Chapter 17 of 21

Insurance & Contracts

Car, home, health & consumer rights

Insurance & Contracts

Car, Home, Health & Consumer Law

This chapter is for informational purposes only. Always consult a professional.

Sources: asf.com.pt | gov.pt | dre.pt

Mandatory Insurances

Insurance	When	Cost
Car Insurance	All vehicles	€150–€600+/year
Home Insurance (fire)	All buildings (by law!)	€100–€300/year
Life Insurance	With mortgage	Variable

Car Insurance

Coverage	What Is Covered	Cost
Terceiros (Third Party)	Damage to others	€150–€300/year
Terceiros+ (Third Party+)	Third party + theft + fire	€200–€400/year
Todos os Riscos (All-risk)	Everything	€350–€800+/year

No Claims Years

Portuguese insurers do not always recognize foreign no claims years. Provide proof from your previous insurer. This can significantly reduce your premium.

Contracts

Cooling-off period: 14 days for distance contracts
Contract period: telecom max 24 months
Warranty: 3 years on new goods (since 2022)
Complaints book: mandatory for every company
Language: contracts in Portuguese are legally binding

Do Not Take the Bank Policy

With a mortgage, the bank pushes their own life insurance. You are legally free to choose any insurer. External policies are often 50-70% cheaper.

Share this articleWhatsApp Facebook LinkedIn X/Twitter Email

Previous chapter

16. Internet & Remote Work

Next chapter

18. Taxes & Tax Returns

Premium Package

✓ PDF downloads (NL & EN)
✓ 15 templates & tools
✓ AI emigration assistant
✓ Lifetime updates

Glossary

NISS (Social Security Number)
The Portuguese social security number. You need your NISS if you plan to work in Portugal or start as a freelancer. It is also required for access to certain social benefits and allowances.
SEF/AIMA (Immigration Service)
The former Portuguese immigration service SEF was replaced by AIMA in 2023 (Agency for Integration, Migration and Asylum). AIMA handles residence permits, visa applications and all immigration matters. Wait times can be long, so start your application early.
IRS (Personal Income Tax)
Portuguese personal income tax. The IRS return is filed annually between April and June. Rates range from 14.5% to 48% depending on income. Tax residents must declare their worldwide income.
ISV (Vehicle Registration Tax)
Tax when registering or importing a vehicle in Portugal. The ISV amount can be substantial, especially for older or polluting vehicles. EU citizens who relocate may be eligible for exemption under certain conditions.
CPCV (Promissory Purchase Agreement)
The preliminary purchase contract when buying property in Portugal. Upon signing you typically pay a 10-20% deposit (sinal). If the buyer withdraws, they lose the deposit; if the seller withdraws, they must repay double the amount.
Certidão de Teor (Property Registry Extract)
An extract from the Portuguese property registry at the Conservatória. The Certidão de Teor shows who owns a property and whether there are mortgages or liens on it. Always check before purchasing a property.
Junta de Freguesia (Parish Council)
The local administrative body at neighborhood level, comparable to a Dutch district council. At the Junta de Freguesia you can request an Atestado de Residência (proof of residence) among other things. It is often your first point of contact for local matters.
Conservatória (Registry Office)
The Portuguese registry office for property and civil status. At the Conservatória, property transfers, marriages and births are registered. For property purchases, registration at the Conservatória do Registo Predial is mandatory.
Título de Residência (Residence Permit)
The Portuguese residence permit card, comparable to a Dutch residence permit. After approval of your visa application, you receive a Título de Residência allowing you to legally live and work in Portugal.
Multibanco
The Portuguese payment network and ATM system. Multibanco is not only used for cash withdrawals, but also for paying bills, taxes and even concert tickets. It is an essential part of daily life in Portugal.