Authored by the expert who managed and guided the team behind the Portugal Property Pack
Everything you need to know before buying real estate is included in our Portugal Property Pack
Portugal remains one of the most accessible European countries for foreign property buyers, with no nationality restrictions on residential ownership.
In this guide, we break down everything you need to know about buying property in Portugal as a foreigner in 2026, including legal requirements, taxes, mortgages, and common pitfalls.
We constantly update this blog post to reflect the latest rules, rates, and market conditions.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Portugal.
Insights
- Portugal charges a transfer tax (IMT) that can reach 6% to 8% on higher-value properties, making it the single largest closing cost most foreign buyers face in 2026.
- Non-resident buyers in Portugal typically receive loan-to-value ratios between 60% and 70%, requiring a larger down payment than Portuguese residents who can often borrow up to 80% or 90%.
- The Golden Visa program no longer accepts standard residential property purchases in Lisbon, Porto, or most coastal areas since 2022, limiting real estate investment pathways for residency.
- Short-term rental licensing (Alojamento Local) in Portugal has become heavily restricted in many municipalities, and some areas like central Lisbon have suspended new registrations entirely.
- Portugal's annual property tax (IMI) is based on the property's tax value (VPT), which is often 30% to 50% below the market price, keeping effective rates relatively low.
- Mortgage rates for non-resident foreigners in Portugal typically run 0.3% to 0.7% higher than rates offered to residents, landing most buyers in the 3.4% to 4.5% range in early 2026.
- The "certidão permanente" (permanent land registry certificate) is the single most important document for verifying ownership in Portugal, and it can be obtained online for a small fee.
- Foreign buyers in Portugal must obtain a Portuguese tax number (NIF) before they can sign contracts, open bank accounts, or complete a property purchase.
Fact-checked and reviewed by our local expert
João Morais 🇵🇹
Founder | Real Estate Advisor, at Wilderness Investments
What can I legally buy and truly own as a foreigner in Portugal?
What property types can foreigners legally buy in Portugal right now?
As of January 2026, foreigners (whether from the EU or outside it) can legally buy and fully own any type of residential property in Portugal, including apartments, villas, townhouses, and traditional houses, with exactly the same ownership rights as Portuguese citizens.
The most important thing to understand is that Portugal has no nationality-based restrictions on property ownership, so the real conditions you face are procedural: you need a Portuguese tax number (NIF), you must comply with registration and tax requirements, and you should verify the property's legal status before signing anything.
In practical terms, what changes for foreigners is not whether you can own property in Portugal, but how you prove your funds, navigate the documentation-heavy buying process, and handle tax compliance as a non-resident.
Portugal uses a registry-based system where your ownership is protected by formal registration with the land registry (Conservatória do Registo Predial), and this registration is what gives you legal certainty, not just the signed deed.
Finally, please note that our pack about the property market in Portugal is specifically tailored to foreigners.
Can I own land in my own name in Portugal right now?
Yes, foreigners can own land in their own name in Portugal, including the land underneath a house or villa, and this ownership is validated through registration with the land registry (registo predial) just like for Portuguese citizens.
This applies to virtually all types of land, whether urban (for building) or rustic (rural/agricultural), though the bigger issue is not ownership restrictions but rather making sure the land you buy has clear boundaries, proper registration, and the right to build if that is your intention.
The main risk for foreign buyers is not a legal ban on land ownership, but purchasing rural or semi-rural land that has unclear boundaries, incomplete registration (common in older rural plots), or planning restrictions that prevent the construction or renovation you had in mind.
By the way, we cover everything there is to know about the land buying process in Portugal here.
As of 2026, what other key foreign-ownership rules or limits should I know in Portugal?
As of January 2026, the main rules affecting foreign buyers in Portugal are procedural and use-based rather than ownership bans, meaning you can own property freely but must follow specific steps for registration, tax compliance, and (if applicable) rental licensing.
There is no foreign ownership quota for apartments or condominiums in Portugal, so you do not face the kind of percentage limits that exist in some other countries like Thailand or Indonesia.
The main registration requirement is that you must register your purchase with the land registry (Conservatória do Registo Predial) promptly after the deed is signed, and this registration is what legally protects your ownership in Portugal.
One notable recent change is the continued tightening of short-term rental (Alojamento Local) rules, with many municipalities like Lisbon suspending new licenses entirely, so if you plan to rent out your property on platforms like Airbnb, you must check local rules before buying.
If you're interested, we go much more into details about the foreign ownership rights in Portugal here.
What's the biggest ownership mistake foreigners make in Portugal right now?
The single biggest mistake foreign buyers make in Portugal is signing a contract or paying a large deposit before properly verifying the property's legal and registry status, which often leads to discovering problems too late to back out without losing money.
