How to Buy Property in Portugal as a Foreigner: What Does Each Step Involve?

How to buy property in Portugal as a foreigner: the short answer

A foreign individual can buy a house, flat or plot in Portugal in their own name on the same legal footing as a Portuguese citizen; nationality is not a test. What differs is administration: a non-resident must deal with the tax authority (Autoridade Tributária, or AT) from abroad, may need a fiscal representative, and must prove where the purchase money came from to the bank and the notary. The sequence is the same whether you are a British, American, Brazilian or German buyer.

1. Get a NIF. The Portuguese tax identification number is needed for the contract, the tax payments and the registration.
2. Settle representation and money. Decide whether you need a fiscal representative, open an account and agree any mortgage in principle.
3. Choose the property and the owner. Personal name, joint names or a company each have tax and succession consequences.
4. Run due diligence. Land Registry certificate, tax record (caderneta predial), licences, energy certificate, debts and charges.
5. Sign the CPCV. The promissory contract fixes the price, the deadline and the deposit (sinal).
6. Pay IMT and stamp duty. Both are paid before the deed is signed.
7. Complete and register. Sign the deed (escritura) or use Casa Pronta, then make sure ownership is registered in your name.

The rules on who may buy differ sharply from country to country; our comparison of foreign ownership rules in ten countries shows where Portugal sits against Spain, Greece and the UK. The rest of this guide takes the Portuguese steps one by one.

Step 1: Get a NIF, settle the fiscal representative and arrange the money

The first practical step is a Portuguese tax number (Número de Identificação Fiscal, or NIF), because nothing else can be signed without it. The Casa Pronta service, for example, asks for the civil and tax identification documents of the sellers and buyers before it will process a sale. Each buyer needs their own NIF, so a couple buying jointly needs two. Many buyers ask a lawyer to obtain it for them under a power of attorney, which saves a trip before the property has even been chosen.

Do you need a fiscal representative?

The answer depends on where you live. Under article 19 of the General Tax Law (LGT), taxpayers resident abroad must appoint a representative resident in Portugal for tax purposes, and without one they cannot exercise their rights before the tax authority, including complaints and appeals. Three qualifications matter:

• EU and EEA residents. For residents of an EU or EEA state with equivalent tax cooperation, appointing a representative is optional.
• Electronic notifications. Since 2022 the obligation does not apply to taxpayers who sign up to electronic notifications through the digital address service or the Portal das Finanças, so many non-EU buyers can register for e-notifications instead.
• Cancelling later. A taxpayer resident outside the EU or EEA who cancels e-notifications only does so effectively once a fiscal representative has been appointed.

For a buyer from the UK, the US, Brazil or the Gulf, the choice is therefore between a representative (often the lawyer handling the purchase, or a relative living in Portugal) and reliable e-notification access. Missing a notice about IMI or a tax assessment is a common way for non-resident owners to run up penalties.

Bank account and finance

A Portuguese bank account is not a legal condition of the purchase, but most buyers open one to pay IMI, utilities and condominium charges by direct debit. Expect anti-money-laundering checks: banks and notaries will ask for evidence of source of funds, and a transfer from abroad that cannot be traced to savings, a sale or a loan can delay completion. Portuguese banks lend to non-residents, but each applies its own criteria and the loan terms, deposit required and interest rates vary by lender and by your residence and income; take quotes from more than one bank and, if useful, from independent mortgage advisers. Larger or more complex purchases, especially those funded from investment portfolios, are worth discussing with your cross-border wealth manager before you commit to a deposit.

Step 2: Choose the property and decide how you will own it

Before you look at the paperwork on a specific property, decide whose name will go on the title, because it changes the tax bill and what happens on death. Most private buyers use one of three structures.

• Personal name. The simplest route for a holiday home or a home you will live in. It exposes the property to Portuguese succession rules, so plan a will that covers it; our guide on making an international will explains when one will is enough.
• Joint names. Common for couples. Your matrimonial property regime, and how it is recorded at the deed, decides what each spouse owns; family and private client advisers can check this before signing.
• A company. Sometimes used for investment portfolios, but it adds accounting and, for some vehicles, higher property taxes.

