Selling your property in Portugal while living abroad: local market value, power of attorney, documents and taxes to check

You can sell a property in Portugal without living in the country, and many owners do. Almost every step can be handled from abroad, with a power of attorney (procuração) and someone you trust on the ground: a relative, a lawyer, a solicitador (a legal professional who handles property paperwork) or the estate agency. Before the paperwork and the tax questions comes a simpler one: what your property is worth today on the local market. When you live far away, that figure is what lets you judge the price an agency suggests or the offer a buyer makes.

To handle the sale, you need a Portuguese NIF (Número de Identificação Fiscal, the tax number) and the property's documents, ideally gathered before you advertise. Depending on the country where you live, you may also have to appoint a tax representative, so check this early. The sale may have tax consequences in Portugal and in your country of residence. Only a certified accountant (contabilista certificado) or a lawyer can tell you what applies in your case, ideally before you sign the CPCV (contrato-promessa de compra e venda, the promissory contract of sale).

To get organised, go through the list of documents needed to sell and make a first estimate of what you keep after the sale. For an initial reference figure, you can value my house in Portugal for free.

Before selling your property in Portugal from abroad: know what it is worth

If you live in Paris, Geneva or Montreal, it is hard to keep track of prices in a Lisbon neighbourhood or an Algarve municipality. The price you paid when you bought no longer reflects the market, and neither do the figures your family passes on. Before you hand the sale over to someone, you need a recent reference price based on the local market.

In Portugal, prices vary a great deal from one parish (freguesia) to the next. Sometimes they change from one street to another. In the same neighbourhood, a two-bedroom flat with a lift and a garage does not sell for the same price as a two-bedroom flat on a third floor with no lift. From a distance, these differences are easy to miss.

A reference figure instead of impressions

A value based on market data for the area, the features of the property and comparable properties gives you a reference, wherever you live. You stop deciding on impressions. You have concrete points to discuss with your agent or your family.

Market value is often confused with the amount shown on the caderneta predial (the property's tax record). That amount is the valor patrimonial tributário, the taxable value used to calculate IMI (the annual municipal property tax). It says nothing about what the property would sell for today, and it can be well above or well below that figure.

Asking prices in listings can also mislead. They show what sellers want, not what buyers actually pay. A listing that has been online for many months points to a price the market has not accepted. To check whether an asking price makes sense, use the Check an asking price tool.

Choosing someone you can trust to act for you

Many owners who live abroad sell through an estate agency or a representative holding a power of attorney (procuração). In that case, you will not be at the viewings or in the conversations with buyers. If you know what the property is worth, you can judge the offers that reach you and the asking price the agency suggests.

Before you sign an agency agreement (contrato de mediação) or a power of attorney, ask the agency or your representative these questions:

• Which recent sales in the area is your suggested price based on?
• Which defects will a buyer notice during a viewing?
• How, and how often, will you tell me about viewings and offers?
• What can you sign on my behalf, and below what price must you consult me?

Be wary of an asking price well above what other agencies suggest. It may mainly be a way to win the listing. An overpriced property can stay on the market for months, and repeated price cuts end up weakening your position in the negotiation.

If the answers leave you unsure, ask for an independent opinion before choosing who will handle the sale. The page A second opinion before choosing an agency explains how to go about it.

Working out the figures of the sale

Every calculation starts from the sale price. Your accountant or lawyer will need it to look at any capital gain in Portugal and check what the country where you live provides for. A valuation estimate is not a tax calculation. It only gives the starting point, and the tax side stays with the professional.

Next come the costs of selling: the agency's commission, the documents you need to obtain and paying off a mortgage, if one remains. To see what you would be left with, use the What's left after the sale tool. The guide How much it costs to sell a property in Portugal goes through each cost.

Answering an offer without rushing

From abroad, the temptation to accept the first offer is stronger. Every trip costs money, and an empty property still runs up condominium charges and IMI. A buyer who knows the seller lives overseas may also try a low offer.

Always ask for the offer in writing, with the price, the method of payment and the planned date for the CPCV (contrato-promessa de compra e venda, the preliminary sale agreement). A buyer who needs a mortgage depends on the bank's approval, which can delay everything. Knowing this helps you compare two offers at similar prices.

