Renowned for its beauty, from the vibrant capital of Lisbon to the highly sought-after Cascais, the Portuguese real estate market is attracting expats and investors from all walks of life.
Buying property in Portugal has become a hot topic in recent years, from families looking for a better quality of life to investors seeking a prime investment opportunity in one of Europe’s most dynamic markets.
In fact, according to Euro News, Spain and Portugal were the top destinations for buying property in Europe in 2024. Portugal was the second most searched country, with more than 270,000 searches on search terms related to buying property in the country.
In this expert guide to buying property in Portugal, we will delve into the property purchasing process. We will provide foreign buyers with clear and practical advice on purchasing their dream property in Portugal, alongside crucial information needed to secure an excellent financial investment. Our guide will also cover the market history, locations, and legal steps for buying a property in Portugal.
Exploring Portugal's Real Estate Market
The Portugal News reported that the Portuguese real estate market grew 51 percent in 2024, and foreign capital accounted for 81 percent of total investment in the sector.
According to the Portuguese real estate market’s 2024 results, the outlook for 2025 is highly optimistic. Due to factors that include economic growth, favorable financing conditions, and a reduction in interest rates, the real estate market in Portugal is expected to continue growing due to increased transactions and higher investment volumes. It could potentially reach 2.4 billion euros, and year-on-year growth of 8 percent is expected.
The Portuguese real estate market is expected to grow in 2025, with Lisbon and Porto leading as the main investment destinations. Emerging areas, such as the Algarve and Northern Portugal, are also attracting investor attention due to tourism and competitive costs. If you are interested in buying property in Algarve Portugal check out our essential Algarve luxury real estate guide.
Lisbon, Cascais, and Porto are key locations in Portugal, attracting foreign buyers interested in buying properties in Portugal and entering the property market. However, the market has significantly diversified in recent years and continues to do so. The Silver Coast, the Alentejo, the North, and the Center of Portugal are now firmly on the radar of expats looking to explore the lesser-known gems in the country.
According to the Portuguese Chamber of Commerce in the UK, the foreign resident population in Portugal has recently surpassed 1 million. This indicates the growing number of expats moving to Portugal and fueling foreign investments in Portugal’s property market and the Portuguese economy.
In the sections below of this buying property Portugal guide, we will examine property prices and rental yields in Portugal. This information can also help you compare renting versus buying property and decide which is the best option for you. You can also learn more about owning property in Portugal in our total cost of ownership guide.
Property prices in Portugal
As in any country, property prices in Portugal vary according to the type, location, and value of the property.
Property prices will also vary considerably depending on where you are buying a home in Portugal. The average asking price for the Lisbon Metropolitan Area is €4,935 per square meter. In the Porto Metropolitan Area, the average asking property price is €3,937, while prices stand at €3,181 in the Alentejo region.
Prices in the north of Portugal are very affordable, with the average asking price standing at €1,903, while prices in the center were only slightly higher, clocking in at €2,098.
The table below provides an overview of the average house price per square meter in major Portuguese districts. As mentioned before, actual costs can vary significantly depending on location and type of property.
Portuguese District Average Property Price in 2025 (€/m2) Lisbon Metropolitan Area €4,935 Porto Metropolitan Area €3,937 Northern Portugal €1,903 Central Portugal €2,098 Alentejo €3,181 Algarve €4,385
Rental yields in Portugal
Foreign ownership of property in Portugal proved to be a pretty lucrative investment. Rental yields in the Lisbon Metropolitan Area are 6.8 percent, while rental yields for the Porto Metropolitan Area are 6.6 percent.
Key reasons to buy property in Portugal
Besides the high quality of life and the prospects of making a profitable investment in the property market, buying Portugal real estate has many key advantages, which include:
- There are no restrictions on non-EU citizens considering renting or buying properties in Portugal
- Investing in a dynamic market with a high return on investment potential
- Low cost of living compared with other European countries
- Incredible climate with incredible summers and mild winters
- Top-quality education with 51 international schools in the country and a high-quality healthcare system
Can you buy property in Portugal as a foreigner?
So, can foreigners buy property in Portugal? Yes, one of Portugal’s most encouraging qualities is that foreigners who want to buy a home in the country will face no restrictions. With the assistance of a buyer’s agent or a real estate agent, and a real estate lawyer, a successful property purchase in Portugal will be a relatively easy process.
Even though professional real estate assistance is not a strict requirement, it is highly recommended to work alongside a Portuguese lawyer and a real estate agent when buying property in Portugal. It’s important to note that real estate agents work on behalf of the seller, while buyer’s agents work solely on behalf of the buyer, ensuring their needs are protected and that they guarantee the best possible price for the property, assisting them with the negotiation stages.
