The Ultimate Guide to Real Estate in Portugal for Foreigners
Portugal has become a hotspot for foreign property buyers – drawn by its mild climate, safety, beautiful landscapes, and comparatively low cost of living.
In recent years, investors and expats from around the world have flocked to Lisbon, the sunny Algarve coast, historic Porto, and beyond.
Not even the phasing out of special programs like the Golden Visa in late 2023 has dented this appeal – foreign demand remains strong, and housing prices have continued to climb. Crucially, Portugal imposes no restrictions on foreign ownership of property: buyers of any nationality, resident or not, can purchase real estate anywhere in the country.
This comprehensive guide will walk you through everything a foreigner needs to know – from comparing regions and property types, to understanding true costs, taxes, bureaucracy, residency visas, and savvy local tips to avoid pitfalls.
By the end, you’ll be equipped with detailed knowledge (sourced from both English and Portuguese experts) to navigate a property purchase or rental in Portugal with confidence.
What makes Portugal special?
Beyond the sun and scenery, many foreigners are enchanted by Portugal’s rich culture, welcoming people, and stable economy. It consistently ranks as one of the safest countries in the world with a high quality of life exiap.pt.
The real estate market has shown strong growth in the last decade – especially in major cities and resort areas – yet still offers bargains in lesser-known regions.
No citizenship or residency is required to buy property, and transaction processes are relatively straightforward (if a bit bureaucratic). However, buying in a foreign country also comes with hidden costs, unfamiliar taxes, and legal procedures that are vital to understand upfront. This guide breaks down those details, and also highlights recent changes like the end of the Golden Visa program and the tax regime for non-habitual residents idealista.pt so you have the latest information as of 2025.
(Important note: This guide is in English but draws on local Portuguese sources – including laws, forums, and blogs – to give authentic, up-to-date insight. All Euro figures are in € EUR.)
The Guide of Regional Real Estate Markets in Portugal
One of your first considerations should be where in Portugal to buy or rent. The country’s regions vary widely in climate, lifestyle, and property prices. Below is a comparison of key areas:
Lisbon area
Lisbon (Lisboa) – The capital and largest city, Lisbon is Portugal’s most expensive market by far.
In late 2024, median asking prices hit around €5,700 per square meter idealista.pt – more than double the national average. Lisbon’s appeal is obvious: a mix of historic charm and modern amenities, vibrant culture and nightlife, and a thriving expat community. Neighborhoods like Chiado, Principe Real, and Avenida da Liberdade command top prices for elegant apartments, while areas like Alfama or Graça offer old-world charm (often with properties needing renovation)
Foreign buyers also flock to the scenic suburbs and coast around Lisbon:
the Cascais-Estoril area (the so-called “Portuguese Riviera”) is known for luxury villas and condos (prices here rival Lisbon city), and Sintra offers palatial homes amid lush hills.
Buying in greater Lisbon offers strong long-term investment potential – demand consistently outstrips supply in this economic hub exiap.pt. Just be prepared for stiff competition and high upfront costs. Rental yields in Lisbon are on the low side (more on that later), hovering around 4–5% gross idealista.pt due to the high prices, but many investors bank on capital appreciation and rental demand from tourists and relocators.
Porto and Northern Coast
Porto and Northern Coast – Porto, Portugal’s second-largest city, has also emerged as a favorite for foreign buyers. It’s more affordable than Lisbon (about €3,700/m² on average idealista.pt in late 2024) yet offers a rich cultural scene, beautiful architecture, and a fast-improving infrastructure.
Neighborhoods like Foz do Douro and Ribeira (waterfront areas) and the city center command the highest prices, while up-and-coming areas like Bonfim or Campanhã offer better value. Porto is known for its historic townhouses (moradias), many of which have been converted into modern apartments or guesthouses.
Neighborhoods like Foz do Douro and Ribeira (waterfront areas) and the city center command the highest prices, while up-and-coming areas like Bonfim or Campanhã offer better value. Porto is known for its historic townhouses (moradias), many of which have been converted into modern apartments or guesthouses.
