Real Estate Glossary

Anyone buying property on the Algarve for the first time quickly comes across terms that simply don't exist back home: CPCV, Caderneta Predial, IMT, Alojamento Local. Some appear in the purchase contract, others at the tax office, and others only once you start renting the property out.

That's why we've brought together the most important Portuguese terms relating to buying, authorities, taxes and renting in one place, explained clearly from A to Z, with links to related articles on our blog. The easiest way to jump straight to a specific term is to use the links in the table of contents.

Important note: This glossary provides general guidance only, as of August 2026. Tax rates, allowances and specific regulations (including IMT, IMI, IFICI and the Golden Visa) change regularly. It does not replace individual legal or tax advice. Please check your specific situation with a lawyer or tax advisor.

ABC – Área Bruta de Construção = gross construction area
ABP – Área Bruta Privativa = private usable area
Advogado – lawyer
AIMI – Adicional ao IMI
Alojamento Local (AL) – short-term rental licence
Alvará – building or use permit
AMI – real estate agent licence number
Arrendamento – long-term rental
Autorização de Residência – residence permit

Caderneta Predial
Câmara Municipal – town hall / local council
Certificado Energético – energy performance certificate
Condomínio – owners' association / service charge
Conservatória do Registo Predial – land registry office
CPCV – Contrato de Promessa de Compra e Venda = preliminary purchase contract

Depósito Caução – rental deposit
Direito de Preferência – right of first refusal
Distrate – mortgage discharge

Escritura – Escritura Pública de Compra e Venda = deed of sale

Finanças – Autoridade Tributária (AT) = tax office
Fração Autónoma – self-contained unit

Golden Visa – ARI = Autorização de Residência para Investimento

Hipoteca – mortgage
HPP – Habitação Própria Permanente = main residence

IFICI – successor scheme to the former NHR tax status
IMI – Imposto Municipal sobre Imóveis
Imposto de Selo – stamp duty
IMT – Imposto Municipal sobre Transmissões

Junta de Freguesia – parish council

Levantamento Topográfico – land survey
Licença de Utilização – use / occupancy permit

Mais-Valias – capital gain

NIF – Número de Identificação Fiscal
NISS – Número de Identificação da Segurança Social
Notário – notary

Ónus e Encargos – charges and encumbrances

PDM – Plano Diretor Municipal = municipal land-use plan
Prédio Urbano / Rústico / Misto – land classification
Procuração – power of attorney

Quinta
Quota-parte – co-ownership share

Registo Predial – land registry extract
Residente Fiscal – tax resident

Senhorio / Inquilino – landlord / tenant
Sinal
Solicitador

T0 – T6 – Tipologia (room classification)
Terreno para Construção – building land
Título de Residência – residence document

Usucapião – adverse possession

A

ABC – Área Bruta de Construção = gross construction area

Property Types & Construction

The total gross floor area of a building, including walls and ancillary areas.

Usually noticeably larger than the ABP (private usable area). Important for comparing listings on a like-for-like basis.

ABP – Área Bruta Privativa = private usable area

Property Types & Construction

The private usable area of a residential unit, comparable to living space.

Often listed in brochures alongside or instead of the Área Bruta de Construção. When comparing listings, it pays to check carefully which floor area figure is being quoted.

Advogado – lawyer

Purchase Process & Contract

Represents the buyer's interests specifically, as an independent lawyer.

The Advogado checks ownership status, encumbrances, planning permissions and documents, and accompanies the entire process from the CPCV to the Escritura, strongly recommended for foreign buyers.

AIMI – Adicional ao IMI

Taxes & Duties

An additional wealth tax on higher-value property holdings.

Mainly affects owners of multiple or particularly high-value properties. Allowances and rates differ depending on whether the owner is a private individual or a company.

Alojamento Local (AL) – short-term rental licence

Renting

The licence required for short-term tourist rentals of a property.

Without a valid AL licence, tourist letting is not permitted. Licensing practice has been adjusted several times and varies by municipality. Always check the current rules before buying a rental investment property.

Alvará – building or use permit

Property Types & Construction

A permit issued by the Câmara Municipal for construction or use.

Confirms that a building or renovation project has been officially approved, or that the finished property may lawfully be used.

AMI – real estate agent licence number

Agents & Other

The mandatory licence number for real estate agents in Portugal.

Every reputable agent must hold a valid AMI number and display it visibly. It confirms official authorisation and mandatory professional indemnity insurance.

Arrendamento – long-term rental

Renting

Long-term letting, as distinct from short-term tourist rentals (AL).

Subject to its own statutory rules on notice periods, rent increases and deposits, significantly more strictly regulated than short-term AL letting.

Autorização de Residência – residence permit

Residency & Status

The formal residency status for non-EU citizens.

EU citizens do not need a visa for permanent residence but must register with the local council; for non-EU citizens, an appropriate visa is a prerequisite.

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C

Caderneta Predial

Documents & Authorities

The tax “master record” of every property in Portugal.

Contains details such as the owner, tax value (Valor Patrimonial Tributário), floor area and year built. Essential for purchase, financing and tax matters and distinct from the Registo Predial, which documents the chain of ownership.

