Buy a house in Portugal as a foreigner: Requirements & more

If you’re reading this, there’s a good chance you’ve already considered buying a home in Portugal. Maybe you fell in love with Lisbon on a city break. Or perhaps a quieter trip to the Algarve made you wonder what it would be like to own a place there. It happens more often than you’d think. People come for a holiday, stay for the lifestyle, and before long, they’re buying a home.

Buying a home in Portugal as a foreigner is easier than many people think. There are no restrictions on who can buy, and you’ll have the same ownership rights as Portuguese citizens. Still, it’s important to understand the taxes, the new flat tax rate for non-residents introduced in 2026, and the paperwork involved before you get started.

This guide covers everything from average property prices by region to the legal steps involved in completing a purchase, with information updated for 2026.

Requirements for foreigners to buy a house in Portugal

The good news is that anyone can buy property in Portugal, no matter where they’re from. You don’t need to live in the country, and foreign buyers have the same ownership rights as Portuguese citizens. The only requirement is getting a Portuguese tax number (NIF), which you’ll need to buy a property.

Without an NIF, you can’t sign any documents, pay the required taxes, or complete the purchase. It’s the very first step, and without it, you can’t move forward.

If you’re an EU citizen, getting an NIF is easy. Just take your passport or national ID to a Portuguese tax office, and you’ll get it for free. If you’re from outside the EU and don’t live in Portugal, you’ll need a Portuguese tax representative to apply for one for you. Luckily, many companies now offer this service online.

Documents you’ll need

In addition to your NIF, the standard documentation required to complete a real estate purchase in Portugal includes:

• A valid passport or ID card (DNI for EU citizens).
• Proof of address in your country of residence.
• Banking documentation proving the source of the funds, especially if you are bringing them from abroad.
• If you are financing with a mortgage, documentation of your income and financial situation as required by the bank.

Do you need residency to buy a home?

No. You can buy a property in Portugal without becoming a resident, and there’s no requirement to become a resident later. However, if you become a Portuguese tax resident within two years of buying, you may not have to pay the new flat IMT rate for non-residents (we explain this in the taxes section). If you’re planning to move to Portugal, it’s something to keep in mind.

What about the Golden Visa?

Since October 2023, buying residential property in Portugal no longer qualifies you for the Golden Visa. If you’re interested in the program, you’ll need to invest through one of the remaining options, such as investment funds, starting a business that creates jobs, or supporting cultural or scientific projects.

If your goal is to get residency through investment, buying residential property is no longer an option. However, owning or renting a home can still help if you’re applying for other visas, such as the D7 visa or the Digital Nomad Visa.

A lawyer: Not required, but highly recommended

You don’t need a lawyer to buy property in Portugal, but having one can save you a lot of trouble. A local property lawyer can check that everything is in order, make sure there are no debts or legal problems, and review the contracts before you sign them.

Their typical fee ranges from 1% to 1.5% of the property’s value, and in most cases, it’s worth every euro.

How much does a house cost in Portugal?

Portugal remains one of the most affordable countries in Western Europe for buying property, although prices have risen steadily in recent years. By the end of 2025, the average price was about €2,198 ($2,600) per square meter, up 17.5% from the year before. Since 2015, property prices have more than doubled.

That doesn’t mean every part of Portugal is expensive. The difference between buying in central Lisbon and a small town in the Alentejo can be more than €4,000 ($4,700) per square meter. Here’s a general idea of current prices across different parts of the country:

Lisbon and the metropolitan area

Lisbon is by far the most expensive place to buy property in Portugal. The average price is around €5,198 ($6,100) per square meter, while nearby Cascais averages €4,654 ($5,500) per square meter and Oeiras €4,225 ($5,000) per square meter. In prime neighborhoods like Chiado, Príncipe Real, and Estrela, prices can easily exceed €6,000 ($7,000) per square meter.

If buying in central Lisbon is out of your budget, the surrounding areas are a more affordable option. Places like Almada, Setúbal, and Amadora offer average prices between €2,000 and €3,000 ($2,350–3,500) per square meter, while still providing good transport links to the city.

