The influx of foreign investors has sparked a notable boom in the Portuguese real estate market. With year-round sunshine, excellent living standards, and high-quality healthcare and education, it’s no wonder international families and expats are looking at buying property in Portugal.
There are no real estate restrictions based on nationality, so foreigners can purchase land, apartments, houses, and commercial properties just like a local.
Buying property doesn’t give you the right to live in Portugal, though, so if you’re planning to move, residency is a separate application.
In this guide to buying property in Portugal, you’ll get the insights and information needed to make your real estate purchase with confidence.
Buying Property in Portugal: Key Takeaways
Can foreigners buy property in Portugal?
Yes, you can buy property in Portugal as a foreigner. The process is the same as for Portuguese buyers, and there are no foreign property ownership regulations in Portugal.
You don’t need to have permanent residence status or hold Portuguese citizenship to buy property in Portugal, as non-residents are allowed to own real estate, and there are no restrictions based on nationality.
However, there are a few steps involved, legal requirements, and associated costs. This includes obtaining a Portuguese tax identification number (NIF), potentially securing financing, and navigating the legal and administrative steps necessary for a property purchase.
Owning property also doesn’t give you residency, and since October 2023, real estate purchases no longer qualify for the Golden Visa.
Can Americans buy property in Portugal?
Yes, buying real estate in Portugal as an American is allowed, and there are no restrictions on the property buying process in Portugal.
You will, however, need to have a Portuguese NIF number. If you would like to stay in the country for more than 90 days, you will need a residence visa.
Can the British buy property in Portugal?
Yes, there are no restrictions on British citizens purchasing property in Portugal, as the legal requirements to buy property in Portugal are the same for everyone.
However, if you would like to stay in the country for more than 90 days, you will need a residence visa.
Why buy property in Portugal?
There are plenty of good reasons why the Portuguese property market has become a popular choice for investment.
Ten reasons to purchase real estate in Portugal
- Portugal is one of the most peaceful places to live, ranking 7th on the 2026 Global Peace Index.
- The Algarve gets around 300 days of sunshine a year, making the beachside property market even more attractive.
- With a lower cost of living than most of Western Europe, Portugal offers good value for property purchase and investment.
- Portugal has a growing, stable economy.
- Property investment can offer higher rental yields than in many other Western European countries.
- The real estate market is highly desirable for buyers and investors looking for an exceptional quality of life.
- Portugal provides quick, easy access to Europe, Africa, and the US.
- It has robust public healthcare and transportation systems that benefit citizens and residents.
- With unspoiled nature and beautiful beaches, real estate focused on tourism is growing.
- The strong sense of community and family-friendly environment makes purchasing in Portugal even more appealing for families.
How the Portuguese Purchase Process Works
Here’s a quick breakdown of the steps you’ll need to follow to buy a property in Portugal:
- Step 1: Work out whether you want to take a mortgage and what plan works for you when purchasing property.
- Step 2: Try to negotiate the price with the seller.
- Step 3: When the price is agreed upon, you’ll need to make a down payment of usually 10%.
- Step 4: Sign a Contrato-Promessa de Compra e Venda (CPCV).
- Step 5: Sign the property deed, or Escritura Pública de Compra e Venda.
Where to look when buying property in Portugal
There are many online portals and real estate agencies that advertise properties for sale in Portugal. Some of them are:
- Idealista
- Imovirtual
- Casa Sapo
- Facebook can also be used to find properties for sale.
Real estate agents can play a crucial role in your property search. Estate agent fees, typically ranging from 3% to 5% of the sale price, are usually covered by the seller.
Alternatively, working with a buyer’s agent can be a strategic move. A buyer’s agent often has access to properties in Portugal that are not listed on the general real estate market and may be able to secure better prices.
Documents and Portuguese Identifiers
To buy property in Portugal, you’ll need:
- Portuguese tax number (NIF)
- Valid ID
- A local bank account
- Funds for deposits (around 10% to 30%) and taxes
- A lawyer for due diligence on property documents (like the Building Data Sheet and non-debt certificates) and contracts (Promissory Contract/CPCV and Final Deed/Escritura)
Getting a Portuguese tax number
To enter the property market and purchase property in Portugal, whether as a resident or non-resident, you will need to have a Portuguese tax number. This tax number is crucial for buying property in Portugal and for opening a bank account.