Câmara Municipal – town hall / local council

Documents & Authorities

Responsible for building permits, urban planning and local administration.

The Câmara Municipal issues, among other things, the Alvará de Construção and the Licença de Utilização, and is the first point of contact for planning-law questions.

Certificado Energético – energy performance certificate

Documents & Authorities

Mandatory energy certificate for sale and rental, rated from A+ to F.

Increasingly influences the buying decision too, particularly with regard to heating and cooling costs in summer and winter alike.

Condomínio – owners' association / service charge

Owners' Association

The owners' association of a building and also the monthly service charge itself.

Governs the maintenance, use and cost of shared areas (pool, garden, lift, etc.). Always ask about the level of Condomínio costs before buying.

See also: Quota-parte, Fração Autónoma

Conservatória do Registo Predial – land registry office

Documents & Authorities

The authority that maintains and manages property ownership records.

After the Escritura, the transfer of ownership is registered here. Preliminary checks for existing encumbrances are also carried out through this authority.

CPCV – Contrato de Promessa de Compra e Venda = preliminary purchase contract

Purchase Process & Contract

The legally binding preliminary contract signed before the final deed of sale.

In the CPCV, buyer and seller commit bindingly to the later terms: price, payment schedule, deadlines and the consequences of withdrawal. Unlike in Germany, this preliminary contract is standard practice and binding in Portugal, and is usually accompanied by a deposit (Sinal).

D

Depósito Caução – rental deposit

Renting

The standard rental deposit, usually one to two months' rent.

Direito de Preferência – right of first refusal

Purchase Process & Contract

A statutory right of first refusal held by certain third parties, e.g. tenants or co-owners.

Before a sale, it must be checked whether anyone holds a right of first refusal. If this is overlooked, the sale can be challenged after the fact.

Distrate – mortgage discharge

Purchase Process & Contract

The formal cancellation of a registered mortgage in the land registry.

If a mortgaged property is sold, the mortgage generally has to be settled from the sale proceeds, after which the discharge is registered in the Registo Predial.

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E

Escritura – Escritura Pública de Compra e Venda = deed of sale

Purchase Process & Contract

The notarial deed of sale that actually transfers ownership.

The Escritura is the final deed of sale, signed before a notary. On signing, ownership officially transfers, and registration in the land registry (Registo Predial) follows.

See also: CPCV, Registo Predial, Notário

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F

Finanças – Autoridade Tributária (AT) = tax office

Documents & Authorities

Responsible for issuing the NIF, and for IMT, IMI, Mais-Valias and all tax matters.

Practically every tax matter relating to property ownership in Portugal is handled through this authority.

Fração Autónoma – self-contained unit

Property Types & Construction

The legally self-contained unit within a building with multiple owners.

Each Fração Autónoma has its own share (Quota-parte) of the common areas and is registered separately in the Registo Predial.

G

Golden Visa – ARI = Autorização de Residência para Investimento

Residency & Status

Portugal's investment visa for non-EU citizens.

Since the reform, property investment no longer qualifies for the Golden Visa. This isn't relevant for German buyers or other EU citizens, but remains a frequently asked question among international clients from non-EU countries.

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H

Hipoteca – mortgage

Agents & Other

The bank's security interest in the financed property.

Registered in the Registo Predial and must be formally cancelled (Distrate) on a later sale before the property can be transferred free of encumbrances.

HPP – Habitação Própria Permanente = main residence

Taxes & Duties

The home used and registered for tax purposes as the owner's main residence.

Certain tax benefits relating to IMT and Mais-Valias are tied to HPP status. A purely second home (Segunda Habitação) is taxed differently.

I

IFICI – successor scheme to the former NHR tax status

Taxes & Duties

The considerably narrower successor programme to the old NHR scheme, in force since 2024.

Unlike the broadly available old NHR scheme, IFICI is aimed primarily at certain professional profiles and is no longer automatically available to every new resident. Anyone who had planned around the classic NHR scheme should check their current status with a tax advisor.

IMI – Imposto Municipal sobre Imóveis

Taxes & Duties

The ongoing annual municipal property tax.

Levied by the relevant municipality based on the tax value, and part of the ongoing running costs regardless of whether the property is owner-occupied or rented out.

Imposto de Selo – stamp duty

Taxes & Duties

A tax due in addition to the IMT on purchase, and on financing.

Usually a fixed percentage of the purchase price, or of the loan amount in the case of mortgages.

IMT – Imposto Municipal sobre Transmissões

Taxes & Duties

The property transfer tax, due once at purchase, before the Escritura.

The amount is calculated progressively based on the purchase price or tax value, and on whether the property is a main residence (HPP) or a second home. Rates and allowances are adjusted annually and should be checked with a lawyer or tax advisor before buying.

J

Junta de Freguesia – parish council

Documents & Authorities

The lowest level of local administration, comparable to a parish or ward office.

Responsible for, among other things, residency certificates and minor administrative matters at neighbourhood level.

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L

Levantamento Topográfico – land survey

Documents & Authorities

The survey of a plot of land carried out by a surveying engineer.

