Can Americans Buy Property in Portugal and Algarve?
US citizens can buy property in Portugal and the Algarve. Here’s what Americans need to know — from legal steps to taxes and stay limits.
Introduction
Portugal has become one of the most popular destinations for American property buyers — and the Algarve, in particular, offers the lifestyle, climate, safety, and affordability many are looking for.
If you’re a US citizen considering buying a holiday home, retirement villa, or investment property in Portugal, the good news is: you can absolutely buy property here.
This article explains how Americans can buy property in Portugal, what the process looks like, and what legal, financial, and residency aspects to consider.
Can US Citizens Buy Property in Portugal?
Yes — there are no restrictions on Americans buying property in Portugal. Whether you’re looking for a beachfront apartment, a countryside villa, or a rental investment, you’re free to purchase property just like locals or EU citizens.
You do not need a visa or residency to buy property in Portugal. Ownership rights for non-EU buyers — including Americans — are fully protected under Portuguese law.
Do I Need to Live in Portugal to Own Property?
No. Many Americans buy property in the Algarve and visit seasonally. You can own a home in Portugal without living there full-time, and you can rent it out legally as a short- or long-term rental.
If you plan to spend more than 90 days at a time in Portugal, you’ll need to apply for a residency visa — but that’s optional if you’re visiting within the Schengen allowance.
How Long Can Americans Stay in Portugal Without a Visa?
As a US citizen, you can visit Portugal for:
- Up to 90 days in any 180-day period without a visa
- This includes tourism, business, or property visits
- Time spent in other Schengen countries counts toward the 90 days
If you plan to relocate permanently, you’ll need a residency visa like the D7 (passive income), D8 (remote work), or D2 (entrepreneur).
Property Purchase Process for Americans
The buying process for Americans is straightforward. Here are the steps:
- Get a Portuguese tax number (NIF)
- Open a Portuguese bank account
- Hire an independent real estate lawyer
- Make an offer and sign a Promissory Contract (CPCV)
- Pay a deposit (usually 10–30%)
- Sign the final Deed (Escritura) at the notary
- Register the property in your name
All of this can be done remotely with power of attorney if you’re not in Portugal.
🔗 Related Reading: Buying Property in Algarve as a Non-EU Citizen: Step-by-Step Guide
Are There Additional Taxes for Americans?
No — property taxes are the same for US buyers as they are for locals or EU citizens. You’ll need to plan for:
- IMT (property transfer tax): 1–8%
- Stamp Duty: 0.8%
- Notary and legal fees
- Annual IMI tax: usually 0.3%–0.5% of the property’s taxable value
Use our IMT & Stamp Duty Calculator to estimate what you’ll pay.
🔗 Related Reading: Costs and Taxes When Buying Property in Portugal
Can Americans Get a Mortgage in Portugal?
Yes — but it’s usually more straightforward to buy in cash. If you’re applying for financing:
- Portuguese banks may lend up to 60–70% of the property’s value
- You’ll need to show US income, tax returns, and bank statements
- Loan approval takes 4–6 weeks, and some banks may require life insurance
We recommend discussing financing with your lawyer or a specialist mortgage broker in Portugal before making an offer.
Currency Exchange Considerations
Buying in Euros when your funds are in USD means exchange rates can significantly impact your total cost.
Many American buyers lose thousands by using their US bank for large transfers.
We can introduce you to a trusted foreign exchange partner that offers:
- Better rates than US banks
- Lower transfer fees
- Guidance on timing and locking in rates
Can Americans Rent Out Their Property?
Yes — and many do. If you plan to use your home as a short-term rental (Airbnb-style), you’ll need to apply for an Alojamento Local (AL) license from the local authorities.
Long-term rentals don’t require a license, but you may need a fiscal representative if you’re not tax-resident in Portugal.
Final Thoughts
Buying property in Portugal as an American is not only legal — it’s increasingly common. With proper planning and professional support, you can safely purchase and enjoy a home in the Algarve or elsewhere in Portugal.
Whether you’re buying a holiday escape, retirement retreat, or investment property, the key is to understand the steps, stay within your visa allowance, and build a local support network to guide the process.
How We Help American Buyers Purchase Property in Portugal
We specialize in helping serious buyers from the US find and purchase the right property.
- Search across all agent networks and off-market listings
- Coordinate viewings and legal process
- Refer you to trusted lawyers, FX providers, and mortgage brokers
- Represent your interests as a buyer
FAQ – Americans Buying Property in Portugal
Yes — there are no restrictions. US citizens can legally buy, own, and rent property in Portugal.
You can stay up to 90 days in any 180-day period without a visa. For longer stays, you’ll need a residency visa.
No. Many American buyers complete purchases remotely by giving power of attorney to a lawyer.
No — you pay the same IMT, stamp duty, and property taxes as any other buyer.
Yes, but banks are selective. You’ll need to provide income documents and be prepared for slower processing.