The Northern region beyond Porto – e.g. the Douro Valley wine region, or cities like Braga and Guimarães – offers even cheaper real estate and appeals to those looking for a more traditional Portuguese lifestyle. For example, in Braga the median price is under €2,000/m². Porto’s rental yields (~5–6% in 2024) are slightly higher than Lisbon’s. Overall, if you want a mix of city life, investment upside, and slightly lower costs than Lisbon, Porto is a strong choice.
Algarve (Southern Coast)
Algarve (Southern Coast) – The Algarve is famed for its golden beaches, golf resorts, and warm climate, attracting many retirees and holiday-home investors from abroad. It encompasses coastal towns from Lagos, Portimão, Albufeira (western/central Algarve) to Vilamoura, Quinta do Lago (central luxury resorts) to Tavira in the east. Property prices in the Algarve are the highest outside Lisbon: for instance, Faro (the capital of Algarve) averages ~€3,150/m² idealista.pt, and popular resort areas are often higher (prime villas easily exceed €5,000/m²).
The “Golden Triangle” area (Vilamoura–Quinta do Lago–Vale do Lobo) is known for luxury developments, gated communities, and golf-front homes with multi-million euro price tags. In contrast, western Algarve towns like Lagos or Sagres, and eastern villages like Tavira or Cabanas, can offer more reasonably priced homes and a slower pace of life. The Algarve’s market is heavily influenced by tourism – many buyers rent out their properties to vacationers. Indeed, owning a licensed holiday rental (Alojamento Local) in the Algarve can generate strong income in summer.
Gross rental yields around 5% are typical in Algarve cities idealista.pt, but some high-end coastal properties are purchased more for lifestyle than yield. Keep in mind seasonal dynamics: some parts of the Algarve virtually shut down in winter, whereas towns with larger permanent populations (like Lagos, Portimão, Loulé) have year-round services. Overall, the Algarve remains a top pick for sun-seeking foreigners, though prices have risen steadily (even 15%+ annually in the luxury segment in 2022 idealista.pt) due to high international demand.
Silver Coast (Costa de Prata)
Silver Coast (Costa de Prata) – The “Silver Coast” refers to the coastal region roughly between Lisbon and Porto – including areas in Lisbon’s northern outskirts (Ericeira), the surf coast around Peniche and Nazaré, and up to Figueira da Foz. This region offers more affordable coastal living as an alternative to the Algarve.
For example, in Leiria (a district in the Silver Coast region) the average price is around €1,600/m² – less than half the price in the Algarve. Towns like Caldas da Rainha, Óbidos, Nazaré, São Martinho do Porto are popular with expats who seek a quieter seaside lifestyle. You can find everything from modern apartments near the beach, to rustic farmhouses a few kilometers inland, often at attractive prices. The Silver Coast’s weather is slightly cooler and more temperate (with some Atlantic fog) compared to the Algarve, but still pleasant. Rental potential exists (especially for summer lets in beach towns and winter rentals for surfers), though it’s not as robust as in Lisbon/Algarve. If you’re looking for a balance of coastal beauty and budget-friendliness, the Silver Coast and central Portugal deserve a close look.
Alentejo
Alentejo – The Alentejo is a vast region covering much of southern inland Portugal (stretching from just east of Lisbon down to the Algarve’s border). It is known for rolling plains, wineries, olive groves, and a sparse population.
Real estate here is generally the cheapest in southern Portugal – Évora, the historic capital of Alentejo, averages ~€2,370/m², and smaller towns or rural areas are often far less.
In villages of the Alentejo, one can find traditional cottages or even small farms (quintas) at bargain prices (sometimes under €1,000/m² or total prices under €100k for a renovation-needed country house).
The region appeals to those seeking space, tranquility, and rural charm – for example, some foreigners buy wine estates or renovated farmhouses to run tourism businesses or retreats.
Note that coastal Alentejo (e.g. Comporta and Melides, just south of Lisbon) is an exception – that area has become trendy among luxury buyers, driving prices way up (on par with Algarve in some cases).
But aside from those coastal enclaves, Alentejo remains a place for elbow room and lower costs.
Bear in mind the climate: very hot summers in the interior, and services can be limited in remote areas.