If you are a non-EU citizen planning to relocate and seek residence in Portugal, you will need to secure residence through one of the visa options the Portuguese government offers if you are looking to relocate to Portugal. These options include the Portugal Golden Visa, D7 Visa, and Digital Nomad Visa, which we will explore later in this article.
Can US citizens buy property in Portugal?
Yes, US citizens can buy property in Portugal without restrictions. However, many factors must be considered, including property taxes such as the Property Transfer Tax (IMT) and Stamp Duty Tax, as well as land registry and Notary fees. Buying property in Portugal is generally straightforward for foreigners and can be a good investment. Below, we explore a few more things to consider:
US citizens will need to consider financing the property purchase. Non-residents can get mortgages in Portugal. However, US citizens who are non-residents of Portugal will usually need a larger down payment than residents. As a US citizen, it is also important to consider currency exchange rates, which can have a significant impact on the overall cost of the property purchase.
Finally, as US citizens are foreign nationals from outside of the European Union, they will need a residency permit to live in Portugal. Depending on how long you plan to stay in Portugal, you can apply for residency through visa options such as the D7 Visa, the Digital Nomad Visa, or the Portuguese Golden Visa.
To buy property in Portugal, US citizens and non-EU citizens will also need to acquire a NIF, which is the Portuguese tax identification number. They are also advised to have a local Portuguese bank account to pay for utilities, broadband, and other services. By working with a reputable estate agent and legal adviser, US citizens will be able to complete the purchase process seamlessly and receive assistance with important factors like conducting due diligence on the property they plan to purchase.
Buying House in Portugal: Why should you buy property in Portugal?
Besides the high quality of life the country offers, there are many key advantages to investing in property in Portugal’s local market. These advantages include the affordable cost of living compared with other European countries, incredible climate, and top-quality education and healthcare systems.
Whether you are looking to buy individual apartment units as an investment or luxury houses in Portugal, you will be investing in a dynamic market with a high return on investment potential.
One of the main pitfalls to avoid when buying property in Portugal is overlooking working with a lawyer. Legal assistance may cost more during the property buying process, but it can prevent you from entering a risky venture.
Top Locations to Buy Property in Portugal
Portugal has a diverse property market. Where you choose to buy property will depend on your personal preference and requirements, whether you are looking for a charming city apartment or beach villa with splendid ocean views in one of Portugal’s many beautiful coastal towns.
In the sections below of this buying property Portugal guide, we’ll provide you with a rundown of the top locations to consider buying properties in Portugal.
Lisbon
Lisbon, the bustling capital of Portugal, has been delighting tourists and expats for years, the perfect mix between modernity and tradition. In the heart of the city, Baixa and Chiado are top picks for investors looking to capitalize on their investment, with many properties here coming with stunning views of the River Tejo.
Príncipe Real is a calm area, a stone’s throw from the center, where locals and expats can be seen out in the parks or exploring the many boutique shops that line the streets. You will also find a number of Lisbon luxury real estate options in this area.
For families, Lapa, Estrela, and Parque das Naçōes are good options. Lapa and Estrela provide residents with peace and quiet, where they can enjoy lovely parks. They are also just a short drive from the many beaches on the Portuguese Riviera, such as Carcavelos.
Parque das Naçōes, unlike anywhere else in the city, is located to the northeast of Lisbon. It is home to open spaces, river views, and some of the best restaurants in the city. This futuristic-looking neighborhood is reminiscent of Canary Wharf in London. You also have the Lisbon Aquarium here, the perfect day out for the family. Take a look at our buying property in Lisbon guide for in depth detail.
Cascais
Cascais, situated just a 30-minute drive from Lisbon, is a favorite with celebrities and lifestyle buyers. Famous for its beautiful beaches, fine dining establishments, and vibrant cultural offerings, Cascais offers a wide range of golf courses and a bustling marina and is next to the Cascais Sintra Natural Park, home to the Castle of the Moors and Pena Palace, perfect for history and nature lovers.
Buyers interested in Cascais luxury real estate options will find a wide range of luxury properties here, from modern apartments to mansions with sea views. Discover more about this region in our real estate investment Cascais and our buying property in Cascais Portugal guides.
Porto
Over the years, Porto, Portugal’s second-largest city, has undergone a significant transformation, now rivaling Lisbon in popularity and allure. Porto boasts charming narrow streets, delightful riverside eateries, and chic boutique shops, making it a top destination in its own right.
It has also evolved to become one of the most sought-after locations for luxury buyers interested in Porto luxury real estate, evident in the 5 percent price increase in the luxury real estate market according to the 2024 Knight Frank Wealth Report.
