Authored by the expert who managed and guided the team behind the Portugal Property Pack
Everything you need to know before buying real estate is included in our Portugal Property Pack
Property scams in Portugal have increased significantly, with fake rental schemes rising by 25% in the first quarter of 2025 compared to 2024.
These fraudulent activities target foreign buyers through fake ownership claims, hidden property debts, unlicensed agents, and off-plan development scams. The key to protecting yourself lies in verifying ownership through official land registry certificates, checking agent AMI licenses, and using qualified legal professionals throughout the entire purchase process.
If you want to go deeper, you can check our pack of documents related to the real estate market in Portugal, based on reliable facts and data, not opinions or rumors.
The most effective protection against Portugal property scams involves verifying ownership through official land registry certificates, confirming agent licensing, and using qualified legal professionals.
As of September 2025, common scams include fake ownership claims, unlicensed agents, hidden property debts, and fraudulent off-plan developments targeting foreign buyers.
| Scam Type | Warning Signs | Protection Method |
|---|---|---|
| Fake Ownership | Seller cannot provide land registry certificate | Request Certidão do Registo Predial from official registry |
| Unlicensed Agents | No AMI license displayed or invalid number | Verify AMI license on IMPIC website |
| Hidden Debts | Reluctance to show property tax records | Check land registry for mortgages and liens |
| Off-Plan Fraud | Pressure for immediate payment without escrow | Use bank guarantees and verify developer registration |
| Document Fraud | Photocopied or incomplete documentation | Insist on original documents with notary verification |
| Price Manipulation | Below-market prices without valid explanation | Compare with similar properties and get independent valuation |
| Fake Rentals | Immediate payment requests without property viewing | Always visit property and verify ownership documents |
Fact-checked and reviewed by our local expert
João Morais 🇵🇹
Founder | Real Estate Advisor, at Wilderness Investments
How do I verify that the person selling me property in Portugal is the real owner?
The most reliable method to verify property ownership in Portugal is requesting a Certidão do Registo Predial (land registry certificate) directly from the official Land Registry office.
This official document confirms the legal owner's identity and lists all mortgages, liens, and pending legal claims against the property. You should obtain this certificate yourself rather than accepting copies from the seller, as fraudulent documents are increasingly common. The certificate costs approximately €15 and can be requested online through the Justice Portal or in person at any Conservatória do Registo Predial office.
Additionally, you can cross-reference ownership information by requesting the Caderneta Predial Urbana from the tax authority, which shows the registered owner, property boundaries, and current tax status. Both documents should match exactly in terms of owner identification and property details. If there are discrepancies between these official documents, this is a major red flag indicating potential fraud.
Never proceed with any transaction based solely on photocopied documents or certificates provided by the seller. As of September 2025, Portuguese authorities have recorded over 1,500 fake property ownership cases annually, with many targeting foreign buyers who don't verify documents through official channels.
It's something we develop in our Portugal property pack.
What official documents should I always check before signing anything in Portugal?
Before signing any property purchase agreement in Portugal, you must verify eight essential documents to protect yourself from fraud and legal complications.
First, obtain the Certidão do Registo Predial (land registry certificate) which confirms ownership and lists all encumbrances. Second, review the Escritura Pública de Compra e Venda (property deed) to verify the seller's legal title. Third, check the Caderneta Predial Urbana (tax identification document) from the tax authority to confirm boundaries and tax status.
Fourth, ensure the property has a valid Licença de Utilização (habitation license) from the local municipality, proving the building is legally fit for its intended use. Fifth, request the current Energy Certificate, which is mandatory for all property sales in Portugal. Sixth, if purchasing an apartment, obtain a written declaration of any condominium debts from the building management.
Seventh, verify all tax payment receipts including IMT (property transfer tax), stamp duty, and annual IMI payments to ensure no outstanding obligations. Eighth, check building permits and construction licenses to confirm the property was built legally and matches official records. Never accept photocopied versions of these documents - insist on original certificates with official stamps and signatures.
How can I confirm that there are no hidden debts, mortgages, or liens on the property?