Rental yields or resale liquidity in pure rural areas are low, so this region is best for lifestyle buyers who truly want the quiet countryside experience.
Islands (Madeira and Azores)
Islands (Madeira and Azores) – Portugal’s autonomous islands each offer something unique. Madeira, the subtropical island in the Atlantic, has become popular for its mild year-round climate and natural beauty.
Its capital, Funchal, is a thriving city drawing expats and digital nomads; property in Funchal averages ~€3,540/m² (comparable to Porto), with some luxury condos and homes aimed at foreign buyers. Coastal villas with ocean views are in high demand. Rental yields in Madeira are moderate (~5%), supported by a steady flow of tourists and long-stay visitors.
The Azores (a cluster of nine islands) are more remote and traditionally see fewer foreign buyers, but interest is growing. São Miguel island (Ponta Delgada is the main city, ~€2,100/m²) offers lush landscapes, and some invest in Azores property for tourism (eco-lodges, guesthouses, etc.).
Prices in the Azores are generally lower than mainland Portugal, but the market is small – good deals can be found on rustic cottages or land. If considering the islands, factor in extra complexity: logistics of travel, property management from afar, and in the Azores, a wetter climate.
The Madeira market in particular saw a boost in recent years (some Golden Visa investors shifted there when mainland rules tightened before the program ended). Both islands allow for a relaxed lifestyle and can be attractive for retirement or holiday homes.
Interior and Other Areas
Interior and Other Areas – Outside the aforementioned regions, there are many other parts of Portugal to consider.
The interior north and central (e.g. Viseu, Guarda, Castelo Branco districts) offer some of the cheapest real estate in Western Europe. For instance, the city of Guarda has median prices under €900/m² – small town Portugal can be incredibly affordable. Foreigners who don’t mind being off the beaten track can find historic village homes or even small castles to renovate. Another area is the Greater Lisbon outskirts not on the coast – such as Setúbal,
Santarém, or Mafra – where prices are lower than in Lisbon city but still relatively close to urban centers. Coimbra, home to Portugal’s oldest university, is a lovely central city where some expats settle (prices ~€2,100/m²).
Each locale has its nuances, but generally the further from the coast and big cities, the lower the price – and the slower the property market moves. Always consider access to healthcare, transport, and community when looking in very rural areas.
✅ Tip: When comparing regions, it helps to visit in person (if possible) or do a short-term rental in your target area first. Portugal’s regions differ in climate (north is cooler and wetter; the south is dry and hot; the coasts can be windy), in culture (a village in Serra da Estrela vs. expat-heavy Algarve are worlds apart), and amenities. Make a list of your priorities – city convenience vs. peaceful nature, investment rental yield vs. personal lifestyle, etc. – and let that guide your region choice. Also, keep resale in mind: demand in Lisbon/Porto/Algarve is liquid, whereas a home in a remote village might take longer to sell later.
The True Costs of Buying Property in Portugal
First of all, we would like to present to you the real estate transaction price statistics in Portugal for the past year, 2024:
House Prices for Purchase by District Capitals
Median value in December (euros/m²)
Variation between December 2024 and the same month of the previous year (%)
| District Capitals | Prices (euros/m²) | Annual Variation (%) |
|---|---|---|
| Aveiro | 2,576 | 3.2% |
| Beja | 1,088 | 13.7% |
| Braga | 1,975 | 12.1% |
| Bragança | 1,052 | 13.0% |
| Castelo Branco | 896 | 3.8% |
| Coimbra | 2,093 | 14.7% |
| Évora | 2,372 | 17.9% |
| Faro | 3,157 | 9.0% |
| Guarda | 845 | 4.7% |
| Leiria | 1,632 | 15.4% |
| Lisboa | 5,718 | 5.1% |
| Portalegre | 860 | 5.6% |
| Porto | 3,705 | 7.3% |
| Santarém | 1,340 | 13.0% |
| Setúbal | 2,568 | 13.7% |
| Viana do Castelo | 1,949 | 3.2% |
| Vila Real | 1,403 | 21.2% |
| Viseu | 1,587 | 13.2% |
| Funchal | 3,542 | 11.1% |
| Ponta Delgada | 2,124 | 13.3% |
When setting your budget, it’s vital to account for more than just the purchase price of the property.
