⚖️ 8 Legal Pitfalls Every Expat Should Avoid When Buying Property in Portugal

Good morning, beautiful people! ☀

If you've moved countries chasing after a dream, you’ll likely know this truth: the reality is never exactly what you imagined. It's messier, harder… and sometimes more beautiful than you dared dream.

A year ago, we were behind on rent, had lost our business in South Africa (and with it, our income), and my husband was recovering from major neurosurgery. I was deep in the exhausting cycle of job hunting. We live outside town and only had one working car for my husband's handyman work, so every trip to town or my daughter's school was on foot. Great for fitness, but not a sustainable life plan.

And yet, even in those tough months, three things that matter more than money: Safety for our daughter that we could actually feel. Community through deep, meaningful friendships. Peace of mind, even when we were broke and stressed.

This week, I bought a car. Finance approved in five days, zero deposit.

That's not just about the car. It's about establishing credit history as a foreigner. Building local relationships with banks. Proving your income stability in a new system. The small practical wins that make expat life work.

If you're in your tough season right now (visa stress, job hunting, bureaucracy nightmares) remember this: every small system you crack, every local connection you build, every month you prove your reliability here, you're not just surviving abroad.

You're becoming a local.

What’s on the menu today:

Ready? Let’s dig in, shall we?

Long Angle is a private, vetted community for high-net-worth entrepreneurs, executives, and professionals across multiple industries. No membership fees.

Connect with primarily self-made, 30-55-year-olds ($5M-$100M net worth) in confidential discussions, peer advisory groups, and live meetups.

Access curated alternative investments like private equity and private credit. With $100M+ invested annually, leverage collective expertise and scale to capture unique opportunities.

Apply to Join

Peniche is fascinating for several reasons, but one super interesting highlight is its combination of rich history, stunning natural beauty, and world-class surfing. Peniche is home to the 16th-century Peniche Fortress, which once served as a political prison during the Salazar dictatorship, now housing a museum dedicated to the resistance and freedom struggles of that era. Just offshore lies the Berlengas Archipelago, a UNESCO-designated World Biosphere Reserve known for its crystal-clear waters, dramatic cliffs, and a 17th-century fortress called São João Baptista. This natural reserve offers incredible opportunities for snorkeling, diving, and exploring caves. On land, Peniche is famed as one of Europe's top surfing destinations, especially its Supertubos Beach, known for perfect tubular waves that attract surfers worldwide. The rugged coastline with cliffs like Cabo Carvoeiro provides breathtaking sunset views, while the town itself retains a strong fishing tradition and artisanal crafts like bobbin lace making, combining culture, nature, and adventure in one place.

Silves Medieval Fair (8-16 August): this fair will transform the historic town of Silves into a vibrant celebration of Moorish and Christian traditions. Expect torch-lit streets, costumed processions, live reenactments, and immersive encounters with jugglers, veiled dancers, snake charmers, and artisans at work in Berber-style camps.

Aljubarrota Medieval (14-17 August, Aljubarrota): the village of Aljubarrota near Alcobaça will come alive with one of Portugal’s most patriotic medieval festivals, commemorating the legendary 1385 battle that secured the nation’s independence. Expect a sprawling medieval fair filled with costumed performers, Arab tents, fortune tellers, live theater, and traditional crafts. There’ll be tournaments, jugglers, music, and hands-on games for all ages. The highlight is a full-scale reenactment of the Battle of Aljubarrota on August 17, drawing thousands. With an expanded food court and more vendors in 2025, this free event promises an unforgettable dive into Portuguese history and medieval spectacle.

Romaria de Nossa Senhora d’Agonia (12-20 August, Viana do Castelo): one of Portugal’s most striking and tradition-rich festivals, honoring the Virgin of Agony, especially revered by the local fishing community. The highlight is the vibrant parades of “mordomas,” women dressed in traditional Minho attire heavily adorned with ornate gold jewelry, creating a dazzling display unique in its scale and beauty.

Vodafone Paredes de Coura (13-16 August, Praia do Taboão in Paredes de Coura): one of Portugal’s most celebrated summer music festivals, held every August in the picturesque setting of Praia do Taboão, in the small town of Paredes de Coura in northern Portugal.