One structure is penalised outright. If the buyer has its tax domicile in a jurisdiction on Portugal's list of privileged tax regimes, or is controlled by an entity that does, IMT is charged at a flat 10% with no exemption or reduction, and the annual property tax rises to a 7.5% IMI rate. Offshore holding companies that suit property in other countries are usually the wrong vehicle for Portugal. Corporate buyers acquiring offices or shops face a different set of questions, which our guide to buying commercial property as a foreign company covers for the UK.

The type of property matters too. A rural plot (prédio rústico) is taxed differently from an urban home, and land outside an urban area may not be buildable at all, so confirm what the municipality's plans allow before paying for "development potential".

Step 3: Run the due diligence

Due diligence in Portugal means checking four things before any money changes hands: that the seller owns the property, that it is free of charges, that it is legally licensed for the use you intend, and that there are no unpaid debts that could follow it. The core documents are public or easy for the seller to obtain.

• Land Registry certificate (certidão permanente predial). It shows every registration on the property and any pending registration requests, including mortgages and attachments. Anyone can order it online for €15 (€20 in person) using the district, municipality, parish and registry description number, and it is valid for six months.
• Tax record (caderneta predial). Issued by the tax authority, it identifies the property in the tax register and its tax value, which IMI is calculated on. Check that the description, area and owner match the Land Registry entry.
• Licences. For a building put up after 7 August 1951, or altered since, the deed or Casa Pronta file must refer to the utilisation licence or show that none is needed, according to the Casa Pronta document list. Extensions, pools and converted annexes without approval are a frequent problem in older villas.
• Energy certificate. Casa Pronta lists the energy certificate among the documents for completion, so ask the seller for it early.
• Debts and charges. Ask for a condominium statement showing no arrears, confirm that IMI has been paid, and make sure any mortgage on the certificate will be redeemed at completion.
• Pre-emption rights. Some people and bodies hold a legal right of first refusal (direito legal de preferência) over certain sales, so ask your lawyer who might hold one; Casa Pronta runs an online service for publishing notices to holders of a legal pre-emption right.

Buyers of coastal, river or lakeside land should also ask a lawyer about any restrictions that apply near water, and anyone buying a plot should see the municipal planning position in writing.

Step 4: Sign the promissory contract (CPCV) and pay the deposit

The promissory contract of purchase and sale (contrato-promessa de compra e venda, or CPCV) binds buyer and seller to complete at an agreed price by an agreed date, usually against a deposit called the sinal. It is the moment the purchase becomes expensive to abandon, so it should not be signed until the due diligence is done or the contract makes completion conditional on it.

The formal rules

Under article 410 of the Civil Code, a promise to sell a building or a unit in one must be in writing and signed, the signatures must be recognised in person, and the person certifying them must confirm that a utilisation or construction licence exists. Only the buyer can rely on a failure to meet those requirements, unless the buyer caused it. A CPCV signed in a hurry at an estate agent's office without recognition of signatures is a warning sign.

What happens to the deposit

Article 442 of the Civil Code sets the default consequences of breach:

• If the buyer pulls out for a reason attributable to them, the seller keeps the deposit.
• If the seller pulls out, the buyer can demand double the deposit or, where the buyer has already been given possession, the increase in the property's value at the date of breach, less the agreed price, together with the deposit and any part of the price already paid.
• Specific performance. Instead, the innocent party can ask the court to enforce the sale under article 830.
• No extra damages. Unless the contract says otherwise, losing or doubling the deposit is the full compensation.

Deposits are negotiated, not fixed by law. The CPCV should also state the completion deadline, who pays which costs, what happens if a mortgage is refused, the inventory of furniture, and whether the buyer may nominate another person or company to take title.

Step 5: Budget for IMT and stamp duty

Buying property in Portugal costs two transfer taxes: IMT (the municipal property transfer tax) on a sliding scale and a flat 0.8% stamp duty. Together they come to about 5.6% of the price of a €400,000 holiday home and 8.3% above €1,150,853. Both are paid before the deed, and the notary or Casa Pronta desk will ask for proof.

The IMT bands in article 17 of the IMT Code, as amended by Lei 73-A/2025, distinguish between a home that will be the buyer's own permanent residence (habitação própria e permanente) and any other home. A non-resident buying a holiday home or a rental flat uses the second column.

