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 buying process—so you can confidently purchase a 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, Portugal still offers strong investment potential, though balancing growth and accessibility will be essential.

Lisbon

Why Buy Property in Portugal?

Here are 10 strong reasons to buy property in Portugal, especially appealing to international buyers:

  1. Portugal is one of the safest and most stable countries in Europe.
  2. Property prices remain affordable compared to other Western EU markets.
  3. The country enjoys a sunny, mild climate throughout the year.
  4. Strong rental demand makes it ideal for investment income.
  5. The property market has shown steady long-term growth.
  6. High quality of life with great healthcare, infrastructure, and lifestyle.
  7. Multiple visa and residency options are available for foreigners.
  8. Easy access to Schengen and major European destinations.
  9. Daily living costs are lower than in many EU countries.
  10. A wide variety of property types suits every budget and preference.

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. You don’t need residency to purchase—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 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 to begin your search:

Use Trusted Property Portals

Platforms like Idealista, Imovirtual, and Casa Sapo offer thousands of listings across Portugal, allowing you to filter by budget, area, and property type.

Work With a Buyer’s Agent 

For anyone purchasing 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.

Check Local Real Estate Agencies

Many smaller agencies advertise only within their region or on their own websites. If you have a preferred area, contacting these local offices can reveal additional listings that may not appear on major portals.

Woman

Where to Buy Property in Portugal

Lisbon

Lisbon is still the strongest market for long-term appreciation. Demand from locals, expats, and companies keeps the rental market very active. Popular areas like Chiado, Baixa, Alfama, Estrela, Campo de Ourique, and the modern Parque das Nações offer a mix of historic charm and high-quality living.  Properties in central and riverside zones tend to hold value exceptionally well, and even though prices are higher, liquidity is excellent—making it easier to resell when the time comes.

Porto

A very smart choice for value-driven investors. Porto blends lifestyle and investment potential, with lower entry prices than Lisbon but steady growth. Sought-after neighborhoods such as Ribeira, Foz do Douro, Boavista, and areas around Cedofeita offer strong rental appeal. Renovated apartments in the historic core and new builds near the river are especially attractive. The city’s growing tech scene and large student population continue to boost occupancy rates.

Algarve

Algarve, a classic investment region if you’re aiming for holiday rentals. Tourism is strong year-round thanks to golfers, retirees, and remote workers. Hotspots like Albufeira, Lagos, Vilamoura, Carvoeiro, and Tavira perform very well for both short- and medium-term rentals. Yields are particularly appealing close to beaches, marinas, and golf resorts. It’s ideal for lifestyle buyers who want personal use combined with solid rental income.

Silver Coast

The Silver Coast is often overlooked but full of opportunity. Prices are more accessible, especially around towns like Nazaré, Foz do Arelho, São Martinho do Porto, and Peniche. Investors appreciate the combination of oceanfront living, quieter communities, and strong long-term potential. The region is becoming increasingly popular with families and retirees looking for coastal homes without the high price tags of Lisbon or the Algarve. As infrastructure expands, appreciation prospects continue to rise.

Madeira

Excellent for those who want island living with strong digital-nomad appeal. Popular areas include in Madeira are Funchal, Câmara de Lobos, and coastal villages around the island. The mild climate keeps demand consistent throughout the year. Rental yields can be strong in and around Funchal, especially for well-located apartments with sea views. Madeira attracts lifestyle-driven investors who enjoy using their property while still generating income during the rest of the year.

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.

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.

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

1. Property Search

Begin by searching for properties that meet your requirements and budget. But you can work with a real estate agent, and browse property websites, or attend property expos.

2. Offer and Negotiation

Once you have found a property that you are interest in, 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

It’s recommend to carry out a survey of the property to identify any potential issues or defects. And this can be arrange by the buyer or through a surveyor recommend 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 purchasing 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 all stages of the purchase, including viewing properties, signing reservation agreements, and completing the final deed at the notary.

NIF (Portuguese Tax Number)

The NIF is mandatory for anyone buying real estate 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 the purchase—such as deposits, taxes, notary costs, and ongoing bills. Many banks offer accounts specifically for non-residents, making the process straightforward.

Lisbon building

Financing a Property in Portugal

Foreigners can obtain a mortgage 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

Financing a property 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.

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. 

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 much smoother and significantly faster.

Required Documents for Financing a Property

Non-residents typically need to present the following documents when 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): IMT 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, expect fees of around 5% of the purchase price.

Property Taxes in Portugal

After completing the purchase, there are ongoing taxes and fees associate with property ownership in Portugal. 

Annual Property Tax (IMI)

IMI is an annual tax base on the tax value of the property. The tax rate ranges from 0.3% to 0.8% for urban properties and 0.8% for 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 

Moreover, If you rent out the property, you’ll need to pay income tax on the rental income generated. There is a flat tax rate of 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.

Taxes

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

One single channel of communication for the entire process. We provide you with a comprehensive service that covers all aspects of your move, from identifying the ideal residency visa to finding your new home or helping you to settle. 

Transparent Service

We recommend what’s best for you based on an extensive process experience that saves time and money to clients. Our pricing is clear and competitive, and we don’t sell services that make us more money.

Simple Process

Technology plays a very important role in our company. We minimize our clients’ involvement in paperwork. We are customers ourselves and we know how to serve you.

Frequently Asked Questions

Yes. Foreigners can freely buy property in Portugal with no restrictions, whether for residence, holiday homes, or investment.

No. Residency is not required to buy property. Both EU and non-EU citizens can purchase real estate in Portugal.

You’ll pay IMT (property transfer tax), stamp duty, and notary/registration fees at purchase. Annual IMI (municipal property tax) also applies.

Transaction costs usually range between 7%–10% of the purchase price, covering taxes, legal fees, and registration.

Yes. Portuguese banks often lend to foreigners, usually up to 60–70% of the property value, depending on your financial profile.

The Golden Visa program allows non-EU citizens to gain residency by investing in Portugal. However, from 2023, property purchases no longer qualify.

No. Foreigners can purchase property anywhere in Portugal, including Lisbon, Porto, the Algarve, and rural areas.

Most property in Portugal is sold as freehold, meaning you fully own the land and building. Leasehold is rare.

Yes. A Portuguese tax number (NIF) and local bank account are required to complete the property purchase.

On average, the process takes 1–3 months, depending on due diligence, financing, and legal checks.

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