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Buying property in Portugal, step by step
Portugal places no restrictions on foreign ownership of real estate. Anyone, of any nationality, resident or not, may buy — and the process is more orderly than most buyers expect.
What surprises people is the sequence. Two administrative steps must be completed before you can transact at all, the binding commitment happens well before the deed, and the taxes fall due before the notary will proceed. Below is the whole transaction, in order, with the 2026 figures.
Nine steps, in order
Steps one and two must be done before you can sign anything. Everything after that runs on a predictable track.
NIF — Portuguese tax number
Before anything elseThe Número de Identificação Fiscal is the key to the entire system. You cannot open a bank account, sign a promissory contract, pay tax, or take title without one. It is issued by the tax authority and can be obtained in person or through a representative holding a power of attorney.
Buyers resident outside the EU/EEA are generally required to appoint a fiscal representative in Portugal, unless they subscribe to the tax authority's electronic notification channel. We arrange this through our legal partners.
Portuguese bank account
Before the depositNot strictly compulsory, but in practice indispensable. It is how the deposit and completion funds move, how the taxes are paid, and how utilities and IMI are settled afterward. Expect standard KYC: passport, NIF, proof of address, and evidence of the source of funds.
Source-of-funds documentation is where international transactions most often lose time. Prepare it early rather than at the deed.
Offer and reservation
DaysAn offer is made and, once accepted, the property is commonly taken off the market against a reservation payment. This is not yet a binding purchase. It buys the time in which due diligence is done and the promissory contract is drafted.
Legal due diligence
2–4 weeksYour lawyer verifies title at the Conservatória do Registo Predial, checks the tax register (caderneta predial), and confirms there are no mortgages, liens, or charges. Critically, they confirm the licença de utilização — the use permit — and that what is physically built matches what is legally registered.
Divergence between the register and the building is the most common defect in older Portuguese stock, and it is the buyer's problem once the deed is signed.
CPCV — the promissory contract
The binding momentThe Contrato de Promessa de Compra e Venda is where the transaction becomes real. It fixes the price, the completion date, and the conditions, and it is accompanied by a deposit (sinal) — typically 10% to 30%.
The sinal is enforced symmetrically and severely. If the buyer walks away, the seller keeps it. If the seller walks away, the buyer is entitled to twice the amount. Do not sign a CPCV you are not prepared to complete.
IMT and stamp duty
Before the deedBoth taxes must be assessed and paid before the deed is signed. The notary will not proceed without proof of payment. IMT is calculated on the higher of the purchase price or the tax value (VPT); stamp duty is 0.8% of the same base. Full 2026 rates below.
Escritura — the deed
Completion dayThe final deed of purchase and sale is executed before a notary, or through the Casa Pronta one-stop service. Both parties attend in person or by power of attorney; if you are not fluent in Portuguese, a certified interpreter or a bilingual deed is required. The balance of the price is paid, and ownership transfers.
Registration
Immediately afterThe deed transfers ownership, but registration protects it. The purchase is entered at the Land Registry and the tax register is updated at the Finanças. Through Casa Pronta this is handled at the deed itself; otherwise your lawyer files it. Until it is registered, your title is exposed.
After completion
OngoingUtilities and the condominium are transferred into your name. Annually, you pay IMI (municipal property tax, broadly 0.3%–0.45% of the tax value for urban property, set by each municipality). Where the tax value of your Portuguese holdings exceeds €600,000 per owner, AIMI applies on the excess.
If you intend to rent, licensing — including local accommodation registration — is a separate process with its own municipal constraints.
IMT — property transfer tax
IMT is charged on the higher of the purchase price or the tax value (VPT). The rate depends on what the property is for. Most international buyers fall under the second table — the property is not their permanent primary residence.
Permanent primary residence
| Value (€) | Marginal rate |
|---|---|
| Up to 106,346 | 0% |
| 106,346 – 145,470 | 2% |
| 145,470 – 198,347 | 5% |
| 198,347 – 330,539 | 7% |
| 330,539 – 660,982 | 8% |
| 660,982 – 1,150,853 | 6% flat |
| Above 1,150,853 | 7.5% flat |
Second home, rental, or investment
| Value (€) | Marginal rate |
|---|---|
| Up to 106,346 | 1% |
| 106,346 – 145,470 | 2% |
| 145,470 – 198,347 | 5% |
| 198,347 – 330,539 | 7% |
| 330,539 – 660,982 | 8% |
| 660,982 – 1,150,853 | 6% flat |
| Above 1,150,853 | 7.5% flat |
Note the two flat bands. Above €660,982 the marginal table stops and a single rate applies to the whole value — 6% up to €1,150,853, then 7.5%. Separate rates apply elsewhere: 6.5% for urban property not intended for housing, 5% for rustic land, and 10% where the buyer is a company domiciled in a blacklisted jurisdiction. The Autonomous Regions of Madeira and the Azores apply their own bracket tables.
