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Buying Property in Portugal as a Foreigner

The steps to buy a home in Portugal, the checks to make, the 2026 IMT and stamp duty rates, the new non-resident rate, and the total cost.

Buying Property in Portugal as a Foreigner

Last verified: September 2026.

Who this is for

  • You are not Portuguese and want to buy a home or land in Portugal, whether EU or non-EU.
  • 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 September 2026. Since 25 May 2026, buyers who have never been tax resident in Portugal pay a flat 7.5% property transfer tax on a home, with a partial refund if they move here within two years.

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, and usually takes two to four months. Budget 5% to 10% on top of the price for taxes and fees. The main tax is 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 now a flat 7.5%.

This is general information, not legal or tax advice. Property law is technical, so use a lawyer or solicitor for your purchase.

Who can buy

  • Any nationality. EU and non-EU citizens have the same right to buy as Portuguese citizens.
  • 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. See "Visas and Residency in Portugal".
  • No restricted areas for foreigners. Planning rules still apply to everyone. Farmland in the national agricultural reserve (RAN) and protected land have strict limits on building.

What to set up before you start

  1. Get a NIF. You cannot sign a promissory contract, pay tax, or sign the deed without one. It is free at any tax office (Finanças). From abroad, a lawyer or representative can get it for you. See "Getting a NIF (Tax Number) in Portugal".
  2. Sort out tax contact. If you live outside the EU or EEA, you must appoint a fiscal representative or switch on electronic notifications at Finanças. See "Appointing a Fiscal Representative in Portugal".
  3. Open a Portuguese bank account. The law does not require one, but deposits, taxes, and bills are much easier with one. A Portuguese mortgage needs one. See "Opening a Bank Account in Portugal".
  4. Hire a lawyer (advogado) or solicitor (solicitador). Choose one who works for you, not for the seller or the agent. Fees are often around 1% of the price, with a minimum.
  5. If you need a mortgage, talk to banks now. Get an approval in principle before you sign anything.

The buying process, step by step

  1. Find a property. Most homes are sold through licensed estate agents. Check the agent's licence (AMI number) on the IMPIC register. The seller normally pays the agent.
  2. Make an offer. Agree the price. Some agents ask for a small reservation deposit. 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 pay a deposit (sinal), often 10% to 20% of the price. The contract sets the deed date, usually one to three months later.
  5. Finalise your mortgage. The bank values the property and issues its final offer.
  6. Pay IMT and stamp duty. Your notary, solicitor, or Casa Pronta files the IMT declaration and gives you the payment references. Pay before the deed, or as your notary instructs.
  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 register with the building's condominium.

The deposit rule. If you pull out without good reason, you lose your deposit. If the seller pulls out, they must pay you back double. Make sure the contract returns your deposit if your mortgage is refused.

Signing from abroad. You do not have to attend. A lawyer can sign the promissory contract and the deed for you with a power of attorney (procuração). A power signed abroad usually needs an apostille and a certified translation.

Checks to make before you sign

Your lawyer should obtain and read:

  • Land registry certificate (certidão permanente). Confirms the owner, any mortgage, seizure, or other charge.
  • Property tax record (caderneta predial). Shows the tax value (VPT), the use, and the areas registered with Finanças.
  • Use licence (licença or autorização de utilização). Confirms the home may legally be lived in. Buildings from before August 1951 may have an exemption instead.
  • Energy certificate (certificado energético). The seller must have one. It shows how costly the home will be to heat and cool.
  • Condominium debt statement. For a flat, the building administrator's statement of any debts. If you waive it, you take on the seller's debts to the building.
  • Planning status. For land or rural homes, check the council's master plan (PDM) to see what can be built.
  • Tax debts. Confirm the seller is up to date with IMI.

Watch for these common problems:

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

From 1 October 2026, the deed must state whether the home has a use licence or other planning title. Since 2024 the licence has not had to be shown at the deed. If the deed says there is none, you are buying without one. Ask your lawyer and 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 price
Over €1,150,8537.5% on the whole price

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 price
Over €1,150,8537.5% on the whole price

In the lower bands, each rate applies only to the slice of the price inside that band. In the top two bands, one flat rate applies to the whole price.