There is an array of lovely neighborhoods in Porto, from Bonfim, one of the coolest neighborhoods and favored by creative types, to the historic center, where you’ll be able to live and breathe the heart of the city.
A top neighborhood to consider for families is Foz do Douro, where you have several large houses with beautiful views of the Atlantic Ocean and access to all the amenities you could need, including easy access to top international schools.
For investors, Porto is experiencing increased demand for long-term rentals, driven by students, remote workers, and young professionals heading to the city. This makes investing here an appealing prospect offering promising rental returns. You can discover more about this stunning city in our real estate investment Porto guide and if you are interested in investing in the city, check out our buying property in Porto guide.
Silver Coast
The Silver Coast (Costa de Prata) is an enchanting haven celebrated for its beautiful beaches, quaint towns, and authentic Portuguese lifestyle. Nestled between Lisbon and Porto on the Western Coast, this region boasts rugged cliffs, glistening sands, and picturesque fishing hamlets.
Surfers will find this one of the best spots in Europe to hone their craft, while the big waves of Nazaré tempt big-wave surfers from across the world.
For affluent buyers seeking an exclusive slice of Portuguese charm amidst breathtaking vistas, the Silver Coast is an emerging location where luxury buyers can find exceptional properties at affordable prices compared with luxury properties in other Western European countries.
Madeira and the Azores
Madeira and the Azores, the two autonomous islands of Portugal, are very different. A commonality, however, is that both have some of the most stunning landscapes you will ever see.
From the green rolling hills of the Azores, renowned for its hot springs and incredible local cuisine, to Madeira, the perfect spot for those looking for a permanently beautiful climate, where you’ll be able to marvel at the ocean views each day. These islands are now getting the recognition they deserve.
Madeira is the more built-up of the two, and the cosmopolitan capital, Funchal, is home to some truly spectacular properties. The Azores is less developed, where you’ll find most luxury properties on the islands of São Miguel and Terceira. You can discover more about the Azores in our buying property in Azores guide.
South West
Comporta, known as the “Hamptons of Europe,” has gained attention from top international designers and celebrities in recent years. Nearby Melides has also emerged as one of the in-vogue locations at the moment. French fashion designer Christian Louboutin spends many seasons in Portugal between his homes in Melides in the Alentejo region.
Here, traditional Alentejan architecture is blended effortlessly with modern designers to create eco-friendly buildings that look stunning. Troía, close by, with its endless sandy beaches, five-star hotels, and internationally renowned restaurants, is also worth considering, particularly for property investments.
If you are looking for one of the most up-and-coming areas in the country, where luxury properties are pushing the limits of innovation and design, then check out the South West of Portugal.
Buying Property Portugal: Types of Luxury Property in Portugal
One of the allures for luxury buyers looking to snap up property in Portugal is the vast array of property types that you will come across. Luxury properties include:
- Contemporary villas and beachfront homes
- Luxury apartments and penthouses
- Golf course properties
- Mansions and countryside homes
- Historic estates, palaces, and castles
- Farms, equestrian properties, and vineyard estates in wine regions like Douro Valley
If you are looking to buy luxury property in Portugal, determine what type of property you would like to purchase. From the north to the south of the country, there are countless options. A good starting point is to consider the location – do you want to be in a bustling city, by the coast, or in the countryside? Also, consider where the closest school is if you are moving with children.
Property Management
When purchasing property in Portugal, you should consider working with a trusted property management company if you’ll be abroad for extended periods or are not based in Portugal. Your property is a valuable asset, and you’ll want to ensure the property is well looked after. When selecting a property management firm, prioritize those with experience assisting expats.
A valuable strategy is to seek recommendations. If you know individuals who’ve engaged property management services in Portugal previously, make sure to ask them about the company they worked with and the pitfalls to watch out for.
Reach out to your shortlisted options, asking targeted questions about their expertise, addressing any uncertainties, and inquiring about their pricing structure.
How to Buy Property in Portugal
Now that you have an idea of property prices in Portugal and where to purchase real estate we will delve into the property-buying process.
In the table below, we guide you through the essential steps and legal intricacies involved in buying real estate in Portugal. The table will guide you through each step, explore property tax, additional property costs like stamp duty, estate agent fees, and mortgage loans, in addition to discussing the promissory contract and finalizing the deed signing.