The land registry certificate (Certidão do Registo Predial) is your primary tool for identifying all financial obligations attached to a Portuguese property.
| Document Type | What It Reveals | Where to Obtain |
|---|---|---|
| Land Registry Certificate | Mortgages, liens, legal claims | Conservatória do Registo Predial |
| Condominium Declaration | Unpaid building fees, maintenance debts | Building administrator or local council |
| Tax Certificate | Outstanding property taxes (IMI) | Tax authority (Autoridade Tributária) |
| Water/Utility Bills | Unpaid utility debts | Local utility companies |
| Municipal Fees Record | Unpaid local taxes, fines | City hall (Câmara Municipal) |
What are the most common types of real estate scams in Portugal right now?
As of September 2025, the most prevalent property scams in Portugal target foreign buyers through five main schemes that have cost victims millions of euros annually.
Fake rental schemes represent the fastest-growing scam type, with a 25% increase in 2025. Fraudsters rent properties short-term through platforms like Airbnb, then advertise them for long-term rental while posing as owners. They collect deposits ranging from €1,600 to €2,400 before disappearing, leaving victims to discover the fraud when real owners demand property evacuation.
Land usurpation scams particularly affect rural areas in the Algarve, where criminals identify abandoned properties and fraudulently claim ownership through false usucaption claims. They then sell these properties to unsuspecting foreign buyers. In 2021, authorities identified 25 properties that had been illegally usurped and sold this way.
Off-plan development fraud targets investors with promises of luxury developments that never materialize. Developers collect significant deposits before disappearing, leaving buyers with worthless contracts and no recourse. Unlicensed agent scams involve individuals without proper AMI licenses selling properties they don't represent, often using fake documentation and pressuring buyers into quick decisions.
Below-market price scams lure buyers with properties priced significantly below market value, only to reveal hidden costs, liens, or ownership issues after deposits are paid. Portuguese police specifically warn buyers to be suspicious of any property priced more than 20% below comparable properties in the same area.
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How do I know if the real estate agent I'm dealing with is properly licensed and registered in Portugal?
Every legitimate real estate agent in Portugal must display their AMI (Associação de Mediadores Imobiliários) license number on all business materials, including websites, business cards, and property advertisements.
To verify an agent's credentials, visit the IMPIC (Instituto dos Mercados Públicos, do Imobiliário e da Construção) website and search for their AMI number in the verification section. Simply enter the number and click "Pesquisar" to confirm the license is valid and current. A legitimate license will show the agent's registration details, insurance coverage, and license expiration date.
Licensed agents must maintain civil responsibility insurance with minimum coverage of €150,000 to protect clients against financial losses. If the IMPIC search returns no results or shows an expired license, you're dealing with an unlicensed operator who cannot legally facilitate property transactions in Portugal.
Red flags include agents who refuse to provide their AMI number, claim they're "in the process" of getting licensed, or provide numbers that don't verify on the official system. As of September 2025, working with unlicensed agents is one of the primary causes of property fraud in Portugal, with victims losing an average of €50,000 per incident.
Always ask to see the agent's AMI certificate in person and confirm the license covers the specific region where you're buying. Some agents may have licenses for different areas of Portugal, so ensure their credentials match your target location.
What legal steps must I take to make sure the sales contract is valid under Portuguese law?
A valid property sales contract in Portugal requires specific legal procedures that must be followed precisely to ensure enforceability and protection under Portuguese law.
The contract must be drafted in Portuguese and signed before a licensed notary (notário) or qualified lawyer authorized to perform real estate transactions. Both parties must provide valid identification and proof of Portuguese tax numbers (NIF). The notary will read the entire contract aloud to ensure all parties understand the terms and conditions before signing.
Essential contract elements include complete property identification with land registry details, clear purchase price and payment schedule, specific completion date for the final deed (escritura), and detailed terms for deposit forfeiture if either party withdraws. The contract must reference the most recent land registry certificate and include any conditional clauses such as mortgage approval or satisfactory property inspection.
Before signing, engage an independent Portuguese property lawyer to review all contract terms. This lawyer should be separate from any legal representative suggested by the seller or agent to avoid conflicts of interest. The lawyer will verify that all property documents are authentic, confirm the seller's legal authority to sell, and ensure the contract complies with current Portuguese property law.
