Transfer of Property Act at Portugal
In Portugal, like in the Philippines, there is no specific law named the "Transfer of Property Act" (unlike India).
Instead, the transfer of property in Portugal — especially real estate — is governed mainly by these laws:
1. Portuguese Civil Code (Código Civil)
The Civil Code (approved by Decreto-Lei n.º 47344/66) is the primary law covering property ownership and transfer.
Important Sections:
Book III (Law of Property - Direitos Reais) — governs ownership (propriedade), possession, mortgage, easements, and transfer of property rights.
Article 879 — states that ownership transfer through a contract (e.g., sale) occurs once the contract is properly executed.
2. Deed of Sale (Escritura Pública de Compra e Venda)
In Portugal, to transfer real estate, the buyer and seller must sign a public deed before a notary or other authorized entity.
This deed records the transaction and is a legal requirement for a valid transfer.
3. Land Registration Code (Código do Registo Predial)
This governs how property rights must be registered with the Land Registry (Conservatória do Registo Predial).
Registration makes the ownership official and enforceable against third parties.
Without registration, ownership rights are not secure.
4. Taxes and Costs
When transferring property in Portugal, the following taxes are important:
IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) — Property Transfer Tax (varies depending on property value and type).
Stamp Duty (Imposto do Selo) — 0.8% of the property's value.
Notary, Registration, and Legal Fees — additional costs for processing.
5. Basic Process for Property Transfer
Promissory Contract (Contrato de Promessa de Compra e Venda) — optional but common; both parties agree to the sale terms.
Public Deed of Sale — signed before a notary.
Payment of IMT and Stamp Duty — done before or on the day of the deed signing.
Registration at Land Registry — the buyer's name is registered as the new owner.
In Short:
In Portugal, the Civil Code, the Land Registration Code, and related tax laws regulate property transfers.
There’s no law specifically called the Transfer of Property Act — property rights and transfers are treated as part of general civil law.
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