In Portugal, a «reserva de propriedade» (retention of title) is the clause that keeps ownership of the car with the bank, the finance company or the dealer until the loan is paid. It shows on the permanent vehicle registration certificate. Once you pay, it does not disappear by itself: you must ask for it to be cancelled, which costs €32.50 in registry fees.
In this guide we explain what retention of title on a car is, how to check whether a used car has it, how to remove it after paying off the loan, how much it costs, how long it takes and what happens if you buy a car with it still in place.
What retention of title on a car is
The rule is in article 409 of the Portuguese Civil Code: in a sale, the seller can keep ownership of the item until the buyer meets their obligations, usually paying the full price. On a car bought in instalments, the holder is usually the finance company or the dealer.
For cars, the reservation must be entered in the vehicle register, as required by Decree-Law 54/75. The register is what counts: article 409 also says that, for movable property subject to registration, only a registered clause can be enforced against third parties, such as a second-hand buyer.
In practice, the car is in your name, you drive it and pay road tax (IUC) and insurance, but you cannot freely sell it while the reservation is registered. If that is your case and you want to sell, we cover the options in can I sell a car I am still paying for.
Note the difference with leasing and long-term rental (ALD). There, the car is not even yours: it belongs to the lessor until the end of the contract. It is registered as a finance lease or a rental (ALD) and, at the end, that registration is cancelled, not a reservation.
How to check whether a car has retention of title
The safe way is the permanent vehicle registration certificate (certidão permanente). It shows every registration in force on the car, including pending requests, who the owner is and any charges on it: reservation, lease, charge (hipoteca) or seizure (penhora).
- who can request it: any person or company, with just the number plate. You do not have to be the owner;
- validity: 6 months, and during that time the online certificate stays up to date;
- at the counter: written information about the current owner and charges costs €5, according to the IRN fee table;
- on the DUA: the single vehicle document is not enough, because it does not show registrations made after it was issued.
How to read the DUA and what to do if you lose it is in our guide to the car registration document (DUA). Before you buy, always ask the seller for the certificate, or get it yourself, in the days before you pay.
How to remove retention of title after paying off the loan
When you pay the last instalment, or settle the loan early, the reservation stays on the register until someone asks for it to be cancelled. The steps are:
- ask the lender for the declaration: the bank or finance company issues a cancellation declaration (declaração de extinção). Ask for it in writing;
- find out who files the request: many finance companies file the cancellation online themselves, in which case you do not need to do anything. Ask whether this applies;
- file the request: at a vehicle registry counter, with the declaration and your ID, or on Automóvel Online, through the lender or a lawyer, notary or solicitor;
- check: once it is registered, get a new permanent certificate and make sure the reservation is gone.
IRN's Automóvel Online service offers «Extinção de Reserva» and also «Extinção de Reserva + Compra e Venda», to cancel the reservation and change the owner in one go. According to gov.pt, when an online request includes scanned documents, such as the bank's declaration, it is filed by a lawyer, notary or solicitor.
How much it costs to cancel retention of title
The amount is set in the registry fee regulation, published by IRN on its service costs page. Cancelling the reservation costs half of the fee for the corresponding registration:
- car, motorbike or other vehicle: €32.50, half of the €65 for a subsequent registration;
- moped or motorbike up to 50 cc: €15, half of €30;
- cancellation with a change of owner: add the ownership registration, €65, for a total of €97.50. If the seller is a dealer reselling the car within 180 days of buying it, the ownership registration costs €30;
- late registration: you pay an extra amount equal to the fee.
On top of this there may be what the bank charges for the declaration or the early settlement. Under the consumer credit law (Decree-Law 133/2009), on a fixed-rate loan the early repayment fee cannot exceed 0.5% of the capital repaid, or 0.25% if one year or less remains. Variable-rate loans pay no fee. You must give the bank at least 30 days' notice.
How long cancelling retention of title takes
There is no deadline for the bank to issue the declaration that applies to every contract. In practice, the declaration usually takes from a few days to a few weeks, and the registration itself takes a few more days. So if you plan to sell, ask for the declaration as soon as you settle the loan.
The buyer has another deadline, and this one is in the law: the ownership registration must be made within 60 days, according to gov.pt. If the reservation delays the change of owner, the buyer risks paying the registration fee twice. How to register, online or at the counter, is in our guide to vehicle registration.
If the bank delays without reason, complain in writing, in the Complaints Book (Livro de Reclamações) and, if nothing changes, to Banco de Portugal.
Buying a used car with a reservation: what happens
It can happen when you buy from a private seller: the seller still owes the bank and the reservation is still registered. While it is there, the register still shows the reservation in favour of the lender, and the buyer faces three problems:
- the car is not free in your name: the register still shows the reservation in favour of the lender;
- you can lose the car: if the instalments are not paid, the holder of the reservation can ask a court to seize the vehicle, under article 15 of Decree-Law 54/75;
- you are left with a dispute with the seller: getting your money back often means going to court.
The safe way to buy a car with an unpaid loan is to settle the debt first, or on the day of the sale. You can do it like this:
- ask the seller to show you, in writing, the outstanding amount from the bank;
- pay the debt directly to the bank and the rest to the seller, never the whole amount to the seller;
- get the cancellation declaration before you hand over the rest of the money;
- file the cancellation and the sale together, in the same request.
At a dealer, the dealer usually settles the loan on the previous car. Even so, ask for the permanent certificate before paying a deposit. More tips on choosing between a dealer and a private seller are in our guide on where and how to buy a used car in Portugal.
Cars on credit on AUTO.MOTO.PT
Many cars are bought on credit: on 4 November 2026, 3,271 of the 9,874 car adverts on AUTO.MOTO.PT, about one in three, mentioned financing or credit. The median price was €15,950.
You can browse the used cars for sale and filter by price and region. Before you close the deal, ask for the number plate and get the permanent certificate: a few euros against the risk of paying for a car that is not free.
Frequently asked questions
How do I know if a car has retention of title in Portugal?
From the permanent vehicle registration certificate, which anyone can request with the number plate. It shows the owner and every charge in force, including the reservation.
How much does it cost to remove the reservation?
The registry fee is €32.50, or €15 for a moped or motorbike up to 50 cc. The bank may charge separately for the declaration or early settlement.
Is the reservation removed automatically when I finish paying?
No. Cancellation must be requested at the registry, by the lender, or by the owner with the lender's declaration.
How long does the cancellation take?
The law sets no single deadline for the bank. In practice, the declaration usually takes from a few days to a few weeks, plus the registration time.
Can I sell a car with a reservation on it?
Only with the lender's agreement or after paying the debt and cancelling the reservation. The simplest way is to file the cancellation and the sale in one request.
What happens if I buy a car with an active reservation?
The car is not free in your name and, if the seller's instalments are not paid, the lender can ask for the vehicle to be seized.
