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Buying property in Portugal has become increasingly popular among foreigners seeking a safe investment, a sunny lifestyle, or a new place to call home. With no restrictions on foreign ownership, clear property laws, and a wide range of homes to choose from, Portugal offers one of the most accessible real estate markets in Europe.
In this guide, you’ll learn everything you need to know—from legal requirements and taxes to financing options and the purchase process—so you can confidently buy property in Portugal, whether for relocation, retirement, or investment.
Portugal Real Estate Market Overview
Portugal’s property market continues to show strong momentum, with annual price growth of 15–19% in Lisbon, Porto, and the Algarve. Lisbon now averages over €5,700/m², while the national average sits around €2,100/m². Since 2010, values have more than doubled due to limited supply, strong foreign demand, and the country’s lifestyle appeal.
The outlook for 2025 remains positive, with expected growth of 5–8% and investment volumes approaching €2.5 billion. Tourism recovery, overseas buyers, and coastal hotspots are key drivers, while new tools like SyncMLS and interest in sustainable developments—especially in Alentejo—are reshaping the market.
Affordability, however, is becoming a challenge. Rising prices have pressured local residents, prompting government initiatives such as rural land development and a €2 billion plan to deliver 33,000 homes by 2030. Despite ongoing bureaucracy and slow licensing, the country still offers strong investment potential for those interested in buying real estate in Portugal. However, balancing growth and accessibility will be essential moving forward.
Why Buy Property in Portugal?
Here are 10 strong reasons to buy property in Portugal, especially appealing to international buyers:
- Portugal is one of the safest and most stable countries in Europe.
- Property prices remain affordable compared to other Western EU markets.
- The country enjoys a sunny, mild climate throughout the year.
- Strong rental demand makes it ideal for investment income.
- The property market has shown steady long-term growth.
- High quality of life with great healthcare, infrastructure, and lifestyle.
- Multiple visa and residency options are available for foreigners.
- Easy access to Schengen and major European destinations.
- Daily living costs are lower than in many EU countries.
- A wide variety of property types suits every budget and preference for buy house in Portugal.
Can Foreigners Buy Property in Portugal?
Yes, foreigners can freely buy property in Portugal, and there are no restrictions on nationality or the number of properties you can own. For buying a property in Portugal as a foreigner or even buying land on Portugal, you don’t need to have residency in the country neither be a tax payer—just a valid passport, a Portuguese tax number (NIF), and a local bank account.
Because contracts are in Portuguese, many international buyers choose to work with a lawyer or buyer’s agent to verify documents and ensure a smooth, secure transaction. Portugal’s clear property laws and foreign-friendly market make it an attractive choice for expats looking to buy house in Portugal for holiday homes, relocation, or investment.
How to Search When Buying Property in Portugal
Finding a home for sale in Portugal becomes much easier when you know where to look. Here are the main ways for how to buy a home in Portugal:
Use Trusted Property Portals
The most common way to search and buy property in Portugal is by using platforms like Idealista, Imovirtual, and Casa Sapo. These sites offer thousands of listings across the country and allow you to filter by budget, location, and property type. However, real estate platforms only cover part of the market, which can limit your process of how to buy a home in Portugal.
Work With a Buyer’s Agent
For anyone buying property in Portugal from abroad, a buyer’s agent is often the most valuable resource. They represent your interests—unlike listing agents who work for the seller—and can uncover off-market options, validate property documentation, negotiate prices, and protect you from common legal and procedural issues.
This support is especially important if you’re not familiar with Portuguese law, the language, or the local market — especially if you haven’t yet decided where to buy a house in Portugal. It’s even more useful if your interest is to buy land in Portugal, since these properties usually don’t appear on online platforms.
Check Local Real Estate Agencies
Many smaller agencies advertise only within their region or on their own websites. If you have a preferred area where to buy property in Portugal, contacting these local offices can reveal additional listings that may not appear on major portals.
Where to Buy Property in Portugal
If you’re exploring where to buy a house in Portugal, the country offers a wide range of regions, each with its own lifestyle, climate, and investment appeal. Here is a list of the most sought-after regions in Portugal for expats looking to move or simply invest.
Lisbon
Lisbon remains the strongest market due to the demand from locals, expats, and companies keeps rentals highly active. Central and riverside areas like Chiado, Baixa, Alfama, Estrela, Campo de Ourique, and Parque das Nações are prime locations to buy property in Portugal, holding value well and offering excellent liquidity despite higher prices.
