Source: Adobe Stock Author: Redaction Buying a home is an important step and requires attention to several stages after selecting and negotiating the property. We explain the main steps simply, from the initial commitment to the final registration. Promissory Contract of Purchase and Sale (CPCV) The CPCV is the first formal document between the buyer and the seller. This contract formalises the commitment, including the payment of a deposit that secures the reservation of the property. In addition, the CPCV has legal consequences if either party withdraws. Applying for and Managing a Mortgage If you require financing, you must apply for a mortgage loan from a bank. At this stage, the financial institution evaluates both the property and your financial capacity. You will need to submit several documents for the bank to assess your application. The mortgage agreement is tied to the property, acting as a guarantee of repayment. Collecting Documentation for the Deed in the Home Buying Process Before proceeding to the deed, you must gather essential documents: Identification document (Citizen Card or Passport) Updated Land Registry (Caderneta Predial) Property usage licence Property certificate (certidão predial) Energy certificate These documents are essential to confirm that there are no legal or tax obstacles to the purchase. The Deed in the Home Buying Process The deed is the final act that legalises the property purchase. It is carried out before a notary, lawyer or at the Land Registry Office, and can also be completed at a Casa Pronta counter. On this day, both the buyer and seller must be present, and if there is a mortgage involved, a bank representative must also attend. During the deed process, the contract is read and signed. In the case of a mortgage, a lien is placed on the property, securing the bank’s rights to the loan. Only with this signature is the purchase formalised and the seller receives the agreed amount. Land Registry The next step is registering the property in your name. The land registration makes you the official legal owner. This process can be done in person at the Land Registry Office, at a Casa Pronta counter or online. Registration protects your acquisition by preventing others from claiming rights over the property. There are associated costs that should be anticipated. Associated Costs and Taxes In addition to the house price, you must consider other expenses involved in the process, such as: Deed and notary fees IMT (Municipal Property Transfer Tax) Stamp Duty Land registration fees Possible insurance and administrative costs It is important to be informed about these costs before confirming any commitment. Final Steps After the Purchase After completing the registration, there are still a few tasks to finalise the purchase: Update utility contracts (water, electricity, gas, internet) to your name Notify the Parish Council of the ownership change Check whether you are eligible for a temporary IMI (property tax) exemption Final Recommendations Each of these steps may involve specific details, so it is always advisable to seek expert support to avoid mistakes. Properly following each stage ensures your purchase—from the CPCV to the deed and land registration—proceeds safely and without surprises.
Source: Adobe Stock Author: Redaction Portuguese workers and pensioners will benefit from IRS-free salaries during August and September 2025. In these two months, gross salaries up to €1,136 will be exempt from withholding tax, due to new tables applying a temporary IRS reduction. This measure compensates for excess deductions made since January, providing higher net incomes for taxpayers and easing household budgets. Context of the new withholding tax tables In 2025, the Government approved a reduction in IRS rates, applying new withholding tables to offset deductions made in the first months of the year. Between August and September, withholding rates drop significantly, with no IRS deductions for salaries up to €1,136. From October onwards, rates will rise again, though remaining slightly below those in effect before the reduction. This change is especially important as it corrects overpaid IRS throughout the year. Those earning up to this limit will see a real increase in their monthly net salary, having more disposable income during these months. Impact on gross salaries up to €1,136 For workers earning up to €1,136 gross, August and September will be months with no IRS withholding. For instance, someone previously earning €991 gross, a single worker without children, was already exempt. With the update, the threshold has increased to €1,136, expanding the group of beneficiaries. This exemption means direct savings, as the amount no longer withheld can be used for personal expenses, savings, or other investments, boosting purchasing power. Reduction in withholding above the €1,136 threshold Those earning above €1,136 also benefit from significant withholding reductions during these two months. For example: • A salary of €1,300 sees withholding drop from €136 to €3. • A salary of €1,500 goes from €186 to €8. • Salaries of €2,000 benefit from a reduction from €326 to €22. These temporary cuts mean net increases of hundreds of euros during August and September, before normal withholding resumes in October. Situation for pensioners Pensioners receiving up to €1,116 gross will also be exempt from withholding tax during August and September, offering relief similar to employed workers. Those with higher pensions also benefit from significant cuts. For example: • A €1,300 pension sees withholding fall from €114 to €3. • At €2,000, the reduction is from €307 to €21. • Pensions of €4,000 enjoy a cut from €1,159 to €224 per month. This scenario significantly boosts liquidity for pensioners during these two summer months. Retroactivity and adjustment in the coming months This withholding tax reduction mechanism is retroactive, compensating for excessive deductions since January 2025. The situation will be adjusted in the annual IRS settlement: those who overpaid will receive a refund, while those who underpaid may have to pay the difference. Additionally, companies and payers can correct unadjusted amounts from August in the following months up to December 2025, ensuring workers receive the appropriate amounts. What changes from October In October, standard tables return, maintaining the reduced rates approved by Parliament, but full exemption up to €1,136 ends. Withholding will resume for gross salaries from €992 upwards, with general rates slightly higher than in August and September, but still lower than those before the recent reduction. This temporary increase in net salaries serves to offset the initial months of 2025 before stabilising under a new fiscal framework. Beneficiaries and limitations of the measures It is important to note that those unemployed, self-employed (green receipts), or without income in August and September will not benefit from these reductions, even if they overpaid IRS earlier. On the other hand, workers who recently became employees or received salary increases will benefit from the new tables with retroactive calculation to January. Final considerations and impact on household budgets IRS-free salaries during August and September 2025 represent a fiscal measure that brings more immediate liquidity to thousands of Portuguese citizens. This temporary increase in net income may boost consumption and improve families financial conditions over the summer. For employers and pensioners, understanding these updates is essential for planning payments and managing salary expectations for the final quarter of the year.