Steps | Details |
Step 1: Obtaining a Portuguese Tax Number | Non-EU citizens and EU citizens purchasing property in Portugal will need a NIF, the Portuguese tax number, to open a bank account and complete financial transactions in Portugal. If you are a non-EU citizen, you will need a fiscal representative to apply online or at the local tax office. |
Step 2: Secure financing for your property | Assess your finances, explore mortgage options from Portuguese banks, and understand associated costs such as taxes, legal fees, and property registration expenses. |
Step 3: Finding a property | Set a budget and research the Portuguese real estate market, focusing on location, amenities, and rental potential. Seek guidance from real estate professionals like buyer’s agents or real estate agents. |
Step 4: Purchasing the Property | Once you find a suitable property, negotiate an offer with the seller, potentially facilitated by a real estate professional. Consider having a buyer’s agent representing your best interests during negotiations. |
Step 5: Signing the Promissory Contract (CPCV) | After an offer is accepted, a Reservation Agreement may require a refundable fee. The Promissory Contract (CPCV) finalizes the deal, often with a 10 percent deposit, signed in front of a Notary. |
Step 6: Signing the Escritura | The Escritura, or Final Deed, officially transfers property ownership. Signed before a Notary, it involves paying remaining balances and fees. After signing, the buyer becomes the official owner, concluding the process. |
Step 7: Paying Fees and Complying with Property Tax Obligations | There are other costs involved besides the standard property prices including legal fees, property taxes, property transfer tax, and possibly capital gains tax if you ever decide to sell the property. |
Requirements for a Successful Foreign Property Ownership
An essential part of the process when buying real estate in Portugal is applying for a Portuguese NIF number and opening a bank account. These two requirements will also come in handy for any other transactions you need to complete in the country.
Portuguese tax number
When foreigners buy property in Portugal, they will need a NIF, a personal Portuguese tax number, to open a bank account in Portugal and for financial transactions in the country. You can apply for the NIF number yourself at your local tax office or get an attorney to assist you and be your fiscal representative. As a non-EU citizen, you will need to have a fiscal representative for this process.
Portuguese bank account
When buying property in Portugal, it is recommended that you open a Portuguese bank account to avoid hefty international transaction fees. There are a variety of Portuguese banks to consider, many of which also offer mortgages to foreign buyers.
Required Documents for Buying Property in Portugal
When it comes to buying a property in Portugal, you will need the following documents:
- Photo ID: A valid identification document that verifies your identity
- Contrato Promessa de Compra e Venda (CPCV): The buying contract or property deed that outlines the terms and conditions of the property purchase
- Energy Performance Certificate Portugal: This document provides information about the energy efficiency of the property and must be presented to you by the seller
- Imposto de Selo: The stamp duty payment, which is a tax required by the Tax Authority for property transactions
- Caderneta Predial: The land registry document that contains information about the property, including its location, boundaries, and registered owner
Financing Your Property
If you’re seeking financial support to purchase property in Portugal, you’ll find a diverse array of financing solutions available in the country. More than 15 banks cater to international buyers, offering various lending options. Engaging with a mortgage broker will help you find the most suitable mortgage loan and lending conditions based on your requirements.
For Portuguese tax residents, the Loan-to-Value (LTV) ratio can extend up to 90 percent for primary residences, decreasing to 80 percent for vacation homes. This calculation is based on the lower of the purchase price or the bank’s appraisal.
The maximum LTV ratio for non-residents in Portugal is lower, and it typically falls within the range of 60 to 70 percent, although there may be slight discrepancies between different banks.
Property Taxes in Portugal
When buying property in Portugal, you will need to consider taxes that must be paid by the new property owner both at the time of the property purchase or on an annual basis. In this section, we’ll provide you with everything you need to know about taxes in Portugal. For further details, you can consult our Property Taxes in Portugal guide.
Property taxes at the time of purchase
Below are the taxes applicable when purchasing property:
Property Purchase Tax (IMT)
The Imposto Municipal Sobre as Transmissões Onerosas de Imóveis (IMT), or Municipal Tax on Onerous Transfers of Real Estate, is a property transfer tax in Portugal imposed on property acquisitions. This tax is also referred to as the Property Purchase Tax and is levied on the purchase price of the Portugal property.
The IMT tax rate ranges from 0 to 10 percent. The 0 to 8 percent range depends on the property price, location, type, and purpose for which the property will be used – whether a primary residence or holiday home.
The fixed rate of 10 percent applies to property buyers who are connected to territories that benefit from favorable taxation schemes, known as blacklisted jurisdictions. You can use the following sum to work out the tax rate you will pay:
IMT = property value x tax rate x tax deduction
Stamp Duty
At the time of property acquisition in Portugal, Stamp Duty (Imposto do Selo), one of the country’s oldest taxes, will also need to be paid. The Stamp Duty is not levied on the property’s purchase price. The amount you pay depends on the property’s worth, and the rate is levied on whichever value is higher, between the value of the business and the value of the property. The Stamp Duty rate for purchasing a property in Portugal is 0.8 percent. If the property is donated, the Stamp Duty rate for the transaction will be 10 percent.
