🌍 Embrace Borderless Opportunities with Lexidy’s New Global Mobility Department. Learn More!

Your A-to-Z Guide for Buying Property in Portugal

buying property in portugal

Thinking about buying property in Portugal? Whether you’re eyeing a sun-soaked vacation home, looking for a savvy investment, or you’ve just fallen for the allure of Portuguese tiles—yes, they’re a thing—you’re in the right spot. 

In this ultimate guide, we’ll walk you through the ins and outs of the Portuguese property market. We’ll tackle your burning questions, bust some myths, and give you the lowdown on how to snag your dream casa in this European gem.

Where to Buy Property in Portugal: Location, Location, Location

Decisions, decisions. Portugal’s not a one-size-fits-all kind of country when it comes to property. When it comes to buying property in Portugal, the location you choose can be as personal as your morning coffee order. Your best fit really depends on what you’re looking for.

With its rich history, stunning landscapes, and welcoming culture, Portugal has become a hotspot for property investments. But where exactly should you invest? Let’s dive into some of the top locations and what they offer.


As the capital, Lisbon offers a dynamic blend of old-world charm and modern amenities. It’s a hub for business, culture, and, let’s not forget, incredible food.


If you’re after something a bit more laid-back but still crave a vibrant city life, Porto could be your match. It has won numerous awards for its quality of life and is known for its scenic river views and, of course, port wine.

The Algarve

The southern region of Portugal, known as the Algarve, is famous for its golden beaches, golf courses, and warm climate. It’s a hotspot for retirees and anyone looking to soak up the sun year-round.

The Islands

Madeira and the Azores offer something a bit different. Think dramatic landscapes, a slower pace of life, and unique investment opportunities like rural tourism. 

One important point to consider is the property market trends. Urban areas like Lisbon and Porto have seen consistent growth, but emerging markets in smaller towns and rural areas could potentially offer higher returns on investment.

Wherever you decide to invest, Lexidy has a nationwide network to guide you through the legal intricacies of property acquisition.

Average Property Prices when in Portugal

While our expertise at Lexidy lies in the legal aspects of real estate rather than the role of realtors, we can offer some general pricing insights based on our experience with clients.

Lisbon: As the capital city, Lisbon has the highest average property prices, generally ranging between €200,000 to €400,000. However, the cost can vary widely depending on the type and specific location of the property. Prices can soar above €1 million, especially for prime real estate in the city centre or luxurious villas on the outskirts.

Cost Variations: If you find Lisbon to be outside your budget, the interior regions of Portugal can offer more affordable property options. Prices tend to be lower there, making it a viable choice for those seeking cost-effective investments.

Remember, these are just average numbers. Your budget may go further—or not as far—as these estimates suggest, depending on various factors like property condition, amenities, and current market trends. 

Portugal vs. Spain: A Price Comparison

Let’s address the Iberian elephant in the room: How do Portugal and Spain stack up in terms of property prices? Both countries have their pricey cities—think Lisbon, Madrid, and Barcelona. 

Yet, when you consider factors like overall cost and quality of life, both nations hold their own in offering competitive options for property buyers.

When considering property investments in the Iberian Peninsula, many wonder whether Portugal or Spain offers better value. While cities like Lisbon, Madrid, and Barcelona have higher property prices, the overall cost and quality of life in both countries are competitive. 

It’s essential to consider not just the property prices but also the lifestyle, culture, and potential returns on investment. This way, you can make the best decision possible for your future. 

Tax Implications of Buying Property in Portugal

Ah, taxes, the eternal buzzkill of any property-buying fantasy. But fear not, we’re here to break it down for you so you don’t end up scratching your head at the eleventh hour. 

When you reach the final stages of purchasing property in Portugal, you’ll encounter various taxes and fees that you’ll need to budget for. Let’s break them down:

Municipal Transfer Tax (IMT in Portuguese): This is a tax directly related to the price of the property you are buying. The percentage can vary, so it’s crucial to get a detailed explanation specific to your property.

Stamp Duty: This is a fixed tax and is always 0.8% of the property’s purchase price.

