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Buying Property in Portugal as a Foreigner

Researched and written with AI tools from official sources. How we make our guides

How to buy a home in Portugal from abroad or as a resident: the steps, the checks, IMT and stamp duty, the non-resident rate, and the full cost.

The Portugal Brief 11 min read

Buying Property in Portugal as a Foreigner

Last verified: October 2026.

Who this is for

  • You are not Portuguese and want to buy a home or land in Portugal, from the EU or outside it.
  • You already live here, or you are buying from abroad before or instead of moving.
  • You want the steps, the taxes, and the full cost before you make an offer.

Not for you if: you already own property here and want the yearly tax. Read Paying IMI Property Tax in Portugal instead. If you are selling, read Selling Your House in Portugal.

Updated October 2026. Since May 2026, buyers who have never been tax resident in Portugal pay a flat 7.5% transfer tax on a home, with a refund if they move here within two years. Since August 2026, the deed must also say whether the home has a planning title, such as a use licence.

Anyone can buy property in Portugal, whatever their nationality or residence. You need a Portuguese tax number (NIF), and in practice a Portuguese bank account. The purchase runs from offer, to promissory contract, to deed. No official timeline is published; allow a few months. The main tax is the property transfer tax (IMT), from 0% to 8% on a home you will live in. If you have never been tax resident here, IMT on a home is a flat 7.5%. You also pay 0.8% stamp duty.

Who can buy

  • Any nationality. The law does not limit property purchases by foreigners, from the EU or outside it.
  • No residence needed. You can buy without living here or holding a visa.
  • Owning is not residence. Buying a home does not give you the right to live in Portugal. You still need the right visa or permit, and a home purchase no longer qualifies for the Golden Visa. See Visas and Residency in Portugal.
  • Planning rules apply to everyone. What you can build or change depends on the council's master plan (PDM).

What to set up before you start

  1. Get a NIF. You cannot pay tax or sign the deed without one. You get it at a tax office (Finanças), or through a representative from abroad. See Getting a NIF (Tax Number) in Portugal.
  2. Sort out tax contact. If you live outside the EU or EEA, you may need a fiscal representative to deal with Finanças. See Appointing a Fiscal Representative in Portugal.
  3. Open a Portuguese bank account. It makes deposits, taxes, and bills much easier. See Opening a Bank Account in Portugal.
  4. Hire your own lawyer (advogado) or solicitor (solicitador). Choose one who works for you, not for the seller or the agent. Fees are not regulated, so ask for a written quote.
  5. If you need a mortgage, talk to banks now. Get an approval in principle before you sign anything. See Getting a Mortgage in Portugal.

The buying process, step by step

  1. Find a property. Estate agents must hold a licence from IMPIC, the property regulator. You can check an agency by name or licence number on IMPIC's website.
  2. Make an offer. Agree the price. If an agent asks for a reservation payment, read what it commits you to before you pay.
  3. Do your checks. Your lawyer checks the documents listed in the next section.
  4. Sign the promissory contract (contrato promessa de compra e venda, or CPCV). You usually pay a deposit (sinal). The contract sets the deed date. The seller must give you a copy of the energy certificate before you sign.
  5. Finalise your mortgage. The bank values the property and issues its final offer.
  6. Pay IMT and stamp duty. Your lawyer, solicitor, or notary submits the IMT declaration. Finanças issues a payment document. Pay it on the same day or within 30 days, before the deed.
  7. Sign the deed (escritura). You pay the balance and ownership passes to you. The sale is then registered in your name.
  8. Move in and set up. Transfer the utilities, insure the home, and give the building manager your contact details.

The deposit rule. If you pull out through your own fault, the seller keeps your deposit. If the seller pulls out through their fault, they must pay you double. Make sure the contract returns your deposit if your mortgage is refused.

Signing from abroad. You do not have to attend. Someone you trust, often your lawyer, can sign for you with a power of attorney (procuração). Ask your lawyer which apostille and translation a power signed abroad needs.

