Guides

Buying Property in Portugal: Taxes, Legal Steps, and What Every Foreign Buyer Should Know in 2026

Portugal remains one of Europe's most popular property markets for foreign buyers — drawn by the climate, relatively affordable prices outside Lisbon and Porto, and a well-established legal framework that protects purchasers. But the process involves specific taxes, notarial steps, and regulatory requirements that differ from most other countries. This guide walks you through the entire process from search to keys in hand.

Can Foreigners Buy Property in Portugal?

Yes. There are no restrictions on foreign nationals buying property in Portugal, whether you are an EU citizen or not. You do not need to be a resident, hold a visa, or have a Portuguese bank account (though the latter helps enormously). The process and taxes are identical for Portuguese citizens and foreigners.

Before You Start: Essential Prerequisites

NIF (Número de Identificação Fiscal): You cannot buy property without a Portuguese tax number. Non-residents must appoint a fiscal representative. See our NIF guide.
Portuguese bank account: While not legally required, virtually all transactions (deposits, notary fees, tax payments) are processed through a Portuguese account. See our bank account guide.
Lawyer (advogado): Strongly recommended, especially for non-Portuguese speakers. A lawyer conducts due diligence, reviews the contract, and ensures there are no liens, debts, or legal issues attached to the property.

Step-by-Step: The Buying Process

1. Property Search and Offer

Most buyers work with a licensed estate agent (agente imobiliário) registered with IMPIC. Online portals like Idealista, Casa Sapo, and Imovirtual list properties across the country. Once you find a property, you make a verbal or written offer through the agent or directly to the seller.

2. Promissory Contract (Contrato de Promessa de Compra e Venda — CPCV)

Once buyer and seller agree on terms, they sign a CPCV — a binding preliminary contract. Key elements:

Deposit: Typically 10–20% of the purchase price, paid at signing.
Penalty: If the buyer withdraws, they lose the deposit. If the seller withdraws, they must return double the deposit.
Deadline: The CPCV sets a date for the final deed (usually 30–90 days).

Your lawyer should review the CPCV before you sign. This is when due diligence happens: checking the caderneta predial (property tax record), certidão permanente (land registry), building licence, energy certificate (mandatory), and any outstanding debts or mortgages.

3. Final Deed (Escritura Pública)

The sale is completed at a notary's office (cartório notarial) or at a Casa Pronta one-stop shop (available in most municipalities). Both parties sign the escritura, the buyer pays the remaining balance, and ownership transfers immediately. The notary registers the transaction with the land registry (Conservatória do Registo Predial).

4. Registration and Tax Obligations

After the escritura, the property is registered in the buyer's name at the land registry. Your notary or lawyer typically handles this. You will also need to update the property's tax record (caderneta predial) at the local tax office (Finanças).

Taxes and Costs When Buying

Tax/Cost	Rate	Notes
IMT (Property Transfer Tax)	0–8%	Progressive rates based on property value and type. Primary residences have lower rates than second homes or investment properties. Properties under EUR 104,261 (primary residence, mainland) are exempt.
Stamp Duty (Imposto do Selo)	0.8%	Applied to the purchase price or tax assessed value, whichever is higher.
Notary and Registration Fees	EUR 500–1,500	Varies by property value and whether you use a notary or Casa Pronta (cheaper).
Lawyer Fees	EUR 1,500–3,000+	Typically 1–1.5% of purchase price for standard transactions.
Estate Agent Commission	3–5% + VAT	Usually paid by the seller, not the buyer. Confirm in writing.

IMT Rates for 2026 (Mainland Portugal)

IMT rates are progressive — you pay each rate only on the portion within that bracket. For primary residence purchases:

Up to EUR 104,261: exempt
EUR 104,261 – EUR 142,425: 2%
EUR 142,425 – EUR 194,013: 5%
EUR 194,013 – EUR 325,404: 7%
EUR 325,404 – EUR 648,022: 8%
Above EUR 648,022: flat 6% on total value

For second homes and investment properties, rates start at 1% and top out at 7.5%, with no exemption band.

Ongoing Property Taxes

IMI (Imposto Municipal sobre Imóveis): Annual property tax set by each municipality, ranging from 0.3% to 0.45% of the tax assessed value (Valor Patrimonial Tributário — VPT). Newly purchased properties often have their VPT reassessed, which may increase the IMI bill.
AIMI (Adicional ao IMI): A wealth surtax on property holdings above EUR 600,000 (per individual) or EUR 1,200,000 (couples filing jointly). Rate: 0.7% on the excess, rising to 1% above EUR 1 million.
Rental income tax: If you rent the property, income is taxed at a flat 25% for non-residents or at progressive IRS rates for residents (with possible deductions).

Getting a Mortgage in Portugal

Portuguese banks lend to both residents and non-residents, though terms differ:

Residents: Up to 90% loan-to-value (LTV); typical rates tied to 6-month or 12-month Euribor plus a spread of 0.8–1.5%.
Non-residents: Up to 70–80% LTV; slightly higher spreads (1.0–1.8%).
Term: Up to 40 years minus the borrower's age (maximum repayment age 75).
Required documents: Tax returns from your home country (last 2–3 years), proof of income, bank statements, NIF, ID, and the property's documentation.

With Euribor rates currently elevated, many buyers are opting for mixed-rate mortgages — fixed for the first 2–5 years, then variable. Compare offers from at least three banks; Millennium BCP, CGD, Novo Banco, and Bankinter are particularly active in the non-resident mortgage market.

Common Pitfalls

Not checking the caderneta predial: The tax record may show a different built area than reality — indicating illegal construction that could block future sale or renovation.
Skipping the energy certificate: Sellers are legally required to provide one. Without it, the escritura cannot proceed.
Ignoring outstanding debts: Property debts (unpaid IMI, condominium fees, utility bills) can transfer to the new owner. Your lawyer must check.
Underestimating transaction costs: Between IMT, stamp duty, notary, lawyer, and potential bank fees, expect total buying costs of 7–10% on top of the purchase price.
Rushing without a lawyer: Even if you speak Portuguese, property law is technical. A lawyer's fee is small relative to the risks.

Useful Links

IMT simulator: Autoridade Tributária (Portal das Finanças) has an official IMT calculator.
Land registry: Check property status at predialonline.pt.
IMPIC: Verify your estate agent's licence at the IMPIC registry.