Source: Adobe Stock Author: Redaction Fiscal expenditure is a central concept in the analysis of Portuguese public finances, reflecting the value of tax revenues that the State forgoes through benefits, exemptions, deductions, and reduced rates. These mechanisms are used to promote certain economic and social behaviours, support strategic sectors, or alleviate the tax burden on specific groups of taxpayers. In 2024, Public Administration fiscal expenditure grew again, reaching historic levels and consolidating its importance in balancing the State’s revenues and expenses. What is fiscal expenditure? Fiscal expenditure corresponds to the set of tax benefits granted by the State, resulting in lower tax collection compared to what would be charged if exemptions, deductions, or preferential rates did not exist. This concept covers all taxes, being most relevant in VAT (Value Added Tax), IRS (Personal Income Tax), IRC (Corporate Income Tax), and Stamp Duty. Fiscal expenditure is thus an economic policy tool, allowing the State to influence the behaviour of economic agents, support families, encourage investment, or promote social cohesion. Evolution of fiscal expenditure in 2024 The year 2024 was marked by a 5.7% increase in Public Administration fiscal expenditure, reaching €20,395.3 million. This value represents 7.2% of Gross Domestic Product (GDP), remaining stable compared to the previous year, but showing a growth trend since 2015. The growth recorded in 2024 was mainly due to increased exemptions and tax benefits in VAT and Stamp Duty. VAT accounted for 60.1% of total fiscal expenditure, with the application of reduced rates and exemptions on various goods and services. In the case of Stamp Duty, the 25.2% increase compared to 2023 resulted mainly from the introduction of new exemptions, such as the exemption on home purchases by young people. Income taxes (IRS and IRC) represented about one quarter of fiscal expenditure, highlighting increased deductions and exemptions in IRS, notably for young people and persons with disabilities, and tax incentives for business investment in IRC. Main components of fiscal expenditure VAT In 2024, fiscal expenditure on VAT amounted to around €12,250.2 million, reflecting the impact of reduced rates on essential goods, culture, health, and education. The vast majority of fiscal expenditure on VAT results from the application of these preferential rates, aimed at alleviating the cost of living for families and supporting strategic sectors. Stamp Duty The growth in fiscal expenditure on this tax was due to the introduction of new exemptions, especially for young people purchasing homes, reflecting the State’s commitment to supporting young people’s entry into the housing market. IRS IRS fiscal expenditure was €2,755.3 million, 4.1% higher than in 2023. This increase was due to strengthened exemptions and deductions at source, notably for young people (Young IRS) and persons with disabilities. These measures seek to promote inclusion and support taxpayers in more vulnerable situations. IRC In IRC, fiscal expenditure reached €2,182.4 million, a 6.5% increase compared to the previous year. This rise is linked to investment incentives such as SIFIDE (System of Tax Incentives for Business Research and Development) and the Tax Regime for Encouraging Business Capitalisation, which aim to stimulate competitiveness and innovation among national companies. Impact of fiscal expenditure on public accounts Fiscal expenditure has a direct impact on the State’s effective revenue, reducing the amount of taxes collected. In 2024, Public Administration tax revenues reached €101.8 billion, representing 35.7% of GDP, an increase of 6.7% compared to the previous year. Despite this growth, fiscal expenditure continues to represent a significant portion of the budget, requiring the State to balance granting tax benefits with the need to finance its essential functions. The evolution of fiscal expenditure is closely monitored by Parliament and budget control entities, subject to annual reports that assess its effectiveness, efficiency, and economic and social impact. The increase in fiscal expenditure can be seen as a sign of greater State intervention in the economy, but it also raises questions about the long-term sustainability of public finances. Future trends and challenges The growth trend of fiscal expenditure in Portugal reflects the State’s response to economic and social challenges, such as supporting young people, promoting investment, and protecting the most vulnerable. However, this growth poses challenges to budget sustainability, requiring rigorous evaluation of the effectiveness of tax benefits and their real impact on the economy. Transparency and monitoring of fiscal expenditure are fundamental to ensure that the granted benefits meet defined objectives and do not simply translate into revenue loss without relevant returns for society. The debate on fiscal expenditure should continue in the coming years, aiming to find a balance between supporting taxpayers, promoting economic growth, and ensuring public finance sustainability. Fiscal expenditure is an essential tool of Portuguese fiscal policy, with direct impact on the lives of citizens, businesses, and the State’s accounts. The increase recorded in 2024 reflects the State’s commitment to social and economic support measures, but also reinforces the need for careful and transparent management of these benefits. With fiscal expenditure representing 7.2% of GDP, the challenge lies in ensuring that every euro of tax benefit translates into an effective return for Portuguese society.
Source: Adobe Stock Author: Redaction IMT (Municipal Tax on Onerous Property Transfers) revenue has become one of the main pillars of municipal finance in Portugal in recent years. The sharp rise in this tax, especially since 2019, reflects not only the evolution of the housing market but also the direct impact of public policies and economic dynamics on the housing sector. IMT revenue trends since 2019 Between 2019 and 2024, IMT revenue rose to unprecedented levels. In 2019, municipalities collected around €1.001 billion in this tax. By the end of 2024, the figure had reached €1.732.8 billion, setting a new all-time record. This growth of approximately 70% occurred despite a drop in the number of property transactions, which highlights the decisive influence of rising house prices on the total amount collected. During this period, the number of homes sold fell from 181,478 in 2019 to around 156,325 in 2024, according to data from the National Statistics Institute. Despite the drop, the average transaction value rose significantly, pushing IMT revenue to previously unseen levels. The tax has become the largest contributor to municipal tax revenues, surpassing the traditional Municipal Property Tax (IMI), which remained relatively stable between €1.4 and €1.5 billion annually. Factors behind the rise in IMT revenue The growth in IMT revenue is directly linked to the appreciation of the Portuguese property market. House prices have increased by over 10% annually on average since 2019, a trend driven by strong demand, foreign investment, supply shortages, and housing incentive policies, particularly those targeting young buyers. Measures such as IMT exemptions for young people have had a dual impact: on the one hand, they increased demand from this demographic; on the other, they contributed to price hikes, as property developers absorbed the tax benefit and reflected it in sales prices. Despite forecasts of a drop in IMT revenue due to these exemptions, the opposite occurred: in 2024, tax revenue grew by 0.8% compared to the previous year, defying budget projections. Moreover, the state covered the cost of the exemptions, financially compensating municipalities for the potential loss in revenue. This allowed local tax income levels to be maintained or even increased. The role of IMT in municipal finance The weight of IMT in municipal budgets has become increasingly evident. In 2024, total municipal tax revenue reached €4.07 billion, of which €1.73 billion came from IMT. This figure represents around 42% of all municipal tax income, making IMT the leading source of local government funding, ahead of IMI. IMT growth accounted for around 70% of the overall rise in municipal tax revenues between 2019 and 2024. In 2022 alone, the property transfer tax was responsible for 80% of the increase in municipal tax income, highlighting the growing reliance of local councils on this tax to balance their budgets. Implications for the market and taxpayers The rise in IMT revenue has a direct impact on the housing market and on Portuguese families. On the one hand, rising house prices make it harder to access housing, especially for younger people and low- to middle-income households. On the other, strong municipal revenues can be channelled into infrastructure, social housing and public services, although this depends on the policy priorities of each municipality. The stagnation of IMI—an annual tax paid by property owners—contrasts with the volatility of IMT, which is directly dependent on the volume and value of transactions. This difference means that councils are more exposed to fluctuations in the property market and may face budgetary difficulties during periods of lower market activity. Future outlook for IMT revenue The future of IMT revenue will depend on the evolution of the property market, public housing policies and national and international economic conditions. Continued property appreciation could sustain the upward trend in tax income, but potential changes to tax rates, exemptions or market regulations may reverse this scenario. The growing dependence of municipalities on IMT raises questions about the sustainability of local public finances and the need to diversify income sources. The debate around the balance between encouraging property transactions, ensuring access to housing and securing municipal financial stability is likely to feature strongly in political discussions in the coming years. IMT revenue has cemented its position as a central component of municipal finances in Portugal, reflecting housing market dynamics and fiscal policy choices. The challenge now is to ensure that this growth contributes to greater social equity and to the sustainable development of cities and local communities.