Checks to make before you sign

Your lawyer should get and read:

  • Land registry certificate (certidão permanente). Shows the owner and any mortgage, seizure, or other charge. See Getting a Permanent Land Registry Certificate in Portugal.
  • Property tax record (caderneta predial). Shows the tax value (VPT) and the use registered with Finanças. It is free on the Portal das Finanças.
  • Use licence (autorização de utilização) or other planning title. Confirms the home may legally be lived in. Buildings from before 7 August 1951 may not need one.
  • Energy certificate (certificado energético). The seller must have one. It rates the home from A+ to F. See Getting an Energy Certificate (Certificado Energético).
  • Condominium debt statement. For a flat, the building manager's written statement of charges and any debts. If you waive it in the deed, you take on the seller's debts to the building.
  • Planning status. For land or rural homes, check the council's master plan to see what can be built.

Watch for these common problems:

  • Extensions, annexes, or pools that were never licensed.
  • Areas on the tax record or registry that differ from reality.
  • Rural land with no right to build.
  • Shared ownership or an unfinished inheritance.

The planning title at the deed. Since August 2026, the deed must state one of three things. The title was shown, the seller declares there is one, or the seller declares there is none. If the deed says there is none, you are buying without one. Ask your lawyer and your bank before you go ahead.

IMT: the property transfer tax

IMT (imposto municipal sobre as transmissões onerosas de imóveis) is a one-off tax you pay when you buy. It is charged on the price or the tax value (VPT), whichever is higher. The rate depends on what you buy and how you will use it.

A home that will be your own permanent home (mainland, 2026):

ValueMarginal rate
Up to €106,3460%
€106,346 to €145,4702%
€145,470 to €198,3475%
€198,347 to €330,5397%
€330,539 to €660,9828%
€660,982 to €1,150,8536% on the whole value
Over €1,150,8537.5% on the whole value

Any other home, such as a second home or a flat to let (mainland, 2026):

ValueMarginal rate
Up to €106,3461%
€106,346 to €145,4702%
€145,470 to €198,3475%
€198,347 to €330,5397%
€330,539 to €633,9318%
€633,931 to €1,150,8536% on the whole value
Over €1,150,8537.5% on the whole value

The Portal das Finanças has an IMT simulator that works out the figure for you.

Examples for a permanent home: a €150,000 flat costs about €1,009 in IMT. A €300,000 flat costs about €10,542. As a second home, the same €300,000 flat costs about €11,605.

Other purchases. Rural land (prédio rústico) pays 5%. Shops, offices, building plots, and other urban property pay 6.5%. A company based in a listed tax haven pays 10%.

Keeping the own-home rates. You must move in, with your tax address at the property, within six months. If you let the home, or use it for holiday letting, within six years, you owe the difference.

If you are 35 or under. On your first own home, you may pay no IMT and no stamp duty up to €330,539. You must not be anyone's dependant for tax, and you must not have owned a home in the last three years. See Claiming the Under-35 IMT and Stamp Duty Exemption in Portugal.

The 7.5% IMT rate for non-residents

Since May 2026, a new rule applies if you are not tax resident in Portugal when you buy a home. It covers homes used only for housing. You pay a flat 7.5% IMT on the whole value, and no exemption or reduction applies. On a €300,000 flat, that is €22,500.

The rule does not apply if:

  • You have been tax resident in Portugal before, at any time. Finanças confirmed this in guidance on 4 September 2026.
  • You buy as a married couple in a shared-property regime and either spouse is or was tax resident here. Finanças applies the 7.5% only when both spouses are non-resident and never were.

If you buy with others as co-owners, or as a spouse with separate property, each buyer is assessed on their own situation.

You can claim part of the tax back if:

  • You become tax resident within two years of buying. Ask Finanças to cancel the difference between the 7.5% and the normal rate. You must ask within six months of becoming resident.
  • You let the home at a moderate rent. The rent must be no more than €2,300 a month in 2026. The lease must start within six months of buying, and the home must be let for at least 36 months in its first five years. Ask within six months of signing the lease.

