Updated: June 30, 2025

 

Boasting one of the finest coastlines in the world, Portugal’s incredible Algarve region never ceases to amaze. With its gorgeous beaches, endless electric blue skies, and panoramic ocean views, countless expats have been settling down in this famous Portuguese region for decades now.

For those considering snapping up their dream property for sale in Lagos, Portugal, get ready to discover why it’s a fantastic choice. In this article, we’ll provide you with everything you need to know about buying property in Lagos, Portugal, from market insights and property prices to finding out exactly how the buying process works.

Why buy property for sale in Lagos, Portugal?

buying property in lagos portugal

Lagos, in the Western Algarve, stands out as one of the prized locations in the region and is home to some of the most stand-out beaches in Portugal.

This unique city in the Algarve is surrounded by jaw-dropping landforms, such as the Benagil Caves and Ponte de Piedade, and boasts an array of incredible properties, from swish villas to modern affordable apartments, many of which come with outrageous views of the Atlantic Ocean. You can also find some fantastic commercial properties for sale.

Lagos offers an exceptional quality of life with its sunny beaches, excellent healthcare, top international schools, and a safe, relaxed atmosphere ideal for families, retirees, and investors.

Lagos’ proximity to Faro and its international airport makes overseas travel incredibly easy and is another reason why Lagos stands out as a true gem of the Algarve – and why it is becoming increasingly popular among foreign homebuyers.

Investors will be pleased to know that, according to the latest data from Property-Market Index, Portugal’s property market is expected to grow at double the rate of the US, the UK, and the rest of the EU by 2027, thanks in large part to the Algarve, among other key regions.

With this in mind, there is no better time to invest in the Lagos, Portugal, property market to benefit from this growth.

Can foreigners buy property in Lagos, Portugal?

Foreign investors and expats will face no restrictions when purchasing property in Lagos or elsewhere in Portugal. We do recommend working with property experts and securing the services of a real estate lawyer to assist you with the purchase, to ensure a streamlined process that considers any legal restrictions that you may not be aware of.

Understanding the Real Estate Market in Lagos

lagos real estate

When it comes to Lagos Portugal real estate, the average price for property in Lagos stood at €5,066 per square meter in 2024. While this average price is higher than in other regions of the Algarve region, Lagos is one of the most popular locations to buy Portugal housing.

Note also that this average price is the asking price, and the sales price is often significantly lower than this. Also, bear in mind that property in the city center and property with ocean views tends to be more expensive. Should you look outside the city center and further inland, you will find prices fall. 

You will also discover a wide selection of luxury estates and luxury properties in and around Lagos, many of which have private pools and stunning ocean views. In Knight Frank’s Wealth Report 2024, the Algarve is currently ranked fourth among the best-performing luxury real estate markets in the world, proving to be resilient even in the face of interest rate spikes. 

Rental yields stand at 5.6 percent in the Algarve, highlighting the potential of investing in the south of Portugal.

A Step-by-Step Guide to Buying Property in Lagos, Portugal

Now that you have an overview of Lagos, in this section, we’ll provide a comprehensive outline of the key steps to buying property in Portugal.

As we’ve mentioned, for a hassle-free purchase process, we highly recommend that you work with a real estate professional and an experienced lawyer.

Before you begin your property purchase, you will need to get a NIF number, and it is definitely worth opening a Portuguese bank account (see the next section for more information).

Step

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Step 1: 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 2: Find the perfect 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 3: Make an offer

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 4: Reservation Agreement and CPCV

After an offer is accepted, a Reservation Agreement may require a refundable fee. The Promissory Contract (CPCV) finalizes the promise of acquiring real estate between the two parties and includes a deposit to secure the transaction. We recommend that the signing of the CPCV is officially recognized and conducted in front of a Notary. 

Step 5: 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.

You will also need to pay the property taxes that are required at the time of purchase. Should you be looking to relocate to Portugal and are a non-EU, non-EEA, or non-Swiss national, you will also need to consider residency options.

Requirements for a Successful Property Purchase 

Securing a Portuguese NIF number and opening a Portuguese bank account are fundamental steps in the process of purchasing real estate in Lagos. 

Getting your Portuguese NIF number

Having a Portuguese tax number, known as the NIF, is essential to open a bank account or to make any form of significant financial transactions in Portugal.

