Cheap Houses for Sale in Portugal: An Overview

Portugal is one of the most affordable countries in Western Europe. Known for being the seventh safest country in the world, offering a high quality of life, and having a vibrant and growing tourism industry, Portugal also has plenty of housing options to suit different budgets and lifestyles.

International investors will be happy to know that buying property in Portugal does not have to break the bank. You can find a dream house situated near the capital city of Lisbon or even along the Douro River in Portugal’s second-largest city, Porto.

If you’re looking for cheap houses for sale in Portugal, this guide offers a brief overview of the towns where you can find affordable houses for sale in Portugal, the types of houses available, and the financial and legal aspects associated with investing in the Portuguese real estate market.

The Types of Cheap Homes for Sale in Portugal

Portugal offers a varied selection of houses available for purchase across the country. From first-floor apartments and detached houses to condos and farms, you’re sure to find your ideal property type.

You’ll find many different types of properties listed at a range of Portugal house prices. For instance, you could easily search for and find one-bedroom country houses in Figueira de Castelo Rodrigo, 194 square meters of land in Vagos, or a coastal villa with three bedrooms in Funchal, the capital of Madeira Island. 

Here are the main property types you could find when searching for cheap homes in Portugal:

Pre-owned homes

The most common option you’ll come across is pre-owned homes—these can range from cozy apartments in small towns to larger countryside houses. Many are move-in ready, while others may just need a little love to shine. Because they’re often older, they can be significantly cheaper than new builds, especially in rural areas.

Prefab homes

Another affordable option to look into is prefab homes in Portugal. Prefab (or modular) homes are growing in popularity, especially for buyers looking to build on a budget. These homes are factory-built and assembled on-site, which can cut costs and construction time. 

They’re usually more modern in design and energy-efficient too. While you’ll need to buy land and deal with permits, the total cost can still be much lower than buying a traditional home.

Repossessed property

Repossessed property is also an excellent option to explore when looking for cheap houses in Portugal. Banks in Portugal often repossess properties and advertise them on their real estate site or portal at bargain prices.

Renovation/fixer upper projects

If you’re up for a challenge, fixer-uppers are everywhere in Portugal—especially in rural villages. These properties often come especially cheap and offer the opportunity to create your dream home from the ground up. Think ancient stone cottages, abandoned farmhouses, or townhouses full of potential. Just be sure to budget for renovation costs, permits, and unexpected costs along the way.

The Financial and Legal Aspects of Buying Affordable Homes in Portugal

Considering the financial and legal aspects is an important step for foreign investors who want to buy a house in Portugal. In the sections below, we will look at how you can finance the dream home you find for sale in Portugal and discuss how legal and property management services can be of great benefit to you during the process.

Financing options for buying property

Foreign buyers interested in purchasing cheap houses for sale in Portugal have the option of applying for a mortgage from Portuguese lenders. The eligibility requirements consist of a number of factors, including having a solid credit score and history and a reliable income from stable employment, passive investment, or business ownership.

Portugal has over 15 banks that provide mortgage loans to foreigners. For the application process, latest interest rates, and how much of a deposit you might need, see our full guide to getting a mortgage in Portugal.

The NIF (Número de Identificação Fiscal) needed for property purchases

Obtaining a Portuguese Número de Identificação Fiscal (NIF) number is a crucial step in the real estate purchasing process in Portugal. The NIF is the tax identification number required for conducting essential financial transactions in the country and simple activities like opening a bank account or renting an apartment.

It is also advised that you acquire a Portuguese bank account to avoid high foreign transaction fees during property acquisition and to have the opportunity to apply for a mortgage. You can apply for a NIF number at the local Portuguese tax office or with legal assistance. Our partner, Global Citizen Solutions, offers more details on how to get a NIF Portugal Tax Identification Number.

Acquiring property management services

Ensuring the upkeep of your property is vital, especially if you intend to rent it out or sell it in the future. Collaborating with a property management company can alleviate the responsibility of maintaining the property.

These services encompass various tasks, including regular maintenance and handling tenant needs. For property owners seeking convenience and efficiency, enlisting property management services can be highly advantageous.

To explore further details on finding a property manager in Portugal, refer to our How to Find a Property Manager in Portugal article.

Legal services for property transactions

The services provided by a Portugal real estate lawyer are crucial for ensuring a smooth and legally sound property transaction in Portugal. These professionals play a vital role in helping buyers understand, sign, and navigate the required documents, such as the Contrato Promessa de Compra e Venda (CPCV), which outlines the terms of the purchase.

Additionally, they oversee the entire purchasing process, ensure all documentation is in order, remotely handle bureaucratic procedures, and conduct due diligence checks on the property, including verifying the legal ownership and checking for outstanding debts. Real estate lawyers also review contracts, such as reservation agreements, and provide legal advice on mortgage repayments and insurance requirements.

Goldcrest: How We Can Help You

Goldcrest is a buyer’s agent based in Lisbon, Porto, and the Algarve. Equipped with local knowledge, exclusive networks, and international experience, we provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property to property acquisition and beyond, we have you covered throughout the process.