Selling Property in Portugal


Here in the blog, we’ve talked a lot about buying, investing, and renting properties in Portugal, but this post is about selling.

Buying properties in the country made us experts in Portuguese real estate regulations because it’s a lot. The most important thing is to be aware of the legal processes and required registrations, plus property transaction costs, capital gains tax, and other fees associated with buying property in Portugal. So, what about selling?

Real estate in Portugal

First, we need to talk about the real estate market in the country, and let’s point out that around three-quarters of people who live in Portugal own their own homes. This is a figure that has pretty much remained steady for the last decade.

Based on that, if you’re thinking about selling a property, it can be an interesting deal. 

Selling a property in Portugal

So, you’ve decided to sell a property in Portugal, what do you need?

First of all, you’ll need to factor capital gains tax into your calculations. Second, if you’re a Portuguese resident, you’ll only need to pay capital gains tax on 50% of your gains, although you can deduct the costs of any improvements you’ve made to the property in the five years before you sell it. Your rate will depend on your circumstances, as capital gains tax is factored into your overall income tax in Portugal, but if you’re not officially a resident, you will need to pay a fixed rate of 28% on all capital gains.

You’ll also have to factor in real estate agent costs, which can take a chunk of your overall profits. Real estate agents in Portugal can charge around 3–5% (plus 23% Value Added Tax/VAT) of the property’s value.

Tips from Live Abroad

Property, like other assets, is subject to cycles of growth and decline. Research the property market and local interest rates for house-price comparison.

And it’s always worth seeking professional advice on legal and taxes details, especially if you don’t speak Portuguese, since many expats experienced problems such as complicated administrative procedures, high taxes, and legal fees, incompetent real estate agents, high prices, and a lack of public records for house-price comparison.

In our opinion, it’s best to have someone who knows what they’re doing and is interested in getting the best deal for you.

Are you thinking about selling your property? Let us know!