Porto
A smart option for value-focused investors, Porto combines lifestyle and solid investment potential. With lower entry prices than Lisbon and steady growth, areas like Ribeira, Foz do Douro, Boavista, and Cedofeita offer strong rental demand. Renovated historic apartments and new riverfront builds are particularly attractive.
Algarve
The Algarve is a classic choice for holiday-rental investors. Year-round tourism from golfers, retirees, and remote workers keeps demand strong. Areas like Albufeira, Lagos, Vilamoura, Carvoeiro, and Tavira perform well for short- and medium-term rentals, making the Algarve ideal for those looking to buy property in Portugal while enjoying personal use and solid rental income.
Silver Coast
The Silver Coast is often overlooked but offers strong potential. Prices are more accessible in towns like Nazaré, Foz do Arelho, São Martinho do Porto, and Peniche. With oceanfront living, quieter communities, and growing demand from families and retirees, it’s an attractive option to buy property in Portugal or land to build.
Madeira
Types of Property in Portugal
Portugal offers a range of property types, including apartments, townhouses, villas, and farmhouses. Each property type has its advantages and disadvantages, so it’s important to consider which one suits your needs and lifestyle before buying property in Portugal.
Apartamento: This is the Portuguese word for an apartment, which is a self-contained living unit within a larger building that is typically divided into multiple units.
Moradia: Also is the Portuguese word for a house or a dwelling, which refers to a standalone residential property that is not connected to any other building.
Loft: This style of living space is typically characterized by high ceilings, large open spaces, and minimal partitions. Furthermore, lofts often have an industrial aesthetic and are commonly found in converted warehouses or factories.
Duplex: Moreover this is a residential unit that spans two floors of a building. Additionally, duplexes often have a staircase that connects the two levels, and may include features like a private entrance or outdoor space.
Casa de Campo: And this is a type of dwelling that is typically small and rustic in design, often featuring a steep-pitched roof and made of wood or too stone.
Quinta: Also this is a Portuguese word for a country estate or farm, often featuring a large house or manor, as well as agricultural land or gardens.
Terreno: Parcels of land that can be rural, urban, or mixed-use. Buying land in Portugal offers the possibility to build your own home, though it requires verifying zoning, construction rights, and access to utilities.
Get In Touch With a Portugal Property Specialist
Portugal Residency Advisors® has assisted numerous international investors in successfully investing in Portugal. Discover how our trusted, all-in-one solution makes your investment journey smart and simple.
How to Buy Property in Portugal: Step-by-Step
The steps involved in buying property in Portugal as a foreigner or as a local resident are the same, which makes the country very appealing from an international investment perspective.
1. Property Search
Begin by searching for properties that fit your requirements and budget. When buying property in Portugal, you can browse online listings and also work with a real estate agent.
2. Offer and Negotiation
Once you have found a property to buy in Portugal, and make an offer to the seller. Negotiations may take place until a final price is agreed upon.
3. Due Diligence
A law firm will carry out legal checks on the property, also including verifying ownership, checking for any liens or mortgages, and ensuring that all permits and licenses are in order.
4. Preliminary Contract
The next step is to sign a preliminary contract, where you also known as a promissory contract (CPCV). This is a legally binding agreement between the buyer and seller that outlines the terms of the sale, including the price, payment terms, and other conditions.
In this point, the buyer is also require to do a downpayment, also in general equivalent to 10 percent of the agreed price to avoid buyer pulls out of the deal.
5. House Inspection
Especially for foreign buyers looking to buy property in Portugal, it’s recommended to carry out a property survey to identify any potential issues or defects. This can be arranged by the buyer or through a surveyor recommended by the real estate agent.
6. Property Deed
Once all legal checks and surveys have been complete, the final contract can sign. This is typically done at a notary public office, and the full purchase price is paying at this time.
Required Documents to Buy Property in Portugal
When buying property in Portugal, having the correct documents prepared in advance helps ensure a smooth and efficient buying process. Below are the essential items every foreign buyer must have:
Passport
A valid passport is required as your official identification for purchasing property in Portugal, including viewing, signing reservation agreements, and completing the final deed at the notary.
NIF (Portuguese Tax Number)
The NIF is mandatory for anyone buying property in Portugal. It’s used for tax purposes, signing contracts, paying fees, connecting utilities, and is required by banks, lawyers, and government offices. Foreigners can obtain it through a tax representative or with the assistance of a lawyer.
