How to Buy Property in Portugal as a Foreigner

Introduction

Thinking about buying property in Portugal as a foreigner? You’re not alone. Portugal has become one of Europe’s most attractive destinations for international buyers — offering a mix of sunshine, safety, investment potential, and lifestyle.

The good news? Foreigners can legally and easily buy property in Portugal — whether you’re from within the EU, the UK, the US, or beyond. But the process still involves a few essential steps, and understanding them early will help you avoid costly mistakes.

This guide walks you through the key stages, from finding the right property to finalizing the deal — with a focus on clarity, confidence, and protecting your interests.

1. Can Foreigners Buy Property in Portugal?

Yes — Portugal places no restrictions on foreigners purchasing property.
Whether you’re looking to retire, relocate, invest, or secure a second home, the path is open to both EU and Non-EU buyers.

What differs is what comes after — such as residency, tax benefits, and visa options (more on that later).

2. Decide Where You Want to Buy

Portugal offers a wide range of property options — from Lisbon apartments and Douro farmhouses to coastal Algarve villas.

Most foreign buyers gravitate to:

• Algarve (sunshine, golf, beaches, retiree haven)
• Lisbon/Cascais (city life, investment property)
• Silver Coast (more local, lower prices)
• Porto & North (growing interest from investors)

🔗 Related Reading: Best Places to Buy Property in Algarve

3. Appoint a Local Lawyer (Recommended)

Although it’s not legally required, hiring a Portuguese property lawyer is strongly recommended — especially if you are buying from abroad.

A lawyer will:

• Review contracts
• Ensure the seller has legal title
• Protect you from common scams or agent bias
• Assist with power of attorney (if you’re abroad during the process)

📌 Pro Tip: Choose a lawyer who is independent of the seller or agent, and who speaks your language.

4. Get a Portuguese Tax Number (NIF)

Before making an offer, you’ll need to get a Número de Identificação Fiscal (NIF) — your Portuguese tax ID.
You can get this:

• In person at a Portuguese tax office
• Through your lawyer (via power of attorney)
• Sometimes via your bank

Without a NIF, you cannot:

• Open a Portuguese bank account
• Sign a property contract
• Apply for utilities

5. Open a Portuguese Bank Account

While you can pay in foreign accounts, it’s usually required — or at least preferred — to have a Portuguese bank account for:

• Property payments
• Legal transactions
• Utility setup
• Mortgage (if applicable)

6. Secure Financing (If Needed)

Foreigners can get mortgages in Portugal, though conditions depend on your nationality, residency status, and income.

• Expect to borrow 60–70% loan-to-value (LTV)
• Non-residents typically need larger down payments
• Mortgage approval can take 2–6 weeks

🔗 Related Reading: Is Lagos Still a Smart Investment in 2025?

7. Make an Offer and Sign a Promissory Contract (CPCV)

Once you’ve found a property and agreed on a price:

• A CPCV (Contrato de Promessa de Compra e Venda) is signed
• You pay a 10–30% deposit
• The contract includes: timeline, conditions, penalties

Your lawyer should review this thoroughly before you sign anything.

8. Final Deed and Registration

The final step is signing the Escritura Pública de Compra e Venda (the official deed of sale), usually done:

• At a Notary Office
• With your lawyer present
• After confirming all legal documents

Once signed:

• You become the legal owner
• The property is registered in your name
• Taxes and fees are paid

9. Understand the Taxes and Fees

Expect to pay the following:

• IMT (Transfer Tax): Sliding scale depending on price and type
• Stamp Duty: 0.8% of purchase price
• Legal + Notary fees: ~1–2%
• Ongoing municipal property tax (IMI): Annual, based on value

🔗 Related Reading: Costs and Taxes When Buying Property in Portugal

10. Optional: Apply for Residency or Visa

Buying property does not automatically grant residency, but it may help with:

• D7 Visa (Passive Income / Retirement)
• D8 / Digital Nomad Visa
• Golden Visa (now limited, but still valid in some cases)

🔗 Related Reading: Can You Get Residency by Buying Property in Portugal?

Final Thoughts

Portugal offers one of the most straightforward property buying processes in Europe — even for foreigners. But doing it right means understanding the steps, hiring the right professionals, and knowing your obligations.

If you’re considering buying in the Algarve specifically — where demand is high and local knowledge is key — we can help.
We represent buyers only, with no hidden fees or conflicts of interest, and help you navigate the market from start to finish.

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