Portuguese Real Estate Glossary

The median price at which banks appraise properties for mortgage lending purposes. Published monthly by INE (indicator 0012248), currently available for 182 of Portugal's 308 municipalities — INE withholds this indicator for lower-volume municipalities under statistical confidentiality rules. Important: this is the bank's appraisal value, not the transaction price — in high-demand areas the market price is often 10–30% above this figure.

Measures the annualised rate of growth between two values, assuming constant compounding. Formula: (V_final / V_initial)^(1/n) − 1, where n is the number of years. Used to compare market performance across regions and time periods, smoothing out year-to-year volatility.

Cumulative change in the median sale price (INE 0012234, quarterly series) between the first and last available period for the municipality. This is not CAGR: unlike CAGR (based on VMAB, a longer and more stable annual series), this metric spans a shorter, more volatile window of actual transactions — it includes the pandemic shock (2020) and the interest-rate hikes (2022–2023). Shown mainly for municipalities without VMAB coverage, as a directional signal, not an annualised growth rate.

Quarterly index published by Eurostat measuring residential property price changes across all EU countries. Base year 2015=100. Allows direct comparison of Portugal's price appreciation against the EU average. Eurostat series: PRC_HPI_Q.

Eurostat's standardised measure of consumer price inflation, comparable across all EU member states. Used in the dashboard to contextualise house price appreciation against general inflation trends in Portugal.

EU classification system for regional statistics. Portugal's NUTS II regions: Norte (North), Centro (Centre), Área Metropolitana de Lisboa (Lisbon Metro), Alentejo, Algarve, Região Autónoma dos Açores (Azores), Região Autónoma da Madeira (Madeira). Used as the base aggregation level in the dashboard.

Official register of residential rental contracts managed by the Portuguese Tax Authority (AT). Source for median rent data by municipality and region in the dashboard. Public data available via INE (indicator 0012571).

Portuguese public entity that replaced SEF (the Foreigners and Borders Service) in 2023. Handles residency regularisation for foreigners in Portugal. If you're buying property and plan to live in Portugal, AIMA is the authority that processes your residency application.

The ratio between the mortgage loan amount and the bank-appraised property value. In Portugal, banks typically lend up to 80% for residents and 70% for non-residents — meaning you need a 20–30% deposit. A lower LTV generally secures better interest rate conditions. The LTV is calculated on the bank appraisal (VMAB), not the purchase price.

Official INE statistical term for housing/residential units — unrelated to the word's literal meaning in Portuguese ("fogo" = fire). Used in the "Completed Units" and "Licensed Units" series (new construction).

Statistical regression method that estimates coefficients by minimising the sum of squared residuals. Used in the dashboard to model the relationship between IPHab and Euribor. Results include R², p-values and diagnostic tests (Jarque-Bera, Durbin-Watson). All calculations are done client-side in JavaScript, without external libraries.

Statistical test that checks whether a time series is stationary (i.e., has no persistent trend). Relevant for validating OLS assumptions: non-stationary series can produce spurious regression results. Visible in the Models tab of the dashboard alongside other diagnostic tests.

9-digit Portuguese tax identification number. Mandatory for any real estate transaction, bank account opening and tax compliance. EU citizens obtain it in person at the Tax Authority (Finanças); non-EU citizens need a fiscal representative. This is the very first step in buying property in Portugal.

A person or licensed entity in Portugal who represents, before the Tax Authority, a non-EU resident without local tax domicile — required to obtain a NIF and meet tax obligations when not resident in Portugal.

Private binding contract between buyer and seller, signed before the final deed (escritura). Involves a deposit payment (typically 10–30% of the price). If the buyer withdraws without legal justification, the deposit is forfeited; if the seller withdraws, they must pay double the deposit. Never sign without independent legal review.

The notarial act that formalises the transfer of ownership — the legal moment of completion. IMT and Stamp Duty are paid at this stage, and it's also where the real transaction price (escritura) is set, distinct from other reference values such as the VMAB (bank appraisal).

Certifies the property transaction but does not protect the buyer — that role belongs to the buyer's own lawyer. Portuguese notaries hold broader powers than a typical UK or US "notary public" (who mainly witnesses signatures); in Portugal the notary drafts and formalises the deed itself.

Portuguese legal profession without a direct equivalent abroad — distinct from a lawyer and from a notary, with its own qualification. Not the same as a UK/Irish "solicitor," who is essentially a lawyer — using that translation is misleading. A solicitador handles registrations and procedural formalities and often coordinates, alongside the lawyer, the steps from deed to land registry.

Tax paid by the buyer at the notarial deed. Rates range from 0% to 8% depending on the purchase price, intended use (primary residence vs. investment/secondary) and location. Calculated on the higher of the purchase price or the VPT (tax appraisal value). Typically 4–7% for a primary residence purchase under €1M.

Annual property ownership tax collected by the municipality. Rate is 0.3%–0.45% of the VPT (fiscal appraisal value) for urban residential properties. Since the VPT is typically well below market value, the effective annual burden is modest. Paid in April (below €500) or split into instalments for higher amounts.

