Main costs of property division after divorce in Portugal (with division of a joint house)

The division of assets after a divorce is a common process for couples who, upon dissolving their marriage, need to divide the assets accumulated during the union. This article aims to clarify the main costs involved in dividing real estate in Portugal after a divorce. It is important to note that the amounts mentioned are general estimates and may vary depending on the specific situation of each case.

1. Main costs of property division after divorce in Portugal, normally borne by both former spouses

The following costs of property division after divorce in Portugal are, in most cases, divided equally between the former spouses. Here are the typical expenses associated with the process:

1. Divorce Certificate: This document, which is necessary for the division of property process, can be requested from the civil registry. Estimated cost: €30

   
   

2. House Property Certificate: An up-to-date property certificate is required for the purposes of division. Estimated cost: €20

   
   

3. Deed at a Notary Public Office: The act of division can be formalized through a public deed, carried out at a Notary Public Office. Estimated cost: 350€

   
   

4. Registration of the House in Favor of One Spouse: After the division, the property is registered in the name of only one of the former spouses, which entails the payment of fees at the Land Registry Office. Estimated cost: €250

   
   

5. Mortgage Release Registration (if applicable): If there is a mortgage associated with the property, and it is paid off, the mortgage release (extinction) must be registered at the Land Registry Office. Estimated cost: €50

2. Taxes payable by the spouse who retains ownership of the property

A spouse who wishes to keep the joint property and pay compensation to the other spouse (i.e., financially compensate the former spouse for their share in the division, if they receive a larger share than they would be entitled to with the award of the property) should consider the following taxes:

1. Stamp Duty: This tax is levied on the value of the “excess share” or on the Taxable Asset Value (VPT) of the property, whichever is higher. The applicable rate is 8 per thousand (or 0.8%). Practical example: If the value of the excess of the share is €25,000.00, the tax will be: €25,000.00 × 0.8% = €200.00.

   
   

2. IMT (Municipal Tax on Onerous Transfers of Real Estate): Good news: in the case of division of property after divorce, there is binding information from the Tax Authority that IMT is not due.

   
   
   
   

 3. Final Thoughts

The division of assets after a divorce can be a complex and costly process. It is crucial to plan adequately for the costs involved to avoid financial surprises. Although this article provides a general estimate, the amounts may vary depending on the specific circumstances of each case, such as the number of assets to be divided, the value of the property, among other factors.

To ensure that all procedures are carried out correctly and efficiently, it is always recommended to consult a lawyer specializing in family law, who can provide the necessary legal assistance and clarify any doubts.

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