You can get your NIF number by visiting your nearest local tax office or even get your NIF online before moving to Portugal. Non-EU citizens are required to appoint a fiscal representative during this process.

Opening a Portuguese bank account

While not mandatory, we highly recommend opening a bank account in Portugal to avoid hefty transaction fees. There are many different banks to consider, from international banks to online banks, and many offer mortgages to foreign buyers.

Required Documents for Buying Property in Lagos, Portugal

When it comes to foreigners buying property in Lagos, it is important to ensure you have all the required documents for a smooth property purchase. We recommend working with a local real estate lawyer in the Algarve to ensure you have everything you need.

Below, you can find the key required documents for a successful property purchase. 

  • Photo ID: A valid form of identification that confirms your identity. 
  • Contrato Promessa de Compra e Venda (CPCV): The contractual agreement or deed detailing the terms and conditions of a property purchase. We recommend that the signing of this contract is officially recognized and conducted in front of a Portuguese Notary.
  • Energy Certificate: This document provides details on a property’s energy efficiency and is typically provided by the seller. 
  • Imposto de Selo: A Stamp Duty payment is required when buying property in Portugal.
  • Caderneta Predial: A document from the land registry containing property details such as location, boundaries, and registered ownership. 

How to Find Property in Lagos, Portugal

In this section, we’ll arm you with some tips on how to find your dream home in Lagos. Whether you are looking for a spacious villa, an apartment close to the marina, or a great deal on commercial properties, you’ll find plenty of options when it comes to property types in and around the city of Lagos.  

Define your requirements  

When looking for property to buy in Lagos, Portugal, you’ll want to have a clear idea of your requirements and budget. When you have defined both, you can then begin your search for a Lagos house for sale.

Take into consideration whether you want an ocean view, if you need to be close to a school, where the closest restaurant or supermarket is, and so on.

Alongside this, determine what is essential and what would be nice to have. This will help you narrow down your search through the many types of Lagos homes for sale in a logical way.

Commit to research 

When it comes to finding houses for sale in Lagos, Portugal, don’t stint on the research stage. Research the real estate market in Lagos to understand the ballpoint figures for property prices, the type of properties on the market, and so on.

You can also set up property alerts to keep up to date with the property market in the Western Algarve. Most property websites will allow you to set alerts for keywords like “property for sale Lagos, Portugal” or “Lagos apartments for sale” so that you never miss a new listing.  If you’re looking for luxury property in the area, you can tailor your search terms to something like “villas for sale Lagos, Algarve”.

Work with property specialists 

find property in lagos portugal

You’ll discover numerous real estate agents in Lagos catering to international buyers looking for homes for sale in Lagos, Portugal. While online real estate portals and websites provide market insights and can be a good starting point, nothing surpasses the value of local expertise and professional guidance. 

Having an experienced real estate agent or buyer’s agent by your side can greatly simplify navigating Portugal’s property market. 

The knowledge of real estate agents in Lagos, Portugal, can prove to be instrumental in identifying properties matching your criteria, and their assistance can significantly streamline the buying process. They can assist in setting up property viewings and provide insights into the property that you may not have considered.

It’s essential to understand that Portuguese real estate agents represent sellers, meaning that there is a conflict of interest. In contrast, buyer’s agents, such as Goldcrest, work exclusively for the buyer, striving to negotiate the most favorable prices and the best property based on their requirements.

Property viewings  

Buying property is a major investment, and you’ll want to ensure that you exhaust the market to find the property that meets your exact requirements.

Make sure that you visit as many properties in Lagos as possible, visiting both in the daytime and nighttime, as neighborhoods can have a different vibe depending on when you visit. As we’ve mentioned, Lagos Algarve real estate professionals will be able to schedule viewings on your behalf.

Navigating the Portuguese legal system 

We can’t stress enough the importance of working with an experienced real estate lawyer to ensure you will face no issues with the property purchase. They will be able to assist with due diligence to ensure that the seller has the legal right to sell and that there are no issues with the property, such as outstanding taxes.

Make sure that you fully commit to due diligence, working with a property surveyor in Portugal if required.

Take a look at our guide to buying property in Portugal to kickstart your journey!