Notary fees
Even though this is technically not a property tax, Notary fees still need to be taken into consideration when purchasing property in Portugal. A Notary is a private entity that will provide you with the official documents to prove you are the new owner of the property. The Notary fee for real estate investments usually falls between €500 and €1,000.
Taxes due on an annual basis
Below are the taxes payable on an annual basis:
Municipal Property Tax (IMI)
The Municipal Property Tax (Imposto Municipal sobre Imóveis or Immovable Property Tax) is an annual tax paid by property owners in Portugal. The IMI tax rate varies depending on the municipality where the property is located and is calculated based on the Property Tax Value (VPT), not the purchase price.
The IMI Tax rate typically ranges from 0.3 to 0.45 percent of the VPT for urban properties, while the range can reach 0.5 percent in some cases. The IMI rate applied for rustic buildings is 0.8 percent.
AIMI (Additional to IMI)
AIMI (Additional to IMI) is levied when the property value exceeds €600,001. This tax, applicable post-purchase, comprises three tiers:
- 0.7 percent tax on owning property valued between €600,001 and €1 million
- 1 percent tax on property valued between €1mil and €2 million
- 1.5 percent tax on property if its total value is above €2 million
Capital Gains Tax
If you have purchased a property in Portugal and are looking to sell the property, then you will need to consider Capital Gains Tax.
Profits from property sales are subject to a fixed rate of 28 percent for non-residents. Portuguese residents are also subject to real estate taxes on gains from properties acquired after 1 January 1989. Residents are only taxed on 50 percent of these gains. These taxes are calculated based on a scale ranging from 14.5 percent to 48 percent, depending on the individual’s income bracket.
When filing taxes, details such as purchase date, price, and invoices for improvements or maintenance must be included to assess capital gains.
Property Purchase Costs
In addition to the total purchase cost of the property cost and taxes, you will need to consider the following additional property purchase costs:
- Legal fees: €2000-€5000, depending on the property type, property price, and the complexities of the purchase
- Notary fees: €500 – €1,000
- Land registration fees: €250
Buying Property in Portugal Pitfalls
Buying property in another country poses an array of challenges. For instance, buying property in Portugal pitfalls could include legal issues related to whether the owner has the right to sell the property and verifying that there are no outstanding debts attached to the property.
You can work with a real estate lawyer to ensure that you can navigate these potential issues seamlessly. Below, we list a few more of the major pitfalls to bear in mind during the property purchase process in Portugal.
- Due diligence and seeking legal assistance: Navigating legal processes, language, and customs can be complex, especially in a foreign country like Portugal. While it’s not mandatory, engaging an experienced real estate lawyer is highly recommended. They can review contracts, verify the seller’s right to sell, and check for any outstanding debts on the property.
- Location of the property: Verify that the property is situated in a favorable location with access to necessary amenities and services, such as restaurants, schools, hospitals, and so on.
- Taxes: Familiarize yourself with the taxes involved in property transactions when buying property in Portugal, in addition to understanding the taxes that you will be required to pay on an annual basis. Being fully informed about tax obligations can prevent future fines or complications.
- Work with experienced local professionals: Collaborate with seasoned professionals in the local real estate market. They can offer valuable insights, navigate pricing considerations, and recommend suitable property types based on your requirements, ensuring you find the perfect property.
- Agreeing with the vendor: One of the major pitfalls when buying property in Portugal is agreeing with the vendor to resolve issues and determine who should cover the costs. Ensuring that the deeds are accurate can be challenging and time-consuming. Often, real estate agents provide minimal assistance, so it’s crucial to find a reliable and meticulous lawyer to navigate these complexities successfully.
The Portugal Buying Property Guide in Conclusion
Buying property in Portugal is relatively straightforward, but it’s important to understand the process and the associated costs. Now that we have explored financing your property purchase, the taxes, and the pitfalls to consider when you purchase property, we will outline the process, costs, and other considerations to bear in mind in conclusion.
Understanding the purchase process
To help you clearly understand the purchase process steps, we have listed them in order below:
- Find a property: You can use listing websites like BE Global Properties to search for luxury properties.
- The promissory contract: This is a legal letter of intent to buy the property that requires that a non-refundable (in the case of withdrawal) deposit of 10-25 percent is paid.
- Apply for a mortgage: Over 15 Portuguese banks offer foreign property investors mortgages. These banks also evaluate the property and assess its value.
