Buying property in Portugal as a foreigner

Step by step

1. Get a Portuguese tax number (NIF). Every buyer needs one, including each co-buyer. EU citizens can apply directly at a tax office; buyers from outside the EU usually need a fiscal representative in Portugal. A lawyer can do this for you, often remotely.
2. Open a Portuguese bank account. Not strictly required by law, but in practice you will need it to pay the deposit, the taxes and the bills. Banks will ask for proof of the source of your funds.
3. Find the property and check the papers. Before you commit, your lawyer checks the land registry certificate (certidão permanente), the tax record (caderneta predial), the habitation licence (licença de utilização), the energy certificate (compulsory for every sale), any mortgages or debts on the property and, for apartments, unpaid condominium fees.
4. Sign the promissory contract (CPCV) and pay the deposit. The contrato-promessa de compra e venda fixes the price, the date and the conditions. The deposit (sinal) is usually 10% to 30%. If the seller pulls out, you can claim double the deposit back; if you pull out, you lose it.
5. Arrange a mortgage, if you need one. Portuguese banks lend to non-residents, but usually a lower share of the value than to residents, and they will want proof of income. Start early: the bank also orders its own valuation.
6. Pay IMT and stamp duty before the deed. Both are paid at the tax office (or online through your lawyer) before signing, on the higher of the price and the property's tax value (VPT).
7. Sign the deed (escritura). You sign the final deed before a notary or at a Casa Pronta desk, which also registers the property in your name. You can sign in person or give your lawyer a power of attorney.
8. After the purchase. Transfer the utilities, register with the condominium and keep your tax address up to date: the annual property tax (IMI) is billed to the owner on 31 December.

Taxes and costs when you buy

IMT (municipal property transfer tax) is the big one. For residents it works in bands, and a main home is exempt up to the first band. Non-residents buying a home pay a single rate of 7.5% since 25 May 2026. On top of IMT you pay stamp duty of 0.8%, plus 0.6% on the mortgage amount if you borrow.

Add the notary and land registry fees (regulated, usually several hundred euros up to about €1,500) and your lawyer's fee (a fixed fee or a percentage of the price). For a resident buying a main home, a sensible budget is 7% to 10% on top of the price; for a non-resident paying the 7.5% IMT, plan for 10% or more. Estate agent commission is normally paid by the seller.

The 7.5% IMT for non-residents

The flat rate applies to individuals who are not tax resident in Portugal and buy urban property intended for housing, from 25 May 2026. It replaces the bands and exemptions. You pay the normal IMT instead if:

• you have been tax resident in Portugal before;
• you become tax resident in Portugal within 2 years of the purchase; or
• you let the home as a permanent residence at a moderate rent (up to €2,300 a month) within 6 months, for at least 36 months during the first 5 years.

In the last two cases you first pay the 7.5% and then ask the tax office for the difference, within 6 months of becoming resident or signing the lease. If you plan to move to Portugal, talk to your lawyer about the timing of your tax residency and the deed. Buyers resident in a blacklisted tax haven pay 10%.

Yearly costs of owning

• IMI (municipal property tax): 0.3% to 0.45% a year of the tax value (VPT) for urban property, set by each municipality; 0.8% for rural land.
• AIMI (additional IMI): only if the residential property you own in Portugal is worth more than €600,000 in tax value per person (€1.2 million for a married couple filing jointly).
• Condominium fees for apartments, and your utilities and insurance.

Residency, Golden Visa and tax regimes

Owning a home does not give you the right to live in Portugal. Real estate no longer qualifies for the Golden Visa, which now works through funds and other investments. Most people who move use the D7 visa (passive income such as pensions or rents) or the D8 visa (remote work), which depend on your income. The old NHR tax regime closed to new applicants; its successor, IFICI, is narrower and aimed at specific professions, and it does not cover pensions.

Where to look

Search homes for sale across Portugal in English, or start with the regions foreign buyers like most: