Portugal Property Ownership

Ownership and title to real property is registered and can be verified by means of certificates from Land Registry. Land Registry is governed by the Immovable Property Registry Code.

Portugal Trade Associations

Associação Lisbonense de Proprietários (ALP)
Rua D. Pedro V, 82
Lisboa
P-1269-002
Portugal

Phone : +351 21 3402000
Fax : +351 21 3469482
e-mail : atendimento@alp.pt
Web : www.alp.pt

Associação dos Profissionais e Empresas de Mediação Imobiliária de Portugal (APEMIP)
Rua D. Luís de Noronha,
Edíficio D. Luís de Noronha
n. ° 4 - 2° Andar.
Lisboa
P-1069-165
Portugal

Phone : +351 21 7928770
Fax : +351 21 795881
e-mail : geral@apemip.pt
Web : www.apemi.pt

The Portuguese Real Estate Association (APEMI) was created in 1978 and has become the biggest real estate trade association in the country. Its mission is to defend the interests of the professionals it represents. Over the past 20 years, APEMI has increased its membership and improved the services offered to real estate professionals. APEMI has also strengthened ties with its members by creating new services, offering professional seminars and attending national and international real estate events.

Portugal Land Rights

There are generally no restrictions on foreign ownership of real estate for personal use. Real property purchased for investment or business purposes must be approved by the Portuguese Institute of Foreign Trade.

Real property can be held in fee simple or may be leased in Portugal. The Portuguese government also retains certain rights in real property including escheat, the right to levy property taxes and the control of private property through police power.

Residential leases are either for a period of six months or one year and are automatically renewable, or for a fixed period of at least five years, which is not automatically renewable. In both cases, yearly rent adjustments are possible. Each year, government decrees the maximum rate of increase of rents. Agricultural leases usually cannot be made for less than ten years.

In general, real property acquired during the marriage is considered community property. Typically, a husband or wife can only dispose of or lease real property with consent of the other spouse.

Portugal Forms of Ownership

Real property in Portugal can be owned either in severalty or concurrence. Concurrent forms of ownership include corporations, general partnerships, limited partnerships, and joint ventures.

Portugal Real Estate Info Summary

Title & Contracts in Portugal

The conveyance of real property must be in writing and authenticated by a notary. "Escrituras públicas" are public deeds written in books of notary and are required for conveying, mortgaging and often leasing real property. Real property can be conveyed after death via a will.

All land titles must be registered and can be verified by means of certificates from the Land Registry.

Except when the law specifically provides for special formalities such as notarial public deed or written document duly stamped, contracts may be verbal and can be proved by witnesses or other evidence. Contracts for the sale of real property however, must be in writing.

Property Taxes:

The property tax rate is between 1.1% and 1.3% for urban property and less for agricultural property. Property taxes are assessed at the municipal level and are subject to annual adjustments.

Transfer taxes are levied at the rate of 10%. Certain exemptions apply, especially for principal residences, and the transfer tax on agricultural property is generally lower.

Portugal Mortgages & Financing

Real property can be mortgaged as security for a debt in Portugal. A mortgage does not convey property to mortgagee, but merely creates a legally enforceable lien on real property. Priority of mortgages depends on date of registration.