UB40 featuring Ali Campbell (13-14 August): are bringing their reggae classics to Portugal this summer with two highly anticipated concerts. They'll perform in Lisbon at Sagres Campo Pequeno on August 13, 2025, followed by a show at Multiusos de Gondomar in Porto on August 14, 2025. Fans can expect timeless hits like “Red Red Wine,” “Kingston Town,” and “Cherry Oh Baby,” as the legendary band continues to celebrate their legacy and vibrant reggae sound for audiences old and new.

Maré de Agosto (21–23 August, 2025, Santa Maria Island, Azores): An international world music festival, it is celebrated for its world music atmosphere and outstanding setting—its main stage is only about 20 meters from the sandy beach, providing a unique and scenic backdrop for concerts. Recognized as Portugal’s longest-running uninterrupted festival, Maré de Agosto began informally in 1984, becoming a flagship event on the Azorean calendar and drawing both national and international audiences.

Vilar de Mouros Festival 2025 (20-23 August, Vilar de Mouros, Caminha): a landmark event celebrating 60 years as the oldest festival on the Iberian Peninsula. It takes place in the village of Vilar de Mouros in northern Portugal. The festival features an impressive lineup across four days, including international rock, punk, and alternative music icons such as Papa Roach, Sex Pistols with Frank Carter, James, The Kooks, Refused, The Damned, and many more. It blends multiple music generations and genres, offering an exceptional summer festival experience.

Shawn Mendes (28 August, Lisbon): will be performing his "On The Road Again" tour at the MEO Arena in Lisbon on August 28, 2025. This concert celebrates 10 years of his career with a setlist covering hits from his debut album to his latest release, "Shawn."

Portuguese Wine Festival and National Rocha Pear Fair (13-18 August): a major annual event held in Bombarral. This year, the festival hosts a double celebration: the 40th Portuguese Wine Festival and 30th Rocha Pear Fair, bringing together 90+ exhibitors from the Lisbon and Setúbal regions.

Palmela Wine Jazz (15-17 August, Palmela, Setúbal): held in the scenic Parque Venâncio Ribeiro da Costa next to Palmela Castle, is a vibrant and free festival that highlights the best of Setúbal Peninsula wines and top national and international jazz acts, featuring live concerts, a regional wine fair with tastings, wine bar, guided tastings, exclusive offers, and signature events like the “Palmela Wine Jazz Walk”—all in a relaxed, family-friendly open-air atmosphere that blends music, culture, and enology in one of Portugal’s most picturesque settings.

Madeira Wine Festival (August 24 - September 14): Madeira will be celebrating its grape harvest with one of the island’s most iconic events, blending centuries-old wine traditions with modern flair. In Estreito de Câmara de Lobos, visitors can watch locals in traditional dress harvest and stomp grapes in lively reenactments. In Funchal, the Madeira Wine Lounge at Praça do Povo offers tastings, DJ sets, and oceanfront sunsets, while Avenida Arriaga buzzes with folklore shows, art, and wine exhibitions. Highlights include the Harvest Parade, vineyard concerts, and culinary showcases that reveal the richness of Madeira’s wine culture. It’s more than a wine festival—it’s a joyful celebration of local heritage, flavor, and music.

When we were planning our own move, one of our biggest lifelines was ExpatsEverywhere. Their videos, advice, and honesty gave us a real picture of what life here could look like; the good, the bad, and the "why is my paperwork taking six months?!" moments.

No matter how many blogs you read or YouTube videos you binge, there's a moment when it hits you: that pit-in-your-stomach feeling hit us too: What if we're missing something crucial? What if we completely mess this up?

When we were in that exact place (equal parts excited and terrified) ExpatsEverywhere became our compass. Their guidance wasn't just helpful, it was the difference between feeling lost in the process and feeling like we had an insider on the team.

That's exactly what I want to give you. The team has put together detailed, step-by-step courses to help you navigate every twist and turn of relocating to Portugal. Honestly, I couldn't think of better guides for this adventure.

Because you're part of our community (and because they’re wonderful humans), you get to grab $10 off any course with code “Hustle10”. Your future Portuguese self will thank you.