Porto and the northern region

Porto is the second most expensive city in Portugal, with an average property price of €3,639 ($4,300) per square meter. Demand remains strong, thanks to its rich culture, renowned food scene, and growing startup and business community.

Neighboring municipalities, such as Matosinhos and Gaia, offer slightly lower prices while still providing direct access to the city.

Algarve

The Algarve is the top choice for foreign buyers looking for sunshine and coastal living. The average property price is around €3,467 ($4,100) per square meter, although prices vary widely depending on the area. Popular spots like Lagos and Loulé are among the most expensive, while Portimão and Monchique offer more affordable options.

A three-bedroom home in a quiet part of the Algarve, with a garden and swimming pool, typically costs between €500,000 and €700,000 ($590,000–825,000), depending on how close it is to the beach and the quality of the finishes.

Costa de Plata, Central Portugal, and Alentejo

If you’re looking for a more affordable option, central and inland Portugal offer excellent value for money. In many areas, average prices range from €1,100 to €1,500 ($1,300–1,800) per square meter. Cities like Coimbra, Évora, and Aveiro offer good services, a great quality of life, and much lower prices than Lisbon, Porto, or the Algarve.

Inland and rural areas

The lowest property prices in Portugal are found in inland regions such as Beiras and Trás-os-Montes. In Beiras and Serra da Estrela, the average price was just €731 ($860) per square meter at the end of 2025.

These are attractive options for those looking for space and tranquility, although they offer fewer amenities and have lower market liquidity should you wish to sell in the future.

Maintenance costs

Owning a home in Portugal comes with ongoing costs, so it’s important to include them in your budget. The main one is IMI (Municipal Property Tax), which is similar to an annual property tax. It usually ranges from 0.3% to 0.45% of the property’s taxable value (VPT) each year.

If your property is part of a condominium or apartment building, you’ll also pay monthly community fees. These typically range from €20 to €300+ ($25–350+) a month, depending on the building and its amenities. Utilities and home insurance usually add another €100 to €200 ($120–235) per month.

What are the taxes involved in buying a house in Portugal?

Buying property in Portugal involves relatively few taxes compared with many other European countries. However, there’s one important change introduced in 2026 that directly affects non-resident buyers. It’s worth understanding before you agree on a purchase price.

1. IMT: Transfer tax

The main tax you’ll pay when buying a property in Portugal is IMT (Property Transfer Tax). It’s a one-time tax that’s paid when the ownership of the property is transferred to you.

If you’re a tax resident in Portugal and you’re buying your first home to live in, IMT is charged on a sliding scale, with rates ranging from 2% to 8% depending on the property’s value. Homes priced at €97,064 ($114,000) or less are exempt from IMT, as long as they’ll be your primary residence.

Here’s the big change in 2026: if you’re a non-resident buying a home in Portugal, you’ll usually pay a flat 7.5% IMT tax, regardless of the property’s price. Before, non-residents paid the same progressive rates as residents buying a second home. Now, the 7.5% rate applies to the entire purchase price, with no reduced rates for cheaper properties.

There are a few exceptions. The flat 7.5% rate doesn’t apply if you’re already a tax resident in Portugal when you buy, if you become a tax resident within two years, or if you qualify under certain other special rules, such as some long-term rental programs.

2. Stamp Tax (Imposto do Selo)

Stamp Duty is also payable at a flat rate of 0.8% of the purchase price. It’s a one-time tax paid when you buy the property. If you’re taking out a mortgage, Stamp Duty also applies to the loan amount.

3. IMI: Annual property tax

Once you own the property, you’ll pay IMI (Municipal Property Tax) every year. The rate depends on the municipality, usually ranging from 0.3% to 0.45% of the property’s taxable value (VPT). Since the VPT is often lower than the property’s market value, the amount you actually pay is usually lower than you might expect.

4. AIMI: Surcharge on high net worth individuals

You may also have to pay AIMI (Additional Municipal Property Tax) if the total value of your real estate in Portugal exceeds €600,000 (about $705,000). For individuals, the tax is 0.7% on the amount above that threshold, 1% on amounts over €1 million (about $1.18 million), and 1.5% on amounts over €2 million (about $2.35 million).