Source: Adobe Stock Author: Redaction Definition of Use Licence The Use Licence is a fundamental document in the Portuguese property sector, especially for first-time homebuyers. Issued by the City Council, this licence certifies that a property complies with all legal and regulatory conditions for its intended purpose, whether residential, commercial, services, or industrial. For those looking to purchase a house, the Use Licence guarantees that the property was built or altered according to the approved project and respects all safety, hygiene, and residential use standards. Purpose of the Use Licence The Use Licence essentially serves to prove the legality of the property’s use. In the context of buying a house, this document is indispensable because it: • Confirms the property can be used for housing, ensuring it is suitable to be legally and safely inhabited. • Is mandatory for completing deeds of sale, registering the property, rental agreements, obtaining mortgage credit, and setting up commercial or service activities. • Ensures the property has been inspected and meets all safety, hygiene, and conformity requirements set by the competent authorities. Importance of the Use Licence For those entering the property market, the Use Licence is one of the most important documents to check before proceeding with the purchase of a house. Its importance is reflected in several aspects: Legal protection Without the Use Licence, it is impossible to complete the deed of sale or register the property in your name. Furthermore, you cannot legally enter into rental contracts. Occupant safety The licence guarantees the property was built in accordance with the technical and safety standards required by law, protecting the health and wellbeing of future residents. Avoids legal problems Using or acquiring a property without a Use Licence may result in fines, embargoes, and other legal sanctions, as well as complicate future property transactions. Legislation Associated with the Use Licence The Use Licence is governed by various legal rules regulating construction and property use in Portugal: • The General Regulation of Urban Buildings (RGEU) defines the technical and administrative standards for building construction and use. • The Legal Regime of Urbanisation and Building, established by Decree-Law no. 555/99, regulates licensing, use, and inspection of properties. • The Urban Planning Simplex, in force since 2024, introduced some changes to the regime, notably eliminating the need for a use authorisation in certain cases subject to prior control, while maintaining the obligation of prior notification and inspection. These laws ensure that all properties intended for housing meet minimum safety, hygiene, and comfort requirements, protecting both buyers and sellers. FAQs about the Use Licence 1) What is the Use Licence? The Use Licence is the document issued by the City Council certifying that a property complies with all legal conditions for its intended use, especially housing. 2) When is the Use Licence mandatory? The Use Licence is mandatory for all properties built or altered after 7 August 1951. It is required for purchase, sale, rental, obtaining mortgage credit, and setting up commercial or service activities. 3) What is the difference between the Use Licence and the Habitability Licence? The Use Licence indicates the permitted use of the property (residential or non-residential), while the Habitability Licence specifically certifies that the property meets the conditions to be inhabited. 4) How do you apply for the Use Licence? The application must be made at the City Council of the area where the property is located, either in person or online. It is necessary to submit a specific application form, property plans, property tax document (caderneta predial), and other required documents. The process involves paying a fee. 5) Do properties built before 1951 need a Use Licence? No. Properties or units built before 7 August 1951 are exempt from the Use Licence, although it is advisable to always check the documentation with the City Council. 6) Is it necessary to renew the Use Licence? The Use Licence does not have a defined validity period, but if there are alterations to the original project of the property, it may be necessary to update the licence with the City Council. 7) What happens if you use a property without a Use Licence? Using a property without a Use Licence may result in fines, embargo of the work or use, and the inability to carry out legal transactions involving the property, such as sale or rental. When buying a house for the first time, it is essential to ensure the Use Licence is compliant and duly registered. This document is key to a secure purchase, protecting your investment and avoiding future legal problems. Before proceeding with any property transaction, always request a copy of the Use Licence and clarify any doubts with the City Council or a property professional. This way, you ensure your new home meets all legal requirements and is ready to welcome your family with safety and peace of mind.
