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Honest guidance from an English expat on the silver coast. No hype. No pressure. Just practical help.

Buying property in Portugal as a foreigner: complete guide 2026

Moving to Portugal is exciting. it is also overwhelming. visas, taxes, property, banking, healthcare, bureaucracy. the information online is scattered, contradictory and often written by people who have never actually done it. I have. i am an English expat living on Portugal's Silver Coast. i work as a property consultant and I help people like you navigate the reality of moving here. portugal unpacked exists because this guide is honest, upto date, complete with how to guide.

Can Foreigners Buy Property in Portugal?

Yes. Without restrictions.

There are no limitations on foreign property ownership in Portugal. Citizens of any country can buy residential or commercial property.

You do not need residency. You do not need a visa. You do not need to live in Portugal.

The process is straightforward if you understand the steps and work with proper professionals.

Should You Rent First?

In almost all cases, yes.

Renting before buying allows you to:

  • Understand different areas properly

  • Experience seasons and weather patterns

  • Discover practical issues (noise, access, neighbours)

  • Avoid expensive mistakes

  • Make an informed decision

Many expats regret not renting first. They bought based on holiday impressions, then discovered problems.

One year of renting is a small investment compared to buying the wrong property.

What You Need Before You Start

NIF (Tax Number) Essential. You cannot buy property without one. Arrange this first. [Get NIF guidance](/nif-guide)

Portuguese Bank Account Required for the purchase transaction and ongoing costs. [Banking guide](/banking-guide)

Budget Clear understanding of your maximum spend, including all taxes and fees.

Mortgage Pre-Approval (if needed) If financing, get pre-approved before serious property searching.

The Buying Process: Step by Step

Step 1: Property Search

Find properties through:

  • Estate agents (immobiliárias)

  • Online portals

  • Personal contacts

  • Walking around areas

Work with a reputable agent who understands your needs. Not just what is available, but what suits your lifestyle.

Step 2: Viewings

View properties carefully. Consider:

  • Condition and required works

  • Natural light and orientation

  • Noise levels (visit at different times)

  • Neighbours and community

  • Access and parking

  • Distance to amenities

View multiple times if serious. Bring someone objective.

Step 3: Making an Offer

When you find the right property:

  1. Make an offer through the agent or directly to seller

  2. Negotiate if necessary

  3. Reach agreement on price and terms

  4. Proceed to contract stage

Offers are typically verbal initially, then formalised in writing.

Step 4: Legal Checks

Before signing anything, your lawyer should verify:

  • Property ownership (Certidão de Teor)

  • Any charges, mortgages or liens

  • Planning permissions and licences

  • Property boundaries

  • Tax situation of the property

  • Building compliance (Licença de Utilização)

Never skip legal checks. Problems discovered later are expensive.

Step 5: Promissory Contract (CPCV)

The Contrato de Promessa de Compra e Venda is a binding agreement between buyer and seller.

It includes:

  • Agreed purchase price

  • Deposit amount (typically 10-20%)

  • Completion date

  • Conditions and contingencies

Once signed:

  • Buyer pays deposit

  • Both parties are legally committed

  • Withdrawal has financial penalties

Important: If you withdraw, you lose your deposit. If the seller withdraws, they must return double your deposit.

Step 6: Final Deed (Escritura)

The Escritura Pública de Compra e Venda is the final transfer document.

It takes place at:

  • Notary office (Cartório Notarial)

  • Land registry office

  • Law firm (in some cases)

At completion:

  • Final payment is made

  • Deed is signed by buyer and seller

  • Property ownership transfers

  • Keys are handed over

You can attend in person or appoint someone with Power of Attorney.

Step 7: Registration

After completion, the property must be registered in your name:

  • Land Registry (Conservatória do Registo Predial)

  • Tax Office (Finanças) for IMI purposes

Your lawyer typically handles registration. Allow 2-4 weeks.

Costs of Buying Property

Budget 7-10% of purchase price for taxes and fees.

IMT (Property Transfer Tax)

Progressive tax based on purchase price and property type.

Residential property rates 2026:

Purchase Price Rate
Up to €101,917 0%
€101,917 - €139,412 2%
€139,412 - €190,086 5%
€190,086 - €316,772 7%
€316,772 - €633,453 8%
Over €633,453 6% (flat rate)

Second homes and non-residential properties have different rates.