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Buying Property in Lagos Pitfalls

If you’re considering investing in property in Lagos, Portugal, it’s important to be aware of the potential pitfalls that could arise. Without the guidance of a real estate attorney, agent, or buyer’s agent like Goldcrest, you might encounter various challenges, such as:

  • Legal complications related to property title deeds or existing debts resulting in lengthy legal battles
  • Failing to account for additional expenses beyond the listed price, such as mortgage costs, property taxes, notary fees, and registration expenses
  • Being unaware of local regulations or tax laws that may lead to fines
  • Investing in a location that doesn’t align with your lifestyle needs or deliver the anticipated return on investment
  • Unexpected issues like zoning changes or environmental concerns impacting the property’s value or intended use

Financing Your Property in Portugal

Understanding your budget and how you are going to finance your property should be considered at the onset of your property-buying journey. Here, we provide some information about mortgages in Portugal that are available if you are searching for Lagos, Portugal homes for sale.

Get your budget straight 

It’s essential to clearly define your budget that considers all expenses involved, including additional fees and taxes. If financing is necessary, it’s important to note that Portuguese residents generally need a mortgage deposit of 10 to 20 percent, whereas non-residents typically require approximately 20-40 percent of the property value as a deposit.

Financing options 

You can make a one-off payment to purchase a property in Portugal. However, should you be looking for lending options to assist you with your property purchase, there are many options on the table, including BBVA, Santander, Bankinter, and Banco CTT. We recommend speaking with an expert in the field to determine the best option based on your requirements.

Securing a mortgage in Portugal entails reaching out to banks or mortgage brokers to obtain an initial estimate. Residents benefit from a wider range of borrowing options compared to non-residents, who encounter distinct criteria. Specifically, residents may be able to secure larger loans with lower down payments and potentially longer repayment terms.

Types of mortgages in Portugal

You have the choice between fixed-rate mortgages and variable-rate mortgages in Portugal. 

  • Fixed-rate mortgages: This type of mortgage comes with a premium but offers stability, safeguarding you against rate changes. 
  • Variable-rate mortgages: This mortgage type provides fluctuating rates tied to an indexer, usually the Euribor.
  • Mixed-rate mortgages: This mortgage type will start with a fixed term before switching to a variable rate.

Lagos, Portugal, Property Taxes

When buying property in any country, you’ll need to be aware of the real estate taxes that you will need to pay both at the time of purchase and on an annual basis. In Portugal, this is no different.  

In this section, we’ll provide you with an overview of the taxes that you will need to bear in mind when buying Lagos property for sale. 

Taxes to consider at the time of purchase 

Below, we provide information on the taxes that you will need to pay at the time of purchase. 

Property Purchase Tax (IMT)  

This tax varies between 0 and 10 percent. The 0 to 8 percent range is determined by factors such as the property’s price, location, type, and intended use (whether for primary residence or secondary housing). A fixed rate of 10 percent applies to buyers connected with territories that benefit from favorable tax schemes, referred to as blacklisted jurisdictions.

Stamp Duty 

You will need to consider Stamp Duty on property transfer transactions in Portugal, subject to a rate of 0.8 percent. 

Taxes to consider after the property purchase

Below, we outline some of the key taxes that you will need to consider after you have purchased your property. 

Municipal Property Tax (IMI) 

The Municipal Property Tax (Imposto Municipal sobre Imóveis) is an annual tax for property owners in Portugal. Its rate varies across municipalities, typically ranging from 0.3 to 0.45 percent and, in certain circumstances, to 0.5 percent for urban properties and is set at 0.8 percent for rural ones. 

It’s worth noting that IMI is calculated based on the Property Tax Value (VPT), not its purchase price. This works out nicely for you, the buyer, since the tax value is usually lower than the market value. 

Additionally, if your property is situated in a rehabilitation area undergoing renovation, you may qualify for an exemption to IMI for three years, extendable to five years if the property is your primary residence.

Additional to IMI (AIMI)

For properties that are valued above €600,000, you will need to pay AIMI. There are three different brackets for this: 

  • For properties valued between €600,001 and €1 million: 0.7 percent tax  
  • For properties valued between €1 million and €2 million: 1 percent tax  
  • For properties valued above €2 million: 1.5 percent tax   

Alongside the above details of property taxes, you will need to consider Capital Gains Tax in Portugal should you be looking to sell your property in the future. 

