Buying Property in Portugal: Your Ultimate Guide for 2025

Buying property in Portugal for foreigners is a relatively simple process without any special restrictions. You will need a Portuguese tax number (NIF), enough funds, and the ability to find properties. Once you’ve made your choice, you will sign a promissory contract and later seal the deal with a final deed of sale. Along the way, you will do thorough due diligence, legal checks, and register your property with the Land Registry Office (Conservatória do Registo Predial).

The Portuguese real estate market is an excellent financial investment. Here, property values have been consistently rising, with average property prices reaching €1,903 to €4,935 per square meter in some locations, with Lisbon having the highest prices. Foreign investors are particularly drawn to the climate, natural landscape, and high standard of living. 

If you are looking to acquire property in Portugal, whether residential or commercial properties, this step-by-step guide can help. It can answer any questions you might have about the legal requirements, real estate investments, due diligence, and taxes, so you can find your dream property.

Stick around to read about:

• Why buy property in Portugal?
• Can you buy property in Portugal as a foreigner?
• Portuguese Real Estate Market Overview
• Types of Property in Portugal
• Required Documents to Buy Property in Portugal
• Property Taxes in Portugal

Why buy property in Portugal?

Portugal’s real estate market attracts both domestic and international buyers. Real estate purchases boost the country’s economy and employment, especially in popular cities with high rates of foreign property ownership, such as Lisbon, Porto, Faro, and Cascais. 

There are countless reasons foreigners buy property in Portugal. You’ll be purchasing property in a dynamic, growing real estate market with excellent potential for returns while enjoying a low cost of living compared to much of Western Europe. The infrastructure is robust, offering world-class education and healthcare, and the country is ranked the seventh safest in the world by the 2025 Global Peace Index, with strong political stability.

Many Portuguese speak English, so Portugal ranks sixth on the Global English Proficiency Index, making it easy for foreigners and real estate investors to integrate. Add in the incredible gastronomy (with Lisbon crowned Europe’s best culinary city in 2024), many cultural and recreational activities, world-class surfing and golfing, festivals all year round, and the fact that there are no restrictions on foreign property ownership, and it’s easy to see why so many are making Portugal their home.

Can you buy property in Portugal as a foreigner?

The short answer is yes! One of the great advantages of buying property in Portugal is that there are no restrictions on foreigners owning property in Portugal. The Portuguese government actively welcomes and encourages foreigners to invest in real estate in Portugal, with the process of buying property transparent and largely straightforward for non-EU nationals.

Can US Citizens buy property in Portugal?

Yes, buying property in Portugal as an American, you will face no restrictions. Non-EU citizens have the same rights as Portuguese citizens when it comes to buying and owning property, whether for a second or third home, rental income, or property investment.

However, buying property in Portugal from the US doesn’t automatically grant you permanent residency. If you would like to live in the country for more than three months (in a six-month period), you will need to get a residence permit, such as a Portugal Golden Visa, Digital Nomad Visa, or D7 Visa. Make sure you are aware of the Schengen 90/180 rule, which limits the time non-EU citizens can stay in the Schengen area (including Portugal) without a visa. 

Where to buy property in Portugal?

Portugal offers a range of beautiful locations for expats and foreign investors seeking to buy Portuguese property. The perfect spot for you will depend on the real estate market, your budget, and property investment goals. 

To find the right property, determine which area suits your lifestyle. Each region and city will have its own unique charm and perks, so take the time to ensure you get to know the country and the diverse range of locations on offer. Here are some of the best places to consider in the Portugal real estate market.  

Lisbon  

Lisbon, the Portuguese capital, perfectly blends innovation and tradition. This city has a high property value, attracting the highest number of foreign ownership, especially for commercial investments and property rentals. 

You can buy property in Lisbon across different neighborhoods, like Baixa, a popular shopping district with buzzing nightlife. Families should consider Estrela, with its wide open parks, ideal for spending time outdoors. You also have Parque das Naçōes, with its futuristic cable cars, top-quality restaurants spilling out on the street, and fabulous views of the River Tejo.

Algarve  

Foreigners buy property in the Algarve due to its beautiful coastline, stunning beaches, and warm climate. It has a high potential for property investment for those seeking better property prices to earn a good rental income, especially in the peak tourism season. The coastal town comes alive in summer, with a property value constantly increasing. 