If you’re a resident of Portugal, you can obtain this tax number at any local tax office (Finanças).
You’ll need to provide proof of your address and passport to get your NIF. If you live outside the EU or EEA, you must appoint a fiscal representative to apply for the NIF on your behalf.
Means of identification
To buy property in Portugal, you will need to provide proper identification. This can either be a passport or a Portuguese ID card (Cartão de Cidadão).
Opening a Portuguese bank account
Opening a Portuguese bank account is advisable when buying property to avoid dealing with frequent exchange rate fluctuations. Our guide to opening a bank account in Portugal covers the documents banks ask for.
Contracts, Deposit, and Completion
Once you’ve settled on a price with the seller, you’ll need to complete the purchase through the following steps:
- Involve a local lawyer or solicitor if you don’t already have one.
- Review the terms and the Promissory Contract with your solicitor.
- Both the seller and buyer sign the Promissory Contract. At this point, the buyer must also pay a deposit. This is usually 10% and will be forfeited if the buyer pulls out of the deal. If the seller pulls out, they must pay back double the deposit.
- After the terms of the Promissory Contract have been met, the buyer and the seller, or their representatives (through a power of attorney), meet in front of a notary or at a Casa Pronta office for the final act of sale. The buyer pays the remaining amount, and the seller hands over the keys.
Taxes, Fees, and Financing
Property purchase costs in Portugal
In Portugal, the buyer incurs the following costs upon purchase of a property:
- IMT (Property Transfer Tax), based on the value of the purchase price. Payable at your local tax office or online.
- Stamp Duty, which is fixed at 0.8% of the purchase price.
- Deed and land registration fees. Through the government’s Casa Pronta service, these cost €375 for a cash purchase, or €700 if you’re also registering a mortgage.
Financing a property in Portugal
If you’re not making a one-time payment for the property you want to buy, one of the most common methods is securing a mortgage loan.
You can choose to get a mortgage from a bank in your home country or a Portuguese bank. Some Portuguese banks offering mortgages for foreigners include Novo Banco, Caixa Geral de Depósitos, and Millennium.
The Banco de Portugal limits mortgage terms to between 35 and 40 years, depending on your age, and banks often offer non-residents shorter terms.
It also caps loans at 90% of the property’s value if it’s your main home and 80% if it’s a second home or investment, so you’ll need a deposit of at least 10% or 20%. Banks often ask non-residents for 30% or more.
Portuguese Real Estate Market Overview
Property Prices in Portugal
In recent years, the Portuguese real estate market has become increasingly popular among investors from abroad. Due to this demand, property prices are generally on the rise, particularly in popular areas like Lisbon, Porto, and the Algarve.
Prices in Lisbon have surged significantly and are much higher compared to other parts of the country, but still relatively cheaper than in other parts of Europe.
Below is a detailed overview of property prices across various regions in Portugal.
| District | City | Average Price per m2 |
|---|---|---|
| Baixa and Chiado | Lisbon | €9,791 |
| Lapa and Santos | Lisbon | €7,948 |
| Campo de Ourique | Lisbon | €6,021 |
| Ribeira, Miragaia and Baixa | Porto | €5,547 |
| Alfama | Lisbon | €6,943 |
| Portimão | Algarve | €4,161 |
| Cascais and Estoril | Cascais | €5,794 |
| Carcavelos and Parede | Cascais | €5,107 |
Which are the most expensive areas for purchasing property in Portugal?
Lisbon and the Algarve are by far the most expensive areas to buy property in Portugal.
In Lisbon, areas such as Baixa, Chiado, Lapa, and Santos stand out, with average asking prices typically ranging between €4,000 and €6,500 per square meter, depending on property condition and location within the neighborhood.
In the Algarve, particularly in municipalities such as Lagos, Albufeira, Lagoa, and Tavira, shows mid-to-upper ranges between €2,500 and €4,000 per square meter, with newer developments and prime locations exceeding this range.
Which areas are cheaper?
