Selling one home to buy another: which should happen first?

Three routes

Choose the sequence before signing contracts

1. 01
   Sell first

   This gives greater certainty about the available capital and reduces the risk of carrying two homes, but may require temporary accommodation or a negotiated handover date.

2. 02
   Buy first

   This makes moving easier but requires capacity to finance and maintain both transactions until the sale. Allow a margin in case the current home takes longer or sells for less.

3. 03
   Coordinate both transactions

   Completion dates can be brought together and the sale proceeds used for the purchase, but this increases dependence between buyers, sellers, banks and contractual deadlines.

Budget

Calculate net capital, not just the advertised price

Subtract outstanding principal, transaction costs, estimated taxes, agency fees where applicable, moving costs and works from the likely sale price. Only then set the deposit and budget for the new home.

If you need a new mortgage, request a creditworthiness assessment before committing. The bank will consider income, expenses, other loans and your ability to repay the loan.

Tax and contracts

Confirm reinvestment deadlines and contractual clauses

Exclusion of capital-gains tax through reinvestment depends on conditions concerning your main home (habitação própria e permanente), amounts, dates and use of the new home. Confirm the applicable rules before choosing the sequence.

The binding preliminary sale contracts used in Portugal (contratos-promessa de compra e venda, CPCV) should explain how the transactions depend on each other. Obtain advice on conditions, deadlines and the consequences of delay. Everyone involved needs to understand these dependencies.