With a reference price, you can accept or make a counter-offer without being rushed. If you receive an offer, the page I've had an offer for my property: is it fair? helps you compare it with the property's value.

Tax number, power of attorney and documents for selling a property in Portugal when you live abroad

The paperwork for a sale from abroad is the same as for any other sale. What changes is the time lost when something goes wrong. A forgotten tax portal password or a badly worded power of attorney can be sorted out in a day if you live here. From abroad, the same problem can cost you weeks.

Your Portuguese tax number (NIF)

To sell a property in Portugal, you need a Portuguese tax identification number, the NIF. If you bought the property here, you already have one. You will find it on the escritura (the public deed of sale) from your purchase and on your IMI (municipal property tax) bills.

If the property came to you through an inheritance or a gift and you have never dealt with paperwork in Portugal, first check whether you have a NIF and what its status is. Do this before you contact an agency. Without this number, nothing else can move forward.

Your address and access to the tax portal

Before you put the property on the market, check that the address held by the tax authority is your current address abroad. Many owners still have the address of the property they are selling registered there, or a relative's address. A letter sent to an old address can hold up a procedure just when the sale is under way.

Log in to your personal area on the Portal das Finanças, the tax authority's website, and check that your password still works. If you have lost it, request a new one well in advance. From abroad this takes longer, and your personal area is where you will download the caderneta predial.

The tax representative: a question to ask early

Depending on the country you live in, you may have to appoint a tax representative in Portugal. This person receives letters and notices from the tax authority on your behalf. The answer can differ depending on whether you live inside or outside the European Union.

Don't decide on your own based on something you read on a forum or what a friend did. Check your situation with the tax authority or a certified accountant well before the sale, not the day before the escritura.

Signing without travelling to Portugal: the power of attorney

You don't need to be present to sign. You can give a power of attorney to someone you trust or to a professional, such as a lawyer or a solicitador (a legal professional who handles property paperwork). That person then signs the CPCV (the promissory contract of sale) and later the escritura on your behalf.

A power of attorney drawn up abroad may need extra formalities to be valid in Portugal, such as an apostille or a translation. The Portuguese consulate in your country can often prepare it for you directly, already in Portuguese. Ask there first, before booking a local notary.

The most common mistake is a power of attorney that is too vague, which the notary or the buyer's bank then refuses. Ask the person who will use it, or whoever is preparing the escritura, to review the wording before you sign. The document should state clearly:

• which property is being sold, using the description in the land registry and in the caderneta predial;
• which acts your representative may sign: the CPCV, the escritura, requests to the tax authority and to the Câmara Municipal (the town hall);
• whether they may receive the sale price, and into which bank account it must be paid;
• whether they may negotiate the price alone or need your written agreement first.

If the property has several owners, for example a couple or siblings, each of them has to sign or give their own power of attorney. If just one is missing, the escritura cannot go ahead.

The property documents

Like any seller, you will need several documents. These are the main ones:

• the caderneta predial (the property's record at the tax authority), which you obtain from the Portal das Finanças;
• the certidão permanente (the land registry certificate showing who owns the property and any mortgages), which you can request and view online on the Instituto dos Registos e do Notariado website;
• the energy performance certificate;
• the licença de utilização (the occupancy licence) issued by the Câmara Municipal, or the document that exempts the property from it, depending on when it was built;
• for a flat in a shared building, a statement from the building management on any unpaid service charges.

Most of these documents can be requested online, even from abroad. The energy certificate is different, because an assessor has to visit the property. Arrange for someone to let them in, whether a neighbour, a relative or the agency.

The licença de utilização can also take some effort. If you can't find it, you request a copy from the Câmara Municipal of the municipality where the property is located. Ask your representative to deal with this early, because some offices require an in-person appointment.

If you still have a mortgage on the property, ask your bank for the outstanding balance and agree how it will be paid off on the day of the escritura. Our guide Selling a property with a mortgage sets out the steps in order.

The full list, step by step, is in our guide to the documents needed to sell a property in Portugal. To see what you are still missing, use our document checklist.