For cheap homes for sale in Portugal and great bargains, you should head inland. Particularly in the central region of Portugal, such as Santarem, Viseu, Leiria, and Castelo Branco, the average asking price often falls well below €2,000 per square meter, with some areas significantly lower, depending on property type and condition.
An added advantage is that many houses and land in these areas are quite large and spacious. The Silver Coast is also an appealing option for those looking for reasonably priced properties, with relatively cheap houses available near the beach.
Types of Property in Portugal
Portugal’s real estate market offers a wide range of property types. From eclectic farmhouses to trendy warehouse-style apartments, the property market in Portugal is well-developed, but it comes with its own terminology.
Here are some definitions you’ll come across when doing a property search:
- A casa or a moradia refers to a typical detached home, with some houses having a backyard or a patio and most having a wall around them with a front gate.
- A casa geminada simply means a semi-detached house.
- Condomínios, or condos, are individual apartment units with common spaces. These can be expensive because they come with a monthly condo fee, which usually covers shared maintenance and security. Many have swimming pools, gyms, etc.
- Quintas are timeless rustic houses or farms. They’re usually located more inland, although some can be found in bustling suburban areas.
- Terreno means “land” in English. Some expats choose to buy a plot of land and build their own homes. If you go this route, it’s a good idea to check with the city hall (Câmara Municipal) to make sure the land is registered for residential use rather than agricultural purposes.
Apartment terminology in Portugal
When looking for a new home, you’ll come across ads with terms like ‘T0, T1, T2’, etc. These indicate the number of rooms in a property. A T1, for example, is a one-bedroom apartment, while T0 refers to a studio apartment.
In the local market, some of the more luxurious properties in Portugal come with amenities like swimming pools, extra security, or private gyms, which can increase the price.
Where to Buy Property in Portugal
The ideal spot for you will depend on your budget and the type of property you’re after.
Start by determining what you’re looking for and which area of Portugal appeals to you. Each region has its unique charm and benefits, but here are some places to consider when searching for your dream property:
Property in Lisbon
Lisbon, the capital and central economic hub of Portugal, is a vibrant city rich in history and increasingly popular for both tourism and business. It’s an excellent choice if you’re looking to buy property, whether for commercial use or to settle down.
According to Idealista’s Evolution of the Price of Houses for Sale, property prices in Lisbon have increased by almost 15% over the last year, making it quite pricey compared to other parts of the country.
While this rise in property prices may seem steep, it also indicates that property values are increasing, which can be a significant advantage for investors looking to benefit from long-term gains.
The most expensive areas in Lisbon include Avenida da Liberdade, Baixa, Chiado, and Lapa. For more affordable properties at reasonable prices, consider areas like Benfica and Amadora.
Located just a 30- to 40-minute drive from Lisbon, Cascais and Estoril are also excellent alternatives to buying property within the Lisbon metropolitan area, offering a charming coastal lifestyle.
Property in the Algarve
The Algarve is a magnet for everyone from retirees to second homeowners and investors. It’s a top holiday spot in Portugal, famous for its sunshine, beautiful coastline, fresh seafood, excellent golf courses, and natural beauty.
With easy flights to and from the UK, it’s no wonder that many English-speaking homeowners have holiday homes, villas, and beach houses here. Owning property in the Algarve means enjoying life in one of Europe’s most picturesque regions.
Property prices in the Algarve can vary significantly depending on the region. For instance, Vilamoura is renowned for its luxury homes, making it one of the priciest areas in which to buy property in the Algarve.
Lagos and Albufeira are also on the higher end of the price spectrum. If you’re seeking cheaper properties, consider areas like Monchique and Alcoutim or more rural regions for better deals.
Property in Porto
Often called Portugal’s second city, Porto is one of the oldest centers in Europe. It’s a lively commercial hub with a deep historical and cultural heritage. The real estate market in Porto is thriving, making it a great place to buy property in Portugal.
With real estate prices on the rise in the Algarve and Lisbon, buying property in Porto is becoming an attractive investment option. Porto’s status as both a commercial hub and a tourist destination, coupled with its large student population, adds to its appeal.
In Porto, you’ll find various types of property to choose from. For instance, properties in Foz do Douro offer lovely views of the Atlantic, while Vila do Conde is an emerging area where you can still find excellent deals.
