Selling A Property in Portugal
Selling a property in Portugal is a major milestone, and having the right guidance makes all the difference. From choosing an agent to handling legal requirements, understanding the process will help you achieve the best result.
The Selling Process: Step by Step
01
Valuation
We start with a professional valuation of your property to establish the right asking price based on the current market conditions, location, and property. We also take into consideration your preferred timing, your appetite for a slow or fast sale as well as what is to be included in the sale.
02
Sign a Marketing Contract with your preferred Agent
In this contract all terms and fees are agreed upon.
03
Preparing Your Property
We’ll guide you on how to present your home at its best. This might include small alterations, decluttering, to increase its appeal.
04
Listing & Marketing
A personalised marketing plan should be agreed upon and this can include whether your property is to be professionally photographed, presented on local and international websites, brochures prepared among a many other things. Or whether a more discreet approach is preferred. Our clients also have the choice of being listed on the Savills website and marketed throughout the Savills Network.
05
Viewings & Enquiries
At QP Savills, we handle all enquiries, qualify potential buyers, and arrange viewings that showcase your home in the best possible light to the best buyers.
06
Negotiation
07
An Agreed Sale
A good agent will draw up Letters of Intent. This is a non binding letter which summarises all the terms of the deal and ensures no misunderstandings. Both parties sign theirs and this document is also a good way to communicate the terms with the lawyers representing both parties.
08
Promissory Contract (CPCV)
Generally, it is the buyer’s lawyer who prepares the contract. Upon exchange it becomes a legally binding act and the buyer usually pays a 10% deposit upon signing, and the agent receives 50% of their fee from the seller.
09
Completion
On the agreed completion date, the final deed (Escritura) is signed at the notary, the balance and all purchase taxes are paid, and ownership is transferred. The remaining 50% of the agent’s fee is also paid at this time by the seller.
If the buyer withdraws, between CPCV and completion, the deposit is forfeited and the seller retains it. Should the seller withdraw from the sale, they must return the deposit to the buyer times two.
10
After-Sales Support
Even after completion, our team remains available to help with anything you may need, from utility bill transfers to introductions to trusted local professionals and services.
Choosing the Right People
Whether you’re selling a villa, townhouse, apartment, or countryside retreat, selecting the right agent is one of the most important decisions you’ll make. A knowledgeable local expert with proven results in your area and price bracket can be the key to success.
At QP Savills, we take the time to understand what matters most to you. Whether you’re looking for advice on how to maximise your property’s value, need support with legalities and paperwork, or prefer your home to be marketed discreetly off-market, we’ll build a tailored strategy designed to achieve your goals.
A Quick Checklist for Choosing Your Agent:
- What is their track record in selling properties like yours?
- How well do they know your area?
- Do they attract the right kind of buyer for your property type and value?
- Are their marketing materials, photos, brochures, videos, of a high standard?
- What is their marketing reach?
- Have they given you a realistic valuation and marketing plan?
Our company has almost 30 years of experience in the Algarve, and we are committed to delivering a professional, personalised service with results that exceed expectations. In addition to this, our unique and longstanding relationship with Savills gives us the unique platform from which to market our clients properties to a worldwide audience.
Understanding Agent Fees
In the Algarve, agent fees usually range between 4% and 5% of the agreed sale price (plus 23% VAT). These fees are paid by the seller.
Be cautious of fees that are unusually low as they may indicate an overly keen agent, and often reflects the level of service and commitment you’ll receive.
How Fees are Paid:
- 50% is typically paid upon signing the promissory contract (CPCV).
- The remaining 50% is paid on completion.
For peace of mind, payments should always be made and received through your lawyer.
Sole Agency or Multi-Listing?
In Portugal, you can choose to work exclusively with one agent or list with several.
- Sole Agency: Usually comes with stronger marketing efforts, more personalised attention, and clear accountability. The agent takes full responsibility for finding you a buyer. Choose the best agent around and leave it with them.
- Multi-Listing: Can provide more visibility but may also reduce your property’s sense of exclusivity if it appears across too many platforms. Too many agents often cheapens the property and makes buyers suspicious as to why the property is for sale everywhere and not sold.
At QP Savills, we recommend sole agency for a more focused, strategic approach.
Property Licensing and Transparency
If your property has unapproved changes or additions, it’s important to disclose this from the beginning. Transparency avoids delays or failed sales later in the process. Our team can guide you in resolving licensing issues and preparing buyers for what to expect before they become an issue in the eleventh hour.
Documents Required to Sell
To market your property legally in Portugal, the following documents are needed. If we are your chosen agent, QP Savills will assist you in gathering and managing all paperwork:
- Tax Record (Caderneta Predial): Confirms fiscal status
- Land Registration Certificate (Registo Predial): Proves ownership
- Habitation License (Alvará de Utilização): Confirms legal use of the property
- Deed (Escritura): Copy of the last purchase document
- Passport/ID: Identification of the owner
- Approved Plans: From the local council
- VAT/Fiscal Number: Owner’s tax ID
- Energy Certificate: Mandatory for selling in Portugal
- Certificate of Incorporation and some additional company documents: If owned by a company