There are several taxes and fees in Portugal that will add around 6–10% on top of the sale price (depending on price and region) for a typical real estate purchase. And beyond closing costs, you should plan for ongoing expenses like property tax and maintenance. Let’s break down the costs:
Property Purchase Tax (IMT – Imposto Municipal sobre Transmissões): This is the property transfer tax and often the largest extra cost. It is a one-time tax paid before the deed transfer.
IMT is calculated on a sliding scale up to about 6–7% for most home purchases (and can be as high as 8% for expensive properties, or 10% in very specific cases like if the buyer is an offshore company in a tax haven).
The exact rate depends on the property value, type, and use. For example, a primary residence has a somewhat lower effective IMT (there’s a reduced rate on the first ~€93,000 of value for residents buying their main home), whereas a second home or investment property pays a bit more. Rural land (prédio rústico) is taxed at a flat 5%. IMT also varies by location – properties in the autonomous regions (Madeira/Azores) get a 15% reduction in IMT.
Example: On a €300,000 apartment for secondary residence, the IMT might be around €8,000–€16,000 (roughly 2.5–5.5% depending on exact brackets). The Portuguese Tax Authority’s website provides IMT tables each year. It’s critical to include IMT in your budget; many first-time buyers forget this and get an unpleasant surprise at closingsuperideal.pt.
(Note: First-time buyers under age 35 may benefit from an IMT exemption up to €250k as of 2024 reforms, if purchasing a primary home. Always check current rules for any exemptions or discounts.)
Stamp Duty (Imposto do Selo): In addition to IMT, Portugal levies a stamp duty on property purchases of 0.8% of the purchase price (or the property’s taxable value, whichever is higher.
This is a flat rate nationwide. For example, a €300,000 property will incur €2,400 in stamp duty. Stamp duty is paid at the time of the deed as well.
If you take out a mortgage, there is also a small stamp tax on the loan amount (0.6% for loans over 5 years term). So a €200,000 mortgage would have an additional €1,200 stamp tax on the loan. Essentially, every property transaction will have this 0.8% stamp tax, so factor it in.
Notary and Registration Fees: To formalize a property sale in Portugal, you must sign the deed (escritura) in front of a notary or at the registry office, and register the property in your name.
These services carry fees. If you use the state’s one-stop service called Casa Pronta, the total notary + registration cost is fixed by law, typically €375 for a cash purchase or around €700 if there’s a mortgage involved.
Using a private notary might cost a bit more, say €500–€1,000, plus registration fees. Many buyers go through a notary office; others use Casa Pronta (available at land registry offices) for convenience.
Either way, these costs, while not huge relative to taxes, should be remembered. Usually the buyer pays for the deed and registration. (If you’re obtaining a mortgage, the bank will also charge an appraisal fee of a few hundred euros and their own administrative fee, perhaps €600–€800 – ask the bank for a breakdown.)
Legal Fees (Lawyer/Solicitor): Though not mandatory by law, it is highly recommended that foreign buyers hire a local real estate lawyer (advogado) or solicitor to represent them.
A lawyer will conduct title searches, check for liens or debts on the property, verify licenses, draft/review contracts, and ensure a safe closing. Legal fees can range from about 1% of the purchase price to a flat fee arrangement depending on the complexity.
For example, on a €250,000 purchase, a 1% fee would be €2,500. Some lawyers charge hourly but will quote a ballpark total.
Given the importance of due diligence in Portugal (as we’ll explain, debts can stick to the property savvycatrealty.com), this is money well spent. If you are not in Portugal, your lawyer can act via power of attorney on your behalf for many steps.
Realtor (Estate Agent) Fees: In Portugal, the standard practice is that the seller pays the agent’s commission, which is usually 5% + VAT (so 6.15% effectively) of the sale price, split between listing and buyer agents if applicable.
As a buyer, you typically do not pay any commission if you buy a listed property – the commission comes out of the seller’s proceeds.
However, if you engage a special buyer’s agent or property finder to source off-market deals, that agent might charge you a fee (either a percentage or flat finder’s fee). Clarify this in advance.
