Foreigners can buy property in Portugal with no restrictions and no minimum-value rule — an EU citizen from Berlin, an American from Austin and a Brazilian from São Paulo all follow the same path a Portuguese buyer does. What changes is the tax treatment and, sometimes, the financing. This guide walks through the whole process as it stands in mid-2026: the paperwork you need before you start, the two contracts that turn a viewing into ownership, and exactly what the purchase will cost you on top of the sticker price.
One thing to clear up first, because it still causes confusion: buying a home no longer qualifies you for the Golden Visa. The real-estate route was removed. Property is now bought as property — a place to live or an investment — not a shortcut to residency.
Before you can buy: two prerequisites
Two things need to be in place before you sign anything.
- A NIF (Número de Identificação Fiscal). This Portuguese tax number is non-negotiable for a purchase, a mortgage, utilities and the deed itself. Non-residents usually obtain one through a representative or a lawyer. Our tax and NIF pillar explains the routes.
- A Portuguese bank account. You’ll need one to pay the deposit, taxes and the balance, and lenders require it. See banking for how to open an account as a newcomer.
Get both sorted early. Nothing stalls a purchase faster than discovering you need a NIF the week the seller wants to sign.
The buying process, step by step
1. Offer and reservation. Once you’ve agreed a price, agents often ask for a small reservation deposit to take the property off the market while paperwork is checked. Get the terms in writing, including whether it’s refundable.
2. Due diligence. Your lawyer verifies the caderneta predial (the property’s tax record at Finanças), the certidão de registo predial (land registry certificate confirming who owns it and whether there are mortgages or charges), and the licença de utilização (habitation licence). This is where problems surface — unregistered extensions, debts attached to the property, boundary disputes. Do not skip it.
3. The CPCV (Contrato de Promessa de Compra e Venda). This promissory contract is the real commitment. You typically pay a deposit of 10–30% of the price, and the contract fixes the price, the completion date and the penalties. The penalties are serious and symmetrical: if you back out, you lose your deposit; if the seller backs out, they owe you double it. Have a lawyer draft or review it before you sign.
4. Pay IMT and stamp duty. These transfer taxes must be paid before the deed — you’ll present the proof at the notary. Your lawyer or the notary handles the paperwork through Portal das Finanças.
5. The escritura (deed). Completion happens in front of a notário, or via an IMT Casa Pronta one-stop service. You pay the balance, sign the deed, and ownership transfers. The final step is registration at the Conservatória do Registo Predial (land registry), which the notary or your lawyer arranges.
What it actually costs
The headline is the purchase price. The real number is roughly 8–9% more as a non-resident (closer to 5–6% for a resident buyer, mainly because of the IMT difference). Here’s where that goes:
- IMT (Imposto Municipal sobre Transmissões). For most residential purchases by non-residents, 2026 applies a flat 7.5% of the price or VPT (whichever is higher). Residents use a progressive scale running from 0% up to roughly 8%, with meaningful relief on lower-priced main homes — which is why the resident total is lower.
- Stamp duty (Imposto do Selo): 0.8% of the price.
- Notary and registration fees: usually a few hundred to around €1,000, depending on the service and property.
- Legal fees: commonly around 1–2% of the price for a lawyer handling due diligence and completion. Worth every cent on a foreign purchase.
- Mortgage costs (if financing): valuation, arrangement fee and additional stamp duty on the loan.
Pulled together, here is what a non-resident purchase typically costs on top of the price:
| Cost | Non-resident rate / amount | Notes |
|---|---|---|
| IMT (transfer tax) | Flat 7.5% | On price or VPT, whichever is higher; residents use a progressive 0–~8% scale |
| Stamp duty (Imposto do Selo) | 0.8% | On price or VPT |
| Notary & registration | ~€few hundred–€1,000 | Depends on the service and property |
| Legal fees | ~1–2% | Due diligence and completion |
| Total upfront (non-resident) | ~8–9% of price | ~5–6% for a resident buyer |
| IMI (annual, ongoing) | ~0.3–0.45% of VPT / year | Varies by municipality; AIMI may apply to high-value holdings |
Rates and rules shift, so verify the current figure with the Autoridade Tributária before you commit. A worked example on a €300,000 flat bought by a non-resident: IMT at 7.5% is €22,500, stamp duty at 0.8% is €2,400, plus notary, registration and legal fees — comfortably into that 8–9% band. Budget for it from the start rather than scrambling at the notary.
After you own it, you’ll pay annual IMI (municipal property tax), roughly 0.3–0.45% of the VPT depending on the municipality, and possibly AIMI if your Portuguese property holdings are high-value. Our property taxes guide breaks down every ongoing tax.
Financing the purchase
Many foreign buyers pay cash, but Portuguese banks do lend to non-residents. Expect a lower loan-to-value than a resident gets — typically 60–70% for non-residents, meaning a deposit of 30% or more — and a longer document list. If you’re weighing a mortgage, read our dedicated mortgages for foreigners guide before you approach a lender.
Common mistakes to avoid
- Skipping independent legal advice. The agent works for the seller. You need your own lawyer running due diligence.
- Budgeting only for the price. The 8–9% in costs is not optional. Plan for it.
- Assuming resident IMT rates apply. If you’re buying before you’re tax-resident, the flat 7.5% non-resident rate usually applies — a big difference on the total.
- Trusting a verbal promise. If it isn’t in the CPCV, it doesn’t exist. Fixtures, repairs, completion dates — get it written.
- Forgetting the VPT. IMT and stamp duty are charged on the higher of price or the property’s tax value (VPT), which can nudge the bill up on undervalued deals.
- Believing property buys residency. It doesn’t, and hasn’t since the Golden Visa real-estate route closed.
Short FAQ
Can non-EU citizens buy property in Portugal? Yes. There’s no nationality restriction and no minimum price.
Do I need to be in Portugal to complete? Not necessarily — a lawyer with power of attorney can sign on your behalf, which many overseas buyers use.
Is the 7.5% IMT rate fixed forever? Tax rules change. Confirm the current rate and any exemptions with Portal das Finanças or your lawyer before completing.
How long does it take? From accepted offer to deed, often 1–3 months, longer with a mortgage.
Buying here is straightforward when you respect the sequence: NIF and bank account first, thorough due diligence, a watertight CPCV, taxes paid before the deed, and a clean registration after it. Because rates and rules shift, treat the figures here as a mid-2026 starting point and verify current numbers with the Autoridade Tributária before you commit.
Buying a home in Portugal from abroad? Our team handles the NIF, due diligence, contracts and completion in Portuguese so nothing slips. Explore our services or get in touch to start.