Source: Adobe Stock Author: Redaction After having explored in detail the average costs and timeframes involved in buying a house in Portugal, as well as the best strategies to search for the ideal property consciously and informed, it is crucial to address another essential aspect of this process: documentation. Among the most important documents is the permanent certificate, an indispensable element to ensure the security and legality of any real estate transaction. What is the permanent certificate? The permanent certificate is an official digital document issued by the Land Registry Office, which collects and provides all relevant legal information about a property in Portugal. This document presents, in an updated manner, the identification of the property, ownership, charges, mortgages, seizures, legal actions, and registration history. It is therefore considered the “identity card” of the property and a fundamental pillar for legal security in any purchase, sale, or financing operation. What is the permanent certificate for? The permanent certificate has several essential functions in the real estate context: Proof of ownership : Allows verification of who is the legal owner of the property. Verification of charges : Reveals if there are mortgages, seizures, usufructs, easements, or other restrictions on the property. Consultation of history : Shows the registration history, including previous owners and relevant changes. Security in transactions : Ensures the property can be sold or mortgaged without surprises or legal impediments. Mandatory for mortgage credit : Always required by banks for financing analysis and approval. Necessary in legal or administrative processes : May be requested to resolve disputes or regularise situations related to the property. Information contained in the permanent certificate The permanent certificate presents, in detail, the following data: !function(){use strict;window.addEventListener(message,function(a){if(void 0!==a.data[datawrapper-height]){var e=document.querySelectorAll(iframe);for(var t in a.data[datawrapper-height])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[datawrapper-height][t]+px;r.style.height=d}}})}(); Validity, access, and format Validity : The permanent certificate is valid for six months from the date of issue. After this period, it must be renewed to ensure data is up to date. Access : Anyone can request and consult a permanent certificate; it is not necessary to be the property owner. Format : It is a digital document, always updated, accessible online via an exclusive access code. How to obtain the permanent certificate Obtaining the permanent certificate is simple and fast: Online: Access the Justiça.gov.pt portal or the Online Land Registry. Provide the property data (description number, fraction, etc.). Pay the corresponding fee. Receive an access code for online consultation valid for six months. In person: Go to any Land Registry Office. Request the permanent certificate, providing the property data. Receive the access code or, if preferred, a printed version. Difference between permanent certificate and property tax document Although both documents are essential, they serve different purposes: !function(){use strict;window.addEventListener(message,function(a){if(void 0!==a.data[datawrapper-height]){var e=document.querySelectorAll(iframe);for(var t in a.data[datawrapper-height])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[datawrapper-height][t]+px;r.style.height=d}}})}(); Key points about the permanent certificate Consultation before purchase It is essential to analyse the permanent certificate before any purchase commitment to ensure the seller is the legitimate owner and the property is free of encumbrances or disputes. Mandatory validity Ensure the certificate is within the validity period (6 months) at the time of the transaction. Detailed analysis Check all records, including pending requests, to avoid unpleasant surprises. Complementarity The permanent certificate does not replace the property tax document; both should be consulted for a complete view of the property’s status. Bank requirement Banks always require the updated permanent certificate to grant mortgage credit. Transparency Public consultation of the permanent certificate allows greater transparency and security throughout the real estate process. Legislation related to the permanent certificate The permanent certificate is regulated by several legal diplomas, namely: Land Registry Code (Decree-Law No. 224/2007, of 31 May) Defines the rules of the land registry, the structure of the certificate, and the issuing procedures. Ordinance No. 621/2008, of 18 July Establishes the certificate models and the IT procedures for their issue. Complementary legislation Rules on access, validity, renewal, and use of the permanent certificate. Frequently Asked Questions about the permanent certificate What is the permanent certificate? It is a digital document that gathers all relevant legal information about a property, issued by the Land Registry Office. Who can request the permanent certificate? Anyone can request and consult the permanent certificate of a property, regardless of ownership. What is the validity of the permanent certificate? The permanent certificate is valid for six months from the date of issue. Does the permanent certificate replace the property tax document? No. The permanent certificate contains legal information, while the property tax document contains fiscal information. Both are necessary. How can I obtain the permanent certificate online? Through the Justiça.gov.pt portal or Online Land Registry, providing the property data and paying the fee. Why is it important to consult the permanent certificate before buying a house? To ensure the property is free of encumbrances, mortgages, or disputes, and that the seller is the legitimate owner. The permanent certificate is thus an indispensable document to ensure security, transparency, and legality in any real estate transaction in Portugal. Consulting and understanding it is a mandatory step for all conscious buyers and owners.
Source: Adobe Stock Author: Redaction In 2025, Euribor rates have shown a downward trend, especially in the three- and six-month terms, which have reached lows not seen since 2022. This evolution has a direct impact on mortgage repayments with variable rates, which are indexed to these rates. For thousands of Portuguese families, this reduction represents significant financial relief, allowing for greater flexibility in the monthly budget and opportunities for early repayments or savings. What is the Euribor? Euribor (Euro Interbank Offered Rate) is the average interest rate at which a group of 19 eurozone banks are willing to lend money to each other on the interbank market. This rate serves as a key reference for several financial products, including the majority of variable rate mortgage contracts in Portugal. There are several Euribor rates depending on the lending term between banks, the most common being 1, 3, 6, and 12 months. Euribor is calculated daily by the European Money Markets Institute (EMMI), which collects the rates reported by the banks, excludes the outliers, and publishes the average of the remaining values. For repayment updates, banks typically use the monthly average of the Euribor for the agreed term, ensuring that the applied rate reflects real market conditions. Impact of Euribor Rates on Mortgage Credit The monthly repayment of a variable rate mortgage is calculated by adding the bank-defined spread to the Euribor rate of the selected term. Therefore, when Euribor rates rise, repayments increase; when they fall, repayments decrease. In Portugal, since January 2024, the six-month Euribor has become the most used index, representing around 37.61% of all variable rate loans, followed by the 12-month rate (32.46%) and the three-month rate (25.60%). In June and July 2025, the three-month Euribor fell to around 1.937%, while the six-month rate settled at approximately 2.031%, both the lowest levels since late 2022. The 12-month Euribor, meanwhile, recorded a slight increase to around 2.062%. These variations mean that families with contracts indexed to shorter terms are benefiting from lower repayments, while those with contracts reviewed annually may feel the effects of the rise in the 12-month Euribor. What Can and Should Mortgage Holders Do? Given the current Euribor rate scenario, there are several strategies mortgage holders can adopt to optimise their budget: Regularly monitor the evolution of Euribor and the credit review dates to anticipate changes in repayment amounts. Use financial simulators to understand the impact of Euribor changes on the household budget and plan ahead. Consider making early capital repayments, taking advantage of lower instalments to reduce the outstanding balance and, consequently, future interest. Contact the bank to renegotiate credit conditions, such as changing the spread or switching from a variable to a fixed rate, especially if future rate increases are expected. Maintain a financial reserve to cope with potential rate hikes, ensuring stability in the household budget. The Influence of ECB Decisions on Euribor Rates Euribor rates are heavily influenced by the monetary policy decisions of the European Central Bank (ECB). In June 2025, the ECB cut its key interest rate to 2%, marking the eighth consecutive reduction since June 2024, contributing to the drop in three- and six-month Euribor rates. The next ECB monetary policy meeting is scheduled for 23 and 24 July 2025 in Frankfurt. Markets anticipate this may be the last interest rate cut of the year, possibly signalling a stabilisation or even a future increase in Euribor rates. The ECB’s decisions directly affect the cost of money in the eurozone, influencing banking market liquidity and inflation expectations, which in turn determine Euribor trends. Therefore, following ECB decisions is crucial for those who have or intend to take out a mortgage, as they directly impact repayment amounts and medium- to long-term financial planning. Conclusion Euribor rates in 2025 show a downward trend in shorter terms, benefiting holders of variable rate mortgages. However, the slight rise in the 12-month Euribor and the potential stabilisation of rates after July indicate that this cycle of cuts may be nearing its end. For this reason, it is essential that Portuguese families stay informed, monitor rate developments, and make informed financial decisions to ensure the sustainability of their mortgage. Staying up to date with ECB meetings and decisions, simulating future scenarios, and considering renegotiation or early repayment are key steps to effectively manage the impact of Euribor rates on the family budget.
