With its stunning coastline, mild climate, rich culture, and high quality of life, Portugal has earned its place as one of Europe’s most desirable destinations for relocation, retirement, and second-home ownership.
If you’re an international buyer drawn to Portugal, navigating the process may feel unfamiliar at first. Many Portuguese real estate terms don’t translate directly and can differ from U.S. terminology in surprising ways. To help you feel more confident on your property journey, following are more common Portugal real estate terms you may run in to.
Common Terms to Know
In Portugal: T1, T2, T3…
You may know as: 1-Bed, 2-Bed, 3-Bed Property
In Portugal, properties are classified by typology: “T” followed by a number indicates the number of bedrooms. A T2 is a two-bedroom property, regardless of other rooms. You may also see “V1,” “V2,” etc., referring specifically to villas.
In Portugal: Villa
You may know as: Detached Single-family Home
A “villa” in Portugal typically means a standalone house—often with a garden, pool, and enhanced privacy. It’s a common term in the Algarve’s luxury market.
In Portugal: Condomínio (Condominium)
You may know as: Managed Development
This refers to a property within a managed complex or building–can be apartments and/or villas. Owners pay a monthly fee for shared amenities and services, such as pools, landscaping, and security.
In Portugal: Urban vs. Rustic Land
You may know as: Urban = Buildable | Rustic = Agricultural or Protected
“Urban” land is zoned for construction. “Rustic” land typically cannot be developed and is used for agriculture or conservation.
In Portugal: Fractional Ownership
You may know as: Legal Co-ownership (not a timeshare)
Some resort properties are co-owned by multiple buyers, each with usage rights for certain periods. This differs from timeshares and may include deeded ownership.
In Portugal: Alojamento Local (AL License)
You may know as: Short-term Rental License (e.g., Airbnb)
Required to legally rent out a property on a short-term basis. Licensing and regulations vary by municipality.
In Portugal: IMT (Imposto Municipal sobre Transmissões)
You may know as: Property Transfer tax
A one-time tax paid by the buyer when purchasing a property. The rate depends on the price, type, and location of the property.
In Portugal: Imposto do Selo (Stamp Duty)
You may know as: Real Estate Transfer Tax (State/Local)
A 0.8% tax on the purchase price, paid by the buyer at the final deed signing.
In Portugal: IMI (Imposto Municipal sobre Imóveis)
You may know as: Annual Property Tax
This yearly municipal tax is based on the property’s tax value, which is often lower than market value.
In Portgual: Contrato de Promessa de Compra e Venda (Promissory Contract)
You may know as: Purchase & Sale Agreement
A legally binding agreement signed before the final deed. A deposit—typically 10% to 30%—is paid to secure the property.
In Portugal: Escritura
You may know as: Closing / Deed Signing
The final step in the transaction process. The buyer and seller meet before a notary to sign the deed, officially transferring ownership.
In Portugal: Certificado Energético (Energy Certificate)
You may know as: Energy Efficiency Rating
Mandatory for all properties sold or rented. Ratings range from A+ (most efficient) to G (least efficient).
MORE DETAIL
Following are additional Portugal real estate terms you might see as you are scanning listings or closing on your property.
Types of Properties
- Apartamento – Apartment
- Moradia – Detached house or villa
- Moradia geminada – Semi-detached house
- Moradia em banda – Terraced house
- Vivenda – Detached house (more informal than moradia)
- Quinta – Country estate or farmhouse
- Terreno – Plot of land
- Prédio – Building (often residential or mixed-use)
- T0, T1, T2, etc. – Apartment with 0, 1, 2, etc. bedrooms
- Penthouse – Top-floor apartment, often luxurious
Key Terms in Listings
- Área bruta – Gross area (total including walls, balconies)
- Área útil – Usable area (interior living space)
- Varanda – Balcony
- Terraço – Terrace
- Logradouro – Private outdoor space (yard or garden)
- Piscina – Swimming pool
- Vista mar – Sea view
- Andar – Floor level
- Elevador – Elevator/lift
- Garagem/Estacionamento – Garage/Parking space
Transaction Terms
- Venda – Sale
- Compra – Purchase
- Aluguer/Arrendamento – Rental/Lease
- Contrato de Promessa de Compra e Venda (CPCV) – Promissory contract of sale
- Escritura – Final deed of sale
- Registo predial – Land registry
- IMI (Imposto Municipal sobre Imóveis) – Annual property tax
- IMT (Imposto Municipal sobre Transmissões) – Property transfer tax
- Sinal – Down payment or deposit
- Financiamento – Financing or mortgage
- Avaliação – Property valuation
- Certificado energético – Energy certificate (required by law)
Legal & Bureaucratic Terms
- Número de Contribuinte/NIF – Tax identification number
- Caderneta predial – Official document detailing property for tax purposes
- Licença de utilização – Habitation license
- Licença de construção – Building permit
- Alvará – Official authorization (e.g. for construction or use)
- Registo notarial – Notarial registration
- Procuração – Power of attorney
- Mediador imobiliário – Real estate agent
- Comissão de agência – Agency commission
Whether you’re dreaming of a villa by the sea, a modern apartment in a gated community, or an investment property in a thriving resort, Portugal offers a wealth of opportunity—and demand is growing fast. With new and existing property selling quickly, now is the time to explore your options and secure your place in one of Europe’s most desirable destinations.
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Content collaboration with our partners at QP Savills.