Your Guide to Portuguese Property Terms
As any international buyer drawn to the Algarve’s luxury lifestyle, the process of buying property here can feel unfamiliar at first. Many terms used in Portuguese real estate don’t have direct translations or can carry different meanings than their international counterparts.
To make your property search easier, we’ve created a helpful glossary of commonly used terms in Portugal’s property market.
01
Alojamento Local (AL License)
Short-term rental license (e.g., for Airbnb)
Required to legally rent a property on a short-term basis. Regulations vary by municipality
02
Condominium (Condomínio )
– kon doh mee nee oo
In Portugal, this term often refers to whether a property is located within a managed development, or block of apartments, and normally comes with a monthly fee owners pay for shared services and maintenance, not just the apartment itself.
03
Energy Certificate (Certificado Energético)
– ser tee fee kah doh en er zhe tee koo
Energy efficiency rating
Mandatory in Portugal for all properties sold or rented. Homes are rated from A+ (most efficient) to G (least efficient).
04
Escritura
– esh kree too rah
Closing / Deed signing
The final signing that officially transfers ownership of the property. Held in front of a notary.
05
Fractional Ownership
In some Portuguese resorts, multiple buyers legally co-own a property and have usage rights for specific periods. This is not the same as a timeshare.
06
IMI (Imposto Municipal sobre Imóveis)
– eem poh stoo moo nee see pal soh breh ee moh vaysh
Annual property tax
This municipal tax is paid yearly and is based on the property’s tax value, which is often lower than market value.
07
IMT (Imposto Municipal sobre Transmissões)
– eem poh stoo moo nee see pal soh breh trans mee soh ish
Property transfer tax
A one-time tax paid by the buyer when purchasing property. The rate varies depending on value and property type.
08
Promissory Contract (Contrato de Promessa de Compra e Venda)
– kon trah too de pro meh sah de kom prah ee ven dah
Purchase & Sale Agreement
A legally binding agreement signed before the deed. A deposit, often between 10% and 30%, is typically required.
09
Stamp Duty (Imposto do Selo)
– eem poh stoo do seh loo
Real estate transfer tax (state/local level)
This is a one-time 0.8% tax paid by the buyer on the purchase price of a property. It is typically paid at the time of the deed signing and applies to most property transactions in Portugal.
10
T1, T2, T3, etc.
1-bed, 2-bed, 3-bed
In Portugal, homes are categorised by the number of bedrooms using a “T” (short for typology). A T2 means the property has two bedrooms, regardless of how many other rooms it contains.
11
Urban vs. Rustic Land
In Portugal Urban land = buildable | Rustic land = usually non-developable or agricultural. Portugal uses these terms with legal and zoning implications.
12
Villa
– vee luh
Detached single-family home In Portugal, a “villa” typically refers to a standalone home, often with a garden, pool, and more privacy. It’s a term frequently used in luxury real estate, particularly in the Algarve.