Portuguese Bank Account
A local bank account is necessary to manage all payments related to buying real estate in Portugal —such as deposits, taxes, notary costs, and ongoing bills. Many banks offer accounts specifically for non-residents, making the process straightforward.
Financing a Property in Portugal
Foreigners can obtain a mortgage for buying property in Portugal, but the process can be slightly more complex than it is for residents. Below is a breakdown of the key points to understand when financing a property.
Mortgages in Portugal
The financing process for buying real estate in Portugal is entirely possible for foreigners, though the process can be a bit more detailed than it is for residents. Mortgage conditions vary by bank, and interest rates depend on your financial profile, creditworthiness, and the type of loan you choose.
Non-residents often face slightly higher rates, and most banks will finance up to 80% of the property’s value, though this can shift depending on your income and overall financial stability. Portuguese lenders also require life insurance linked to the mortgage, ensuring the loan is covered in case of death.
The main challenge you may face is obtaining a mortgage to buy land in Portugal, as the asset’s lower liquidity makes it less attractive for banks.
Working With a Mortgage Broker
Because most mortgage documents are written in Portuguese, navigating the process alone can be challenging. This is why many international buyers choose to work with a mortgage broker when decide to buy house in Portugal.
A broker can compare offers from multiple banks, negotiate better terms, explain the lending rules, and guide you through the paperwork.
For foreigners unfamiliar with the Portuguese system, having a broker manage communication and translate key details can make the experience of buying real estate in Portugal much smoother and significantly faster.
Required Documents for Financing a Property
Non-residents typically need to present the following documents when purchasing property in Portugal and applying for a mortgage:
- Passport
- Portuguese Tax Number (NIF)
- Proof of Address
- Credit Report
- Last 3 Pay Slips
- Recent Bank Statements
- Most Recent Tax Return
- A Copy of Your Tenancy Agreement (if renting)
- Floorplan of the Apartment or House
For more videos about investing or moving to Portugal, explore our YouTube channel here: YouTube Channel Portugal Residency Advisors.
Property Purchase Costs in Portugal
Property Transfer Tax (IMT): To buy property in Portugal the most relevant cost is IMT. The IMT tax is based on the purchase price and ranges from 0% to 8%. The rate depends on property type (urban or rural), location (mainland or islands), and whether it’s a primary or secondary home.
Stamp Duty: Charged on contracts, deeds, and mortgages, this tax is usually 0.8% of the purchase price for residential properties.
Legal Fee: Hiring a lawyer is essential to verify contracts and ensure compliance. Legal fees are typically 1%–2% of the purchase price.
Notary Fee: Notary costs for validating the transaction usually range from 0.3%–0.5% of the purchase price.
Registration Fee: Registering the property at the Land Registry generally costs 0.05%–0.25% of the purchase price.
Real Estate Agent Fee: If you work with a buyer’s agent to buy house in Portugal, expect fees of around 5% of the purchase price.
Property Taxes in Portugal
After completing the process of buying property in Portugal, there are ongoing taxes and fees associate with property ownership in Portugal.
Annual Property Tax (IMI)
IMI is the annual property ownership tax in Portugal. After purchasing property in Portugal, you are required to pay an annual tax based on the property’s taxable value. The tax rate ranges from 0.3% to 0.8% for urban properties and is 0.8% for rural (rustic) properties.
Annual Wealth Property Tax (AIMI)
AIMI stands for “Adicional ao Imposto Municipal de Imóveis” which translates to Additional Municipal Property Tax. In addition It is an annual property tax in Portugal that is levied on the combine fiscal value of all residential properties own by a taxpayer as of January 1st of each year worth above €600.000.
There are three levels of AIMI Tax in Portugal:
- 0,7% on properties valued between €600,000 and €1M
- And 1,0% on properties valued between €1M and €2M
- 1,5% if the total properties value is over €2 million
Tax on Rental Income
For foreigners buying real estate in Portugal as an investment, rental income is taxable. If you rent out the property, you’ll need to pay income tax on the rental income generated. The flat tax rate is 28%.
Common deductible expenses include property management fees, repairs and maintenance costs, insurance premiums, local property taxes (IMI), financing costs such as loan interest, and other relevant expenses like advertising and professional fees.
Are you interest in renting out your property? Check out what you should consider when finding a good property manager in Portugal.