You can find out more about property taxes in Portugal, in addition to taxes on rental income, in our article: Property Taxes in Portugal 2025: An Overview. 

Lagos, Portugal, Property Purchase Costs

In addition to the property cost and taxes, buying the property for sale Lagos offers comes with additional property purchase costs, outlined below. 

  • Legal fees: €2,000-€5,000, depending on the property type, property price, and the complexities of the purchase
  • Notary fees: €500-€1,000
  • Land registration fees: €250  

Finding Properties in Lagos, Portugal with Goldcrest

Goldcrest is a buyer’s agent based in Porto, Lisbon, and the Algarve. As the first buyer’s agent in Portugal, we have helped hundreds of expats settle down in Portugal or invest in the Portuguese real estate market.

Whether you’re buying property in Lisbon, the Algarve, or anywhere in Portugal, Goldcrest is the ideal property partner. From scouting out the perfect property through to property acquisition, we have you covered throughout the process and beyond.

Our team of skilled experts is available to cater to all your Lagos, Algarve, real estate needs, offering insightful expertise and strategic advice.

Contact us today! Book a complimentary call with us.

Frequently Asked Questions about Buying Property in Lagos Portugal

Lagos, Portugal, offers affordable living costs compared to many European cities, with reasonable rent, food, and entertainment expenses. While properties are more expensive than in other parts of the Algarve region, they remain reasonable when compared with equivalent properties in other Western European countries.

The average price was €5,066 per square meter in 2024. While this average price is higher than in other regions of the Algarve region, Lagos is one of the most popular locations to buy property. Note also that this average price is the asking price, and the sales price is often significantly lower than this.

Yes, in Portugal, Lagos in the Western Algarve is an excellent place to live, boasting a vibrant culture, beautiful beaches, great weather, and a welcoming expat community. All the Algarve region boasts a high quality of life that has seen expats from across the world seek out this incredible part of Portugal. 

Apartments for sale in Lagos, Portugal, vary in price based on location, size, and amenities. The average price for an apartment was €4,862 per square meter in 2024. Note that this average price per square meter is the average asking price, and the sales price is usually lower than this, although, in some situations, it can also be higher.

Consider buying property in Lagos’ historic center for charm or near beaches like Praia da Dona Ana or Meia Praia for convenience and scenic views. Properties close to Porto de Mós could also be excellent options. 

Begin with an online search using terms like “homes for sale Lagos Portugal” or “Portugal Lagos house for sale” to get to grips with the Lagos Algarve real estate market. Contact a real estate agent or buyer’s agent to help you extend your search beyond what you’ll find online and find the property that meets your requirements.

You’ll find properties close to the marina and in the city center to be good investment options. However, we recommend that you speak with a real estate professional, such as a buyer’s agent, to discuss your needs and to pinpoint properties with high investment potential. Their local knowledge will prove to be incredibly useful and may offer insights you would not have considered.

Yes, you should be able to find new development condominiums in Lagos by conducting targeted online searches to get to grips with the market and then speaking with real estate agents or buyer’s agents to discuss which option could be best suited to your personal requirements.  

Yes, you will find several properties in Lagos that come with a private pool. After an online search to get to grips with the real estate market, seek the assistance of a real estate agent or buyer’s agent to help you find property that is aligned to your requirements.

The buying process in Portugal can be broken down into the following basic steps:

  • Step 1: Find your ideal property
  • Step 2: Secure financing for your property
  • Step 3: Negotiate and make an offer
  • Step 4: Secure a Promissory Contract (CPCV)
  • Step 5: Sign the Escritura or Final Deed

To find a reliable local real estate agent in Lagos, check reviews online, ask for recommendations, and speak with friends and acquaintances who have bought properties in the Algarve previously.

It is worth bearing in mind that real estate agents in Portugal work on behalf of the seller. As such, working with a buyer’s agent can be the smarter move to ensure that your interests are fully protected, and your needs and requirements are met to your satisfaction.

