Buying Property in Portugal: A Complete 2025 Guide for Foreigners

Portugal has become one of Europe’s most attractive destinations for foreign property buyers. From the golden beaches of the Algarve to the charming stone homes in the countryside, the country offers a wide range of real estate options for retirees, investors, digital nomads, and expats. But buying property in Portugal as a foreigner involves some unique steps and requirements. In this complete 2025 guide, we’ll walk you through everything you need to know.

Dreaming of this view? Read on for how to make it happen!

1. Why Buy Property in Portugal?

• High quality of life: Great weather, fresh food, beautiful landscapes.

• Tax benefits: Programs like the Non-Habitual Resident (NHR) regime.

• Security and stability: Safe country with a strong property rights system.

• Residency opportunities: Options through the D7 visa or investment.

2. Can Foreigners Buy Property in Portugal? Yes! Portugal has no restrictions on foreign property ownership. Buyers from anywhere in the world can legally purchase homes, land, or commercial properties.

3. The Step-by-Step Process

Step 1: Research and Choose a LocationPopular regions include:

• Algarve (great for retirees)

• Lisbon and Porto (urban lifestyle)

• Silver Coast and Alentejo (affordable and scenic)

Step 2: Find a Real Estate Agent (Imobiliária)Look for agents experienced with international clients. Many speak English and understand the legal process for foreigners.

Step 3: Get a Portuguese Tax Number (NIF)This is required to open a bank account and sign contracts.

Step 4: Open a Portuguese Bank AccountMost transactions and utilities must be managed through a local account.

Step 5: Hire a LawyerThey will ensure the property is free of debts, has proper licensing, and handle the promissory contract.

Step 6: Sign the Promissory Contract (Contrato de Promessa de Compra e Venda)This contract secures the sale. A deposit (typically 10%-30%) is paid.

Step 7: Final Deed (Escritura de Compra e Venda)Signed in front of a notary. After this, the property is officially yours.

Ready to hold the keys to your dream home in Portugal? Here’s what you need to know.

4. Costs to Consider

• Property Price

• IMT (Property Transfer Tax): Sliding scale based on price and type

• Stamp Duty (0.8%)

• Notary and Registration Fees

• Lawyer Fees: Usually 1%-2%

5. Financing Options Foreigners can get mortgages from Portuguese banks, usually up to 70% LTV. A good credit score, proof of income, and larger deposits are required.

A good real estate agent will be your guide through Portugal’s property landscape—don’t skip this step!

4. The Buying Process: Contracts, Notaries, and Property Taxes (Oh My!)

Okay, you’ve found your dream home! Now comes the moment you’ve been waiting for: making it official. Here’s what you need to know:

Step 1: The Promissory Contract

Once you and the seller agree on the price, you’ll sign a Promissory Contract (Contrato de Promessa de Compra e Venda). This contract locks both parties into the deal, and you’ll typically need to pay a deposit (usually around 10-30%).

Step 2: The Notary

Portugal takes its notaries seriously. You’ll need one to finalize the property sale. The notary will draw up the final Deed of Sale (Escritura Pública), which officially transfers ownership from the seller to you.

Step 3: Property Taxes

• IMT (Imposto Municipal sobre Transmissões): This is a property transfer tax and is based on the value of the property.

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

• IMI (Imposto Municipal sobre Imóveis): An annual property tax that varies depending on where your property is located and its value.

5. Financing Options Foreigners can get mortgages from Portuguese banks, usually up to 70% LTV. A good credit score, proof of income, and larger deposits are required.

6. Taxes and Ongoing Costs

• IMI (Municipal Property Tax): Annual tax based on property value

• Rental income tax (if leasing)

• Capital gains tax (if selling)

  
  

7. Residency Through Property Investment

• D7 Visa: For those with passive income or pensions.

• Digital Nomad Visa: For remote workers with foreign income.

• Note: The Golden Visa no longer applies to residential property in Lisbon, Porto, and the Algarve.

Signing day at the notary—this is when your property dreams become a reality!

8. Tips for a Smooth Experience

• Visit properties in person before buying

• Always work with a lawyer

• Be wary of overly good deals

• Budget for fees and taxes

• Learn some Portuguese or work with bilingual professionals

Buying property in Portugal is a rewarding experience with the right guidance. Whether you’re planning to retire in the Algarve, invest in a Lisbon apartment, or live full-time on the Silver Coast, Portugal offers a secure and welcoming real estate market. Use this guide as your roadmap to start your journey confidently.

Securing a mortgage in Portugal is easier than you think, especially with the right help.

Whether you’re a retiree looking for a coastal escape or an investor seeking the next big thing in European real estate, Portugal has something for everyone.

Ready to take the next step? Contact us today! 

We’re here to help answer your questions, guide you through the process, and ensure you find the property of your dreams in Portugal.

Portugal awaits—let us help you make it home.

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