Portuguese personal income tax. Relevant for property investors: capital gains from property sales are taxed at 28% for non-residents (residents may integrate them into general income). Rental income is taxed at 25%. Key consideration when modelling investment returns in Portugal.

Fixed 0.8% tax on the transaction value, paid at the notarial deed alongside IMT. Also applies to mortgage loans (0.6% for terms over 5 years). A predictable cost, unlike IMT which varies with price and buyer profile.

Surcharge on high-value property portfolios. Individuals pay AIMI at 0.7% on the VPT exceeding €600,000. Companies pay 0.4% on the full VPT. Mainly affects institutional investors and buyers accumulating significant portfolios. Typically not relevant for single-property purchases.

The tax authority's (AT) official valuation of the property, calculated via a statutory formula. Found in the caderneta predial. Basis for calculating IMT and IMI. Usually significantly below market price in high-demand areas — which limits the IMT and IMI burden relative to actual purchase price.

Special tax regime that offered reduced rates to new residents in Portugal (10% flat IRS rate on certain foreign-source income, pension exemptions for some profiles). Ended on 1 January 2025. Replaced by IFICI, a much narrower regime. Existing NHR holders keep the regime for the remainder of their 10-year period.

Replaced the NHR on 1 January 2025 (fully operational since April 2025). Offers a 20% flat IRS rate, but only for new tax residents working in science, technology, health or green energy under a qualifying contract — it no longer serves retirees or general remote workers the way the old NHR did, and pensions are no longer exempt.

Portugal's official statistical authority. Primary data source for the dashboard: VMAB bank appraisals (0012248), housing sales (0012234), SIR rents (0012571), demographics, construction and more. All INE data is public and freely accessible at ine.pt.

The central bank of the eurozone. Source of historical Euribor series (1M, 3M, 6M, 12M) used in the dashboard. ECB monetary policy decisions — specifically changes to key interest rates — directly affect Euribor rates and therefore variable-rate mortgage repayments across Portugal.

Commonly called "Finanças". Responsible for collecting taxes in Portugal (IMT, IMI, IRS, IS) and issuing property fiscal documents (caderneta predial, tax appraisal certificates). The NIF is obtained from this entity, either in person or via a fiscal representative.

Entity that regulates the legal profession in Brazil. Monique Nogueira's professional credential as a qualified Brazilian lawyer. Combined with her knowledge of the Portuguese market, this background is central to SISO's ability to guide Brazilian buyers through the legal and fiscal aspects of buying in Portugal.

Entity that regulates the engineering profession in Portugal. Carlos Leite's professional credential. Engineering expertise underpins SISO's technical property assessment and renovation project oversight — key differentiators for buyers considering properties that need work.

Representative body for licensed real estate agencies in Portugal. Brokerage activity in Portugal requires an AMI licence. SISO is not a brokerage — when needed, it coordinates with licensed professionals to represent the client's interests in the transaction.

Official registry run by Turismo de Portugal, mandatory for any short-term rental (Alojamento Local) establishment. Source for the dashboard's short-term rental growth and distribution data by municipality.

The Bank of Portugal's statistical platform (bpstat.bportugal.pt). Source for new-mortgage interest rates, average/median monthly repayment figures and other credit indicators used in the dashboard.

A consultant focused on the buyer's interests, distinct from a traditional real estate agent (who represents the seller and is paid by them). SISO works on the side of whoever hires it, with a single point of accountability coordinating every step.

Real estate investment strategy: buy a property below market value, renovate it, and sell at a profit. The market typically practises it cosmetically — surface finishes, short cycles of a few months. SISO applies a full-scope version — structural, electrical and plumbing intervention, and layout reconfiguration, closer to what the institutional industry calls Value-Add — with longer execution timelines and audited returns above the typical cosmetic fix & flip.

Survey carried out by a bank-approved appraiser to determine the maximum financing value. The bank lends up to 80% of this figure (LTV). Bank appraisal ≠ market price: in high-demand areas, the sale price can be 10–30% above the appraisal, meaning the buyer must fund the gap from their own equity.

The process of verifying a property's legal, technical and fiscal status before signing the CPCV. Includes: certidão permanente review (mortgages, charges, encumbrances), caderneta predial check (fiscal value, land registration), planning permission verification and physical inspection. A core SISO service — and the single most important safeguard for any buyer.

Alphanumeric code that uniquely identifies each property in the Portuguese tax register (caderneta predial). Includes a type prefix (U = urban, R = rural) followed by a number. Required for all notarial transactions. Used to cross-reference fiscal and legal records during due diligence.

Document issued by the Tax Authority containing the property's complete fiscal profile: VPT, artigo matricial, area, location, registered owner and any outstanding IMI liabilities. The property's "fiscal identity card." Mandatory at the notarial deed. Available from Finanças or the online Portal das Finanças.

Real-time certificate from the Land Registry (Conservatória do Registo Predial) showing the property's full legal status: current owner, mortgages, charges, liens, restrictions on sale. Due diligence always starts here — it is the only way to confirm the seller is the legal owner and that the property has no hidden encumbrances.