Visa and Immigration Options for Portugal
Portugal offers several visa options for those looking to relocate, invest, or work remotely. The Golden Visa suits investors seeking residency through qualifying investments, while the D7 Visa is ideal for retirees or individuals with passive income. Entrepreneurs often choose the D2 Visa to start or grow a business, and highly qualified professionals can apply for the D3 Visa with a valid job offer. Remote workers and freelancers are well covered by the Digital Nomad Visa, allowing them to live in Portugal while working for overseas clients or employers.
However, moving to a new country isn’t just about visas. If you’re thinking of buying property or renting in Portugal, our guides offer valuable insights. You can also explore the full process in our comprehensive Portugal immigration guide, including dedicated resources for Americans moving to Portugal. Finally, obtaining a NIF (Portuguese tax number) and opening a Portuguese bank account are essential first steps, as they are required for most aspects of daily life and relocation.
How We Can Help
Local Expertise
We know Portugal. Due to our extensive local knowledge, we believe that concentrating our services in a single country destination is the best way to give you the most thorough and useful information.
Holistic Approach
We offer a streamlined communication channel for the entire process, delivering a comprehensive service that encompasses all facets of your real estate investment journey, including property search, negotiation, legal matters, due diligence, and property management.
Independent Service
As an independent buying agent, we have the flexibility to collaborate with any agent, seller, promoter, or developer, providing you access to all available options in the real estate market. This enables us to objectively analyze every opportunity and find the right property for you at the best price, free from complications.
Simple Process
Technology plays a significant role in our company, allowing us to provide you detailed property market information and minimize our clients’ involvement in paperwork. As customers ourselves, we understand how to best serve your needs.
Your Questions Answered
Can foreigners buy a house in Portugal?
Foreigners can freely buy property in Portugal, with no restrictions on nationality. The process is straightforward, and many international buyers purchase homes for relocation, investment, or retirement.
What are the pitfalls of buying property in Portugal?
The main pitfalls of buying property in Portugal are issues with outdated or missing documentation, unlicensed renovations, and relying on sellers’ or developers’ lawyers instead of hiring your own. A technical survey and a good independent lawyer usually prevent surprises.
Is it worth buying property in Portugal?
Buying property in Portugal can be worth it, especially for lifestyle, long-term value, and lower living costs compared to many Western countries. The downsides include slower bureaucracy and high upfront taxes, so the numbers need to make sense for your goals.
Does buying a house in Portugal give you residency?
Buying a house in Portugal does not give you residency. You still need a visa or residence permit such as the D7, D8 (digital nomad), D2, or family reunification. The Golden Visa no longer allows real estate purchases as a qualifying option.
How long can you stay in Portugal if you own a house?
Owning a house does not extend your stay in Portugal. If you’re a non-EU citizen, you normally still have the Schengen limit of 90 days in any 180 unless you obtain a residence permit.
Can US citizens buy real estate in Portugal?
US citizens absolutely buy house in Portugal, and the buying process is similar as for other foreign buyers or local residents. Many US citizens purchase homes for retirement or investment.
How much is a house in Portugal?
House prices in Portugal vary widely. Interior areas and small towns can start around €80,000–€200,000, while properties in coastal regions and major cities generally range from €200,000–€400,000+. Premium areas like Lisbon, Cascais, Porto, and top Algarve towns often exceed €400,000–€1M+.
How to buy a house in Portugal?
Buying a house in Portugal follows a simple process: get a NIF, open a bank account, hire an independent lawyer, make an offer, sign a promissory contract with a deposit, let your lawyer verify all documents, and then sign the final deed at the notary.
How much is a house in Portugal in US dollars?
The price of a house in Portugal in US dollars depends on the exchange rate, but as a rough guide, you can add about 5–15% to the euro price. For example, €300,000 is usually around $315,000–$345,000.
Can Americans buy property in Portugal?
Americans can absolutely buy property in Portugal, and the process is the same as for other foreign buyers. Many Americans purchase homes for retirement, investment, or eventual relocation.
What are the best places to buy real estate in Portugal?
The best places to buy real estate in Portugal depend on what you want. Lisbon, Cascais, and Porto are top choices for city living; the Algarve and Silver Coast are ideal for beach lifestyles; Braga, Guimarães, and Aveiro offer great value; and Alentejo or the central countryside suit those seeking quieter rural living.
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