Portugal has become one of Europe’s most popular destinations for people looking to invest in property, whether for living full-time, enjoying a vacation home, or creating rental income.
With its sunny climate, beautiful coastlines, rich culture, and affordable living, it’s no wonder so many people are choosing to buy a home here.
If you’re considering buying property in Portugal, here’s a step-by-step guide to help you through the process smoothly:
1. Decide Where You Want to Buy
Portugal offers a wide variety of locations to suit different lifestyles:
🏖️ The Algarve – Ideal for beach lovers, retirees, and golfers. Towns like Vilamoura, Lagos, and Albufeira are popular.
🏙️ Lisbon – Perfect if you want city life with culture, restaurants, and business opportunities.
🌊 Cascais & Estoril – A sophisticated area near Lisbon, offering beaches and luxury homes.
🍷 Porto – Great for a more traditional, historic atmosphere with incredible food and wine.
🌿 The Silver Coast – Quieter, with scenic coastlines, charming villages, and lower prices.
Choose based on your lifestyle, budget, and whether you want to live full-time, part-time, or rent the property out.
2. Understand the Costs Involved
Besides the price of the home itself, you’ll need to budget for:
💶 IMT (Property Transfer Tax) – Varies depending on the price and type of property. Usually between 2% and 8%.
💶 Stamp Duty – 0.8% of the purchase price.
💶 Legal Fees – Around 1% to 2% of the purchase price.
💶 Notary Fees – €1,000–€2,000 approximately.
💶 Ongoing costs – Utilities, condominium fees (if in a shared building), annual property tax (IMI), and maintenance.
3. Get a Portuguese Tax Number (NIF)
To buy property in Portugal, you must have a NIF (Número de Identificação Fiscal).
You can get one at a local tax office or through a lawyer. This number is essential for all financial and legal transactions in Portugal.
4. Find a Trusted Real Estate Agent
A good local real estate agent can help you find the right property and guide you through the process. Look for agents who:
✔️ Speak your language.
✔️ Have experience with international buyers.
✔️ Are licensed in Portugal.
They can also help with negotiations and paperwork.
5. Hire a Lawyer
Although not mandatory, it is highly recommended to work with a real estate lawyer who can:
⚖️ Check the property’s legal status.
⚖️ Review contracts.
⚖️ Make sure there are no debts attached to the property.
⚖️ Assist with the signing process.
6. Reserve the Property
Once you find a property you like, you can reserve it with a Reservation Agreement and a small deposit (usually €5,000 to €10,000).
This takes the property off the market while legal checks are carried out.
7. Sign the Promissory Contract (Contrato de Promessa de Compra e Venda)
This is the formal agreement between buyer and seller. You will typically pay a deposit of 10%–30% of the purchase price at this stage.
If you back out without cause, you lose the deposit. If the seller cancels, they must pay you double the deposit.
8. Final Deed and Completion (Escritura)
The final step is signing the Escritura at the notary’s office. This is when you pay the remaining balance, taxes, and fees.
Once the deed is signed, the property is legally yours!
9. Register the Property
After the final deed, your lawyer will register the property in your name at the Land Registry and Tax Office.
10. Optional: Financing Your Purchase
If you need a mortgage, Portuguese banks do offer financing options for foreigners, typically:
🏦 Up to 70% of the property value.
🏦 Repayment terms up to 30 years.
🏦 Interest rates vary depending on fixed or variable rates.
It’s a good idea to check mortgage options early in your search.
Why Buy Property in Portugal?
✨ Stable and growing property market.
✨ High rental demand in tourist areas.
✨ Great weather all year round.
✨ Friendly and welcoming culture.
✨ Golden Visa opportunities (with some restrictions).
✨ Tax benefits for foreign residents under the NHR (Non-Habitual Residency) scheme.
Final Tips:
✅ Take your time to explore different areas.
✅ Visit properties in person, if possible.
✅ Always get independent legal advice.
✅ Double-check all costs to avoid surprises.
✅ Trust your instincts and choose a home that feels right.
Whether you’re looking for a cozy apartment, a seaside villa, or a countryside retreat, buying a home in Portugal can be one of the most rewarding decisions you make.
Are you looking to buy a property in Portugal and need help? Send us an email to: [email protected] and we’ll help find your dream house!
