How much does a lawyer cost in Portugal? Fees

How much does a lawyer cost? It is the question almost everyone asks Google before working up the courage to ask a lawyer. The honest answer starts with a warning. In Portugal there is no official scale of lawyers’ fees. No law sets the price of a consultation, a letter or a court action.

What the law does set are the rules for the agreement between lawyer and client. Those rules are worth knowing before you sign anything.

Is there an official scale of lawyers’ fees?

There is not. Fees are set by agreement between the lawyer and the client, case by case. The statute of the Portuguese Bar Association (Estatuto da Ordem dos Advogados, Lei n.º 145/2015, de 9 de setembro) requires them to amount to appropriate remuneration for the services actually rendered, and, in artigo 105.º, it sets out the criteria to weigh: the importance of the services rendered, the difficulty and urgency of the matter, the time spent, the result obtained and the responsibilities assumed by the lawyer, among others.

In practice, this means that answering a landlord’s letter costs less than running a court action that sometimes stretches over months of medical assessments and hearings. The same divorce may be finalised at the registry office (Conservatória) in weeks or drag on for years in court. The price follows that difference.

What is a quota litis agreement and why is it banned?

There is one limit the law places on any fee agreement. Artigo 106.º of the Estatuto da Ordem dos Advogados prohibits what is known as the quota litis agreement: an arrangement, made before the case is concluded, under which the fees depend exclusively on the outcome, that is, typically a percentage of whatever the client eventually receives.

There is a practical reason for the ban. If the lawyer were paid solely according to what the client won, they would cease to be an independent adviser and become a financial partner in the dispute. The rule protects the impartiality of the advice. The lawyer must be able to tell you that a reasonable settlement is preferable to years in court, even when that reduces the amount at stake.

Note the distinction. What the law forbids is fees that depend only on the outcome, with nothing guaranteed. By contrast, it is lawful for the outcome to be one factor among others. It can be agreed, for example, that a fixed amount is paid for the work whether or not the case succeeds. A success fee may be added to that amount, typically a percentage of whatever the client eventually receives. Because there is a guaranteed base, independent of the outcome, the agreement is not quota litis but rather quota palmarium, the success fee that the law allows. It is also lawful to set the fees according to the value of the matter, even as a percentage of that value (artigo 106.º, n.º 3).

Fixed fee, hourly or retainer: how it works in practice

Three arrangements are common. The simplest is the fixed fee, set at the outset for a specific service, such as a contract or an interim injunction. The hourly rate is used more often where the amount of work cannot be predicted in advance. The monthly retainer is a recurring amount that covers ongoing legal support and is common for businesses.

Whatever the model, ask for the basis of charging to be set out in writing before the work begins. That document is what helps avoid surprises when the bill arrives. At NAA, the amount is always explained and agreed transparently, before any step is taken.

How much does the first consultation cost?

For road traffic accidents, workplace accidents and civil liability, the first consultation with the NAA lawyers costs 60 euros (VAT included). In family and child law, criminal law and employment law, the first consultation is 90 euros (VAT included). If we take on the matter, this amount is absorbed into the fees. The consultation takes place in Lisbon or remotely, by video call or telephone. In any case, it does not commit you to going ahead. You can book your consultation.

What if you cannot afford a lawyer?

The Constitution provides that justice may not be denied for lack of financial means (artigo 20.º). Those with low incomes may apply for legal aid from Social Security (Segurança Social), under Lei n.º 34/2004. Depending on your financial circumstances, the support may include, among other things, the waiver of the court fee (taxa de justiça) and other costs of the proceedings, payment in instalments or the appointment of a lawyer by the Portuguese Bar Association, with fees borne by the State. Social Security’s legal protection simulator lets you check in a few minutes whether you meet the conditions.

There is also a type of cover that many people pay for without knowing they have it: the legal expenses cover (proteção jurídica) included in various insurance policies, from motor insurance to multi-risk home policies, or even in some credit cards. Where it exists, the insurance covers the lawyer’s fees and court costs within the policy limits. And the law guarantees the insured the freedom to choose a lawyer in any judicial or administrative proceedings, and also where a conflict of interest with the insurer arises (Decreto-Lei n.º 72/2008). That lawyer works for you, independently. Before assuming you cannot pay, check what your policies cover or ask your broker.

What is the difference between court costs and fees?

A common source of confusion. The court costs (the court fee and other charges of the proceedings) are paid to the court, under the Regulamento das Custas Processuais. The fees are paid to the lawyer. The two are entirely separate. Whoever wins the action may recover part of what they spent through the costs recoverable from the losing party, but, as a rule, that recovery does not cover the whole of the fees. When you ask for an estimate, keep all of this in mind and confirm whether the likely court costs are included.

What should you ask at the first consultation with a lawyer?

To leave the first consultation with no lingering questions about money, take these questions with you:

• How much does this consultation cost? Ask when booking, not on the way out.
• How will the fees be calculated: a fixed amount, an hourly rate or some other basis?
• What is included in that amount? Are travel, certificates and court fees charged separately?
• Does it make sense to apply for legal aid? Do any of my policies include legal expenses cover?
• How regularly will I be updated on the costs of the proceedings?

At the end, ask for the fee arrangements to be confirmed in writing. It is a normal request, one that any lawyer is used to receiving.