If you skip the registry check (certidão permanente) and later find an unresolved mortgage, a boundary dispute, or pending legal claims on the property, you could face months of delays, unexpected costs, or even lose your deposit entirely.
Other classic pitfalls specific to Portugal include buying a "renovation opportunity" only to discover planning restrictions prevent your intended works, assuming you can do short-term rentals when Alojamento Local licenses are suspended in that area, and not understanding that the property description in the registry must match what you think you are buying.
We have made this infographic to give you a quick and clear snapshot of the property market in Portugal. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Portugal?
Do I need a specific visa to buy property in Portugal right now?
You do not need a residency visa to buy property in Portugal, and you can legally purchase a home while visiting on a tourist visa or even from abroad, as long as you can complete the required administrative steps.
The most common barrier for buyers without local residency is not a visa requirement but rather the practical need to obtain a Portuguese tax number (NIF), open a Portuguese bank account (often required for the transaction), and arrange document signing, which can be done remotely through a power of attorney.
Yes, you will need a Portuguese tax number (NIF) before buying property in Portugal, and this is the identifier used across all tax filings, utility contracts, banking, and the property transaction itself.
Foreign buyers typically need to present a valid passport, proof of address, proof of funds, the NIF, and (if using a mortgage) bank documentation, along with the signed promissory contract and deed documents at completion.
Does buying property help me get residency and citizenship in Portugal in 2026?
As of January 2026, buying a standard residential property in Portugal does not automatically give you residency or citizenship, and property purchase alone is not a pathway to legal residence in the country.
Portugal did have a Golden Visa program that allowed residency through real estate investment, but since 2022 this program has excluded standard residential property purchases in high-demand areas like Lisbon, Porto, and most coastal regions, limiting it mainly to commercial properties, rehabilitation projects in low-density areas, or investment funds.
For most foreigners, the practical pathway to residency involves applying through other routes such as the D7 visa (for retirees or those with passive income), the D8 digital nomad visa, or employment-based permits, and then accumulating legal residence time that may eventually count toward permanent residency or citizenship (typically five years of legal residence for citizenship eligibility).
We give you all the details you need about the different pathways to get residency and citizenship in Portugal here.
Can I legally rent out property on my visa in Portugal right now?
Your visa status does not prevent you from renting out property you own in Portugal, so non-residents and tourists who own property can legally earn rental income, but you must comply with tax reporting and (for short-term rentals) licensing requirements.
You do not need to live in Portugal to rent out your property, and many foreign owners manage their rentals from abroad through local property managers, though you remain responsible for ensuring proper registration and tax compliance regardless of where you live.
The most important detail for foreign landlords is that short-term rentals (Alojamento Local) require registration with the national tourism authority and compliance with municipal rules, which have become increasingly restrictive in cities like Lisbon and Porto, while long-term rentals are generally more straightforward but still require proper tax declarations in Portugal.
We cover everything there is to know about buying and renting out in Portugal here.
Get fresh and reliable information about the market in Portugal
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
How does the buying process actually work step-by-step in Portugal?
What are the exact steps to buy property in Portugal right now?
The standard sequence to buy property in Portugal goes like this: first get your NIF (tax number), then find and negotiate for a property, run due diligence by pulling the certidão permanente (registry certificate) and checking planning status, sign the promissory contract (CPCV) and pay a deposit, finalize mortgage if applicable, complete the deed (escritura), and finally register your ownership with the land registry.
You do not have to be physically present in Portugal to buy property, as many foreigners complete the entire process remotely by granting power of attorney (procuração) to a lawyer who signs documents on their behalf.
The step that typically makes the deal legally binding in Portugal is signing the promissory contract (Contrato de Promessa de Compra e Venda or CPCV), at which point both buyer and seller commit to the transaction, and the buyer usually pays a deposit of 10% to 30% that would be forfeited if they back out without legal grounds.
From accepted offer to final registration, a typical property purchase in Portugal takes around 4 to 12 weeks, though this can stretch longer if there are mortgage approvals, complex title issues, or delays in scheduling the deed signing.
We have a document entirely dedicated to the whole buying process our pack about properties in Portugal.
Is it mandatory to get a lawyer or a notary to buy a property in Portugal right now?
Hiring a lawyer is not legally mandatory for buying property in Portugal, but it is strongly recommended for foreign buyers because the process is documentation-heavy and the cost of missing a registry or planning issue can far exceed legal fees.
The key difference in Portugal is that a notary (or equivalent official at Casa Pronta) formalizes and authenticates the deed to make the transaction legally valid, while a lawyer protects your interests by conducting due diligence, reviewing contracts, and advising on risks before you sign anything.