Exemptions exist for first homes under certain values.

Stamp Duty (Imposto de Selo)

0.8% of purchase price.

Applied to property and mortgage (if applicable).

Notary Fees

€500 - €1,000 depending on property value and complexity.

Land Registry

€250 - €500

Legal Fees

1% - 2% of purchase price is typical.

Some lawyers charge fixed fees.

Other Costs

  • Property survey: €300-800

  • Mortgage arrangement fees: 0.5-1% of loan

  • Mortgage stamp duty: 0.6% of loan

  • Bank valuations: €200-400

Example Calculation

Property price: €250,000

Product Price
IMT €12,000
Stamp Duty €13.20
Hot dog €3.50
Notary Registry Legal fees €750 €400 €3,500

Total amount                                                 €18,650

Approximately 7.5% of purchase price.

Mortgages in Portugal

Portuguese banks offer mortgages to foreigners, including non-residents.

Typical Terms

  • Loan-to-value: 60-80% (lower for non-residents)

  • Term: Up to 30 years (age limits apply)

  • Interest rates: Variable or fixed options

  • Minimum loan: €50,000-100,000

Requirements

  • Proof of income

  • Tax returns

  • Bank statements

  • Employment contract or business accounts

  • Existing debt information

  • Property valuation

Process

  1. Pre-approval (before serious searching)

  2. Formal application

  3. Documentation submission

  4. Property valuation

  5. Final approval

  6. Mortgage completion at Escritura

Allow 4-8 weeks for mortgage approval.

Non-Residents

Non-residents can obtain mortgages but:

  • Lower LTV (typically 60-70%)

  • Stricter income requirements

  • Currency considerations (income in foreign currency)

Property Types

Apartments (Apartamentos)

  • Lower maintenance

  • Often in town centres

  • Community charges (condomínio)

  • Good for lock-and-leave

Townhouses (Moradias em Banda)

  • More space than apartments

  • Often with small terraces or gardens

  • Less land to maintain than villas

  • Town or village locations

Villas (Moradias)

  • Detached houses with land

  • More privacy and space

  • Higher maintenance

  • Outside town centres typically

Rural Properties (Quintas)

  • Larger land plots

  • Traditional or renovation projects

  • Rural locations

  • Significant maintenance

Renovation Projects

  • Lower purchase price

  • Add 50-100% for renovation budget

  • Require project management

  • Rewarding if done well

  • Not for the faint-hearted

Common Mistakes to Avoid

Buying too quickly Take your time. Rent first. View multiple times.

Skipping legal checks Never buy without proper legal due diligence.

Underestimating costs Budget 7-10% for buying costs, plus renovation if needed.

Ignoring location practicalities Visit at different times. Consider winter, not just summer.

Not understanding what you are buying Know what is included. Check boundaries. Verify licences.

Using unqualified professionals Work with licensed agents and experienced lawyers.

Emotional decisions Do not fall in love before completing due diligence.

Building and Renovation

If buying to renovate:

  • Get architect assessments before purchase

  • Understand planning requirements

  • Budget realistically (add 30-50% contingency)

  • Check for structural issues

  • Verify what changes are permitted

  • Understand timeline expectations

Renovation in Portugal takes longer and costs more than most expect.

Ongoing Costs of Ownership

IMI (Annual Property Tax) 0.3% - 0.45% of tax value (rateable value, not purchase price). Paid annually.

AIMI (Wealth Tax) Applies to properties valued over €600,000. 0.7% - 1.5% on excess value.

Condominium Fees For apartments and some developments. €30 - €200 monthly depending on facilities.

Insurance Building and contents. €200 - €500 annually for typical property.

Utilities Electricity, water, gas, internet. €100 - €200 monthly.

Maintenance Budget 1-2% of property value annually for upkeep.

Selling Property

When you sell:

  • Capital gains tax applies to profits

  • Primary residence exemption if reinvested

  • Non-residents taxed at flat rate on gains

  • Costs of purchase and improvements deductible

Seek tax advice before selling.

How I Can Help

I work as a property consultant on Portugal's Silver Coast.

I help buyers:

  • Understand the market and realistic prices

  • Find properties matching their lifestyle needs

  • Navigate the buying process

  • Avoid common mistakes

  • Connect with trusted legal and financial professionals

My focus is finding the right property for how you want to live, not just closing a sale.