Consider location, property type, maintenance costs, rental potential, and legal requirements before buying a vacation home in Lagos. Also, assess proximity to amenities, transport links, and the property’s resale value. Are you looking to be close to vibrant nightlife? Close to a beautiful beach? Top restaurants? These are all the things that you should bear in mind.

Non-EU citizens face no restrictions when buying property in Lagos, Portugal. However, they should be aware of visa and residency requirements if they plan to stay long-term in Portugal.

Verify property documents through a qualified lawyer who will conduct due diligence, including checking the land registry, ensuring there are no debts or legal issues, and confirming the seller’s ownership.

In all the Algarve region, you will be able to enjoy long summer days and a mild climate throughout the year. Lagos enjoys a Mediterranean climate with hot, dry summers and mild, wet winters. Summer temperatures average 25-30 Degrees C (77-86 Degrees F), while winter temperatures range from 10-15 Degrees C (50-59 Degrees F), making it a year-round destination.

 

Popular property types in Lagos include villas for luxury and privacy, apartments for convenience and amenities, and townhouses for a blend of space and community living. Each type offers unique advantages depending on lifestyle needs. You will also find great commercial properties and several properties with outrageous ocean views, making Lagos one of the most sought-after spots in the Algarve.

The best neighborhoods in Lagos, Portugal, for buying property include Meia Praia for beachfront living, the historic Old Town for charm, Porto de Mós for luxury villas, and Montinhos da Luz for peaceful surroundings. These areas offer a blend of amenities, scenery, and investment potential.

Property prices in Lagos, Portugal, depend on factors like location, size, and amenities. In 2024, the average asking price was €5,066 per square meter for a property. However, actual sales prices can vary, often being lower than this average, though occasionally higher depending on market conditions.

Legal requirements for foreigners buying property in Lagos include obtaining a Portuguese tax number (NIF) at your local tax office, conducting due diligence with a lawyer, ensuring that there are no issues with the property title, and signing a promissory contract and final deed (Escritura) in front of a Notary.

Legal representation is strongly recommended to help you navigate through the legal processes, which can be complex.

When foreigners buy property, they need to be aware of both the purchase and annual property taxes. Upon purchase, you’ll need to pay the Property Transfer Tax (IMT) and Stamp Duty. Annually, you’ll be liable for the Municipal Property Tax (IMI) and AIMI, should the property value be above €600,000.

Additionally, don’t forget to account for legal fees, real estate agent fees, notary fees, and land registration fees.

Yes, buying property in Lagos, Portugal, is considered a good investment due to strong demand, potential for rental income, and steady appreciation. The area’s popularity among tourists and expats, combined with its beautiful scenery and amenities, adds long-term value.

Benefits of buying property in Lagos, Portugal, include access to gorgeous beaches, a mild climate, a laid-back lifestyle, and the potential for high rental income. Additionally, Portugal offers tax incentives, residency options through the Golden Visa, and a safe, welcoming environment for expats.

The property market in Lagos, Portugal, is generally more affordable than in hotspots like  Vilamoura, yet offers similar appeal with historic charm, stunning beaches, and a relaxed lifestyle. It’s increasingly popular with expats, driving steady growth but still offering value.

There are more than 15 banks in Portugal that offer mortgage options. To get a mortgage in Lagos, Portugal, you’ll need a Portuguese bank account, proof of income, and a credit history check. Mortgages typically cover up to 70-80 percent of the property’s value for non-residents. Loan terms vary, with fixed or variable rates available from local banks.

Over the past five years, Lagos’ property market has seen steady growth, with increased demand from foreign buyers driving up prices. New developments and a focus on luxury properties have also emerged, while the overall market remains robust, benefiting from tourism and lifestyle appeal.

In 2025, Lagos, Portugal, is expected to continue to ride the wave of success as Algarve thrives as a property destination of choice, especially among high-net-worth individuals looking for luxury European home options close to the beach.

To negotiate property prices in Lagos, research comparable properties, understand market conditions, and consider the seller’s situation. Working with a buyer’s agent can ensure you get the best price for the selected property, as they work solely on behalf of the buyer. This is in contrast to real estate agents, who work on behalf of the seller.

Yes, Americans can buy property anywhere in Portugal, including Lagos, Portugal, and will face no restrictions on ownership for non-residents. The process is relatively straightforward, especially when working with a real estate professional like a buyer’s agent.