- Complete legal checks: You’ll need to check documents like the Property Description Document, Abstract of title, and User Licence. We suggest working with a reputable real estate lawyer who can assist you with legal checks.
- The final deed: The final deed confirms the buyer’s and seller’s names, the purchase price of the property, and that all the necessary documentation has been evaluated.
Property purchase costs
- Stamp Duty: You will need to pay 0.8 percent of the property value in Stamp Duty
- Legal fees: Legal fees and the cost of commissioning a building survey will need to be considered
- Taxes: As discussed, purchasing and owning property in Portugal has tax obligations
Additional considerations
- Non-EU citizens must obtain an NIF Number to purchase property in Portugal
- Working with an independent lawyer and financial adviser is advised
- Remember that popular Portuguese tourist regions such as Lisbon and the Algarve have higher real estate prices
- As a non-EU citizen, you will need to apply for residence in the country if you are looking to move to Portugal
Be Global Properties: How We Can Help You
Portugal is a treasure trove when it comes to properties and you’ll find an array of unique options across the country, whatever property type you are looking for. Whether you are looking for a chic apartment in Lisbon, a spacious country home in the depths of the Alentejo, or a beach villa in the Cascais, you will find Portugal can deliver.
BE Global Properties is here to help you find the property of your dreams. At BE Global Properties, we’ve painstakingly crafted a platform that surpasses conventional standards. It’s more than just a listing service; it serves as an exclusive portal to access some of the most remarkable properties worldwide, many of which can be found in Portugal.
Frequently Asked Questions about Buying Property in Portugal
Do I need a lawyer when buying a property?
Working with a real estate lawyer when buying a house in Portugal as a foreigner is not a strict requirement for investing in property in Portugal. However, professional legal services are recommended if you want your purchase process to be compliant with Portuguese laws and as seamless as possible.
Do I need a real estate agent when buying a property?
Working with a local real estate agent or buyer’s agent is highly recommended for foreign investors entering the property acquisition process in Portugal. Real estate agencies can help with the property search and offer valuable insight into the Portuguese real estate market.
Bear in mind, however, that real estate agents in Portugal work on behalf of the seller and will get a higher commission for a higher sale. Buyer’s agents, such as Goldcrest, work solely for the buyer, ensuring their exact needs are met.
For foreign investors and buyers investing in Portuguese property, working with a buyer’s agent ensures that there is no conflict of interest.
What are the additional fees when foreigners purchase real estate in Portugal?
Besides the price of the property, other costs are essential to factor in. These include notary and registration fees, legal fees, property transfer tax (IMT), stamp duty fees, and potential expenses related to municipal property tax and land registry. If you decide to sell the property, you may also have to factor in Capital Gains Tax.
How much do I need for a deposit payment?
The deposit you pay for purchasing Portugal real estate ranges between 10 and 25 percent of the purchase price, depending on whether the mortgage offer is accepted. However, to be safe, non-residents and foreign buyers should budget 30 percent of the property purchase price for the deposit payment.
Is property cheap in Portugal?
Portugal’s real estate prices are reasonable compared to other countries in Europe. Property in the Lisbon city center costs €6,934 per square meter, and property in the Porto city center costs €4,883 per square meter. Property in the interior areas of the country, such as the North, Center, and Alentejo regions is more affordable.
Can the British buy property in Portugal?
There are no restrictions on British nationals buying a house in Portugal. UK citizens can buy residential real estate and commercial real estate in Portugal. There are no restrictions on foreign ownership of property in the country.
Why buy property in Portugal?
Besides the high quality of life the country offers, there are many key advantages to investing in property in Portugal’s local market. These advantages include the affordable cost of living compared with other European countries, incredible climate, and top-quality education and healthcare systems.
Whether you are looking to buy individual apartment units as an investment or luxury houses in Portugal, you will be investing in a dynamic market with a high return on investment potential.
One of the main pitfalls to avoid when buying property in Portugal is overlooking working with a lawyer. Having legal assistance may cost more during the property buying process by it saves you from entering a risky venture.
How to Find Property in Portugal?
To find property in Portugal, after an initial online search for “Portugal buying property” or “Portugal real estate” and getting to grips with Portugal’s real estate market, we recommend speaking with experienced professionals in the field to discuss your requirements.
At Be Global Properties, we’ve developed an online platform where we have handpicked the very best properties in the market, making your search for the perfect property that much easier.
Can you buy property in Portugal as a foreigner?
Yes, foreigners can buy property in Portugal. In fact, one of the most attractive qualities Portugal offers is that there are no restrictions for foreigners who want to buy a home in the country.