5. Upon sale: Capital gains tax

If you sell your property for a profit, you may have to pay capital gains tax. Non-residents pay a flat 28% on the profit. If you’re a Portuguese tax resident, the profit is taxed as part of your regular income. In some cases, deductions can reduce the amount of tax you pay.

How much does it all add up to?

As a general rule, non-resident buyers should budget an extra 10% to 12% on top of the purchase price. This covers the 7.5% IMT, 0.8% Stamp Duty, as well as notary, registration, and legal fees. It’s an important cost to factor into your budget from the start.

Steps to buying a house in Portugal

Buying a property in Portugal is a straightforward process, but there are a few important steps to follow. Here’s how the process works from start to finish.

1. Define what you’re looking for and how much you can realistically afford

Before you start looking at properties, set your total budget, including the extra 10–12% in buying costs. Also decide whether you’re buying a home to live in, a vacation home, or an investment property.

Your goals will influence where you buy, the type of property you choose, and the taxes you’ll pay.

2. Get your Tax ID Number (NIF)

This is the very first step. Without a Portuguese tax number (NIF), you can’t move forward with the purchase. If you’re an EU citizen, you can apply in person with your passport or national ID. If you’re from outside the EU, a local representative can apply for it on your behalf.

Keep in mind that you’ll need your Tax ID Number (NIF) even to open a bank account, which is where you’ll set up direct debit for payments.

3. Hire a specialized attorney

Don’t leave this until the last minute. Your lawyer will check that the property is legally clear, confirm there are no mortgages, debts, or other issues, and review all the paperwork before you sign anything.

It’s the smartest investment you’ll make during the process.

4. Start your property search

The main property websites in Portugal are Idealista, Imovirtual, Casa Sapo, and RE/MAX Portugal. If you’re buying in the Algarve, you’ll also find agencies that specialize in helping international buyers.

Beyond that, it’s essential to visit the property in person. Photos always tell a slightly different story, and the surroundings matter just as much as the home itself.

5. Verify the legal status of the property

Before you pay anything, your lawyer should check that the seller is the legal owner and that the property has no mortgages, debts, or other legal issues. They should also make sure the property taxes are up to date and that it has a valid occupancy permit.

6. Sign the CPCV

Once you’ve agreed on a price, both parties usually sign a Promissory Purchase and Sale Agreement (CPCV). At this stage, the buyer pays a deposit, typically 10% to 20% of the purchase price, to reserve the property.

If the seller backs out after signing the CPCV, they must return double your deposit. If you back out, you usually lose the deposit. That’s why it’s so important to have your lawyer check everything before you sign.

7. Pay the IMT and stamp tax

Before the sale can be completed, you must pay the IMT and Stamp Duty. You’ll need proof of payment before the notary can finalize the purchase. Without it, the sale can’t go ahead.

8. Sign the deed before a notary

The final step is signing the deed of sale before a Portuguese notary. At this stage, you pay the remaining balance, complete the mortgage if you’re using one, and officially become the property’s new owner. The notary certifies the transaction and submits it for registration.

9. Register the property with the Land Registry

The last step is registering the property in your name with the Land Registry. Once that’s done, you’re officially the legal owner. The notary usually takes care of this, but it’s always a good idea to confirm.

How to pay for a house in Portugal

Buying a property in Portugal is about more than just paying the purchase price. You’ll need to decide how to transfer the money and, if you’re getting a mortgage, understand how the process works. Planning ahead can help you save money and avoid delays.

Here’s how most foreign buyers pay for property in Portugal, along with what to expect if you’re applying for a mortgage.

1. International transfers

Most foreign buyers pay by international bank transfer. Since Portugal uses the euro, it’s easier for buyers from euro countries. For others, exchange rates and bank fees can add significant costs on large purchases.

Specialized international transfer services typically offer more competitive terms than traditional banks for these transactions.

Keep in mind that, while you could technically send the money directly to the seller or notary, opening a Portuguese bank account is highly recommended.

This account will be useful not only for buying the property, but also for paying regular costs like IMI, water, and electricity bills. Portugal’s online banking makes it easy to manage your property, even from abroad.