Cities like Faro, Albufeira, and Lagos are particularly popular among property buyers, especially for foreign property ownership. Regions like Monchique and Alcoutim offer affordable properties, with average property prices of €2,381 and €1,155, respectively.

If you are looking to buy property in Algarve, buyer’s agents and real estate agencies can help with your property purchase. Our team can research the property market and help you collect the necessary documents to buy a house in Portugal. 

The second-biggest Portuguese city has evolved quite drastically over the years. Now competing with Lisbon as the country’s most talked-about city, Porto can certainly hold its own, with its charming narrow streets, fabulous riverside restaurants and cafes, and boutique stores.

If you are looking for stunning beaches, you’ll find many nearby Porto and many activities to get involved in, such as surfing, yoga, or even cooking classes. Both local and foreign investors will find property rental to be an attractive option, with many students, remote workers, and young professionals creating demand for this type of accommodation in the city, leading to high rental yields.

Buying property in Porto, Portugal is a great option for investors whose financial position allows them to tap into the real estate market. Porto is cheaper than Lisbon with accessible interest rates. But property prices are high and keep increasing, especially near the coast.

Cascais  

Buying Property in Cascais remains a popular choice for many foreigners and domestic investors. The real estate market in Cascais has increasing property values, with an average property price of €7,260 per square meter, with some regions reaching well over €8,546.

Foreigners buy property here for its high rental income, luxury properties, and excellent location. This coastal town is, after all, a short drive away from Lisbon.

The Silver Coast  

The Silver Coast in Portugal is a captivating region renowned for its pristine beaches, historic towns, and vibrant culture. Situated on the Western Coast between Lisbon and Porto, it is characterized by rugged cliffs, golden sands, and charming fishing villages.

Foreigners buy property on the Silver Coast, often in Nazaré, which has a thriving property market due to its surfing waves and rugged coastline. 

Other locations where you can invest in Portuguese property include the Alentejo, with its green rolling hills, Comporta and Melides, for luxury properties in the heart of nature, and the autonomous islands of Madeira and the Azores offering a good property value.

Where to look when buying property in Portugal?

To find the right property in the real estate market in Portugal, feel free to check out our guide Zillow Portugal, which includes a list of all the best websites for finding your dream home.

When buying property in Portugal as a foreigner, you can consult with a real estate agent or a buyer’s agent. A property expert can give you full access to the property market and guide you through the entire process of buying a home in Portugal.

Together, you can find the ideal property prices that match your budget, and get a realistic perspective on the pros and cons of buying property in Portugal. You can navigate the pitfalls with the right legal documents when purchasing property.

Make sure that the real estate agent or buyer’s agent you choose is licensed. The most credible license is the AMI License, issued by IMPIC. This license is required for property agents to conduct real estate mediation activity. You can find out more on the Portuguese government website.

Required Documents to Buy Property in Portugal

The documents you need to buy a house in Portugal, or any kind of real estate property, include:

• NIF number: Tax identification number
• Photo ID: A valid identification document that verifies your identity. This can be a passport or Portuguese ID card (Cartão de Cidadão)
• Contrato Promessa de Compra e Venda (CPCV) or Promissory Agreement: The buying contract or property deed that outlines the terms and conditions of the property purchase.
• Portugal 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.
• Caderneta Predial: The purchase and sale of property needs to be registered with the land registry. This certificate contains information about the property, including its location, boundaries, and registered owner. The land registry certificate serves as evidence of the legal status of a property as of the date of issuance. The land registry certificate compiles and describes the current registrations applicable to that property.

While it is not mandatory to have a real estate lawyer in Portugal, it is highly recommended that you seek legal assistance when buying property, given the process’s complexities, and ensure that everything runs smoothly. A legal professional can collect the necessary documents, do thorough due diligence on the condition of your property, perform title checks, and look for any hidden issues.

Getting a NIF number

To purchase property in Portugal, whether you are a resident or non-resident, you will need to have a Portuguese tax number (NIF). This is a tax number that is crucial for financial transactions in Portugal, including buying real estate in Portugal, opening a bank account, or making financial transactions in Portugal. You can get your NIF at your local tax office (Finanças) or remotely.

It’s advisable to open a bank account to avoid fluctuations in exchange rates that could cost you financially.

