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Seller — Completion and Post-Sale Obligations

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7. Completion & Post-Sale Obligations When Selling Property in Portugal

Legal Completion and Fiscal Closure of the Sale

Completion marks the moment when ownership of the property is officially transferred to the buyer.

However, for the seller, the process does not end with handing over the keys.

Following the sale, several fiscal and administrative obligations must still be fulfilled to properly close the transaction with the Portuguese authorities.

This final stage ensures the sale is fully concluded — both legally and fiscally.

What Happens at This Stage

This phase finalises the transaction and addresses post-sale responsibilities.

It typically includes:

  • signing the final deed of purchase and sale (escritura);

  • receiving the remaining sale proceeds;

  • settling any outstanding mortgage linked to the property;

  • handing over the keys to the buyer;

  • completing final ownership registry updates;

  • declaring the sale for tax purposes;

  • assessing potential reinvestment options related to capital gains taxation.

At this point, the seller formally ceases to be the property owner.

Why This Matters

Even after completion, important tax responsibilities remain.

If not handled correctly, sellers may face:

  • unexpected capital gains taxation;

  • errors in annual tax declarations;

  • loss of available tax exemptions;

  • future notifications linked to a property already sold.

Properly closing this stage prevents fiscal complications years after the transaction.

Clara and Rui’s Story

On completion day, Clara and Rui received the final payment and handed over the keys to the buyer.

They assumed the process was finished.

During TeamQASA’s post-sale follow-up, they realised the transaction still needed to be declared in their annual tax return and that reinvestment options could affect capital gains taxation.

With proper planning, they structured the sale efficiently from a tax perspective and avoided unnecessary capital gains tax.

The sale concluded without future surprises.

Documents & Definitions

Deed of Purchase and Sale (Escritura de Compra e Venda)
Legal act that formally transfers ownership from seller to buyer.

Capital Gains (Mais-Valias Imobiliárias)
Profit generated when a property is sold for more than its acquisition value, typically subject to income tax in Portugal.

IRS Annex G (Anexo G)
Section of the annual Portuguese income tax return where property sales must be declared for capital gains calculation.

Reinvestment of Sale Proceeds (Reinvestimento do Valor da Venda)
Legal mechanism allowing reduction or exemption of capital gains tax when sale proceeds are reinvested into a new primary residence.

Common Mistakes

  • assuming there are no obligations after completion;

  • failing to declare the sale in the annual tax return;

  • misunderstanding reinvestment deadlines;

  • losing documentation required for tax calculations;

  • ignoring professional tax guidance after the sale.

Did You Know?

Even if you fully reinvest the proceeds and qualify for capital gains tax exemption, the sale must still be declared in your tax return.

Failure to declare the transaction can trigger tax corrections years later.