Taxable value (mainland, 2026)	Other homes (holiday, rental)	Own permanent residence
Up to €106,346	1%	0%
More than €106,346 up to €145,470	2% marginal	2% marginal
More than €145,470 up to €198,347	5% marginal	5% marginal
More than €198,347 up to €330,539	7% marginal	7% marginal
More than €330,539 up to €633,931 (other homes) or €660,982 (own residence)	8% marginal	8% marginal
From that limit up to €1,150,853	6% flat on the whole value	6% flat on the whole value
More than €1,150,853	7.5% flat on the whole value	7.5% flat on the whole value

In the marginal bands, the code splits the value in two: the part up to the ceiling of the band below is taxed at that band's average rate, and the excess at the marginal rate. Other rates are flat: 5% for rural land and 6.5% for other urban property such as shops and offices, and 10% for buyers linked to listed tax havens. On top of IMT, item 1.1 of the stamp duty table charges 0.8% on the acquisition of property.

Worked example: a €400,000 holiday apartment

Item	Basis	Amount
IMT	8% band for other homes, after the average rate on the first €330,539	About €19,300
Stamp duty	0.8% of €400,000	€3,200
Casa Pronta, single registration act	Cash purchase, one property	€375
Land Registry certificate	Ordered online	€15
Total before legal fees		About €22,890

The same apartment bought as the buyer's own permanent home would carry IMT of about €18,240. A €1.2 million villa falls into the top band and pays IMT of €90,000 plus €9,600 stamp duty. Lawyer's fees, any mortgage costs and the deposit for utilities come on top, and a tax adviser should confirm which column applies before the CPCV is signed.

Step 6: Complete at the deed or at Casa Pronta, then register

Completion is the signing of the final sale contract, at which the price is paid and ownership passes. Under article 875 of the Civil Code, a sale of immovable property is valid only if made by public deed (escritura pública) or by an authenticated private document (documento particular autenticado). The alternative is the state's one-stop Casa Pronta desk.

At a Casa Pronta desk, run by the Institute of Registries and Notaries (IRN), the sale, any mortgage and the registration are dealt with at one appointment. It costs €375 where there is a single registration act, such as a cash purchase, or €700 where there are several, such as a purchase with bank finance, plus €50 for each additional property. You book online and bring:

• civil and tax identification for every seller and buyer;
• the building's technical file where one exists;
• evidence of the utilisation licence, or that none is needed, for buildings put up after 7 August 1951 or altered since; and
• the energy certificate.

If you sign before a notary or a lawyer instead, registration at the Land Registry is a separate step. Do not treat it as a formality: registration is what protects you against third parties, and a fresh certificate showing the property in your name is the evidence your lawyer should send you. If you cannot travel to Portugal for completion, a power of attorney can let your lawyer sign for you; ask well in advance how it must be signed and legalised in your country.

Step 7: After completion: IMI, AIMI and staying compliant

Owning property in Portugal brings two annual taxes, IMI for every owner and AIMI for owners of high-value residential property, plus the obligation to keep your tax address and notifications in order.

• IMI. Under article 112 of the IMI Code, urban property is taxed at between 0.3% and 0.45% of its tax value, with the rate set each year by the municipality, and rural property at 0.8%. Rates are tripled for urban buildings left empty for more than a year or in ruins.
• AIMI. The additional tax applies mainly to residential property; urban property classed as commercial, industrial, services or "other" is excluded. Individuals have a €600,000 deduction and then pay, under article 135-F of the IMI Code, 0.7% on the taxable value, 1% on the slice above €1 million and 1.5% above €2 million; companies pay 0.4%, and entities in listed tax havens 7.5%.
• Representation. Keep the fiscal representative or the e-notification subscription in place for as long as you own the property.

Letting the property brings income tax filings, and moving to Portugal changes your tax residence, which is a separate question from the purchase. UK buyers should read our guide to becoming non-resident for UK tax before relying on any Portuguese regime.

Does buying property in Portugal give you residency?

No. Buying a home in Portugal does not, by itself, give a non-EU buyer a right to live there, and residential property no longer qualifies for the residence-by-investment permit known as the golden visa. Global Law Experts' guide to Portugal golden visa requirements explains that the "Mais Habitação" package, Lei 56/2023 published on 6 October 2023, removed most real estate routes, including residential property purchases, for new applications.