Source: Adobe Stock Author: Redaction Now that you know how much time and money buying a house may involve, and how to search for your dream home in a way that minimises risks, it is also crucial to understand the key documents involved throughout the process. Among these, the caderneta predial (or Urban Property Record) stands out as one of the most important, as it ensures you have all the fiscal and legal information about the property at your fingertips, helping you make informed and secure decisions. What is the urban caderneta predial? The caderneta predial (or Urban Property Record) is an official document issued by the Portuguese Tax Authority that functions as the fiscal identity card of any property registered in Portugal, whether urban or rural. This document contains all relevant information from a tax perspective, including the characteristics of the property, its location, owner identification, and the tax asset value (Valor Patrimonial Tributário – VPT). The caderneta predial is crucial in various situations: property purchase and sale, mortgage applications, insurance subscriptions, signing contracts for essential services (water, electricity, gas), and for the correct calculation of taxes such as the IMI (Municipal Property Tax). Information included in the caderneta predial The caderneta predial includes the following detailed information: Property identification : district, municipality, parish, and land registry article. Location : full address and postcode. Description : type of property (urban or rural), horizontal ownership scheme, layout and purpose (residential, commercial, etc.). Areas : total land area, building footprint, gross private area, gross dependent area. Individual unit : identification, location, typology (e.g., T2, T3), proportional share and number of rooms. Boundaries : geographical orientation (north, south, east, west). Valuation : year of registry entry, VPT, VPT calculation formula, and date of last valuation. Ownership : name, tax ID number and address of owners, type of ownership and respective share. What is the caderneta predial used for? The caderneta predial serves multiple purposes: Property transactions : mandatory for preliminary contracts and deeds. Mortgage applications : required by banks for property assessment. Multi-risk home insurance : needed to subscribe to insurance for the property. Energy performance certificate applications : used to identify the property for certification purposes. Contracts for utilities (water, electricity, gas). Verification of the tax asset value (VPT) : allows for simulations or requests for IMI revaluation. Proof of the propertys tax status : essential for administrative and tax processes. Legislation associated with the caderneta predial The caderneta predial is governed by Portuguese tax legislation, including: Municipal Property Tax Code (CIMI): Approved by Decree-Law no. 287/2003, of 12 November, which regulates the VPT, property registry, and owners’ declaration obligations. Property Registry Code: Decree-Law no. 224/2007, of 31 May, which regulates the legal identification of properties, complementing the fiscal information of the caderneta predial. Ministerial Order no. 133/2013, of 28 March: Defines official templates and procedures for issuing the caderneta predial. Law no. 7-A/2016, of 30 March: Establishes rules for updating the VPT and the periodic review of properties. How to obtain the caderneta predial The caderneta predial can be obtained in two ways: Online: Through the Tax Portal (Portal das Finanças) by accessing the owners personal area. It can be downloaded as a PDF free of charge. In person: At the local tax office (Repartição de Finanças) where the property is located, upon identification of the owner. Only the property owner has access to the caderneta predial. For third parties, it is possible to request a land registry certificate, which contains similar information but serves legal rather than fiscal purposes. Validity and updates The caderneta predial is valid for 12 months from the date of issue. After that period, a new version must be obtained to ensure up-to-date fiscal data and property characteristics. Reminder of key points for owners and buyers Validity : The caderneta predial is valid for 12 months. It must be updated before any transaction or administrative process. Access : Only the owner can obtain the caderneta predial, either in person at the tax office or online via the Tax Portal. Obligatory use : It is required for deeds, preliminary contracts, mortgage applications, insurance, and utility contracts. Updates : Any changes to the property’s features (construction works, change of use, division) must be reported to the Tax Authority for the caderneta to be updated. Difference from land registry certificate : The caderneta predial is a fiscal document issued by the Tax Authority, while the permanent land registry certificate is a legal document issued by the Land Registry Office. Data verification : Before buying, the buyer should always request an updated caderneta predial to confirm the VPT, areas, and ownership. Taxes : The VPT shown in the caderneta is the basis for calculating IMI and IMT (Property Transfer Tax). Inheritance and division : The caderneta is essential for succession processes, asset division, and donations. FAQs about the caderneta predial What is the caderneta predial? It is the fiscal document that identifies and characterises any property in Portugal, issued by the Tax Authority. Who can request the caderneta predial? Only the property owner can obtain the caderneta predial, either in person or online. What is the validity of the caderneta predial? It is valid for 12 months from the date of issue. What is the caderneta predial used for? It serves to identify the property fiscally, prove ownership, simulate or request IMI revaluation, and is mandatory for property transactions, mortgage applications, insurance, and utility contracts. What is the difference between the caderneta predial and the permanent land registry certificate? The caderneta predial is a fiscal document issued by the Tax Authority, while the permanent land registry certificate is a legal document issued by the Land Registry Office. How can I obtain the caderneta predial online? Go to the Tax Portal (Portal das Finanças), log in with your credentials, and download the caderneta predial from the “Assets” section. Can I request the caderneta predial for a property I do not own? No. Only the owner has access to the caderneta predial. For third parties, the land registry certificate is available. The caderneta predial is, therefore, an essential document for the management, transaction, and fiscal regularisation of any property in Portugal. Keeping this document up to date is fundamental to ensuring tax compliance and facilitating all processes related to the property.