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

If you are 35 or under. If you are buying your first home to live in, 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".

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. Finanças has an IMT simulator on the Portal das Finanças to check your own figure.

The 7.5% IMT rate for non-residents

Since 25 May 2026, a new rule applies if you are not tax resident in Portugal when you buy a home. You pay a flat 7.5% IMT on the whole price, 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 has confirmed this in guidance issued in September 2026.
  • You are married and either spouse has been tax resident here before. Finanças applies the rate only when both spouses are non-resident and never were.

You can get 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. 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.

The rule covers homes only. 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 of five years or more, you also pay stamp duty of 0.6% on the loan amount. On a €200,000 loan, that is €1,200.

Other buying costs

  • Deed and registration. At a Casa Pronta counter, the deed and registration together cost €375, or €700 if you also take a mortgage. A private notary and separate registration usually cost more.
  • Lawyer or solicitor. Often around 1% of the price, with a minimum.
  • Bank costs. Valuation, arrangement, and processing fees if you take a mortgage.
  • Power of attorney, if you sign through someone else.
  • Fiscal representative, if you live outside the EU or EEA and do not switch on electronic notifications.
  • Survey. Optional but wise, especially for older or rural homes.

What a €300,000 home costs in total

For a €300,000 flat bought with cash, using Casa Pronta and a lawyer charging 1%:

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
Lawyer (about 1%)€3,000€3,000€3,000
Total on top of the price€16,317 (5.4%)€17,380 (5.8%)€28,275 (9.4%)

Add bank costs and mortgage stamp duty if you borrow.

Getting a mortgage

Portuguese banks lend to residents and non-residents. The Banco de Portugal sets limits that all banks must follow:

  • Loan to value. Up to 90% of the value for your own permanent home, and up to 80% for other homes. Non-residents are often offered less.
  • Repayments. From August 2026, your total loan repayments should not exceed 45% of your net income. Banks may exceed this for a small share of loans.
  • Term. Up to 40 years if you are 35 or under, and up to 35 years if you are older.

You will usually need your passport, NIF, proof of income, recent payslips or tax returns, and bank statements. Allow several weeks for approval. See "Getting a Mortgage in Portugal".

What owning costs each year

  • IMI. The annual property tax, 0.3% to 0.45% of the tax value for most homes, set by the council. Non-residents pay the same. See "Paying IMI Property Tax in Portugal".
  • 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.
  • Insurance. Fire cover is compulsory for flats, and your bank will require insurance on a mortgaged home. See "Getting Home Insurance in Portugal".
  • Utilities. Electricity, water, gas, and internet.

If you make the home your permanent address and its tax value is €125,000 or less, you may pay no IMI for three years. Income limits apply. Register the address as your tax address within six months of buying to qualify.

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 a lower rate.
  • Moderate rents. From 2026 to 2029, homes let at no more than €2,300 a month pay a reduced 10% rate. See "Declaring Rental Income as a Landlord in Portugal".
  • Short-term lets. Holiday letting (alojamento local) needs a registration with the council. Many councils restrict new registrations in busy areas. Check before you buy, not after.
  • The IMT exception. A non-resident who lets the home at a moderate rent can reclaim part of the 7.5% IMT, as explained above.

Residence and the Golden Visa

Buying a home no longer qualifies you for a Golden Visa. Property purchases were removed from the scheme in October 2023. Investment fund and other routes remain. See "Applying for the Portugal Golden Visa".

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.
  • Ignoring the energy rating. A low rating means higher bills and extra work.
  • Underestimating renovation. Older homes often need new wiring, plumbing, insulation, and damp treatment.
  • Buying rural land to build on without checking the council's plan.
  • Forgetting to update your tax address after moving in. You may lose the IMI exemption.

If you later sell, capital gains tax applies. See "Selling Your House in Portugal".

Sources

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

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