The routes that remain, as listed by the migration agency AIMA for the residence permit for investment (ARI), are:

• creating at least 10 jobs;
• €500,000 for scientific research;
• €250,000 for artistic production or the national cultural heritage;
• €500,000 in Portuguese non-real-estate investment funds with at least five years to maturity and at least 60% invested in companies based in Portugal; or
• €500,000 to set up or recapitalise a Portuguese company with job creation.

Permit holders must spend at least 7 days in Portugal in the first year and 14 days in later years, and the scheme is not open to Portuguese, EU, EEA, Swiss or Andorran nationals. Portugal is not alone: Spain closed its investor visa in 2025 and Latvia ended its property route on 15 September 2026. Buyers who want to live in Portugal need a residence route of their own, and immigration and citizenship advisers should plan it alongside the purchase.

How long does buying a property in Portugal take?

A straightforward cash purchase can move from accepted offer to completion within weeks, while a purchase with a mortgage, a licensing problem or an inheritance in the seller's chain can take months. The pace is set by the slowest document, not by the law.

Stage	What happens	What slows it down
Preparation	NIF, representation or e-notifications, bank account, mortgage in principle	Source-of-funds questions from the bank
Offer and due diligence	Land Registry certificate, caderneta, licences, energy certificate, condominium statement	Unlicensed works, missing heirs, registry mismatches
CPCV	Signatures recognised in person, deposit paid, completion date fixed	Negotiating conditions and the deposit
Finance and tax	Mortgage offer and valuation, IMT and stamp duty paid	Bank valuation below the price
Completion	Deed or Casa Pronta appointment, price paid, keys handed over	Booking slots, powers of attorney from abroad
Registration and after	Ownership registered, utilities and IMI set up	Separate registry filing if not done at Casa Pronta

Remember that the Land Registry certificate is valid for six months, so a long gap between due diligence and completion means ordering a fresh one and checking that nothing new has been registered.

Common mistakes when buying property in Portugal

The most expensive pitfalls when buying property in Portugal come from signing too early and from assuming that home-country practice applies.

• Signing the CPCV before the checks. Once the deposit is paid, walking away costs you the sinal under article 442.
• Relying on the agent. The estate agent is often paid by the seller. Your own lawyer should review the title, the licences and the contract.
• Ignoring unlicensed works. A pool or extension that does not match the licence can block a mortgage or a later sale.
• Using the wrong IMT column. The lower own-residence rates apply only where the home really is your permanent residence.
• Buying through an offshore company. It triggers 10% IMT and 7.5% IMI.
• Forgetting AIMI. Owners of several homes can cross the €600,000 deduction without noticing.
• Assuming residence comes with the keys. It does not, as the golden visa section explains.
• Not reading what you sign. Deeds and contracts are in Portuguese; insist on a translation or an interpreter, and use legal translation specialists where needed.

Buyers comparing Portugal with Spain should note that the Spanish process has its own tax number, the NIE, and different regional taxes; advisers in Spain can explain the differences.

When to instruct a Portuguese lawyer

Instruct a Portuguese lawyer before you sign the CPCV, not after. Knowing how to buy property in Portugal as a foreigner in outline is not the same as checking a specific title: the lawyer's job is to read the Land Registry certificate and caderneta, confirm the licence position, negotiate the CPCV and its conditions, compute the IMT, act as or arrange your fiscal representative, and hold a power of attorney to complete if you cannot travel. Where the sale is made by authenticated private document rather than a notarial deed, ask who will authenticate it and who will file the registration.

Bring in a specialist earlier if the property is rural land, part of an inheritance, let to a tenant, or worth enough to trigger AIMI, or if you are buying through a company or with a mortgage. You can search Portuguese lawyers and advisers in our directory or browse real estate and property lawyers across more than 150 jurisdictions. For how Portugal compares with other markets, our guide to whether foreigners can buy property abroad sets out the rules in ten countries. If you would rather we made the introduction, tell us where the property is and what you are buying using the form below, and we will put you in touch with a member who handles Portuguese property purchases.

Frequently asked questions

Can a foreigner buy property in Portugal?

Yes. Foreign individuals and companies can buy residential, commercial and rural property in Portugal in their own name, with no permit or nationality test. They need a Portuguese tax number (NIF), must pay IMT and stamp duty before completion, and non-residents outside the EU or EEA must appoint a fiscal representative unless they sign up to electronic notifications.

How much tax do you pay when buying property in Portugal?