This week, we wrap up our three-part series from the expert team at FRESH Portugal, guiding expats through the often tricky world of buying property in Portugal:

1️⃣ Buying Property - Essentials for Expats

2️⃣ Buying Smart – Costs, Taxes & Expat Pitfalls

3️⃣ Legal Landmines – What Expats Must Avoid (this week’s feature)

A huge thank you to the FRESH Portugal team for bringing us such invaluable, real-world guidance and helping expats make confident, informed decisions and avoid costly mistakes.

Now, let’s hand things over to the experts:

How can a buyer protect themselves from inheriting debts attached to a property in Portugal?

In Portugal, debts such as unpaid municipal property taxes (IMI), condominium fees, or utility bills can be attached to the property and transferred to the new owner. To protect themselves, the buyer should request a Permanent Land Registry Certificate to verify the existence of any mortgages, liens, or other encumbrances, ask the seller for a Tax Clearance Certificate confirming that IMI and other municipal taxes are fully paid, and obtain a statement from the condominium administrator confirming there are no outstanding fees. In addition, it is essential to include in the Promissory Contract of Purchase and Sale (Contrato-Promessa de Compra e Venda) a clause making the completion of the deed conditional on the property being free of any debts on the date of signing.

What are the common issues with unclear or defective title deeds, and how can they be resolved before purchase?

Common issues with unclear or defective title deeds in Portugal include situations where the seller is not the registered owner, discrepancies between the physical boundaries of the property and what is recorded in the registry, outdated or missing documentation, or inconsistencies between the Land Registry and the Tax Registry. There may also be unresolved inheritance matters, where the property has multiple heirs but no formal division.

To resolve these issues before purchase, the buyer should have a lawyer carry out a full review of both the Land Registry and Tax Registry records, ensuring that the seller’s name matches in both and that the property description is consistent. Any discrepancies must be corrected by the seller before signing the promissory contract, which may involve updating records at the Land Registry, rectifying tax records, or completing inheritance divisions.

How can buyers verify that all buildings, extensions, and modifications on a property are legally registered and compliant with zoning laws?

In Portugal, buyers can verify that all buildings, extensions, and modifications are legally registered and compliant with zoning laws by taking several key steps. First, they should request the Municipal Usage Licence, which confirms the approved purpose and legal use of the property. Then, they should compare this licence with the official architectural plans held at the local municipal planning office to ensure that the property’s existing structures match what was officially approved.

It is also essential to confirm compliance with the Municipal Master Plan, which sets zoning rules, building limits, and land use restrictions. For properties in protected areas, additional checks may be required with environmental or heritage authorities.

Finally, hiring an independent architect or surveyor to conduct an on-site inspection can help identify any unregistered extensions, alterations, or construction irregularities. If any discrepancies are found, the seller should be required to legalise the works before the sale is completed to avoid fines, demolition orders, or restrictions on future renovations of the buyer.

What due diligence steps are essential before signing a promissory contract or final deed?

Before signing a promissory contract or the final deed, buyers should carry out thorough due diligence to avoid legal and financial risks. This includes confirming the seller is the rightful owner and that the property is free of mortgages or liens, checking tax records to ensure all municipal taxes are paid, and verifying there are no outstanding condominium fees or other debts. Buyers should also review the usage licence and compare it with approved plans to confirm all constructions are legal, verify property boundaries (especially for rural plots), ensure there are no unresolved inheritance or co-ownership issues, and check for any planning restrictions or expropriations. Finally, protective clauses should be included in the promissory contract to make the sale conditional on a clear title, absence of debts, and full legal compliance.

How can foreigners overcome language barriers when reviewing contracts and official documents during the buying process?

Foreigners can overcome language barriers when reviewing contracts and official documents in Portugal by hiring an independent bilingual lawyer who is experienced in real estate transactions and can explain every clause clearly. All contracts, including the promissory contract and the final deed, should be provided in a language the buyer fully understands, preferably through certified translations. For the deed signing at the notary, a bilingual translator can be present to ensure nothing is misunderstood.

What are the risks involved in purchasing a property with shared or inherited ownership, and how can buyers ensure all owners agree to the sale?