Imposto do Selo, charged on the same base as IMT and paid at the same time, before the deed.
Deed execution and land registration. Higher where a mortgage is registered alongside the purchase.
Independent legal representation through due diligence, CPCV, and deed. Plus VAT. Do not economize here.
In most Portuguese transactions the brokerage fee is carried by the seller, but this is market convention rather than law and is negotiable. Where a buyer wants dedicated representation — searching, sourcing off-market, and negotiating against the seller's agent — we act under a separate buy-side mandate, agreed in writing before any work begins.
Four things that cost foreign buyers money
None of them are exotic. All of them are avoidable.
Signing the CPCV before the due diligence is finished
The promissory contract is binding and the deposit is at risk. Buyers under competitive pressure sign first and investigate afterward. If the title is defective, or the building does not match its registration, the leverage is gone — and so, potentially, is the sinal.
Assuming IMT is charged on the price
It is charged on the higher of the price or the tax value (VPT). Where a property has been recently reassessed, the VPT can exceed the negotiated price, and the tax bill is larger than the buyer modeled. Check the caderneta predial before you agree a number.
Treating the deed as the finish line
The escritura transfers ownership; registration protects it. Between the two, the title is exposed. Registration also has to be correct — an error here surfaces years later, at resale, when it is expensive.
Confusing the purchase with residency
Since 2023, buying property in Portugal does not qualify for the Golden Visa, and it does not by itself confer any right to reside. Residency runs through a separate route — fund subscription, cultural donation, D7, D2, or the digital nomad visa — and must be planned as such.
Model your transaction
Three calculators, built on the figures above.
Frequently asked
Can a foreigner buy property in Portugal?
Yes. Portugal places no restriction on foreign ownership of real estate. Citizens of any country, resident or non-resident, may purchase on the same terms as a Portuguese national. You will need a Portuguese tax number (NIF), and if you are resident outside the EU/EEA, generally a fiscal representative.
How long does it take to buy property in Portugal?
One to three months from accepted offer to deed for a motivated buyer with clean title and funds in place. A mortgage, an unresolved licensing issue, or an inheritance in the chain will extend it.
What are the total costs of buying property in Portugal?
Budget roughly 7% to 10% above the purchase price. That covers IMT (up to 7.5%), stamp duty at 0.8%, notary and registry fees of about €500 to €1,200, and legal fees of around 1% to 1.5% plus VAT. Agency commission is usually borne by the seller, though this is convention rather than law, and a buyer may agree a separate buy-side mandate.
What is IMT and how much is it in 2026?
IMT is Portugal's property transfer tax, paid by the buyer before the deed. It is charged on the higher of the price or the tax value. For a permanent primary residence, it starts at 0% below €106,346 and rises through marginal brackets; above €660,982 a flat 6% applies, and above €1,150,853 a flat 7.5%. For a second home or investment property, the first bracket is taxed at 1% instead of 0%.
What is a CPCV?
The Contrato de Promessa de Compra e Venda is the promissory purchase contract. It is legally binding and carries a deposit, usually 10% to 30%. If the buyer defaults, the seller retains the deposit; if the seller defaults, the buyer is entitled to double it back.
Do I need a lawyer to buy property in Portugal?
It is not legally required, but no informed buyer proceeds without one. The lawyer verifies title, confirms the use permit, checks that the physical building matches the register, and negotiates the promissory contract. At 1% to 1.5% of the price, it is the cheapest risk mitigation in the transaction.
Does buying property in Portugal give me residency?
No. Since 2023, real estate no longer qualifies for the Golden Visa, and property ownership confers no right of residence in itself. Residency is obtained through a separate route — an eligible investment fund, a cultural donation, or a visa such as the D7 or D2.
Can non-residents get a mortgage in Portugal?
Yes. Portuguese banks lend to non-residents, though typically at a lower loan-to-value than for residents, and with fuller documentation of income and source of funds. Approval takes longer, and the timeline should be built into the CPCV.
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