Buying Property in Portugal in 2026: IMT Tax, Stamp Duty, Mortgages, the Golden Visa, and What Every Buyer Must Know

Buying property in Portugal is one of the most common — and most consequential — financial decisions expats make. Whether you are purchasing a primary residence, a holiday home, or an investment property, the process involves specific legal steps, government taxes, and documentation requirements that differ significantly from most other European countries. This guide covers everything you need to know in 2026.

Once you are a resident, you should also register with the public health system — see our Healthcare in Portugal guide.

Before You Start: Essential Documents

Before you can buy property in Portugal, you need two things:

• NIF (Número de Identificação Fiscal): A nine-digit tax identification number. Non-residents can obtain one through a fiscal representative or lawyer; residents apply directly at local Finanças offices. You cannot sign any property contract, pay taxes, or open a bank account without it.
• Portuguese bank account: Required for mortgage applications and for routing payments. Most banks require your NIF and proof of address. See our guide to opening a bank account in Portugal for details.

The Buying Process Step by Step

Step 1: Find a Property and Make an Offer

Most expats search through portals like Idealista, Imovirtual, or local estate agents. Once you find a property, you make a verbal or written offer through the agent. There is no formal legal requirement for how offers are made at this stage.

Step 2: Hire a Lawyer

This is not legally required but is strongly recommended — especially for non-Portuguese speakers. Your lawyer will conduct due diligence: verifying there are no encumbrances, mortgages, or debts on the property; confirming compliance with the local urban plan (Plano Director Municipal); and checking the property's legal documentation.

Key documents your lawyer will obtain and review:

• Caderneta Predial — the property's tax registration at the Finanças
• Certidão Permanente — the land registry certificate confirming ownership
• Licença de Utilização — the habitation licence
• Ficha Técnica da Habitação — the technical housing file
• Energy certificate — mandatory for all property sales

Step 3: Sign the CPCV (Promissory Contract)

The Contrato-Promessa de Compra e Venda (CPCV) is the legally binding promissory contract. The buyer typically pays 10–20 per cent of the purchase price as a deposit. The contract sets the price, timescale, conditions, and penalties.

The penalties are symmetrical: if the buyer defaults, they lose the deposit. If the seller defaults, they must return double the deposit.

Step 4: Arrange Financing (If Needed)

If you need a mortgage, apply after signing the CPCV. Typical terms for non-residents in 2026:

• Loan-to-value: 60–70 per cent for non-residents (vs. 80–90 per cent for residents)
• Interest rates: Around 3–4.5 per cent depending on your profile and deposit size. Average rates have been declining — down to roughly 3.08 per cent in early 2026
• Maximum term: 30 years for non-residents

For Portuguese residents under 35 buying their first home, the government's state guarantee scheme (extended through end of 2026) allows the state to guarantee up to 15 per cent of the property value, effectively enabling 100 per cent LTV financing.

Step 5: Pay Taxes and Sign the Deed

Before the final deed signing, you must pay IMT (property transfer tax) and stamp duty. The deed — the Escritura Pública — is signed at the notary's office, typically 30–60 days after the CPCV. The remaining balance transfers at signing, and ownership is legally transferred.

The notary then registers the new ownership at the Conservatória do Registo Predial (land registry). Total timeline from start to finish: approximately 2–3 months.

Taxes When Buying Property

IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis)

IMT is the main tax on property purchases. Rates for 2026 (updated approximately 2 per cent from 2025):

Residents buying a permanent home:

• Up to EUR 106,346 — exempt (0%)
• EUR 106,346 to EUR 145,765 — 2%
• EUR 145,765 to EUR 198,735 — 5%
• EUR 198,735 to EUR 330,539 — 7%
• EUR 330,539 to EUR 660,982 — 8%
• Above EUR 1,150,853 — flat 7.5%

Non-residents: A flat 7.5 per cent on residential property — a significant 2026 change. However, three exemptions allow non-residents to claim a refund and access the tiered rates: (a) becoming a tax resident within two years, (b) committing the property to long-term moderate-rent rental, or (c) serving in a Portuguese public role.

Other property types: Rural land at 5 per cent; commercial property and building plots at 6.5 per cent.

Young buyers (under 35, first home): Full IMT and stamp duty exemption up to EUR 330,539.

IMT is calculated on whichever is higher: the declared purchase price or the VPT (Valor Patrimonial Tributário — the tax office's assessed value).

