Buying a home in Portugal is an exciting journey, but it comes with its share of unfamiliar language. If you are house-hunting in the Algarve, understanding common real estate terms will help you navigate the process with confidence. To help you avoid confusion and potential missteps, here are 10 essential Portuguese property terms explained in simple English.

1. Escritura

The escritura is the official deed of purchase. It is the final step in the buying process and must be signed in front of a notary. Once this document is signed, you become the legal owner of the property.

2. Contrato de Promessa de Compra e Venda (CPCV)

This is the promissory contract. It is signed by the buyer and seller to confirm the intention to complete the sale. It outlines key terms such as price, deadlines, and responsibilities. A deposit (commonly 10 percent) is usually paid at this stage.

3. IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis)

IMT is the property transfer tax that buyers must pay when purchasing a home in Portugal. The amount depends on the value and type of property, with different rates for primary residences and second homes.

4. IMI (Imposto Municipal sobre Imóveis)

This is the annual municipal property tax paid by property owners. It is based on the taxable value of the property and the local municipality rate. It can be paid in one, two or three instalments per year.

5. Certidão Predial

The land registry certificate shows who legally owns the property and whether there are any debts or legal issues associated with it. Your lawyer will request this document during due diligence.

6. Caderneta Predial

This is the tax registration document for the property. It includes details such as the property's fiscal value, use, and layout. It is issued by the Portuguese Tax Authority.

7. Licença de Utilização

The habitation license confirms that the property was built legally and is suitable for living. This is especially important when buying older homes or rural properties.

8. Número de Identificação Fiscal (NIF)

This is your Portuguese tax number, required to carry out almost any official activity in Portugal, including buying a property, opening a bank account or signing utility contracts.

9. Procuração

A power of attorney that allows someone, usually a lawyer, to act on your behalf. This is useful if you cannot be physically present in Portugal for every step of the process.

10. Registo Predial

This is the official land registry record. It must be updated after the deed is signed to reflect the new owner. Your lawyer or notary will usually handle this for you.

Avoiding Misunderstandings

Portuguese legal and property vocabulary may feel intimidating at first, but with the right support, you can move forward with clarity. Working with experienced professionals who speak your language and understand the local system makes all the difference.

At ICON Property, we guide you through every step of the process. From explaining local terminology to handling documentation and recommending legal partners, our team ensures you are never lost in translation. Ready to begin your property journey in the Algarve? Contact us today for expert support.