2. Mortgages in Portugal for foreigners

Getting a mortgage in Portugal as a non-resident is possible. Banks like Millennium BCP, BPI, and Santander work with foreign buyers. However, there are two key things to keep in mind:

• Non-residents usually get less financing than residents. Portuguese banks may lend up to 80% of the property’s value to residents, but often only 60–70% to non-residents. This means you’ll need to pay 30–40% upfront, plus the extra purchase costs.
• In Portugal, life insurance is required for a mortgage. You can buy it from another insurer, not just the bank. But the bank may increase your interest rate if you don’t use their insurance.

Mortgage rates in Portugal were around 3–4% for euro loans in 2025. Banks offer fixed-rate, variable-rate (linked to Euribor), and mixed options. It’s always a good idea to compare the APR from different banks before choosing a mortgage.

3. Cash payment

For buyers who have the funds available, paying in cash makes the process easier, avoids the uncertainty of mortgage approval, and can often give you more room to negotiate the price. Having cash puts you in a stronger position, and Portugal is no exception.

Keep in mind that Portugal is very strict about where your money comes from. Even if you pay in cash, you must prove the source of your funds with bank statements. The bank and notary are required to check this, so having clear records from the start will help avoid delays.

Finally, even if you are paying in cash, make sure the initial deposit (sinal) is always paid by bank transfer or bank cheque, never in cash. This creates a legal record in the purchase agreement (CPCV) and ensures it counts toward the final tax payment.

Tips before buying a house in Portugal

Buying a property in Portugal is exciting, but finding the right home is only part of the process. With changing rules and taxes, planning ahead is essential. Before signing the purchase agreement, follow these tips to protect your investment and avoid problems.

1. Stay connected before, during, and after

Buying property in another country requires staying connected. For property visits and research trips, Holafly’s Portugal eSIM gives you unlimited data as soon as you arrive, without changing your SIM card or relying on hotel WiFi.

For longer stays, Holafly’s monthly plans offer coverage in over 160 countries with unlimited data or 25 GB per month, automatic renewal, and no long-term commitment. You also get access to the Always On benefit.

This is your backup for staying connected. It gives you 1 GB of automatic data in more than 70 countries, so you never miss an important email from your lawyer or notary because of a lost connection.

2. Calculate Your 2026 IMT in Advance

One of the biggest changes in 2026 is the new 7.5% fixed IMT rate for non-residents. However, if you plan to become a tax resident in Portugal within 24 months of buying, you may qualify for exemptions or lower rates.

Speak to a tax advisor early in the process; a change in your residency status could save you tens of thousands of euros at closing.

3. Carefully check the condition of the property

Historic properties in Lisbon and Porto can have a lot of charm, but renovation costs can be very high. Before buying, get an independent inspection to check the condition of the structure, systems, and any work that may be needed.

In historic districts, there are specific regulations regarding what can and cannot be modified. Find out more before you buy.

4. Don’t choose a property based on price alone

Portugal has beautiful inland areas with very affordable prices, but it’s important to look beyond the purchase price. Check how easy it will be to sell the property later: a cheap home in an area with low demand can be difficult to resell. If your goal is long-term value growth, coastal areas and established cities are still the safest choices.

5. Renting as a first step

If you’re still not sure where you want to live, renting for six to twelve months before buying can be a smart move. The rental market in Portugal can be competitive, especially in Lisbon and Porto, but experiencing an area firsthand is invaluable when deciding where to settle.

6. Red flags

Be careful with sellers who rush you to sign before checking the documents, properties that are much cheaper than similar homes without a clear reason, contracts that reduce your rights, or new developments from unknown builders.

If you have any doubts, stop. A mistake in a real estate purchase costs much more than the time it takes to verify the details.

In the end, success is not only about finding the right property. It’s also about having trusted local support, like a good lawyer and tax advisor, and staying connected throughout the process. From getting your NIF to registering the property, following these steps will make buying in Portugal much easier. Good luck!

Frequently asked questions about buying a house in Portugal

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Paula Henderson

Spanish-English Translator

Hi! I'm a Spanish-English translator working with Holafly, helping bring travel content to life for curious travelers. As a digital nomad with a passion for exploring, I'm always adding new spots to my bucket list. If you love to travel like me, stick around because you're in the right place to find inspiration for your next trip! ✈️🌍

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