Land and commercial property keep their normal rates. If you plan to move to Portugal, weigh up whether to become resident before you buy. See Becoming a Tax Resident in Portugal.

Stamp duty

You pay stamp duty (imposto do selo) of 0.8% on the purchase. Like IMT, it is charged on the price or the tax value, whichever is higher. On a €300,000 home it is €2,400.

If you take a mortgage, stamp duty also applies to the loan. It is 0.6% for a loan of five years or more, and 0.5% for one to five years. On a €200,000 mortgage, that is €1,200. The bank collects it.

Other buying costs

  • Deed and registration. At a Casa Pronta counter, a sale with one registration act costs €375. A purchase with a mortgage, which needs more than one act, costs €700. Each extra property adds €50. You book through the Justice Ministry's online booking service. See Using Casa Pronta to Buy or Sell a Home in Portugal.
  • Lawyer or solicitor. Not regulated; get a written quote.
  • Bank costs. Valuation, arrangement, and processing fees if you take a mortgage.
  • Power of attorney, if someone signs for you.
  • Survey. Optional but wise, especially for older or rural homes.

What a €300,000 home costs in tax and deed fees

For a €300,000 flat bought with cash, using Casa Pronta:

CostPermanent homeSecond homeNon-resident buyer
IMT€10,542€11,605€22,500
Stamp duty (0.8%)€2,400€2,400€2,400
Casa Pronta€375€375€375
Total on top of the price€13,317€14,380€25,275

Add your lawyer's fee. If you borrow, add bank costs and stamp duty on the loan.

What owning costs each year

  • IMI. The yearly municipal property tax, 0.3% to 0.45% of the tax value for most homes. Each council sets its rate. Non-residents pay the same rates.
  • AIMI. An extra tax if the homes and building land you own add up to more than €600,000 in tax value.
  • Condominium fees for a flat, plus at least 10% on top for the building's reserve fund. See How a Condominium (Condomínio) Works in Portugal.
  • Insurance. Fire cover for the building is compulsory for flats. Your bank will require insurance on a mortgaged home. See Getting Home Insurance in Portugal.
  • Utilities. Electricity, water, gas, and internet.

The new own-home IMI exemption. If you buy a home to live in and its tax value is €125,000 or less, you may pay no IMI for three years. Your household's income in the year before must be €153,300 or less. You must move in, with your tax address there, within six months. For a purchase, Finanças grants it automatically. For the full rules, see Property Taxes in Portugal for Residents and Foreign Owners.

Buying to let

  • Tax on rent. Rent from a home is taxed at a flat 25%, whether you live here or not. Residents can choose to add it to their other income instead. Long leases get lower rates.
  • Moderate rents. For rent received from 2026 to 2029, homes let at no more than €2,300 a month are taxed at 10%. See Declaring Rental Income as a Landlord in Portugal.
  • Holiday lets. Letting to tourists needs a registration with the council. Many councils restrict new lets in busy areas, and some buildings ban them. Check before you buy, not after. See Registering a Holiday Let (Alojamento Local) in Portugal.
  • The IMT refund. A non-resident who lets the home at a moderate rent can reclaim part of the 7.5% IMT, as explained above.

Mistakes to avoid

  • Buying without your own lawyer. The fee is small next to the cost of an unlicensed extension or a hidden debt.
  • Forgetting the non-resident rate. If you are about to move, the timing of your residence can save thousands.
  • Signing before the mortgage is approved. Make sure the contract protects your deposit if the bank says no.
  • Waiving the condominium statement. You could inherit the seller's unpaid fees.
  • Buying rural land to build on without checking the council's plan.
  • Claiming own-home rates and then letting the home. You will owe the IMT difference.
  • Forgetting to update your tax address after moving in. You may lose the own-home rates and the IMI exemption.

If you later sell, any gain is taxed. See Selling Your House in Portugal.

This guide is general information, not legal or tax advice. Property law is technical, so use a lawyer or solicitor for your purchase, and check the official source before you act.

Sources

This guide is written from official sources and, where relevant, organisations' own websites.

Last verified October 2026. Rules and fees change; check the official source before acting.

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