Non-residents enjoy the same property ownership rights as Portuguese citizens. Compared to many European countries, Portugal offers reasonable prices for property. Foreign citizens can also secure mortgage loans from Portuguese banks to cover up to 75 percent of the property purchase price.
Can foreigners buy property in Lisbon, Portugal?
Foreigners can buy property in Lisbon, Portugal. Non-residents enjoy the same property ownership rights as Portuguese citizens. One of the most encouraging qualities of Portugal is that there are no restrictions for foreigners who want to buy a home in the country, and compared to many European countries, Portugal offers reasonable prices for property.
What are the pitfalls of buying property in Portugal?
As in any country, buying property in Portugal presents several pitfalls. These include navigating legal complexities and unexpected costs and ensuring clear property titles. It’s crucial to engage a local attorney for thorough due diligence to avoid these issues and ensure a smooth transaction process. Understanding these challenges can help buyers make informed decisions and mitigate risks effectively.
How much money do you need to buy property in Portugal?
Property prices in Portugal will vary considerably depending on where you buy. The average asking price for the Lisbon Metropolitan Area is €4,935 per square meter. In the Porto Metropolitan Area, the average asking property price is €3,937, while prices stand at €3,181 in the Alentejo.
Is buying property in Portugal a good investment?
Foreign investment in Portugal has been increasing rapidly in recent years. Portugal’s stable real estate market and booming tourist sector make it an attractive investment option for investors. Rental yields are high in many parts of the county, enabling you to secure an excellent return on your investment. Plus, there are no restrictions on foreign property ownership in Portugal.
Can US citizens buy property in Portugal?
You may be wondering, “Can Americans buy property in Portugal? And the answer is absolutely! There are no restrictions for foreigners, so US citizens can freely purchase property in Portugal. Whether you’re looking for a vacation home or a permanent residence, buying a house in Portugal is straightforward for Americans.
How long can you stay in Portugal if you buy a property?
Buying property in Portugal does not allow you to stay in Portugal. To stay in Portugal, you will need to apply for a residency visa, such as the Portugal Digital Nomad Visa, D7 Visa, or Golden Visa. The Golden Visa no longer includes real estate purchases as a qualifying investment.
However, investing in Portuguese property remains a long-term investment opportunity for many foreigners seeking their dream home abroad. Foreign nationals buying a house in Portugal or investing in land are still positively contributing to the Portuguese economy.
For the Golden Visa application, alternative investment routes include:
- Subscribing to Portuguese investment funds with a minimum of €500,000.
- Supporting cultural heritage with €250,000.
- Advancing scientific research with a €500,000 contribution.
Additionally, creating ten jobs or reinforcing a company’s share capital with at least €500,000, alongside job creation, offers alternative paths to residency. Each option aligns with Portugal’s economic goals while providing pathways for foreigners to establish roots in their Portuguese homes.
What documents do I need to acquire property in Portugal?
When it comes to making a property investment in the Portugal real estate market, you will need the following documents:
- Photo ID: A valid identification document that verifies your identity
- Contrato Promessa de Compra e Venda (CPCV): The buying contract or property deed that outlines the terms and conditions of the property purchase
- Energy Certificate: This document provides information about the energy efficiency of the property and must be presented to you by the seller
- Imposto de Selo: The Stamp Duty payment, which is a tax required by the Tax Authority for property transactions and a number of other transactions in the country
- Caderneta Predial: The land registry document that contains information about the property, including its location, boundaries, and registered owner
Is it a good time to buy property in Portugal?
Yes, it’s a good time to buy property in Portugal. With no restrictions for non-EU buyers, a low cost of living, and an incredible climate, Portugal offers a high quality of life and strong investment potential. Rental yields reached 6.8 percent in Lisbon and 6.6 percent in Porto in 2025.
Do expats pay taxes in Portugal?
Yes, expats pay taxes in Portugal. Expats who invest in the Portuguese real estate market will pay property taxes at the time of the purchase and on an annual basis. Expats who sell their Portuguese properties will also be liable for paying Capital Gains Tax. You can find out more in our comprehensive property taxes in Portugal guide.
Is property cheaper in Spain or Portugal?
Property in Portugal is more affordable than property in Spain. According to Numbeo, buying an apartment in a city center in Portugal will cost €3,627 per square meter, while buying a similar apartment in a city center in Spain will cost €3,690 per square meter.
How much deposit do I need to buy a house in Portugal?
For residents in Portugal, a deposit or down payment typically falls between 10 percent and 20 percent of the property purchase price, while non-residents pay about 30 percent of the purchase price
Is there property tax in Portugal?