Our residency and citizenship division, Global Citizen Solutions, for example, can get a NIF (and set up a Portuguese bank account) for you remotely, without you having to go to your local tax office. If you are a non-EU citizen, you will need to have a tax representative in Portugal to get a NIF. Feel free to contact them to further discuss the pros and cons of buying property in Portugal.

Step-by-Step: How to Buy Property in Portugal

To buy property in Portugal, you must obtain a Portuguese tax number (NIF), open a Portuguese bank account, and select your property. You would then sign a promissory contract and make a deposit of around 10 to 30 percent.

Here is a quick look at the buying process.

• Step 1: Secure financing: You will need to demonstrate that you have the financial means to purchase the property, whether through savings, a mortgage agreement, or other investments. Assess your finances and work out whether you want to take out a mortgage and what plan works for you, while also making sure you understand the associated property costs, such as property taxes.
• Step 2: Find your dream property: Set a budget, research property prices, and consider location, amenities, and rental potential. Commit to research and planning, and schedule property viewings to assess shortlisted properties and surrounding areas. If the house is not move-in ready, you’ll need to factor in renovation costs.
• Step 3: Make an offer and negotiate: Talk with the seller about the property value based on the current property market, and try to reach a mutual agreement.
• Step 4: Reservation Agreement and Promissory Contract (CPCV):  The Reservation Agreement shows your intent to buy and take the property off the market, with a reservation fee to be paid. Following this, the CPCV, a preliminary agreement outlining the terms of the sale, will be signed. This will typically include a deposit of 10 to 20 percent of the purchase price. This may be non-refundable if the buyer withdraws from the sale.
• Step 5: Sign the Escritura (Final Deed): Sign the Final Deed in front of a Notary, pay the remaining balance and fees, and officially become a property owner in Portugal.
• Step 6: Register your property. Visit the Land Registry Office (Conservatória do Registo Predial) and get legal ownership to protect your property rights.

If you can’t find a mortgage provider or have trouble compiling all the necessary documents for property management, consult with experts. A buyer’s agent and a real estate agent can guide you through securing your Portuguese property.

Tip: In Portugal, you might want to check that the property has a valid licença de utilização (license of use) from the local municipality. This proves it’s legally fit to live in. For older homes, get a survey before buying.

Buy House in Portugal: Property Purchase Costs

In addition to the payment for the property and the associated fees, you should factor in hidden costs when buying properties in Portugal.

• Legal fees: A lawyer will cost you approximately €2,000-€5,000, depending on the type of property, the price, and the complexities of the purchase. A legal professional can charge between 1 and 1.5 percent of the purchase price, plus VAT (Value Added Tax).
• Registration fees: The property is registered in your name with the Land Registry. There is a public fee for the Land Registry, amounting to €250.
• Notary Fees: Notary fees will cost you around €500-1,000.

After you purchase the property, consider the living and utility costs. You will need to set up utilities such as water, electricity, and internet, and there may be maintenance costs to consider. Other expenses include the Property Transfer Tax (IMT) and Stamp Duty (Imposto de Selo), which come at varying rates.

Financing a Property in Portugal

Buying a home in Portugal has flexible financing options to suit different needs. Many buyers choose to get a mortgage loan from a Portuguese bank, which is available to both residents and international investors. If you’re applying for mortgages in Portugal from abroad, expect slightly lower loan-to-value ratios, usually around 60 to 75 percent, with a down payment of at least 25 to 40 percent.

If you prefer to move quickly and avoid high interest rates, you can use personal savings or investment funds to pay in full. Some buyers also opt for equity release or refinancing a property in their home country, using their existing assets as collateral. Developer financing is sometimes available for new-build projects, offering staged payments or short-term plans.

We suggest you open a Portuguese bank account at one of the country’s top commercial retail banks, such as the Millennium BCP, Caixa Geral de Depósitos, or Banco Santander Totta.

Before approving a loan, Portuguese banks typically require proof of income, a credit report, and a property evaluation. Portuguese banks can ask for additional documents, such as an employment letter of confirmation, income tax returns, notice of settlement, etc. With the right approach, you can finance your dream home in Portugal.

Property Taxes in Portugal

When buying properties in Portugal, you must be aware of your tax obligations, which you must pay at the time of purchase and on an annual basis.

