In this quick guide, we explain the 5 essential steps to buying a house in Portugal, from financial planning to the deed signing.

Step 1: Start with Your Financial Situation

Before you begin visiting properties, the most important thing is understanding how much you can realistically invest in a home without compromising your financial stability.
You should start by analyzing:
  • Your monthly income;
  • Fixed expenses;
  • Existing loans or credit commitments;
  • Debt-to-income ratio.
The debt-to-income ratio represents the percentage of your monthly income allocated to loan repayments. As a general rule, banks prefer this value not to exceed 33%. However, depending on the client profile, banks may approve financing with a debt-to-income ratio of up to 50%.
In a practical example, if someone has a monthly net income of €1,000, the maximum amount that can be committed to loan repayments would be €500.
It is also important to take into account the initial costs associated with buying a home. Even when applying for a mortgage, there are expenses that are usually not financed:
  • Down payment (minimum of 10% of the property value);
  • Deed costs;
  • Registration costs;
  • IMT (Property Transfer Tax);
  • Stamp Duty.
And what about young buyers up to 35 years old?
Currently, there are important support measures for young homebuyers:
  • Financing up to 100% through the State Public Guarantee. This means that it is no longer necessary to have the property down payment in personal savings;
  • Exemption from IMT and Stamp Duty on the purchase of a first permanent residence, within the current legal limits.
These measures significantly reduce the amount needed to move forward with buying a home and can represent savings of thousands of euros at this initial stage.
Before searching for a property, it also makes sense to request a mortgage pre-approval. Having financing pre-approved saves time and helps you understand the maximum amount the bank may finance, allowing you to search for properties within your budget.

Step 2: Define What You Are Looking For and Explore the Market

With a clear idea of your financial capacity, it is time to define your priorities.
Before starting property visits, think about what is truly important to you:
  • Apartment or house;
  • New or used property;
  • Number of bedrooms (T1, T2, T3, T4, etc.);
  • Location;
  • Garage, elevator, or outdoor space;
  • Proximity to schools, work, and services.
The clearer your criteria are, the easier it will be to filter options and avoid wasting time on properties that do not match your profile.
This is also the ideal phase to monitor the market, compare prices, and identify areas with greater potential.
Having professional support can make a major difference. An experienced real estate consultant not only helps find properties that fit your needs but also assists in interpreting the market and identifying good opportunities.

Step 3: Visit Properties Carefully and Pay Attention to Details

Visiting a property goes far beyond the first impression.
During visits, it is important to observe:
  • Overall condition;
  • Quality of finishes;
  • Natural light;
  • Sun exposure;
  • Thermal insulation;
  • Space organization;
  • External noise;
  • Condition of the building and common areas.
If possible, visit the property at different times of the day to better understand the atmosphere of the area and the amount of natural light.
Another essential aspect is verifying the property documentation before moving forward:
  • Permanent Certificate;
  • Property Tax Document;
  • Energy Certificate;
  • Usage License.
These documents help confirm that the property is legally compliant and free from issues that could delay the purchase.
Extra Tip:
Request a “Condominium Debt Declaration.” This helps avoid surprises related to unpaid condominium fees associated with the property.

Step 4: Make an Offer and Move Forward with the CPCV

After finding the right property, it is time to present an offer.
In many cases, there is room for negotiation, especially depending on how long the property has been on the market, local demand, and the sale conditions.
If both buyer and seller reach an agreement, the next step is usually signing the “Promissory Purchase and Sale Agreement” (CPCV).
This document defines:
  • The final property price;
  • The deadline until the deed signing;
  • The deposit amount;
  • The conditions agreed upon by both parties.
The deposit usually represents between 10% and 20% of the purchase value.
Before signing, it is advisable to have the contract reviewed by a specialized professional to ensure that both parties are properly protected.

Step 5: Finalize the Financing and Sign the Deed

With the CPCV signed, the bank proceeds with the final mortgage approval and the official property appraisal.
After definitive approval, the deed signing is scheduled, and this is the moment when the property officially becomes the buyer’s.
At this stage, the following are paid:
  • The remaining property value;
  • Taxes;
  • Deed and registration costs.
If there is a mortgage involved, the bank also registers the property lien.
Although this is the final stage, it is important to ensure that all documentation is valid and organized to avoid delays.

Conclusion

Buying a house may seem like a demanding process, but it becomes much simpler when you understand each stage and make informed decisions.
More than finding a beautiful property, it is important to ensure that the purchase makes sense for your financial reality and future goals.
At Incredible Real Estate, we support each client throughout the entire process, from property search to deed signing, with close, transparent, and personalized guidance.
Because buying a home should not only be a financial decision, but the beginning of a new chapter with security and confidence.