Owner’s Tax: Once you become a property owner, you’ll need to pay this tax annually. The tax amount is based on the property’s fiscal value, not the purchase price you paid.

Notary Fees: You’ll also need to pay fees for notary services. These costs can vary depending on the location of the notary—whether in major cities like Lisbon or Porto or in smaller regions.

Obtaining a Mortgage in Portugal as a Foreigner

When it comes to obtaining a mortgage in Portugal as a foreigner, you’ll be pleased to know that the process is generally straightforward. You have two primary options: securing a mortgage back home, or if you’re feeling adventurous, you can go ahead and get one right here in Portugal.

If you opt to go local and get a mortgage in Portugal here’s a little pro tip: consult with experts who know the ins and outs of mortgages for non-Portuguese residents. This ensures that you’re well-informed and able to make the best decision for your financial situation.

The Standard Property Purchase Process in Portugal: The ABCs, Simplified

So, you’re all in for buying property in Portugal? Get ready to sip some vinho verde while watching the sunset from your balcony. But before that, there are a few little hurdles to jump through first. Let’s break down the process into manageable steps, shall we?

1. Reservation Agreement

This is the first formal step. You sign a written agreement and pay a reservation fee of around €5,000. This temporarily removes the property from the market and the fee gets returned when you sign the promissory contract.

2. Promissory Contract (CPC)

This is a key stage where you and the seller agree on the terms of the deal. Everything from payment conditions to what’s included with the property, like furniture, is specified here. It also sets the date for the final deed, which is when you’ll officially become the property owner.

3. Final Deed

This is it—the final step. It takes place at a public notary’s office, where you’ll sign the official documents and become the property owner. Good news is, you don’t have to be in Portugal to finalize the process. Here at Lexidy, we can represent you through a power of attorney, making the entire transaction smooth and easy for you.

FAQs – Your Questions Answered!

Can Foreigners Buy Property in Portugal? Spoiler alert: Yes!

Ah, the million-euro question—can foreigners actually buy property in Portugal? The short answer is—yes, and the Portuguese market couldn’t be happier to have you! 

Unlike some countries with a mile-long list of restrictions, Portugal gives the green light to international buyers. So, whether you’re planning to move in or just looking at it as an investment opportunity, there are zero roadblocks here.

Is It Easy to Buy Property in Portugal?

Is the process of buying property in Portugal a breeze? With the right help, it can be! Especially when you have the right legal guidance. 

Here at Lexidy, we don’t just hand out generic advice. We get to know your specific property dreams and needs. Start your journey with a free consultation to discuss the details of your prospective purchase. Trust us, with our expertise, you’ll find the process straightforward and manageable.

How Long Does the Property Purchase Process Take?

The length of the property purchase process in Portugal isn’t set in stone; it varies from case to case. In some instances, you might finalize the deal in as little as a week and a half. In other situations, particularly if negotiations with the seller are drawn out, it could take longer. 

The important thing to remember is that having expert guidance can make the process run smoothly and efficiently.


So there you have it—the ins and outs of buying property in Portugal, broken down into digestible nuggets. Whether you’re an investor looking for the next big thing or a wanderluster dreaming of a second home, Portugal’s diverse property market has something for everyone.

Purchasing property in Portugal might seem daunting, especially with the various taxes and processes involved. And while the timeline for buying a property isn’t one-size-fits-all, having the right team in your corner can make the process feel like a breeze. 

The Lexidy Difference

At Lexidy, we’re here to provide expert guidance every step of the way, making sure your property purchase is as smooth as a Portuguese custard tart.

Ready to take the leap? Get in contact with us through the form below and one of our legal eagles will be in touch to kickstart your journey.

How Can We help you?

Share with friends

More To Explore

how to stay in france longer than 90 days

How to Stay in France Longer Than 90 Days

Whether you’re dreaming of living in a quaint village in Provence or taking extended walks along the Seine in Paris, this guide has you covered. Let’s get started on making your extended French adventure a reality!

Subscribe to our newsletter

Stay ahead of the changes that matter to you

Do not hesitate to contact us

Our experts will be happy to give you a hand