Never sign contracts that haven't been notarized or lack proper legal review. As of September 2025, contracts signed without proper notarial oversight are frequently deemed invalid in Portuguese courts, leaving buyers with no legal recourse if problems arise.
How much should I budget for taxes, legal fees, and notary costs in Portugal, beyond the purchase price?
Property purchase costs in Portugal typically add 8-12% to your total investment beyond the advertised purchase price, with specific amounts depending on property value and intended use.
| Cost Category | Percentage/Amount | Details |
|---|---|---|
| IMT (Property Transfer Tax) | 0-8% (10% for certain jurisdictions) | Progressive rates based on property value and use |
| Stamp Duty | 0.8% of purchase price | Fixed rate for all property transactions |
| Notary Fees | €500-€1,000 | Varies by property complexity and location |
| Legal Fees | 1-1.5% of purchase price + VAT | €2,000-€5,000 for most properties |
| Land Registry Registration | €250 | Fixed government fee |
| Property Valuation | €300-€800 | Required for mortgage applications |
| Mortgage Stamp Duty | 0.6% of loan amount | If using mortgage financing |
What are the specific red flags in a Portuguese promissory contract that I should watch out for?
Promissory contracts (CPCV - Contrato de Promessa de Compra e Venda) in Portugal contain several potential pitfalls that can cost buyers thousands of euros if not identified before signing.
- Vague deposit forfeiture clauses that don't clearly specify when and how deposits can be lost, allowing sellers to keep deposits for minor contract breaches
- Missing or incomplete property identification details, including incorrect land registry numbers or property boundaries that could lead to legal disputes
- Unrealistic completion deadlines that pressure buyers into rushed decisions without adequate time for proper due diligence and documentation review
- Hidden penalty clauses for contract cancellation that impose excessive fees beyond the standard deposit forfeiture required by Portuguese law
- Absence of conditional clauses protecting the buyer, such as mortgage approval contingencies or satisfactory property inspection requirements
- Price variations or additional costs not disclosed in the initial agreement, including unexpected fees for furniture, fixtures, or property improvements
- Missing notary authentication requirements, as valid contracts must be properly notarized to be legally enforceable in Portuguese courts
Under Portuguese law, if a buyer withdraws from a promissory contract, they forfeit their deposit to the seller. However, if the seller withdraws, they must pay double the deposit amount as compensation. Ensure these standard protections are clearly stated in your contract and haven't been modified to favor the seller unfairly.
How do I make sure the property complies with local zoning laws, construction permits, and licensing rules?
Ensuring zoning and permit compliance in Portugal requires checking multiple municipal and national databases to verify the property was built legally and matches all official records.
Start by requesting the Licença de Utilização (habitation license) from the local city hall (Câmara Municipal), which confirms the building is approved for its intended use and meets safety standards. For older properties built before 1951, this license may not exist, but you should obtain an exemption certificate confirming the building's legal status.
Verify that the property's current use matches its official designation by checking the zoning classification in municipal planning documents. Portugal distinguishes between "terreno urbano" (urban land) and "terreno rústico" (rural land), and building on rural land without proper permits can result in demolition orders. The property's classification should be clearly stated in the land registry certificate.
Review all building permits and construction licenses to ensure any modifications or extensions were properly authorized. Portuguese law requires permits for most structural changes, and unpermitted work can significantly impact property value and usability. Request architectural plans and compare them with the actual property layout to identify any unauthorized alterations.
Check that the property complies with current energy efficiency requirements by verifying the Energy Certificate is current and valid. Properties without valid energy certificates cannot be legally sold in Portugal as of September 2025.
It's something we develop in our Portugal property pack.
What is the safest way to transfer money during the purchase so I don't risk fraud?
The safest money transfer method for Portuguese property purchases involves using bank guarantees or escrow accounts managed by your notary or independent legal representative, never transferring funds directly to sellers or agents.
Establish an escrow account through a reputable Portuguese bank where funds are held until all contract conditions are met and ownership is officially transferred. The notary should control these funds and only release them upon successful completion of the escritura (final deed) signing and property registration.
Use SEPA bank transfers with full documentation rather than cash, cryptocurrency, or untraceable payment methods. All transfers should include detailed transaction records showing the purpose, recipient details, and property reference numbers. Portuguese banks are required to maintain comprehensive records of large international transfers for anti-money laundering compliance.
