The FOZ VILLA Compass
ABC of
Real Estate
Everything you need to know about the Portuguese property market — from A to Z, with the clarity you deserve.
The property market has a language of its own. Understanding it is the first step towards making informed, secure decisions — this guide brings together the essential terms and processes so that, whether you are a buyer, seller or investor, you always have the answers you need to hand.
The Glossary
Bank Valuation
The value the bank assigns to a property for the purpose of granting a loan. It may differ from the market value or the sale price.
Immovable Property
Land, buildings or autonomous units that, by their nature, cannot be moved without loss of identity or value — the legal basis of any transaction.
Land Registry Certificate (Certidão de Teor)
An official document from the Land Registry that proves ownership of the property, describes it and states whether any charges or encumbrances exist over it.
Mortgage Discharge (Distrate)
The formal cancellation of a mortgage registration at the Conservatória (Land Registry Office), carried out once the home loan has been fully repaid.
Public Deed (Escritura)
The formal act before a notary that transfers ownership of the property from seller to buyer. It is the legal moment of the transaction.
Housing Technical Data Sheet (Ficha Técnica de Habitação)
A mandatory document containing the identification and the technical and habitability characteristics of a building or autonomous unit.
Bank Guarantee
An instrument issued by a bank that ensures an obligation is met — sometimes used in place of the deposit in larger transactions.
Mortgage (Hipoteca)
A real security registered in the bank's favour over the financed property, allowing it to be repossessed in the event of loan default.
IMI and IMT
IMI is the annual tax on owning a property; IMT is paid once, at the time of purchase, on the transaction value or the VPT (taxable asset value) — whichever is higher.
Use Licence (Licença de Utilização)
A document issued by the municipal council certifying that the property meets the requirements to be inhabited or used according to its purpose.
Property Tax Register (Matriz Predial)
The property's fiscal record with the Autoridade Tributária (Tax Authority). It sets the taxable asset value (VPT), the basis for calculating IMI and IRS/IRC (income tax) upon sale.
NIF
Tax Identification Number (Número de Identificação Fiscal), mandatory for any property transaction in Portugal. Non-residents can obtain it remotely through a tax representative.
Charge or Encumbrance
Any lien, mortgage or restriction registered over the property that could affect its sale — it should always be checked before proceeding.
Promissory Contract of Purchase and Sale
A contract (CPCV) binding buyer and seller to the future deed. It usually includes a deposit and penalties in the event of default.
Land Registry (Registo Predial)
The registration of the property and its ownership at the Conservatória do Registo Predial (Land Registry Office) — the public guarantee of who the true owner is.
Deposit (Sinal)
An amount paid by the buyer at the time of the CPCV, usually between 10% and 20% of the price, as a guarantee of the commitment made by both parties.
Debt-to-Income Ratio (Taxa de Esforço)
The percentage of monthly income devoted to repaying the home loan. Banks generally require that it does not exceed 30–35%.
Usufruct
The right to use a property and its income without holding full ownership, which belongs to the so-called bare owner.
VPT
Taxable Asset Value (Valor Patrimonial Tributário) — the fiscal value of the property, calculated from the property tax register. The basis for calculating IMI and, frequently, IMT as well.
Buying a Property: Step by Step
Set Your Budget
Assess your income and available savings, and obtain a mortgage pre-approval to find out how much you can invest.
Find the Property
Explore regions, visit properties and choose the one that best suits your lifestyle and budget.
Documentation & Due Diligence
Check the land registry certificate, technical data sheet, use licence and any charges associated with the property.
Deed & Registration
Sign the public deed before a notary, register the property in your name and set yourself up to pay IMI.
Still Have Questions?
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Our team of specialists knows the Portuguese property market in depth. Talk to us and clear up all your questions.