Generally, browsing properties on portals or going through listing agents won’t cost a buyer anything directly.
Just be aware that the agents are incentivized to close deals (they only get paid if the sale happens), so do your own due diligence regardless of their assurances.
Mortgage Costs: If you take a mortgage loan in Portugal, there will be some bank-related costs.
Beyond the stamp tax on the loan mentioned above, banks often charge a processing fee (e.g. €200) and require life and property insurance (the cost of insurance varies with age and property value; see below).
The bank will also register the mortgage on the title (a small fee) and perhaps require a fiscal representation if you’re non-resident.
When comparing loans, look at the APR (TAEG) which includes insurance and fees to see the true cost. Later, if you want to refinance or pay off early, Portuguese banks can charge an early repayment penalty (e.g. 0.5% on variable-rate loans).
Factor interest rate fluctuations too – most loans are variable rate tied to Euribor, which can change your monthly costs.
Annual Property Tax (IMI): After purchase, you’ll pay IMI (Imposto Municipal sobre Imóveis) each year.
This is Portugal’s annual council tax, similar to property tax elsewhere. The IMI rate is set by each municipality in the range of 0.3% to 0.45% of the property’s taxable value (VPT) for urban properties.
The VPT is usually lower than market value – it’s a valuation set by the tax office. For example, an apartment that cost €300,000 might have a VPT of €200,000, and if the IMI rate is 0.35%, you’d pay €700/year. Rural land has a higher flat rate (0.8%) but since land VPTs are low, the tax is small. IMI is due every year (usually billed in 1 to 3 installments depending on amount) in the spring.
Note: There is an exemption for low-value primary homes – if VPT is under €125k and it’s your first and only home, you can get 3 years IMI-free. Also, newly built homes used to have a 3-5 year exemption (check if that’s still in effect or changed in recent budgets). Always verify the IMI rate for the specific location; urban centers tend to have around 0.34–0.36%. It’s wise to ask for the property’s caderneta predial (tax document) which shows the current VPT, so you can estimate IMI.
Wealth Tax (AIMI): Portugal has an additional tax on high-value real estate, known as AIMI (Adicional ao IMI).
It’s often dubbed a wealth tax. It only applies if your total Portuguese property holdings have a VPT value above €600,000 (for an individual). Above that threshold, a 0.7% rate applies on the excess (and higher rates for amounts over €1 million).
For properties held in a company, the threshold is lower (€0 for offshore companies or €500k for others). In practice, this means if you (as an individual) own one or multiple properties and their combined VPT is, say, €800k, you’d pay 0.7% on €200k (about €1,400/year) in AIMI.
If you jointly own with a spouse, the threshold doubles to €1.2 million jointlyportugalxpert.com.
Most average buyers won’t hit this, but if you’re buying a luxury property (or several properties), be aware of AIMI. This tax is assessed each year on 1 January and payable by September portugal-accounting.com.
Maintenance and Utilities: Don’t forget the ongoing costs of maintaining the property.
If it’s an apartment, the condominium fee as mentioned can be a significant monthly cost. For a house, budget for garden/pool maintenance if applicable. Utilities in Portugal (electricity, water, gas, internet) are comparable to EU averages – you’ll pay these whether you own or rent.
For example, electricity might be €50–€100/month depending on usage. If the property is part of a resort or has security/gated community, there may be resort fees or service charges. Building insurance is mandatory if you have a mortgage (and advisable regardless) – typically a multi-risk home insurance might be a few hundred euros per year for a standard home.
Content insurance is optional. If you rent the property out, you might have costs for a property manager or Airbnb management (often 20% of rental income for full management). And every so often, plan for upkeep: painting, fixing damp (in older homes), roof checks, etc. Portugal’s climate can be tough on buildings (especially in coastal areas with salt air, or old houses with poor insulation).
A rule of thumb is to set aside 1% of property value per year for maintenance, though new builds will require much less early on.
Hidden Purchase Costs: Foreigners should also consider currency exchange costs (if you’re converting currency to Euros, use a reputable FX service to get good rates – some services like Wise can save a lot on transfers wise.comwise.com).
