tax) – calculated on a sliding scale depending on property value and whether it is a main or secondary residence. For Privately owned properties this can be up to 6.5% or 7.5% if the residential property is over 1ml€

• Stamp duty – generally 0.8% of the purchase price for privately owned, and not applicable in corporate ownership.

• Notary and registration fees – these vary depending on the complexity of the transaction but generally 1,000-2,000€. These are not applicable for corporate ownership.

We stay with you through this final step, helping arrange certified translations if needed, making sure funds are transferred securely, and recommending reputable notaries for a quick and trouble-free signing. If you can't be in Portugal in person, we can help arrange a power of attorney so your lawyer can sign on your behalf.

Why Work with The Buyer's Agent Algarve?

Buying abroad can feel daunting, but with the right support it becomes a straightforward, even enjoyable, experience. With The Buyer's Agent Algarve , you benefit from:

• Unbiased representation – we act only for you, never for the seller.

• Market-wide access – including off-market and privately listed properties.

• Strong local relationships – with trusted lawyers, surveyors, notaries, and tax advisers.

• Fee-free service – our commission is covered by the seller's side, so there's no cost to you.

We're here to guide you from the very first conversation right through to holding the keys—while keeping the process as smooth and stress-free as possible.

Ready to Begin?

Whether you're still at the dreaming stage or already have a shortlist of properties, the best way to start is with a simple, no-obligation chat. We'll help you refine your search, understand your options, and plan your next steps with confidence.

Get in touch with Richard Kirk today at richard@thebuyersagentalgarve.com