Buying Property in Portugal as a Foreigner: Steps, Taxes and Documents

There are no restrictions on foreigners buying property in Portugal: you can buy a flat in Lisbon or a house in the Algarve on the same terms as a Portuguese citizen, whether or not you live there. What you do need is the right paperwork, starting with a NIF.

Step 1: Get a NIF

You cannot make an offer official, pay the transfer tax or sign the deed without a Portuguese tax number. Non-residents from outside the EU/EEA generally need a fiscal representative, and when you own property in Portugal you have ongoing tax obligations (the annual IMI), so keep a way to receive tax notifications. Get your NIF with GetNIF or read what a NIF is.

Step 2: Open a Portuguese bank account

Not strictly mandatory, but it makes paying the deposit, taxes and bills much easier, and you need one for a Portuguese mortgage. Non-residents can get mortgages, typically with a lower loan-to-value than residents.

Still looking for the right property? For help finding and buying a home in Portugal, visit vastgoed.pt.

Step 3: Due diligence

Before committing, your lawyer or solicitor should check:

• the land registry certificate (certidão permanente do registo predial) — owner, mortgages, liens;
• the tax registration (caderneta predial) — tax value and description;
• the habitation licence (licença de utilização) and that the building matches the plans;
• the energy certificate;
• unpaid condominium fees or debts attached to the property.

Step 4: Promissory contract (CPCV)

Most purchases start with a contrato-promessa de compra e venda (CPCV), in which buyer and seller commit to the sale and the buyer pays a deposit (sinal), often 10–30%. If the buyer pulls out, they usually lose the deposit; if the seller pulls out, they usually return it in double.

Step 5: Pay IMT and stamp duty

Before the deed, the buyer pays:

• IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis), the property transfer tax. It is progressive: for a permanent home there is an exemption on the first bracket (up to €106,346 in 2026); for second homes and investment properties rates start at 1% and go up to a flat 6% or 7.5% for the highest values. Buyers resident in blacklisted tax jurisdictions pay a higher rate.
• Stamp duty (Imposto do Selo) of 0.8% of the price.

Brackets are updated every year, so use the tax authority's current table or ask your lawyer for the exact figure.

Step 6: The deed and registration

The sale is completed with the deed (escritura or título de compra e venda) signed before a notary, a lawyer or at a Casa Pronta desk. You can sign in person or through someone with a power of attorney. The property is then registered in your name at the land registry.

After the purchase: IMI and other costs

• IMI — annual municipal property tax, for urban properties between 0.3% and 0.45% of the tax value, set by each municipality.
• AIMI — an additional tax on high-value residential property portfolios.
• Condominium fees, insurance and utilities (all linked to your NIF).
• If you rent the property out, rental income must be declared in Portugal.

Checklist

1. NIF (and fiscal representative if needed)
2. Bank account / mortgage approval
3. Lawyer and due diligence
4. CPCV and deposit
5. IMT and stamp duty
6. Deed and land registry

Found your property? Get your NIF with GetNIF so you are ready to sign.