Buying Off-Plan in Portugal
Staged payments, completion risk, IMT timing, and the contract protections every off-plan buyer should know about before committing.
Updated April 2026How Off-Plan Buying Works in Portugal
Buying off-plan (na planta) means buying a property that hasn’t been built yet, or is mid-construction. The developer markets units before completion, you commit early at a fixed price, pay in stages as construction progresses, and complete on the escritura when the building is finished and licensed.
Off-plan can deliver real value: lower prices than completed equivalents, choice of unit, modern construction with current energy standards. But it carries risks completed properties don’t: completion delays, builder insolvency, specifications changes, and the unique challenge of buying something you can’t walk through. Strong contract drafting and developer due diligence are non-negotiable.
This guide covers the typical structure, what protections to insist on, and the IMT and finance considerations specific to off-plan purchases.
How Payments Are Staged
Off-plan deals typically split the purchase price across construction milestones.
Reservation deposit
Usually 1–3% of the price, paid to reserve a specific unit. Often refundable if the CPCV doesn’t complete within a set window.
CPCV signing — first major payment
Typically 10–20% of the price, paid on signing the promissory contract. The CPCV locks the price, the unit, and the completion timeline.
Construction milestones
Further 10–25% payments tied to build progress: foundations, structure complete, roof on, services installed, finishes done. Each milestone certified by the developer’s engineer or independently.
Final balance at escritura
Remaining 30–50% paid at the deed, when the building has its habitation licence and the unit is ready for handover.
Mortgage interaction
If you’re using a mortgage, banks typically only release funds at the escritura, not in stages. So you fund the staged payments yourself, then take the mortgage to cover the final balance. Cash-flow planning matters.
What Can Go Wrong
The risks unique to buying something that doesn’t exist yet.
Completion delay
Most off-plan projects in Portugal slip. A 24-month build often runs to 30. Plan for delays and have flexibility on your move-in or rental income timing.
Specification changes
Developers sometimes substitute materials, change layouts, or simplify finishes during construction — for cost or supply reasons. Strong CPCV language locks in the spec sheet.
Builder insolvency
Rare but ruinous. If the developer goes bust mid-build, your staged payments may not be fully recoverable. Bank guarantees on each payment stage are the protection — verify they’re actually issued.
Final habitation licence delays
Even when construction is "done", the câmara has to issue the habitation licence before the escritura can happen. That can add weeks or months. Your CPCV should specify what happens if the licence is delayed.
Reality vs marketing renders
The CGI render and the as-built can differ. Views, sun exposure, finishes, and overall feel can disappoint. Visit the site at multiple stages of construction and compare to the marketing materials.
The bank guarantee is the single most important protection
Each staged payment should be backed by a bank guarantee from the developer’s bank covering the amount you’ve paid. If the project fails, the guarantee pays you back. Confirm the guarantee is actually issued before each payment leaves your account — not just promised in the contract.
Vetting the Developer
Off-plan due diligence is more about the developer than the property.
Track record
How many projects has the developer completed? What did buyers in past projects say? Visit a previously completed development if possible. Local lawyers often know the reputable developers from the chancers.
Financial standing
Public company filings (or, for private developers, what your lawyer can dig up). Significant debt, recent restructuring, or court cases are warning signs.
Funding for this project
Is the project bank-funded, sold-out-funded, or developer-self-funded? Each has different risk profiles. Bank-funded with strong pre-sales is generally safer.
Planning permission and licences
Construction licence (alvará de construção), urbanisation approval, environmental clearance if applicable. All should be in place before the project markets units.
Engineering and architect
Reputable architect and engineering firm. The technical team behind the project matters.
IMT, Stamp Duty, and Off-Plan Timing
A specific quirk of off-plan: when do the property taxes hit?
IMT and stamp duty are paid at the escritura
Even though you commit at the CPCV and pay in stages, IMT (Imposto Municipal sobre Transmissões) and stamp duty (Imposto do Selo) on the purchase are calculated and paid just before the escritura, when the deed actually transfers ownership.
The rate is based on the price at escritura
If your contract price was €400,000 in 2024 and you’re completing in 2027, IMT is calculated on the contract price at the rate in force at escritura. Rate changes between contract and completion can apply to you.
VAT vs IMT for new-builds
Some new-build developments are VAT-registered for the sale (typically affordable-housing or specific developer structures). VAT replaces IMT in those cases. Most standard new-build sales remain IMT-based. Always confirm with the developer’s lawyer.
Budget for the full deed-day cost
Beyond your final payment to the developer: IMT, stamp duty, notary, registration, legal fees, mortgage stamp duty if applicable. Typical total: 6–9% of the price on top. See our buying costs guide.