Stamp Duty (Imposto de Selo)

0.8 per cent of the purchase price (or VPT if higher), paid alongside IMT before the deed. If using a Portuguese mortgage, an additional 0.5–0.6 per cent stamp duty applies to the loan amount.

IMI (Annual Property Tax)

After purchase, you pay IMI (Imposto Municipal sobre Imóveis) annually. Rates are set by each municipality:

• Urban properties: 0.3–0.45 per cent of VPT (199 of 308 municipalities chose the minimum 0.3 per cent for 2026)
• Rural properties: 0.8 per cent
• Properties held by tax-haven entities: 7.5 per cent

Lisbon charges 0.3 per cent; Porto charges 0.324 per cent.

Families get deductions: municipalities can reduce IMI by up to 20 per cent (one dependent), 40 per cent (two), or 70 per cent (three or more).

AIMI (Additional Property Tax): For properties valued over EUR 600,000 — 0.7 per cent for individuals, with a marginal rate of 1 per cent above EUR 1 million.

Total Buying Costs at a Glance

Government taxes (IMT + stamp duty) account for 70–80 per cent of total closing costs. All costs are customarily borne by the buyer.

Capital Gains Tax When Selling

Since January 2023, non-residents receive the same 50 per cent exclusion as residents — only half the capital gain is taxable. Progressive IRS rates then apply, yielding an effective rate of approximately 6–24 per cent for most sellers.

Deductible costs include: IMT and stamp duty paid on purchase, notary and registration fees, legal fees, estate agent commission, energy certificate, and documented improvement costs from the 12 years before sale.

Residents can defer capital gains tax entirely if they reinvest the proceeds in another primary residence within Portugal or the EU within 36 months.

Golden Visa and Property in 2026

Since October 2023, direct real estate investment no longer qualifies for Portugal's Golden Visa programme. The programme remains active, but qualifying routes are now limited to:

• EUR 500,000 minimum in regulated venture capital or private equity funds (managed by CMVM-accredited managers)
• At least 60 per cent of fund capital must be invested in Portuguese companies
• The fund's activity cannot involve real estate, directly or indirectly
• Investment must be maintained for a minimum of 5 years

Key 2026 Policy Changes

VAT on New Construction Cut From 23% to 6%

The most significant change for 2026: VAT on qualifying new residential construction and rehabilitation works has been reduced from 23 per cent to 6 per cent. Conditions:

• Property value must not exceed approximately EUR 660,000
• For rental properties, monthly rents must be capped at EUR 2,300
• The property must be used as the buyer's primary permanent residence for at least 12 months — selling or ceasing to use it within the first year triggers a clawback
• Tied to licensing applications submitted before December 31, 2029

On a EUR 400,000 new-build apartment, this represents a saving of approximately EUR 68,000.

If you are not ready to buy, our guide to renting in Portugal in 2026 covers everything you need to know about the rental market.

Other Changes

• IMT brackets updated by approximately 2 per cent
• Young buyer IMT exemption threshold raised to EUR 330,539
• State mortgage guarantee for under-35s extended through end of 2026
• Non-residents now pay a flat 7.5 per cent IMT on residential property

Common Mistakes to Avoid

• Skipping the lawyer: Portuguese property law has pitfalls that can cost far more than legal fees. Undisclosed debts, planning violations, and ownership disputes are all discoverable with proper due diligence.
• Declaring a lower price: While once common, the tax authorities now cross-reference declared values with market data. Undervaluation can trigger audits, penalties, and higher capital gains tax when you sell.
• Forgetting to keep invoices: Every invoice (factura) bearing your NIF and property address is deductible against future capital gains. Losing improvement receipts means paying more tax when you sell.
• Ignoring the VPT: IMT is charged on the higher of the purchase price or VPT. If the property's tax valuation is above what you pay, you'll still be taxed on the higher figure.
• Assuming the Golden Visa still covers property: It does not, as of October 2023.

Related Guides

• Taxes in Portugal Explained: IRS Brackets, IFICI, and Filing Deadlines in 2026
• Opening a Bank Account in Portugal in 2026
• Cost of Living in Portugal in 2026
• Retiring in Portugal in 2026: D7 Visa, Pensions, and Healthcare
• Internet, Phone, and Utilities in Portugal in 2026

Related: NIF Explained: How to Get Your Portuguese Tax Number as a Foreigner, Step by Step

If you are buying property as part of a relocation, you will also need to obtain your residence permit through AIMA. Read our complete guide to the AIMA residency permit process →

Related: If you plan to rent out your property short-term, note that EU enforcement of licensing rules begins 20 May — read what this means →