You pay IMT on a sliding scale of up to 8% marginal, or a flat 6% or 7.5% on higher values, plus 0.8% stamp duty. For a €400,000 holiday apartment that is about €19,300 IMT and €3,200 stamp duty. Own permanent homes pay less IMT; buyers linked to listed tax havens pay a flat 10%.

Do I need a Portuguese bank account to buy property?

No law requires one for the purchase itself, but most buyers open one to pay IMI, utilities and condominium fees, and it is needed for a Portuguese mortgage. Banks will ask for proof of identity, address, tax number and source of funds, so start the process early alongside the NIF application.

What is a CPCV in Portugal?

The CPCV (contrato-promessa de compra e venda) is the promissory contract that commits buyer and seller to complete. For a building it must be in writing with signatures recognised in person and confirmation of a licence. If the buyer defaults the seller keeps the deposit; if the seller defaults the buyer can claim double.

What is Casa Pronta?

Casa Pronta is a one-stop service run by the Institute of Registries and Notaries where the sale, any mortgage and the registration are handled at one appointment. It costs €375 for a single registration act, such as a cash purchase, or €700 where several acts are needed, plus €50 for each additional property.

Can I get a golden visa by buying property in Portugal?

No. Residential property no longer qualifies for new residence-by-investment (ARI) applications following Lei 56/2023. The routes AIMA lists are job creation, research funding, cultural contributions, investment of €500,000 in qualifying non-real-estate funds, or €500,000 in a Portuguese company with job creation. Owning a home gives no residence right on its own.

Can I buy a house in Portugal and live there permanently?

EU, EEA and Swiss citizens can move to Portugal under free movement rules. Other nationals need a visa or residence permit on a separate basis, such as work, retirement income or investment; buying a house does not provide one. Plan the immigration route with an adviser before you commit to a purchase.

What is AIMI and who pays it?

AIMI is an annual additional tax on urban property in Portugal other than commercial, industrial, services and "other" property, so it falls mainly on homes. Individuals pay 0.7% on the total taxable value above a €600,000 deduction, rising to 1% above €1 million and 1.5% above €2 million. Companies pay 0.4%, and entities in listed tax havens 7.5%.

What are the biggest pitfalls of buying property in Portugal?

The most common are signing the CPCV and paying the deposit before checking the Land Registry certificate and licences, buying a villa with unlicensed extensions or pools, using the wrong IMT rate, buying through an offshore company and assuming property brings residence. An independent Portuguese lawyer acting only for the buyer avoids most of them.

Sources

1. Autoridade Tributária, Código do IMT, article 17 (rates, as amended by Lei 73-A/2025): Portal das Finanças
2. Autoridade Tributária, Tabela Geral do Imposto do Selo, item 1.1: Portal das Finanças
3. Autoridade Tributária, Código do IMI, article 112 (IMI rates): Portal das Finanças
4. Autoridade Tributária, Código do IMI, article 135-F (AIMI rates): Portal das Finanças
5. Autoridade Tributária, Lei Geral Tributária, article 19 (tax domicile and fiscal representative): Portal das Finanças
6. Código Civil, consolidated text, articles 410, 442 and 875: Diário da República
7. Justiça.gov.pt, Balcão Casa Pronta (updated 28 July 2026): justica.gov.pt
8. Justiça.gov.pt, Pedir certidão permanente predial (updated 28 July 2026): justica.gov.pt
9. AIMA, Autorização de Residência para Investimento, article 90-A: aima.gov.pt
10. Global Law Experts, "Who Qualifies for the Portugal Golden Visa After 2023 to 2026 Reforms? (Portugal Golden Visa Requirements)"

About this article

This guide was researched and written by The Corporate INTL Newsroom, which covers cross-border legal, regulatory and business developments for lawyers, professional advisers and financiers in over 150 jurisdictions. It has been checked against the Portuguese tax codes published on the Portal das Finanças, the consolidated Civil Code in the Diário da República, Ministry of Justice registry guidance and the AIMA residence permit rules. Tax bands and fees are those in force on the date of review and can change with each State Budget. It is general information, not legal or tax advice; for advice on a specific purchase, consult a qualified Portuguese lawyer. Last reviewed 4 November 2026. For more analysis like this, visit the Corporate INTL newsroom or subscribe to Corporate INTL.