Property Purchase Tax/Property Transfer Tax (IMT)

Property Transfer Tax, or IMT (Imposto Municipal sobre Transmissôes Onerosas de Imóveis), varies from 0 to 10 percent and is levied on the purchase price of the property. This tax must be paid at the time of purchase.

The 0 to 8 percent range depends on the price, location, property type, and purpose for which the property will be used, for instance, whether it will be used as your permanent residence or secondary housing. The 10 percent rate applies in cases where the buyer has connections with territories that benefit from favorable taxation schemes, known as blacklisted jurisdictions. When calculating the Property Purchase Tax (IMT), the following criteria are taken into consideration:

Stamp Duty (Imposto do Selo)

Stamp Duty is one of the oldest state taxes and an additional transaction cost for property buyers on real estate transfers. The rate for purchasing a property in Portugal is 0.8 percent of the property value or the property deed’s total value and must be paid at the time of purchase.

Municipal Property Tax / Immovable Property Tax (IMI)

IMI (Imposto Municipal sobre Imóveis) is an annual tax, determined by the municipality. The IMI is levied on the Property Tax Value (VPT), not the property price paid upon purchase. For urban properties, the IMI rate ranges from 0.3 to 0.45 percent of the VPT, which can increase to 0.5 percent in some instances. The IMI rate applied to rustic buildings is 0.8 percent.

AIMI Tax (Additional to IMI Tax)

AIMI is charged on real estate assets owned by natural or legal Portuguese residents who own properties with a high Tax Asset Value (VPT) of more than €600,000. AIMI can be calculated as follows:

• 0.7 percent tax on owning property valued between €600,001 and €1 million
• 1 percent tax on property valued between € 1 million and €2 million
• 1.5 percent tax on property if its total value is above €2 million

The €600,000 threshold applies individually. If the property is jointly owned with your partner, AIMI will only apply if the property’s value exceeds €1.2 million.

Capital Gains Tax

When you sell your Portuguese property, any capital gain from the sale may be taxable. Capital gains refer to the profit made from the property’s sale. Capital Gains Tax is levied on property sales in Portugal, and the amount you pay depends on your residency status.

Capital Gains Tax is levied differently for Portuguese residents and non-residents selling property there. For Portuguese residents, the tax on capital gains is only levied on 50 percent of their total capital gain,  while non-residents pay tax on the full gain amount.

Taxation will take effect when your real estate capital gain is added to your other yearly income. It may range from 14.5 percent to 48 percent, depending on the income tax scale rates, with the income tax rate determined by your earnings.

There are various exemptions to capital gains on properties. If you reinvest the proceeds from your property sale into another main home in Portugal or elsewhere in the EU or EEA that has a tax treaty with Portugal, you will not be required to pay tax on capital gains.

Note that to qualify, the property must be your primary residence, and you must reinvest in it within 36 months after the sale or 24 months before the sale.

Inheritance tax

There is no Inheritance Tax in Portugal. However, a 10 percent Stamp Duty will apply to the assets passed on as inheritance. Spouses, descendants, and ascendants inheriting said assets are exempt from paying the Stamp Duty fee.

Can I buy a property in Portugal with crypto?

Yes, you can use crypto to buy property in Portugal, like Bitcoin, Ethereum, and other digital currencies. But the process is a bit of a workaround. You don’t just hand over the cryptocurrency like cash. Instead, it’s treated more like a barter, where you exchange your digital assets for the property. All the legal and tax paperwork is done in euros, so the value of your crypto is locked in at the time of the agreement. So, while it can be a convenient way to use your digital assets, it’s not necessarily a shortcut around the standard real estate process.

Portugal Buying Property Versus Renting Property

Both renting and buying property in Portugal have something unique to offer. Buying gives you long-term stability and builds equity; however, it comes with significant upfront costs and a higher financial commitment. Renting gives you more flexibility and fewer responsibilities when it comes to maintenance, but you don’t build ownership. So, to choose the perfect property to buy, you should pick the option that suits your lifestyle, budget, and long-term goals.

Goldcrest: How We Can Help You 

Goldcrest is a buyer’s agent that is based in Lisbon. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process.

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, helping you with the property search and offering insightful expertise and strategic advice.

Why choose Goldcrest?

• Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
• Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price. As an impartial advisor on the market, we work solely on behalf of our client and provide a service tailored to your needs and requirements.
• Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time.
• Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
• Network of partners: We have a close network of partners, including lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.