There may be costs to obtain documents like fiscal number (NIF) and translations if needed.
For non-residents, until recently it was required to appoint a fiscal representative in Portugal to receive tax correspondence – which could cost a few hundred euros a year – but since 2022 you can opt instead for electronic notifications and avoid needing a paid fiscal repwise.com.
We’ll explain that in the bureaucracy section. If you aren’t present for closing, you might pay for a power of attorney (~€100) for your lawyer. Also, if the seller and buyer use an agent to handle the IMT and stamp duty payments and paperwork, sometimes a small administrative fee might be charged by the agency or solicitor for that service. These little things can add up to a few hundred euros but are not deal-breakers.
Summary of Buyer’s One-Time Costs: As a foreign buyer, you should budget roughly an extra ~8% on top of the purchase price for taxes and fees (a bit less for cheaper properties, a bit more for very expensive ones because of higher IMT rate).
For example, on a €250,000 home, you might pay around €7,000 IMT (approx., depending if second home), €2,000 stamp duty, €1,000 notary/registration, €2,500 lawyer – totaling ~€12,500 (5%). If it’s a second home/investment, the IMT could be higher, say ~€11k, making it ~€17k (7%) in total costs. Always run the calculations for your specific case. exiap.ptexiap.pt
And don’t forget the ongoing costs: annual IMI tax, insurance, condo fees, utilities, etc. It’s wise to make a little spreadsheet of anticipated yearly costs so you aren’t caught off guard. In Portugal, property holding costs are not extremely high compared to some countries (IMI is relatively modest, and no general wealth tax beyond AIMI), but ignoring them can pinch your cashflow later.
The Buying Process and Bureaucracy in Portugal
1. Obtain a Portuguese Tax Number (NIF)
Obtain a Portuguese Tax Number (NIF): Before you can do almost anything (open a bank account, sign deeds, pay taxes), you need a Número de Identificação Fiscal (NIF), which is the Portuguese tax identification number. This is required for citizens and foreigners alike for fiscal activities.
You can get a NIF from any tax office (Finanças) or a Loja do Cidadão service center.
Documents needed: your passport (for non-EU citizens) or ID card (EU citizens). If you are not an EU resident, you may need to appoint a tax representative at the time of getting NIF – historically this was required (a Portuguese resident who agrees to be your liaison for tax matters).
However, as noted earlier, since 2022 there is an alternative: you can sign up for the tax authority’s electronic notifications system and avoid having a human tax representative. Many foreigners still use their lawyer or an accountant as the fiscal rep, especially if they don’t plan to be in Portugal often – it can be convenient.
In any case, getting the NIF is usually quick (you walk out with the number assigned).
Tip: if you cannot be in Portugal, some law firms will obtain a NIF for you by power of attorney. The NIF does not automatically make you a tax resident; it’s just an ID number. It will be used on all documents and payments related to your property.
2. Open a Portuguese Bank Account
Open a Portuguese Bank Account:
While not legally mandated to have a local bank account, it is highly practical to open one. Many of the payments you’ll make – IMT, utilities, etc. – will be easier with a Portuguese account.
Some bills (like IMI tax) may be only payable via Portuguese banking methods or require a Portuguese IBAN for direct debit.
Opening an account as a non-resident is possible at most banks (Millennium BCP, Novo Banco, Caixa Geral, Santander, etc.) with your passport, NIF, and proof of address abroad.
You might need to deposit a small amount. Also, if you’re getting a mortgage from a Portuguese bank, they will insist you open an account with them.
Fees for basic accounts are €5–€10/month typically. Online banking in Portugal has improved and most banks have English options.
There are also digital banks (like ActivoBank, N26, Revolut) which you could consider. Having the local account will make paying the notary, the seller, and ongoing bills smoother.
3. House Hunting and Selecting a Property
House Hunting and Selecting a Property:
With admin set up, you can search for your property. Use popular listing portals like Idealista, Imovirtual, Casa Sapo, Remax, etc. Note that the same listing might appear on multiple sites (duplicate listings are common).
