Buying Property in Portugal: The Complete Legal Guide for Foreigners

Buying property in Portugal has never been more appealing. With its warm climate, welcoming culture, and strong real estate market, Portugal continues to attract expats, investors, and retirees from around the world.

The good news? Foreigners can still buy property in Portugal without restrictions, whether purchasing a holiday home, investment property, or permanent residence. 

While the process is straightforward, there are specific legal and tax steps every buyer must follow. Since the end of the Golden Visa for real estate, most international buyers now purchase through relocation visas like the D7 or Digital Nomad Visa instead.

This 2025 guide breaks down everything you need to know about buying real estate in Portugal, from essential documents and legal steps to property taxes and common pitfalls to avoid.

(Article Updated November 2025)

Essential Pre-Purchase Requirements for Buying Property in Portugal

Before buying property in Portugal, a few essential administrative steps must be completed. These ensure your purchase is legal, secure, and compliant with Portuguese regulations.

1. Obtain a NIF (Portuguese Tax Number)

The Número de Identificação Fiscal (NIF) is required for all financial activities in Portugal, including purchasing a property in Portugal, opening a bank account, and paying taxes.

You can apply for a NIF at:

• A local Portuguese tax office (Finanças)
• A Portuguese consulate abroad
• Through a fiscal representative or lawyer, if you’re not yet living in Portugal

2. Open a Portuguese Bank Account

While not legally mandatory, a local bank account is highly recommended for property buyers. It simplifies currency transfers, payment of taxes and utilities, and ongoing property expenses.

To open an account, you’ll typically need:

• Your NIF
• Valid passport or ID
• Proof of address (domestic or foreign)
• Proof of income or source of funds

3. Hire a Lawyer (Strongly Advised)

Working with a Portuguese real estate lawyer is one of the most important steps in the process. A lawyer ensures your purchase is legitimate, conducts due diligence, and verifies that the property is free from debts or legal disputes. They’ll also manage the contract review, handle negotiations, communicate with the Tax Authority, banks and notaries, and ensure all legal formalities are met before you sign.

Hiring legal support early helps you avoid risks and ensures the property purchase is fully compliant with Portuguese law. If you’re ready to start your property search, fill out the form below to speak with a Portuguese real estate lawyer.

Step-by-Step Guide to Buying Portuguese Property

Buying property in Portugal follows a well-defined legal process. Below is a simple step-by-step checklist outlining how the purchase unfolds, from offer to ownership.

1. Legal Due Diligence

Your lawyer will begin by reviewing the property’s legal and tax status through the Land Registry (Conservatória do Registo Predial) and the Tax Authority (Autoridade Tributária).

They will verify:

• Ownership details and title deed
• Any mortgages, liens, or debts
• Property boundaries and registration
• The Caderneta Predial, confirming the property’s tax classification

2. Make an Offer & Reservation

Once you’ve found the right property, you’ll submit a formal offer. If accepted, the buyer might be asked to pay a reservation fee (around €2,000 – €10,000) to remove the property from the market while contracts are prepared.

3. Sign the Promissory Contract (CPCV)

The Contrato-Promessa de Compra e Venda (CPCV) is a legally binding pre-sale contract that outlines key details like price, payment terms, and completion date.

• The buyer pays a deposit, usually 10-30% of the purchase price.
• If the buyer withdraws, the deposit is forfeited.
• If the seller backs out, they must refund double the deposit.

4. Pay the IMT and Stamp Duty

Before the final deed signing, buyers must pay two taxes:

• IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis): property transfer tax
• Stamp Duty (Imposto de Selo): fixed at 0.8% of the purchase price

These payments must be completed before the final signing.

5. Sign the Final Deed (Escritura Pública)

The final deed of sale is signed before a Notary Public. At this stage, the full payment is made, and ownership officially transfers to the buyer.

6. Property Registration

Your lawyer then registers the property in your name at the Land Registry and updates ownership details with the Portuguese Tax Authority (Autoridade Tributária). Once this step is complete, you officially own the property.

The process to purchase real estate in Portugal for expats typically takes between 4 to 8 weeks, depending on the property’s legal status, financing, and the efficiency of local authorities. With proper legal guidance, it’s a smooth and transparent process that ensures your ownership rights are fully protected under Portuguese law.