Offering scenic vistas of the Luís I Bridge, Vila Nova de Gaia, and Ribeira neighborhoods are also worth considering, especially if you’re looking for commercial opportunities.
Property in Cascais
Recently, Cascais has become a popular choice for people looking to buy property, offering a desirable alternative to Lisbon.
The Cascais municipality isn’t just beautiful; it is one of the most highly valued areas in Portugal for lifestyle and property investment.
It is placed on a picturesque stretch of coastline but is also close to the capital city. A train line links the neighborhoods along the beach with the center of the city, and Lisbon is less than 45 minutes away by car, making it an excellent idea to buy property in Cascais.
Life in the Cascais region is incredibly family-friendly. There are several good international schools to choose from, such as Park International School, St John’s School, and St Antonio International School.
Property on the Silver Coast
When you think of beautiful coastlines and beaches, the Algarve often comes to mind first, and rightly so.
However, the Silver Coast in Portugal, situated between Lisbon and Porto, offers an equally stunning coastline, but it is sometimes overlooked. It’s roughly an hour’s drive from Lisbon, depending on your location on the coast.
It’s an excellent alternative to the Algarve for buying a home by the beach, as property prices are generally lower. Consider places like Óbidos, Peniche, and Nazaré. For the best options and advice, consult local real estate professionals.
Is it worth buying property in Portugal for rent?
Buying Portuguese real estate to rent can be a good financial investment. There is more demand for accommodation than what is currently available, especially in Lisbon and Porto.
Also, demand during peak tourism season makes property rental in Portugal a viable investment.
If you plan to rent to tourists, you’ll need a short-term rental license (Alojamento Local), and since 2024, each municipality can set its own rules on where new licenses are allowed.
Renting Versus Buying Property in Portugal
Deciding between renting and purchasing involves examining several key considerations:
Flexibility: Renting provides a lower financial risk if relocation becomes necessary, as opposed to managing property sales.
Security: Homeownership provides stability that rental arrangements may lack. While Portuguese tenant protections generally favor renters, landlords retain discretionary control regarding lease renewals or property sales.
Type of property: Long-term rental availability, particularly in tourist destinations like the Algarve, remains limited. Many proprietors favor short-term arrangements during peak seasons.
How Can We Help You Find Your Dream Property?
Goldcrest Real Estate is the first buyer’s agent in Portugal, providing you with a tailor-made service to find your ideal property in Portugal. From sourcing to acquisition and aftercare, Goldcrest guides you throughout the buying process.
Here's how Goldcrest stands out in making your property dreams come true:
LOCAL KNOWLEDGE: Goldcrest has offices throughout Portugal, ensuring a strong presence from the mainland to the Azores and Madeira.
INDEPENDENT SERVICE: Goldcrest don’t represent any specific development or project, ensuring their advice remains impartial. By objectively analyzing every opportunity, Goldcrest focuses on maximizing your investment prospects. They partner with various agents, sellers, promoters, and developers, ensuring a broad spectrum of property options. The goal is straightforward: To help you find the best property at the most favorable price, whether you're buying or renting.
STREAMLINED PROCESS: Goldcrest provides a dedicated real estate consultant paired with a top-notch client management system for smooth information exchange. With the aid of advanced technology, like metasearch tools, they guarantee expansive market coverage. Goldcrest's viewing itineraries are tailored to your needs, and they're always ready to assist, be it in-person or on your behalf. When it comes to pricing, they use data-driven analysis to ensure you get the best deal. And, to make your journey smoother, Goldcrest assigns a dedicated onboarding account manager for every client.
ALL-ENCOMPASSING SOLUTION: Navigating financial aspects? Goldcrest is here to guide you through finance options and manage the required documentation. If you need property management solutions or connections to builders, architects, designers, and gardeners, they have you covered. Relocating? Their concierge services are designed to assist in everything, from securing accommodations to handling utility connections.
TRANSPARENCY AND PRIVACY: Goldcrest operates with a commitment to GDPR compliance, ensuring your data is protected. Expect a clear and detailed pricing model without any hidden surprises. Plus, they provide independent due diligence services to ensure every decision you make is informed.