It’s wise to cast a wide net: properties in Portugal are sometimes not marketed aggressively, and some great finds are listed on lesser-known sites or even just posted on a window (“vende-se” sign).
If you’re already in Portugal, drive around target neighborhoods – many deals are found via local word-of-mouth. Also consider engaging a buyer’s agent if you have specific needs or are remote; they can alert you to new listings and off-market opportunities.
When you find a place you like, try to visit in person or have a representative do so. Pictures can be deceiving – sometimes properties look larger or in better shape online than reality, and occasionally listings remain online even after the property is sold (agents use them as bait for leads). Verify the property is indeed available.
Due Diligence:
Once you’re serious about a property, the due diligence phase starts. Usually, you will make an offer (proposta) through the agent or directly to owner. Negotiation is common – many sellers price in some padding for negotiation, often ~5-10%. Once price is agreed verbally, you or your lawyer should verify the property’s legal status. Key things to check:
Land Registry (Registo Predial): Obtain a Certidão Predial Permanente from the land registry, which shows the official owner, description of the property, and any liens or mortgages. Ensure the seller is the registered owner (or has power of attorney from all owners) and that there are no unexpected charges or seizures.
Tax Records (Caderneta Predial): This shows the taxable value and property type. Confirm that the property’s description (area, number of rooms, type of property) matches reality. If the property is listed as e.g. a two-bedroom but physically has three (perhaps due to an unlicensed addition), that’s a red flag requiring further inquiry.
Habitation License (Licença de Habitação): For any dwelling built after 1951, there should be a habitation license issued by the local council, certifying it was built legally and is fit for living. Verify this license exists, especially with renovated properties or rural homes – sometimes sellers build extensions or even entire homes without permission. Buying a property with illegal works or missing license can become your headache (in worst cases, you might have to legalize it or even demolish illegal parts). Have an architect or engineer review if necessary.
Debts and Utilities: Check if there are any outstanding utility bills, condo fees, or property taxes. Under Portuguese law, unpaid charges like condo fees or even certain taxes can stay attached to the property (and thus become the responsibility of the new owner if not cleared). Your lawyer will typically ask the seller for proof of no debts (debt-free certificates from the condo board, etc.). It’s wise to also ensure utilities will be transferred with no arrears.
Tenant or Other Occupants: Confirm whether the property is being sold vacant (livre). If there is a tenant, understand the lease terms. Portugal has strong tenant protections, especially for older leases – you might not be able to evict easily. If you’re buying an investment with tenants, that could be fine, but if you intend to live in it, you want vacant possession at deed. Include that condition in contracts.
Survey/Inspection: Though not as common as in some countries, you may choose to do a structural survey or inspection, particularly for an older house. There’s no formal requirement for seller disclosures, so it’s “buyer beware.” Look for damp, mold, roof condition, plumbing, electrical issues. Hiring an engineer for a survey (cost a few hundred euros) can be useful.
At this stage, usually buyer and seller (often via agents) agree on terms and move to a preliminary contract.
4. Promissory Contract (Contrato-Promessa de Compra e Venda - CPCV)
Promissory Contract (Contrato-Promessa de Compra e Venda – CPCV): It is standard in Portugal to sign a promissory sale and purchase agreement once both parties are ready to commit.
This CPCV is a legally binding contract where the seller promises to sell and the buyer promises to buy, under the agreed terms, by a certain date.
The contract will list the property details, price, payment schedule, deadline for the final deed, and any special conditions (e.g. “subject to obtaining mortgage approval” or “seller will fix X issue before closing”). At the signing of the CPCV, the buyer usually pays a deposit (sinal), typically 10% of the price (though it can be any amount agreed, often 10-30%).
Under Portuguese law, this deposit has a powerful effect: if the buyer backs out without valid reason, they forfeit the deposit; if the seller backs out, they must return double the deposit to the buyer as compensation.
This helps protect both sides – the buyer is protected from gazumping because the seller would face a penalty for default. Make sure the CPCV clearly states those terms (it usually cites Article 442 of the Civil Code which governs the sinal).