Tax when selling your property in Portugal as a non-resident: what to check first

Selling a property located in Portugal can have tax consequences here, even if you have lived in another country for many years. Any capital gain may have to be declared under IRS (the Portuguese personal income tax). What applies to a non-resident always depends on your own circumstances.

Your country of residence may also have a say in this sale. Countries sign agreements with each other on double taxation, but their effect varies from one country to another and from one case to the next. Only a professional who knows both systems can tell you how they apply to you.

Don't rely on the estate agent or the buyer to answer these questions. Their role is to sell and to buy, not to advise you on tax. For this part, find a certified accountant (contabilista certificado) or a lawyer, ideally one used to clients who live abroad.

What is compared when people talk about a capital gain

Put simply, a capital gain is the difference between the price you sell at and what the property cost you. The detailed calculation, the expenses that may count and the special cases are all part of the tax rules. Leave that part to a professional.

Picture a flat bought around fifteen years ago and sold today. The purchase price appears in the escritura (the deed signed before a notary) from that time, and the sale price will appear in the new one. Meanwhile, prices in the neighbourhood may have changed a great deal. That difference is what the Tax Authority will look at.

If you inherited the property or received it as a gift, there is no purchase price in a deed. The starting point for the figures is different. Ask your adviser which one applies to you before doing any sums in your head.

The paperwork to track down before you put the property on the market

From abroad, finding old documents takes time. They may be in a folder at a relative's home, at a notary's office that has since moved, or in a box of paper invoices. Start looking for them before you put the property up for sale, not in the week of the escritura.

• The purchase escritura, or the document through which you received the property.
• Proof of the costs paid when you bought: IMT (the tax paid on buying a property), notary and land registry fees.
• Invoices for any building work, ideally issued with your NIF (Portuguese tax number).
• An up-to-date caderneta predial (the property's record at the tax office).
• Your most recent tax returns or tax assessments from your country of residence.

Keep everything, even what seems minor: you can sort through it later with your adviser. The most common trap is building work paid for without an invoice, which is impossible to prove years later.

Scan each document and keep the copies in a folder shared with your adviser and with whoever represents you in Portugal. That way, nobody is left waiting for the post between two countries. If the adviser in your country doesn't read Portuguese, ask which documents they need translated.

These papers are for the tax side. The documents required for the escritura form a separate list, which you can check in the list of documents for selling.

When to speak to your adviser

Ask a certified accountant or a lawyer to review your situation before you sign the CPCV (the promissory contract of sale). That contract sets the price and the dates. Once it is signed, there is little room left to restructure the sale.

Bring the estimated market value of the property and the purchase escritura to your first conversation. The rest of the paperwork can follow as you find it. A video call is usually enough to get started.

Questions to ask your adviser

• Which rules apply to me as a non-resident, given my country of residence?
• Is my tax residence correctly registered with the Portuguese tax office (Finanças)?
• Do I also have to declare the sale in my own country, and how do I avoid being taxed twice?
• Who prepares the return in Portugal, and which documents do I need to provide?
• Does it change anything that the property was inherited, given to me or rented out?
• Which deadlines do I need to meet after the escritura, in Portugal and in my own country?
• How much do you charge for your help, and does it include the Portuguese tax return?

If you inherited the property, the starting questions are different: see property valuation in the context of an inheritance. Taxpayers' obligations are set out on the Portal das Finanças, the website of the Portuguese Tax and Customs Authority.

What the market value gives you, and where it stops

Your property's market value helps you prepare these figures. It gives an order of magnitude for the likely sale price and, from there, for the difference from the purchase price. It is not a tax calculation, a bank valuation or a certified valuation.

To see what you keep once the selling costs are paid, use the net proceeds calculator for sellers and read how much it costs to sell a property in Portugal. The tax amount still needs to be confirmed with your adviser.

Selling a property in Portugal while living abroad: the steps, in the right order

Selling from abroad follows the same steps as a sale handled locally. What changes is the organisation. You cannot spend a morning at the tax office (Finanças) or the Câmara Municipal to sort out a small detail. So every document and every signature has to be prepared well in advance.

The order matters. A badly set price or a missing paper discovered late costs weeks, and from a distance every delay weighs more.

1. Find out the market value of your property

Start with the price, before you contact any agency. A value based on market data for the area, the features of your property and comparable properties on the local market gives you a reference point with agencies and buyers. For a first idea of the figure, get a free estimate of your property.