Source: Adobe Stock Author: Redaction Payment of VAT in Instalments: Everything You Need to Know About the New Registration Deadline From July 2025, businesses and self-employed professionals in Portugal must note an important change in the process of paying VAT in instalments. This change, introduced by Decree-Law No. 49/2025, is part of the Government’s tax simplification package and aims to make the procedure more efficient without affecting taxpayers’ rights. What Has Changed in VAT Instalment Payments? Until June 2025, it was possible to register for VAT payment in instalments up to the payment deadline, usually the 25th day of the month following the taxable period. Under the new law, the deadline to register for the VAT payment flexibility plan is now the VAT return submission deadline, which is the 20th day. This change shortens the registration period by five days, requiring taxpayers to be more attentive to avoid missing the opportunity to opt for payment in instalments. For example, for the VAT period of May 2025, whose return submission deadline is 20 July (or the next working day if it falls on a weekend or holiday), the request for VAT payment in instalments must be made by that date. After this deadline, it will no longer be possible to join the instalment plan for that period. Reasons and Benefits of the Change According to the Tax Authority (AT), the main objective of this change is to improve the technical conditions for creating and managing payment flexibility plans, including issuing payment references and coordinating with direct debit. It is an adjustment to internal procedures aimed at ensuring greater efficiency and timeliness in the execution of VAT instalment payment plans. It is important to emphasise that taxpayers’ rights remain unaffected by this change. Only the timing of the request is altered, while the payment conditions and number of instalments stay the same. How to Register for VAT Payment in Instalments The request for VAT payment in instalments must be submitted via the Tax Portal at the time of submitting the periodic VAT return. When submitting the return, the taxpayer should select the payment flexibility option, indicating their interest in paying the VAT in instalments. If opting for direct debit, the first instalment will be charged automatically, along with subsequent instalments, according to the approved plan. If the instalment plan needs to be changed, the taxpayer must cancel the previous plan and submit a new request, always within the return submission deadline. Beware of Duplicate Payments The AT warns taxpayers to confirm, when submitting the VAT return, that the payment flexibility option has been correctly selected, especially for those already using direct debit for VAT payments. This prevents duplicate payments and ensures only the agreed instalments are charged. What to Do if You Miss the Deadline? If the taxpayer does not register for VAT payment in instalments by the return submission deadline, full payment of the VAT must be made by the payment deadline. Failure to timely join the instalment plan may cause cash flow problems and, in case of non-compliance, result in fines and interest charges. Paying VAT in instalments remains an essential tool for managing cash flow, especially during periods of greater financial pressure. With the change to the registration deadline, it is crucial that taxpayers keep track of the new timetable and plan both the return submission and flexibility request in good time. The AT’s simplification of internal procedures aims to make life easier for taxpayers and ensure faster, safer management of VAT payment plans in instalments. To avoid surprises and secure access to this mechanism, regular consultation of the Tax Portal and monitoring of AT communications is recommended. The new deadline to register for VAT payment in instalments is now the VAT return submission date. Stay alert and do not miss this opportunity to better manage your tax obligations.
Source: Adobe Stock Author: Redaction Support for home renovation in Portugal is one of the main tools to revitalise the housing stock, promote energy efficiency and add value to older properties. In 2025, there are various incentives and tax benefits available for those looking to renovate their home, making the process more accessible, sustainable and financially advantageous. This article provides a comprehensive overview of home renovation support, explaining what it is, how it works, who can benefit, how to apply, the applicable legislation and answers to frequently asked questions. 1) What is home renovation support? 2) Main home renovation supports in 2025 2.1) Tax incentives for urban rehabilitation 2.2) National programmes supporting energy efficiency 2.3) National Fund for the Rehabilitation of Buildings (FNRE) 2.4) Municipal incentives for home renovation 3) How to apply for home renovation support 4) Applicable legislation on home renovation support 5) Frequently asked questions about home renovation support 6) Final considerations on home renovation support What is home renovation support? Home renovation support consists of a set of tax incentives, grants, vouchers and financing lines aimed at property owners, condominium members, tenants and public entities wishing to carry out rehabilitation, improvement or energy efficiency works on residential properties. These supports aim primarily to improve living conditions, increase property value, promote sustainability and combat building degradation in both urban and rural areas. In Portugal, home renovation support takes several forms, from tax exemptions on rehabilitated properties and income tax deductions to national and municipal programmes promoting energy efficiency and urban rehabilitation. Main home renovation supports in 2025 Tax incentives for urban rehabilitation Tax incentives are the most commonly used type of home renovation support. Owners who carry out renovation works on properties located in urban rehabilitation areas (ARUs) may benefit from: IMI (municipal property tax) exemption for three years, renewable for a further two, after completion of works. IMT (property transfer tax) exemption on the purchase of properties for rehabilitation, provided the property is intended for permanent residence. Reduced VAT rate of 6% on urban rehabilitation works, instead of the standard 23% rate. Deduction of up to 30% of renovation expenses on personal income tax (IRS), up to the annual legal limit. These tax benefits provide significant savings for those investing in home renovation, making the process more accessible and encouraging the rehabilitation of the built heritage. National programmes supporting energy efficiency Home renovation support also extends to specific programmes aimed at improving energy efficiency, which are key to reducing consumption, increasing comfort and adding value to a property: Efficiency Voucher Support of €1,300 for families benefiting from the social energy tariff, intended for works such as window replacement, insulation, efficient heating and solar panel installation. Applications are submitted online and vouchers are awarded in order of submission until funds are exhausted. E-Lar Programme Funding for the acquisition of energy-efficient equipment and electrification of energy consumption, especially aimed at vulnerable families. Support is provided in the form of a voucher after application approval. More Sustainable Buildings Support Programme Grants for installing solar panels, efficient windows, thermal insulation, among others. The programme was reinforced in 2025 to meet high demand. National Fund for the Rehabilitation of Buildings (FNRE) The FNRE is a public fund that supports the renovation of old houses, promoting the recovery and reuse of buildings, with priority given to affordable housing projects. Applications are submitted online, and the fund finances structural interventions, energy efficiency improvements and enhancements to living conditions. Municipal incentives for home renovation Many Portuguese municipalities have their own home renovation support programmes, which may include: Exemption or reduction of urban planning fees. Technical support and supervision of rehabilitation projects. Direct grants for works on listed buildings or properties located in historic areas. Municipal credit lines for housing renovation. It is essential to consult the local municipal regulations for the area where the property is located, as conditions, criteria and funding amounts vary between municipalities. !function(){use strict;window.addEventListener(message,function(a){if(void 0!==a.data[datawrapper-height]){var e=document.querySelectorAll(iframe);for(var t in a.data[datawrapper-height])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[datawrapper-height][t]+px;r.style.height=d}}})}(); How to apply for home renovation support The application process for home renovation support depends on the type of incentive: Tax incentives To benefit from IMI, IMT or reduced VAT exemption, the owner must request recognition of urban rehabilitation status from the local council and submit supporting documents to the Tax Authority. The IRS deduction is applied in the annual tax return by including invoices for eligible expenses. Efficiency Voucher and E-Lar Applications are submitted through the official programme portals and must include proof of eligibility (e.g. being a beneficiary of the social energy tariff or providing income statements). FNRE Applications are submitted online via the Fundiestamo website, with submission of the rehabilitation project, property documentation and beneficiary identification. Municipal support Applications are submitted through the local council, following the procedures defined in municipal regulations. In all cases, it is essential to gather all required documentation, including planning permissions, proof of ownership, budgets, invoices and, when applicable, energy certificates. Applicable legislation on home renovation support Home renovation support is governed by several legal instruments, including: Legal Framework for Urban Rehabilitation (Decree-Law No. 307/2009 of 23 October, as amended), which defines urban rehabilitation areas and associated tax benefits. IMI and IMT Codes, which regulate tax exemptions for rehabilitated properties. Annual State Budgets, which update programme limits, conditions and funding. Specific regulations of national programmes such as the Efficiency Voucher, E-Lar Programme and FNRE. Municipal urban rehabilitation regulations. It is important to consult the most recent legislation and official programme websites to ensure compliance with all legal requirements. Frequently asked questions about home renovation support Who can benefit from home renovation support? Private property owners, condominium members, public entities and, in some cases, tenants can benefit, provided they meet the criteria of each programme. For tax incentives, the property must be located in a recognised urban rehabilitation area (ARU). Is it mandatory for the property to be in an urban rehabilitation area (ARU)? For most tax benefits, yes. Properties must be located in an ARU recognised by the local council. For some energy-related supports, such as the Efficiency Voucher, it is sufficient to meet energy or social vulnerability criteria. How is renovation work proven for tax purposes? Proof is provided through detailed invoices and payment receipts for eligible expenses, as well as certification of project completion issued by the local council or competent authority. Can I combine different types of home renovation support? Yes, as long as the requirements of each programme are met. For example, you may benefit from IMI exemption and simultaneously receive an energy efficiency voucher, or combine municipal and national supports. How long does it take for applications to be approved? It depends on the programme. Tax incentives are processed by the Tax Authority after document submission. National vouchers and funds may take several weeks to months, depending on application assessment and available budget. Does renovation only cover energy efficiency works? No. Home renovation support includes structural, safety, accessibility, health and property value enhancement works, in addition to energy efficiency. What happens if I sell the property after renovation? In some cases, early sale may require repayment of tax benefits or subsidies, especially if the property is no longer used as a permanent residence during the legally required period. Where can I get more information and technical support? Information can be obtained from local urban planning departments, the Tax Authority website, official programme portals (such as the Efficiency Voucher and FNRE), property owner associations or certified construction companies. Final considerations on home renovation support Home renovation support in Portugal is becoming increasingly relevant, not only for those looking to increase their property’s value, but also for those seeking sustainable, economical solutions aligned with energy efficiency and urban rehabilitation goals. In 2025, a wide range of incentives is available, from tax benefits to direct subsidies for improvement works. The key to making the most of this support lies in understanding the regulations, preparing the necessary documentation and applying in good time. If you’re thinking about renovating your home, assess all available home renovation support options, check your municipality’s regulations, and don’t hesitate to seek technical or legal advice to ensure you meet all requirements and maximise the benefits. Renovating Portugal’s housing stock is a national priority, and with the right support, it can also be an opportunity for you.