Important for plots and new-build projects, to establish boundaries, areas and elevations with certainty, especially when official records are unclear.

Licença de Utilização – use / occupancy permit

Documents & Authorities

Confirms that a building was lawfully constructed and may be used.

Without a valid Licença de Utilização, problems can arise with financing, resale or an AL licence. Always check this carefully, particularly for older or renovated properties.

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M

Mais-Valias – capital gain

Taxes & Duties

The tax on the profit made when selling a property.

Calculated from the difference between the purchase and sale price, taking related costs into account. For German owners, the double taxation agreement with Germany also comes into play.

N

NIF – Número de Identificação Fiscal

Documents & Authorities

The Portuguese tax number, required for virtually every legal transaction.

Without a NIF, neither a property purchase nor opening a bank account is possible. EU citizens can apply for a NIF directly at the Finanças or through a tax representative.

NISS – Número de Identificação da Segurança Social

Documents & Authorities

The social security number, relevant when taking up residence or employment.

Unlike the NIF, not required for a straightforward property purchase, but necessary for anyone moving to Portugal permanently and entering the social security system.

Notário – notary

Purchase Process & Contract

Notarises the Escritura and confirms the deed's legal validity.

The notary checks identity and formalities, but not the economic or legal risks of the purchase in detail. That review is carried out by the buyer's own lawyer (Advogado).

O

Ónus e Encargos – charges and encumbrances

Purchase Process & Contract

Registered encumbrances on a property, such as mortgages or rights of way.

These entries appear in the Registo Predial. Before buying, check whether there are outstanding mortgages (requiring a Distrate) or other encumbrances.

P

PDM – Plano Diretor Municipal = municipal land-use plan

Property Types & Construction

The municipal plan governing what land may be built on and how it may be used.

Sets out, among other things, which areas are designated as building land, nature reserves or agricultural land. A mandatory check before buying an undeveloped plot.

Prédio Urbano / Rústico / Misto – land classification

Property Types & Construction

The legal classification of a plot as urban, rural or mixed.

This classification significantly affects buildability, tax value and permitted use. A Prédio Rústico generally cannot simply be built on, and is a common pitfall with supposed “bargain plots”.

See also: Terreno para Construção, PDM

Procuração – power of attorney

Purchase Process & Contract

Allows a representative to sign on the buyer's behalf with full legal effect.

Often used when buyers cannot travel in person for the Escritura. The notarised power of attorney is frequently granted to the buyer's own lawyer.

Q

Quinta

Property Types & Construction

A larger, usually rural property with land.

The term is used loosely on the Algarve, ranging from a small smallholding to a substantial country estate with several buildings and outbuildings.

Quota-parte – co-ownership share

Owners' Association

The notional co-ownership share of a unit in the common areas.

Determines, among other things, how Condomínio costs are split between the individual owners, usually in proportion to the size of the respective Fração Autónoma.

See also: Condomínio, Fração Autónoma

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R

Registo Predial – land registry extract

Documents & Authorities

Documents the owner, boundaries and registered encumbrances of a property.

Maintained at the Conservatória do Registo Predial. Before every purchase, check whether the details here match the Caderneta Predial. Discrepancies are not uncommon.

Residente Fiscal – tax resident

Residency & Status

Tax residency status (as distinct from registered residency) in Portugal.

Anyone who spends more than 183 days a year in Portugal, or whose centre of life is there, is generally considered tax resident with consequences for the taxation of worldwide income, rental income and capital gains.

S

Senhorio / Inquilino – landlord / tenant

Renting

The terms for landlord and tenant under Portuguese tenancy law.

Sinal

Purchase Process & Contract

The deposit paid when signing the CPCV.

Typically around 10–30% of the purchase price. If the buyer withdraws without good cause, the Sinal is generally forfeited to the seller; if the seller withdraws, they usually have to repay double the amount.

Solicitador

Purchase Process & Contract

An independent legal profession between lawyer and notary.

Solicitadores may carry out certain legal and administrative tasks, such as land registry filings, but unlike an Advogado do not represent clients in court.

T

T0 – T6 – Tipologia (room classification)

Property Types & Construction

The classification of Portuguese properties by number of bedrooms.

T0 corresponds to a studio with no separate bedroom, T1 to a one-bedroom apartment, T2 to two bedrooms, and so on. This differs from the German room-counting convention: a T3 has three bedrooms, but usually four to five rooms in total.

Terreno para Construção – building land

Property Types & Construction

A plot classified as building land, suitable for construction.

Not every plot on the Algarve is automatically building land. The classification in the relevant municipality's PDM determines whether, and to what extent, building is permitted.

Título de Residência – residence document

Documents & Authorities

Proof of residence for foreign residents in Portugal.

EU citizens who live permanently in Portugal register with the local council and receive the corresponding document depending on their status.

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U

Usucapião – adverse possession

Agents & Other

Acquisition of ownership through long-term, uncontested possession.

Occurs mainly with older, poorly documented properties or plots without a complete chain of ownership. One reason why having your own lawyer review the ownership history is so important.

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