Property taxes exist in Portugal, and when you invest in the Portuguese real estate market, you will pay property taxes at the time of the purchase and on an annual basis. These taxes include Property Purchase Tax (IMT), Municipal Property Tax (IMI), and AIMI (Additional to IMI). You can find out more in our comprehensive property taxes in Portugal guide.
Is there a wealth tax in Portugal?
Portugal does not have a wealth tax. However, owners of properties with a value higher than €600,001 are liable for AIMI (Additional to IMI), which is paid post-purchase.
What are the steps to buying a house in Portugal?
The property buying process takes place in the following seven steps:
- Step 1: Obtain a Portuguese Tax Number
- Step 2: Secure financing for your property
- Step 3: Find a property
- Step 4: Purchase the Property
- Step 5: Sign the Promissory Contract (CPCV)
- Step 6: Sign the Escritura or final deed
- Step 7: Pay fees and property taxes
Can I buy a property with crypto in Portugal?
Yes, property purchases in Portugal using cryptocurrency are allowed. However, strict regulatory oversight requires buyers to declare the origin of funds, including digital wallets and bank accounts. This transparency is essential for compliance and addresses potential risks that include tax evasion and money laundering. Authorities closely monitor transactions to ensure adherence to financial regulations.
What are the benefits of having a property manager?
Working with a property manager in Portugal offers peace of mind, especially for expats or property owners who do not live in the country. They will ensure that your property is well-maintained and secure while you’re away. Experienced property managers provide tailored support, and by seeking recommendations and asking detailed questions, you can find a trusted partner to safeguard your investment
Is Portugal a good place to invest in Property?
Portugal is an excellent place to invest in property, thanks to its rapidly growing foreign investment, stable real estate market, and thriving tourism sector. High rental yields in many areas offer great returns, and the lack of restrictions on foreign property ownership further enhances its appeal to international investors.
What documents do I need to acquire to buy property in Portugal?
To buy a property in Portugal, you’ll need to gather several documents, including a copy of your passport and the Portuguese tax number (NIF). Additionally, you’ll need proof of address, such as a recent utility bill, as well as your credit report, recent payslips, and bank statements.
You must also pay the Imposto de Selo, a Stamp Duty tax mandated by the Tax Authority for property transactions. Additionally, the Caderneta Predial, a land registry document, provides essential details about the property’s location, boundaries, and registered owner. These documents are vital for a successful property transaction.
What are the additional fees when buying a property in Portugal?
When buying a property in Portugal, you should budget for additional costs beyond the purchase price and taxes. Legal fees range from €2,000 to €5,000, depending on the property’s type, price, and the complexity of the transaction.
Notary fees typically fall between €500 and €1,000. Additionally, registering the property in the land registry incurs a fee of €250. These expenses are necessary to complete the legal and administrative processes associated with property ownership, ensuring proper documentation and compliance with Portuguese law. Factoring in these costs will help provide a clearer picture of the total financial commitment involved.
Can a foreigner buy a house in Portugal?
Foreigners can buy property in Lisbon, Portugal, and throughout the country without restrictions. Non-residents enjoy the same property ownership rights as Portuguese citizens, making buying a home in Portugal straightforward. One of the most appealing aspects of buying real estate in Portugal is the lack of limitations for foreign buyers.
Additionally, compared to many other European countries, Portugal offers reasonable prices for property, making it an attractive destination for investment or relocation. Whether purchasing a home for personal use or as an investment, the process of buying property in Portugal is accessible to foreigners.
What are the pitfalls of buying a property in Portugal?
As in any country, you will come across buying property in Portugal pitfalls. These include navigating legal complexities and unexpected costs, and ensuring clear property titles. It’s crucial to engage a local attorney for thorough due diligence to avoid these issues and ensure a smooth transaction process. Understanding these challenges can help buyers make informed decisions and mitigate risks effectively.
How long can you stay in Portugal if you own a property?
Buying property in Portugal does not allow you to stay in Portugal. To stay in Portugal, you will need to apply for a residency visa, such as the Portugal Digital Nomad Visa, D7 Visa, or Golden Visa. The Golden Visa no longer includes real estate purchases as a qualifying investment. Investing in Portuguese property is still a popular long-term investment opportunity for many foreigners seeking their dream home abroad.
What is the tax on buying property in Portugal?
Buying real estate in Portugal as an American or any non-EU citizen, you will encounter property taxes. At the time of purchase, the Property Purchase Tax (IMT) applies, with rates varying based on property type and value. After the purchase, annual taxes include the Municipal Property Tax (IMI), determined by factors such as location and property characteristics, and, for higher-value properties, the Additional to IMI (AIMI) tax.