Purchasing a property with shared or inherited ownership carries significant risks, such as disputes between co-owners, delays if one party refuses to sell, or legal challenges from heirs who were not properly included in the sale. Inherited properties may also have incomplete or unresolved succession processes, meaning the estate has not been formally divided, and the registered ownership is unclear.

To avoid these issues, buyers should confirm the exact ownership structure in the land registry and obtain written consent from every registered owner. If the property was inherited, the seller must provide proof that the inheritance process has been completed and registered. Without unanimous agreement and proper legal documentation from all owners, the sale should not proceed.

What protections should buyers include in the Promissory Contract (CPCV) to minimise deposit risks?

To minimise deposit risks when signing the Promissory Contract (CPCV) in Portugal, buyers should include clauses that make the transaction conditional on key legal and financial checks. The contract should state that the sale will only proceed if the property has a clear title, is free of debts, and fully complies with municipal licensing and zoning rules. It should also specify that all necessary documents must be provided before the deed date.

Buyers should include a penalty clause stating that if the seller defaults, the buyer is entitled to receive double the deposit back, and if the buyer defaults, the seller may retain the deposit.

What hidden costs and ongoing tax obligations should foreigners be aware of when purchasing property in Portugal?

When purchasing property in Portugal, foreigners should be aware of several hidden costs beyond the agreed sale price. These include the Property Transfer Tax (IMT), which can reach up to 7.5% of the purchase price depending on the property type and value, the Stamp Duty of 0.8%, notary and land registration fees (typically €1,000–€1,500), legal fees (often 1–2% of the purchase price), and optional but advisable costs such as property surveys or valuations.

Ongoing obligations include the Municipal Property Tax (IMI), charged annually at 0.3–0.45% of the property’s tax value, and condominium fees for shared buildings or developments. On resale, capital gains tax may apply, calculated on the profit after allowable deductions. Buyers should budget for these costs in advance to avoid unexpected financial pressure after purchase.

What best practices can foreigners follow to avoid the most common legal pitfalls when buying property in Portugal?

Foreigners can avoid the most common legal pitfalls when buying property in Portugal by following a set of best practices. Always hire an independent lawyer who represents only the buyer’s interests and is experienced in Portuguese real estate law. Carry out full due diligence before signing any agreement, verifying ownership, debts, licences, and compliance with zoning rules. Never rely solely on the seller’s or agent’s information—double-check all documents directly with the relevant authorities.

All agreements should be in writing and, if necessary, translated into a language the buyer fully understands. Payments should be made via traceable bank transfers, and deposits ideally held in escrow until all conditions are met. When drafting the promissory contract, include protective clauses making the sale conditional on a clear title, absence of debts, and legal compliance. Finally, visit the property in person, confirm utilities are active, and keep copies of all records to safeguard against future disputes.

⚖

With thanks to our collaborators, the Real Estate Team at FRESH Portugal, for their valuable insights and contributions to this article.

_{The tax team at Fresh Portugal is a highly skilled and experienced group, with deep expertise in both domestic and international tax law. Specializing in tax consulting, litigation, and planning, the team focuses on areas such as digital nomad taxation, crypto, and expat tax services. Additionally, the team has a strong background in private client services, tax compliance, delivering comprehensive and innovative solutions.}

Email: [email protected]

Palavra do Dia: Caderneta Predial (kah-der-NAY-tah pree-dee-AL) – The tax registry document showing the property’s official details and taxable value.

🗣 Exemplo: “A caderneta predial indica a área e o valor fiscal da propriedade.” (“The tax registry document shows the area and the taxable value of the property.”)

💡 Hustle Tip: If the caderneta doesn’t match reality, you could be buying a legal headache.

Thanks for reading! 💌

Hustle on!

Angelique🧞‍♀️

Was this newsletter forwarded to you? Don’t miss next week’s scoop by signing up here.

Disclaimer: The links I share are for products and services I’ve actually used and recommend. Sometimes, I get to share a referral link, which might throw a little reward my way—but never at your expense. You’ll pay the same price set by the supplier, no sneaky markups. My recommendations are always based on experience, not commissions. Thanks for supporting this newsletter—you rock!