The CPCV is typically prepared by the buyer’s lawyer or the notary and signed by both parties (and two witnesses). It does not require a notary, but some people do sign it in a notary’s presence for extra formalism. Once the CPCV is signed and deposit paid, both parties are locked in to proceed.
5. Complete any Financing or Conditions
Complete any Financing or Conditions: After the promissory contract, there is usually a period (often 1 to 3 months) before the final deed. During this time, if you’re getting a mortgage, you finalize it.
The bank will issue a formal mortgage offer, you sign the bank’s loan contract (often at the same time as the deed), and the bank readies the funds. If any other conditions were specified (e.g. regulatory paperwork, or the seller needing to get some document or fix something), they must be done in this window. Also, the IMT and stamp duty must be paid before the final deed – usually a few days prior.
You (or your lawyer) will obtain the IMT payment form from the tax office, pay the IMT and stamp duty at a bank or online, and get the payment receipts. These receipts are required by the notary to execute the sale csnotaria.com. If you’re not in Portugal, your lawyer can arrange these.
6. Final Deed (Escritura de Compra e Venda)
Final Deed (Escritura de Compra e Venda):
This is the completion/closing. The deed is a notarized document that transfers ownership. It is executed either by a notary public or at the land registry via Casa Pronta. On the agreed date, buyer and seller (or their representatives) meet.
The notary will read aloud the deed contract (which includes details of both parties, property description, price, etc.) – if you don’t speak Portuguese, you can have a translator or have your lawyer translate. The buyer hands over the remaining purchase price (often done via a bank check or a confirmed transfer – your bank in Portugal can issue a check called cheque visado for the exact amount). If there’s a mortgage, the bank’s representative will be there to deliver the loan funds (often as a check to the seller) and ensure their mortgage gets registered.
The seller hands over the keys. Both parties sign the deed, and the notary also signs and affixes official stamps. Congratulations – the property is now legally yours!
Immediately after, the notary or registry will handle the registration of the new ownership in the Land Registry and update the Tax Authority about the new owner. If done via Casa Pronta, they handle registration on the spot electronically.
If a private notary, they will typically forward the deed to the land registry. There is also a registration of the purchase in the tax office (to update who IMI bills go to) – often this is done automatically now via an electronic system the notary uses.
The notary will give you an official copy of the deed (or later you pick it up). Keep it safe; it’s your title document.
7. Post-purchase tasks
Post-purchase tasks:
After buying, ensure you transfer all utilities (water, electricity, gas, internet) to your name and set up payments. Register with the condo association if applicable. If you won’t reside in Portugal, consider who will handle things like forwarding mail or emergencies – sometimes lawyers offer post-sale support or you can hire a property manager.
Mark your calendar for IMI tax due dates (the bill will be in the online tax portal and also mailed if you have an address in Portugal; if you appointed a fiscal rep or signed up for e-notices, you’ll get it that way). If you plan to rent it out, you may need to register the rental activity with Finanças (if long-term lease) or apply for an AL license (for short-term rentals – note new restrictions covered later). Those are separate processes beyond buying.
That’s the process in a nutshell. On average, it might take ~1 to 3 months from offer to closing, but it can be faster (cash deals sometimes close in weeks) or slower (especially if waiting on bureaucracy or bank loans – sometimes valuations or loan approval add time).
Portugal’s bureaucracy is known to be slow; patience and having a proactive lawyer helps. By law, all documents (like IMT proof, property registry, etc.) must be in order for the deed to go through – the notary will refuse to complete if something is missing. So as long as you and the seller (and bank if any) prepare everything, it usually goes smoothly.
Nota Bene: As a foreign investor, you might hear of buying property via a company (like setting up a Portuguese LLC or using a foreign company). That can have tax advantages in some cases (e.g. for inheritance or for certain tax exemption structures), but the Portuguese government has cracked down on using offshore entities – properties held by “blacklisted” offshore companies incur higher IMI and IMT (10% IMT flat, 7.5% AIMI). Also, be very cautious if anyone suggests you buy a property by purchasing the shares of a company that owns it instead of a direct title transfer – unless you have expert legal advice.
There have been scams where the company comes with hidden debts or lawsuits. Generally, standard purchase in your own name is straightforward and what we’ve described above.