A property exchange (permuta) is not a compromise — it is strategy. When two families are at opposite stages of life, exchanging can save months of process, tax costs and emotional wear.
The residential exchange is one of the most underused instruments in the Portuguese market. It allows two families to resolve the problem of moving at the same time — one wants smaller, the other wants larger; one wants the city, the other the countryside — without having to go through two separate operations, with all the friction that entails.
Families at opposite stages, with values close together and both willing to move.
An objective reading of both properties and calculation of any balancing payment.
IMT, capital gains and notarial costs analysed together — not after the fact.
A carefully drafted exchange promise, with clauses on deadlines, defects and financing.
An exchange is a contract by which two parties trade assets with each other — in this case, properties — with or without a financial balancing payment (the so-called tornas). It is provided for in the Portuguese Civil Code and, from a notarial and tax point of view, receives its own treatment — more favourable than two independent transactions in many scenarios.
The classic case: a family with grown children wants a smaller apartment, and a young family wants more space. Both intend to move, and both have a property to offer. An exchange can resolve, in a single contract, what would otherwise be two processes lasting months.
But there are less obvious scenarios: an exchange between city and countryside, between coast and interior, between Lisbon and Porto, between a residential property and an income property, between a first and a second home. Wherever two estates are in tune, an exchange is possible.
If one of the families needs liquidity (rather than another property), an exchange does not resolve it. If the values are far apart and there is no room for a significant balancing payment, nor does it. And if the fit between the two estates is forced, it is usually better to run two well-accompanied independent operations — see Sell to buy.
In an exchange we act in coordination with the counterparty (and their advisory, if one exists), ensuring a fair cross analysis, a technical dossier for each property, coordination with lawyers and notaries, and tax planning designed in advance. When no counterparty yet exists, we search discreetly within our private network.
It is the trade of one property for another, formalised in a single deed. Instead of selling first and buying later — with all the uncertainty of timings and financing in between — the two operations happen simultaneously.
In an exchange, IMT (property transfer tax) is charged only on the difference in value between the properties, not on the full value of each — a saving that can be very significant. Every case should be analysed before going ahead, and that is precisely what we do.
The difference is settled in money — the so-called tornas — paid by the party receiving the higher-value property. If necessary, the amount of the tornas can be covered by bank financing.
It is the hardest part — and where our work makes the difference. We actively cross-match the needs of our clients and of our network: those who want to trade larger for smaller, city for coast, apartment for house. The right exchange rarely appears on a portal; it is built.
Yes. The existing loan is settled at the deed, and new financing can be arranged for the property received, if needed. Coordination with the banks is part of our accompaniment.
The general regime applies, with the possibility of reinvestment relief when both properties are permanent primary residences. We always work with your accountant or tax lawyer before any commitment, so the real tax picture is known from the outset.
See also the Owner's Glossary.
Before settling values with the other party, see what the swap saves in the property exchange IMT simulator.
A first reading, free and confidential, is enough to understand whether there is fertile ground for an exchange — or whether another solution serves you better.