Real Estate Glossary in Lisbon
Buying or renovating a property in Lisbon involves specific terminology that can be confusing, especially for those unfamiliar with the Portuguese market. This glossary explains essential terms clearly and practically, without unnecessary legal jargon.
Key terms for buying in Lisbon
The property acquisition process in Lisbon follows well-defined steps, each with its own terminology. From the promissory contract (CPCV) to the final deed, through taxes and licenses, understanding these terms helps make informed decisions and avoid surprises.
Browse by topic
CPCV and Deed
Essential contracts and documents in the Lisbon buying process.Taxes: IMT and IMI
Taxes on buying and owning property in Lisbon.Licensing and Works
Permits and processes for renovating in Lisbon.Condominium and Utilities
Recurring costs and essential services in Lisbon.Index of terms
The 29 terms you will meet in a Lisbon purchase or renovation, in alphabetical order. Each one leads to the full explanation inside its topic.
A
- AIMI Additional to IMI
- A tax on the sum of taxable values held by one owner above a threshold. It mostly affects those holding several properties, not a single home. see in Taxes: IMT and IMI
- ARU Urban rehabilitation area
- A perimeter set by the municipality where rehabilitation works can qualify for tax benefits and reduced VAT. Much of central Lisbon falls inside one. see in Taxes: IMT and IMI
- Assembleia de condóminos General meeting of owners
- The body deciding budget, works and management. The ordinary meeting is held in the first half of January; extraordinary ones are called as needed. see in Condominium and Utilities
- Ata Minutes
- The written record of resolutions. Works approved in the minutes bind whoever buys afterwards — which is why minutes are read before buying, not after. see in Condominium and Utilities
C
- Caderneta predial urbana Urban property tax record
- The property’s tax record: description, typology, areas and taxable value. Used to check whether what is on paper matches what is actually there. see in CPCV and Deed
- Certidão permanente predial Permanent land registry certificate
- The land registry document showing who owns the property and what charges exist on it. This is the document that answers "who is entitled to sell this". see in CPCV and Deed
- Certificado energético Energy certificate
- Mandatory to sell or let, showing the energy rating and suggested improvements. In a refurbishment it doubles as a map of what is worth fixing. see in Condominium and Utilities
- CPCV Promissory purchase and sale contract
- A contract binding both parties to complete the deed on agreed terms. It fixes price, deadline, payment method and what happens if either side walks away. see in CPCV and Deed
D
- Direito de preferência Right of first refusal
- The right of someone — a tenant, the municipality, a co-owner — to buy ahead of another party on the same terms. It is notified before the deed and can delay it. see in CPCV and Deed
- Distrate Mortgage discharge
- The bank document cancelling the seller’s mortgage. It is usually handled on the day of the deed, with part of the price paying off the outstanding loan. see in CPCV and Deed
E
- Escritura Public deed of sale
- The act before a notary where ownership changes hands. Only after registration at the Land Registry does the change take effect against third parties. see in CPCV and Deed
- Especialidades Engineering designs
- Structural and services designs, among others, as applicable to the intervention. The required set depends on the works and is not identical for every renovation. see in Licensing and Works
F
- Fundo comum de reserva Common reserve fund
- The condominium’s mandatory savings for future works, funded by a legal minimum percentage of annual dues. An empty fund in an old building is a warning sign. see in Condominium and Utilities
I
- IMI Annual municipal property tax
- Paid every year while you own the property, calculated on the taxable value. Each municipality sets its rate within the legal range for urban buildings. see in Taxes: IMT and IMI
- Imposto do Selo Stamp duty
- Charged on the acquisition and, where there is a loan, on the financing as well. Settled together with IMT, before the deed. see in Taxes: IMT and IMI
- IMT Property transfer tax
- Paid once, before the deed. The rate is progressive by bracket and depends on value and purpose — permanent home, second home, or other. see in Taxes: IMT and IMI
L
- Licença de utilização Usage licence
- The municipal authorisation stating what the property may be used for — housing, retail, services. Buildings completed before 7 August 1951 are exempt and present a certificate instead. see in CPCV and Deed
M
- Mais-valias Capital gains
- The difference between sale and purchase value, taxed as income. Works documented with invoices count towards the calculation and reduce the gain — keeping invoices is money. see in Taxes: IMT and IMI
O
- Ónus e encargos Charges and encumbrances
- Third-party rights attached to the property: a bank mortgage, a tax seizure, a life interest. They travel with the property unless cancelled before the deed. see in CPCV and Deed
P
- Permilagem Millesimal share
- Each unit’s weight in the building, in thousandths. It sets the dues you pay and the weight of your vote at the general meeting. see in Condominium and Utilities
- Propriedade horizontal Horizontal property
- The regime dividing a building into autonomous units with shared common parts. It is what allows one floor to be sold separately from the rest. see in Condominium and Utilities
R
- RCD Construction and demolition waste
- Waste produced by the works. Allow for separation, collection, transport and appropriate disposal in the budget. see in Licensing and Works
- RJUE Legal framework for development and building works
- Defines the procedures for development and building operations. Check commencement dates and transitional provisions alongside the consolidated text. see in Licensing and Works
- RMUEL Lisbon municipal planning and building regulations
- Local regulations to read alongside the RJUE, planning instruments and constraints affecting the address. see in Licensing and Works
S
- Sinal Deposit
- The amount paid with the CPCV, usually 10–20% of the price. A buyer who walks away without grounds loses it; a seller who walks away returns double (article 442 of the Civil Code). see in CPCV and Deed
T
- Telas finais As-built drawings
- Record the final construction. In cases provided by law, they accompany completion documents where the design was changed. see in Licensing and Works
- Termo de responsabilidade Professional responsibility statement
- A signed professional statement concerning compliance of the design or works within the author’s responsibility. It does not replace the technical assessment supporting it. see in Licensing and Works
- Título constitutivo Constitutive deed
- The document defining the units, the common parts and each unit’s share. When there is doubt over who pays for what, this is where the answer lies. see in Condominium and Utilities
V
- VPT Taxable patrimonial value
- The value assigned by the tax authority through a formula — area, typology, age, quality and a location coefficient. It is not the market price and is usually lower. see in Taxes: IMT and IMI
Frequently Asked Questions
Do I need a lawyer to buy property in Lisbon?
It's not mandatory, but highly recommended. A lawyer can review contracts, verify the property's legal status, and represent you at the deed. The cost is usually a small percentage of the transaction value.
How long does the buying process take in Lisbon?
Typically 1 to 3 months from CPCV to deed, depending on factors like bank financing, property documentation, and party availability.
Can foreigners buy property in Lisbon?
Yes, there are no restrictions for foreign citizens buying property in Portugal. You need to obtain a NIF (tax identification number) and, for non-EU residents, a fiscal representative may be required.
Questions about the process?
Get in touch to clarify questions about buying or renovating property in Lisbon.
Contact us