Financing and Payment Options for Property Buyers in Portugal

Buying property in Portugal can be financed in several ways, depending on your residency status, financial profile, and investment goals. While many foreign buyers pay in cash, mortgage financing through Portuguese banks is increasingly common and accessible for both residents and non-residents.

1. Mortgage Options for Foreign Buyers

Foreigners can apply for mortgages in Portugal whether they live in the country or not.

Here’s what to expect:

• Down Payment: Non-residents are typically required to provide 25%–35% of the property’s value as a deposit.
• Loan-to-Value (LTV): Most banks lend up to 65%–75% for non-residents and up to 90% for residents.
• Interest Rates: Mortgage rates usually range from 4%–6%, depending on the lender, property type, and your financial standing.
• Loan Term: Terms are generally up to 30 years, but cannot extend beyond the borrower’s 75th birthday.
• Required Documents: Banks will ask for income proof, tax returns, credit reports, and evidence of the property’s valuation.

Tip: Having a Portuguese bank account and a NIF (tax number) is mandatory before applying for any mortgage.

Want to learn more? Check out our article on How to Get a Mortgage in Portugal as a Foreigner.

2. Payment Structure

The property payment process typically unfolds as follows:

• Reservation Fee: A small, refundable deposit (around €2,000 – €10,000) to take the property off the market.
• Promissory Contract Deposit: At the CPCV signing, buyers usually pay 10% of the purchase price.
• Final Payment: The remaining balance is transferred at the time of the deed signing (Escritura Pública).
• Mortgage Funds (if applicable): If using a mortgage, the bank transfers the loan amount directly to the seller upon final deed execution.

3. Currency Exchange and International Transfers

If you’re buying from abroad, using a specialized foreign exchange provider can save thousands compared to standard bank transfers.

Look for services that offer:

• Real-time exchange rate locks
• Lower international transfer fees
• Dedicated account managers for large transactions

Taxes and Costs When Buying Property in Portugal

Understanding property taxes and fees is one of the most important parts of purchasing property in Portugal. Between purchase-related costs and annual taxes, budgeting correctly helps avoid surprises later on.

One-Time Purchase Costs (Approx. 6%–10% of the Purchase Price)

Tip: Always ensure your lawyer confirms whether you qualify for primary residence tax benefits before paying IMT. There are also additional benefits if the buyer is under 35 and buying a primary residence for the first time.

Annual Ownership Costs

Managing these costs properly is key to a stress-free property purchase. Your lawyer or tax representative can calculate exact figures and advise on possible deductions or exemptions.

Frequently Asked Questions About Buying Property in Portugal

Is buying property in Portugal as an American possible without a visa?

Yes. Non-EU citizens, including Americans, can legally buy property in Portugal without needing a visa. However, owning property does not grant residency. If you plan to live in Portugal full-time, you must apply for a residence permit, such as the D7 Visa (for passive income) or the Digital Nomad Visa.

Does purchasing a property in Portugal still qualify for the Golden Visa?

No. Since October 2023, real estate investments are no longer eligible for the Portugal Golden Visa. The program now focuses on investment in funds, cultural projects, or job creation rather than property purchases.

Interested in a Golden Visa? Check out our article on the Best Golden Visa Programs in 2025.

Can I get a mortgage in Portugal as a non-resident?

Yes. Non-residents can obtain mortgages from Portuguese banks, though requirements are stricter. Expect:

• Down payments of 25%–35% of the purchase price
• Interest rates around 4%–6%, depending on your financial profile
• Proof of income, tax returns, and a good credit history
• Banks typically finance up to 65%–75% of the property’s value for non-residents.

How much are property taxes and costs in Portugal?

In total, buyers should budget around 10%–15% of the purchase price for taxes and fees.

This includes:

• IMT (Property Transfer Tax)
• Stamp Duty
• Notary and registration fees
• Legal representation costs

Need Support with Buying Property in Portugal?

Buying property in Portugal is one of the most appealing investment choices in Europe. The country’s stable market, relaxed lifestyle, and safety make it ideal for international buyers.

Although foreigners can freely buy property in Portugal, the process involves key legal and tax steps, from getting a NIF and bank account to paying IMT and registering the deed.

With recent tax changes for non-residents and the end of real estate options under the Golden Visa, having expert legal guidance is essential.

Ready to buy with confidence? Fill out the form below to speak with a Portugal real estate lawyer and start your purchase the right way.