Source: Adobe Stock Author: Redaction The tax exemption on house purchase is one of the main fiscal supports for young people in Portugal, allowing a significant reduction in costs when acquiring the first own and permanent home. This measure aims to facilitate access to homeownership, especially for those with fewer savings, and has been in force since August 2024. What is the tax exemption on house purchase? The tax exemption on house purchase consists of waiving the payment of two essential taxes in the property acquisition process: IMT (Municipal Property Transfer Tax) and Stamp Duty. These taxes, which normally represent a significant portion of the total purchase cost, are eliminated for young people up to 35 years old who meet the legal requirements. Additionally, the tax exemption on house purchase also covers fees, i.e., registration and deed costs, further reducing initial expenses. Which taxes are covered by the tax exemption on house purchase? The main taxes included in the tax exemption on house purchase are: IMT (Municipal Property Transfer Tax): charged on the property purchase value, with progressive rates that can reach several thousand euros. Stamp Duty (IS): applied at a fixed rate of 0.8% on the property value. Fees: charges for registration and deed, which are also included in the exemption for beneficiaries. Legislation in force on the tax exemption on house purchase The tax exemption on house purchase was established under the programme “Construir Portugal: New Housing Strategy”, coming into effect on 1 August 2024. This measure has been updated, with significant changes in the 2025 State Budget, notably increasing the maximum limits for eligible property values. !function(){use strict;window.addEventListener(message,(function(a){if(void 0!==a.data[datawrapper-height]){var e=document.querySelectorAll(iframe);for(var t in a.data[datawrapper-height])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[datawrapper-height][t]+px;r.style.height=d}}}))}(); Conditions to benefit from the tax exemption on house purchase To benefit from the tax exemption on house purchase, the following criteria must be met: Be up to 35 years old at the deed date. Be a tax resident in Portugal. Acquire the first own and permanent home. Not be the owner of another residential property in the three years prior to purchase. The deed must be executed from 1 August 2024 onwards. Recent changes to the tax exemption on house purchase Since implementation, the tax exemption on house purchase has undergone some important changes: Increase of the full exemption limit from €316,772 to €324,058. Extension of partial exemption up to €648,022. Simplification of the application process, which can be done online via the Tax Authority Portal. These changes make the exemption broader and more accessible to a larger number of young buyers. How to apply for the tax exemption on house purchase? The application for the tax exemption on house purchase is made when submitting the IMT Model 1 declaration, available on the Tax Authority Portal. The buyer must indicate it is the first own and permanent home and meet all legal requirements. The system automatically calculates the exemption amount or tax payable, depending on the property value. Frequently asked questions about the tax exemption on house purchase Who can benefit from the tax exemption on house purchase? Young people up to 35 years old, tax residents in Portugal, acquiring their first own and permanent home, and not owning another residential property. Does the tax exemption apply to properties of any value? No. Full exemption applies to properties up to €324,058. For properties between €324,058 and €648,022, the exemption is partial. Above €648,022, there is no exemption. Can I benefit from the exemption if I was previously a homeowner? No, unless you have not owned a residential property in the three years before the purchase. Does the tax exemption include other costs, such as IMI or bank fees? No. The exemption only applies to IMT, Stamp Duty, and registration fees. IMI and bank costs remain applicable. How do I apply for the tax exemption on house purchase? Via the IMT Model 1 declaration on the Tax Authority Portal, indicating it is for the first own and permanent home. If I buy a house with another person, do both need to be under 35? Yes, to benefit from the full exemption, both buyers must meet the criteria. Otherwise, the exemption is partial. Is the tax exemption automatic? No. It must be requested at the time of purchase through the IMT declaration. Can the tax exemption be combined with other supports? Yes, it can be combined with other home purchase supports if requirements are met. The tax exemption on house purchase is a key measure to facilitate access to housing in Portugal, especially for young people. By reducing the fiscal costs associated with purchase, this exemption makes the dream of homeownership more accessible and sustainable. If you are thinking of buying a house, get informed and prepare to take advantage of this important support.
Source: Adobe Stock Author: Redaction In 2025, buying a home in Portugal became more accessible for young people thanks to new home buying support measures. Two major incentives stand out: tax and fee exemptions and a public guarantee on mortgage loans. Both forms of support aim to facilitate access to first-time home ownership, but they differ in important ways that are worth understanding before making any decisions. What Support Is Available for Buying a Home? Currently, the main home buying support measures include: Exemption from IMT (Property Transfer Tax), Stamp Duty and notarial fees for young people up to 35 years old when purchasing their first home. A public State guarantee on mortgage loans, allowing financing of up to 100% of the propertys value. Tax incentives and support for those buying to renovate. !function(){use strict;window.addEventListener(message,(function(a){if(void 0!==a.data[datawrapper-height]){var e=document.querySelectorAll(iframe);for(var t in a.data[datawrapper-height])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[datawrapper-height][t]+px;r.style.height=d}}}))}(); Exemption from IMT, Stamp Duty and Notarial Fees This measure eliminates or significantly reduces tax costs when young people up to 35 years old buy their first home. For properties up to €324,058, there is full exemption from IMT, stamp duty on the purchase, and registration fees. For higher values, a partial exemption is granted up to €648,022. The main benefit of this support is the reduced upfront amount needed to buy, making the process more accessible for those with limited savings. Pros: Lowers the initial amount required to buy a home through home buying support. Simple to apply, with no additional bureaucracy. Can be combined with other home buying support schemes. Cons: Only available for first-time permanent residences. Relatively low value limit for some urban areas. Does not eliminate loan-related costs (insurance, bank fees). Practical Example: A young person buying a home for €300,000 could save over €10,000 in taxes and fees, thanks to home buying support, easing their entry into the market. Public Guarantee on Mortgage Loans The public guarantee allows young people up to 35 years old, who do not own a home and fall within the 8th IRS tax bracket, to obtain financing of up to 100% of the property’s value, up to a maximum of €450,000. The State guarantees up to 15% of the loan amount, acting as a guarantor with the bank. This support removes the need for an initial deposit, which is usually around 10% to 20% of the propertys value. Pros: Enables home purchase without a deposit, thanks to home buying support. Facilitates access to credit for those with stable income but few savings. Can be combined with tax exemptions, maximising home buying support. Cons: Requires financial capacity to meet higher monthly payments (effort rate up to 50%). Does not reduce tax costs, only facilitates access to financing. Only available for properties up to €450,000 and for non-homeowners. Practical Example: A young couple with no savings can buy a €250,000 home, financing the full amount as long as they can afford the monthly instalment, by using home buying support. Incentives for Housing Renovation For those buying homes to renovate, there are tax benefits such as IMI (municipal property tax) exemption for three years, reduced 6% VAT on works, and deductible renovation expenses in IRS tax returns. These are particularly attractive for those looking to invest in older properties or in urban renewal areas. Pros: Reduces post-purchase renovation and tax costs with home buying support. Encourages the enhancement of older properties. Can be combined with other home buying support schemes if its a first residence. Cons: Requires additional investment in renovation. More time-consuming and bureaucratic process. Not all properties are eligible (limited to urban renewal areas). Practical Example: A family buys an old flat for €150,000, invests €40,000 in renovation, and benefits from reduced VAT, IMI exemption and IRS deductions thanks to home buying support. Which Is the Best Home Buying Support? The best home buying support depends on each buyer’s profile and goals: Young people without savings: the public guarantee is the ideal solution for those who cannot afford a deposit, as long as they can manage the monthly payments. Young people with some savings: IMT and tax exemptions are beneficial for lowering upfront costs and are among the best support options. Those planning to renovate: t ax incentives for renovation are the best option for buyers interested in investing in older properties and increasing their value using home buying support. In many cases, it is possible to combine multiple support measures, maximising the benefits. The key is to assess each case individually and simulate the costs and advantages before proceeding with the home purchase.
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