How to buy property in Portugal as a foreigner

Portugal has become one of Europe's most popular destinations for foreign property buyers — and for good reason. Mild climate, affordable prices compared to Western Europe, a welcoming culture, and a straightforward legal system make it an attractive choice. But the buying process has its own quirks that every foreigner should understand before making an offer.

Step 1: Get your NIF number

Before you can do anything in Portugal — open a bank account, sign a contract, or pay taxes — you need a NIF (Número de Identificação Fiscal). This is your Portuguese tax identification number.

You can get one at any Finanças office (tax office) with your passport. It takes about 15 minutes and is completely free. If you're not resident in Portugal, you'll also need to appoint a tax representative — your lawyer can usually serve this role.

Step 2: Find a lawyer

Unlike some countries, Portugal does not require a notary to manage the entire purchase — but you absolutely should hire an independent lawyer (advogado). They will:

• Check the property title and confirm there are no debts attached
• Verify planning permissions and legal compliance
• Handle the promissory contract (CPCV)
• Represent you at the final deed (escritura)

Expect to pay around €1,500–3,000 in legal fees for a standard purchase. Well worth it.

Step 3: The promissory contract (CPCV)

Once you agree on a price, both parties sign a Contrato de Promessa de Compra e Venda (CPCV) — a legally binding promise to buy and sell. At this stage, the buyer pays a deposit of typically 10–30% of the purchase price.

If the buyer pulls out, they lose the deposit. If the seller pulls out, they must pay the buyer double the deposit. This gives both parties strong protection.

Step 4: The final deed (Escritura)

The final transfer of ownership happens at a notary's office, where both parties sign the escritura pública de compra e venda. The remaining purchase price is paid here, along with taxes and fees.

Costs to budget for

• IMT (transfer tax): since 25 May 2026 a flat 7.5% if you are not tax-resident in Portugal (Decree-Law 97/2026); the excess is refunded if you become tax-resident within two years or let the home at a moderate rent (up to €2,300/month) for at least 36 of the first 60 months; residents pay a sliding scale, and a permanent home up to €106,346 is exempt.
• Stamp duty: 0.8% of the purchase price
• Notary and registration: approximately €500–1,000
• Legal fees: €1,500–3,000
• Agent fee: typically paid by the seller in Portugal

In total, budget for approximately 9–10% of the purchase price in transaction costs as a non-resident buyer (less as a resident).

Best areas for foreign buyers

Algarve remains the most popular region — year-round sunshine and an established international community. Prices span from compact apartments to multi-million-euro villas.

Lisbon offers the most vibrant city lifestyle, with Alfama, Príncipe Real, and Santos being the most desirable neighbourhoods. Prices have risen significantly but remain below Paris or London for comparable properties.

Silver Coast (Óbidos, Peniche) offers excellent value — beaches, culture, and easy access to Lisbon — for significantly less than the Algarve or Lisbon.