The free estimate gives an indication. It is neither a bank valuation nor a certified valuation. If you want a deeper analysis of the property and the area, ask for a market study. The difference between the two is explained in bank valuation or market study.

Keep that value in writing and share it with whoever will represent you. It becomes the basis for every conversation about the asking price and about offers.

2. Check your NIF and your standing with the tax office

You will need a NIF (Portuguese tax identification number). If you bought the property in Portugal, you already have one: it appears on your purchase deed and on your IMI (annual municipal property tax) bills. Make sure the tax office has your current address abroad and that you can log in to your personal area on the Portal das Finanças.

If you have lost your password, request a new one now. Sent to an address abroad, it takes longer to arrive than the rest of the preparation.

Depending on the country you live in, you may have to appoint a tax representative in Portugal. Every case is different. Ask the tax office or a professional to confirm your situation before you put the property on the market.

3. Gather the property documents

Like any seller, you will need several documents, including:

• the caderneta predial (the property's record at the tax office);
• the certidão permanente (the land registry certificate showing the property and its owner);
• the energy certificate;
• depending on the property, the licença de utilização (the occupancy licence issued by the Câmara Municipal) or the document exempting it;
• for a flat, the condominium's statement of any unpaid service charges.

Some can be requested online, which helps a great deal from abroad. Others are handled at the Câmara Municipal of the municipality where the property is located, often through a representative. The energy certificate requires a visit from an assessor, so arrange for someone to let them in.

See what you are missing with the list of documents for selling and the guide Documents needed to sell a property in Portugal.

A common problem: the actual floor area does not match the one on the caderneta or the land registry, or an extension was never legalised. A discrepancy like this can hold up the escritura (the deed of sale). Better to find it before signing the CPCV (promissory contract of sale) than a week before completion.

If you still have a mortgage on the property, ask your bank early for the outstanding balance and the procedure for paying it off on the day of the sale. The guide selling a property with a mortgage shows how to order these steps.

4. Choose who represents you locally

You need someone on the ground to arrange viewings and pass on offers. Sometimes that person also lets in the valuer sent by the buyer's bank. It can be an agency, a lawyer, a solicitador (a legal professional who can handle property deeds) or a family member you trust.

Agree from the outset who does what. Put these points in writing:

• who keeps the keys and opens the door for viewings;
• who sends you the offers, always in writing;
• who checks the documents before the CPCV;
• who looks after the empty property: cleaning, utilities kept on for viewings, post.

For signatures, you can grant a power of attorney (procuração) to that person or to a professional. If it is drawn up abroad, it may require formalities such as an apostille, and sometimes a translation. Ask whoever is preparing the escritura to review the wording before you sign it. A power of attorney that is too vague can be refused on the day of the sale.

5. Weigh up offers before you reply

When an offer comes in, compare it with the reference value from step one, not with your wish to get it over with. Ask your representative how many viewings there have been and what other interested parties said. Ask about the terms of the offer too, not just the price: whether the buyer needs a mortgage and the date they propose for the escritura.

6. Sign the CPCV, then the escritura

The sale usually starts with the CPCV. It ends with the escritura or with a private document certified by a lawyer or solicitador. You can sign in person during a stay in Portugal or let your attorney sign on your behalf.

If you want to be there, agree the date with the buyer early and leave some leeway. A delay at the bank or with a document can push the signing back. The guide How long it takes to sell a property in Portugal shows how long each step takes.

If you will not be present, give the bank account for the payment beforehand and confirm the funds have arrived on the day itself. Also arrange the handover of the keys and the transfer of the water, electricity and gas contracts to the buyer.

7. Deal with tax and run the numbers

The sale has tax consequences in Portugal, and the country where you live may have its own rules. What to declare, where and how is not something to decide alone. Hand this part to a certified accountant or a lawyer who knows both countries, and speak to them before the CPCV.

Before you sign, check how much you will be left with once costs are paid. Use the calculation of what remains after the sale and the guide How much it costs to sell a property in Portugal. These tools help you prepare the sale; they do not calculate your tax.

Selling your property in Portugal while living abroad: frequently asked questions