Never transfer money to personal bank accounts belonging to sellers or agents. Legitimate transactions should involve payments to official business accounts or directly to the notary's client account. Be particularly cautious of requests for urgent transfers or pressure to send money before contract finalization.
For the deposit payment (typically 10-30% of purchase price), ensure funds go to a designated escrow account with clear withdrawal conditions. If a seller refuses escrow arrangements or insists on direct transfers, this is a significant fraud warning sign that should terminate negotiations immediately.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Portugal versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How do I protect myself if I'm buying off-plan or from a developer in Portugal?
Off-plan purchases in Portugal require enhanced due diligence measures to protect against developer fraud and project abandonment, which has affected hundreds of foreign investors in recent years.
Verify the developer's legal registration with the Portuguese Commercial Registry and check their financial stability through annual reports and credit ratings. Request bank guarantees covering your entire investment, ensuring funds are protected if the developer fails to complete the project. Never make payments to developer personal accounts - all funds should go to designated project accounts with bank supervision.
Demand detailed construction timelines with penalty clauses for delays, as Portuguese law allows developers significant flexibility in completion dates unless specifically contracted otherwise. Ensure your lawyer reviews all contracts for escape clauses that could allow developers to cancel projects while retaining buyer deposits.
Visit the construction site regularly and verify building permits are prominently displayed and current. Portuguese law requires visible permit posting during active construction. Take dated photographs of construction progress and maintain detailed records of all communications with the developer.
Only make staged payments tied to specific construction milestones verified by independent inspections. Typical payment schedules include 10% at contract signing, 15% at foundation completion, 20% at roof completion, and the remainder at final completion and handover. Never pay more than 30% of total price before construction begins.
Purchase property insurance that covers construction defects and developer default from the contract signing date. This protection is especially important for foreign buyers who may have limited legal recourse if problems arise during construction.
What practical steps can I take after buying to make sure the property is properly registered in my name?
After completing your property purchase in Portugal, immediate registration actions are essential to secure your legal ownership and prevent future complications.
Within 60 days of the escritura signing, personally visit the Conservatória do Registo Predial (Land Registry office) to confirm your name appears as the registered owner. The notary should handle initial registration, but you must verify completion and request an updated land registry certificate showing your ownership.
Update all municipal records by notifying the local city hall (Câmara Municipal) of the ownership change to ensure IMI property tax bills are issued in your name. Failure to update these records can result in tax penalties and complications with future property sales. Request confirmation that your NIF number is linked to the property in municipal databases.
Transfer all utility contracts (electricity, gas, water, internet) to your name immediately after ownership transfer. Portuguese utility companies require proof of ownership before transferring accounts, so bring your escritura and updated land registry certificate. Establish new contracts rather than assuming existing ones to avoid inheriting previous owner's debts.
Register with the local parish (freguesia) if you plan to use the property as your residence, as this affects certain tax benefits and municipal services. Update your address with the Portuguese tax authority and inform them if the property will be your primary residence, as this impacts future tax obligations.
Keep all original documents including the escritura, land registry certificates, tax payment receipts, and utility transfer confirmations in a secure location. Portuguese property law requires maintaining these documents for potential future sales or legal proceedings.
It's something we develop in our Portugal property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Protecting yourself from Portuguese property scams requires thorough verification of ownership documents, agent licensing, and legal compliance before any financial commitments.
The most effective defense combines official document verification through government registries, professional legal representation, and secure payment methods that protect your investment throughout the entire purchase process.
Sources
- The Portugal News - False rental scams warning
- The Portugal News - Police warn of property purchase scams
- Investropa - Buying property in Portugal: risks, scams and pitfalls
- The Portugal News - Algarve property scammer in custody
- Portugal Buyers Agent - Property Taxes in Portugal 2025
- Portugal Residency Advisors - Property Taxes in Portugal Guide
- Portugal Property - AMI Licence Numbers & Certificates
- Advocate Abroad - Buying Property in Portugal Legal Guide
- Portugal Buyers Agent - Property Documentation Guide
- Global Citizen Solutions - Buying Property in Portugal Ultimate Guide