One item that should always be in your lawyer's scope is verifying the property's legal status through the certidão permanente, checking for any pending charges or claims, and confirming that planning permissions align with your intended use of the property.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Portugal versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What checks should I run so I don't buy a problem property in Portugal?
How do I verify title and ownership history in Portugal right now?
The official registry you should use to verify title and ownership in Portugal is the Conservatória do Registo Predial (Land Registry Office), and you can access records online through the Predial Online platform or request them at a local office.
The key document to request is the certidão permanente do registo predial, which is a permanent registry certificate that shows who the registered owner is, the property's description, and any mortgages, charges, or pending entries affecting the property.
Most buyers and lawyers in Portugal review at least 10 to 15 years of ownership history to ensure there are no unresolved inheritance issues, disputes, or breaks in the chain of title that could cause problems later.
A clear red flag that should stop or pause your purchase includes any pending entry (averbamento) showing unresolved legal claims, undischarged mortgages that the seller has not addressed, or mismatches between the registered owner's name and the seller's identity documents.
You will find here the list of classic mistakes people make when buying a property in Portugal.
How do I confirm there are no liens in Portugal right now?
The standard way to confirm there are no liens or encumbrances on a property in Portugal is to obtain and carefully review the certidão permanente (permanent registry certificate), which lists all registered mortgages, attachments, and other charges affecting the property.
One common type of lien to specifically ask about in Portugal is an existing mortgage (hipoteca) that must be discharged at completion, as well as any penhora (attachment or seizure) resulting from unpaid debts or legal judgments against the current owner.
The certidão permanente itself is the single best form of written proof showing lien status in Portugal, because it reflects the official registry records and any pending entries that could affect your purchase.
How do I check zoning and permitted use in Portugal right now?
The authority to check zoning and permitted use in Portugal is the municipal planning department (Câmara Municipal), and you can also access territorial plans through the national SNIT/DGT portal, which shows the planning instruments in force for any area.
The key document that confirms zoning classification in Portugal is the PDM (Plano Diretor Municipal), which is the municipal master plan that defines what can be built, expanded, or changed on each parcel of land.
A common zoning pitfall foreign buyers miss in Portugal is assuming that a rural or rustic property can be built on or extended, when in fact the PDM may classify it as non-buildable agricultural land, or there may be heritage, coastal, or environmental restrictions that prevent the renovations you have in mind.
Buying real estate in Portugal can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Portugal, and on what terms?
Do banks lend to foreigners for homes in Portugal in 2026?
As of January 2026, yes, Portuguese banks do lend to foreigners for home purchases, and non-residents are active participants in the housing credit market, though they typically face stricter terms than residents.
Foreign borrowers in Portugal most commonly see loan-to-value (LTV) ratios between 60% and 70%, meaning you should expect to provide a down payment of 30% to 40% of the property price, compared to residents who can often borrow up to 80% or even 90%.
The single most important eligibility factor for foreigners is proving stable, verifiable income (whether from employment, self-employment, or investments), and banks will also scrutinize your source of funds, credit history in your home country, and existing debt obligations.
You can also read our latest update about mortgage and interest rates in Portugal.
Which banks are most foreigner-friendly in Portugal in 2026?
As of January 2026, the banks most commonly cited as foreigner-friendly for mortgages in Portugal are Banco BPI, Millennium bcp, and Santander Totta, though Novo Banco, Caixa Geral de Depósitos, and Bankinter also serve international clients.
What makes these banks more foreigner-friendly is their willingness to underwrite overseas income, provide English-language support, and maintain established processes specifically for non-resident buyers in Portugal.
Yes, these banks will generally lend to non-residents who do not have Portuguese residency, though you should expect lower LTV limits, more documentation requirements, and potentially a slightly higher interest rate compared to resident borrowers.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Portugal.
What mortgage rates are foreigners offered in Portugal in 2026?
As of January 2026, foreigners buying property in Portugal typically see mortgage interest rates in the range of 3.4% to 4.5%, which is slightly higher than the 3.0% to 3.8% range generally available to resident borrowers.
Fixed-rate mortgages in Portugal tend to carry a small premium over variable rates (often 0.3% to 0.5% higher), though many buyers prefer the certainty of fixed payments, especially given recent interest rate volatility across the eurozone.
We made this infographic to show you how property prices in Portugal compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Portugal?
What are the total closing costs as a percent in Portugal in 2026?
Total closing costs when buying property in Portugal in 2026 typically run between 7% and 10% of the purchase price for cash buyers, and between 8% and 12% if you are taking out a mortgage (due to additional bank fees and mortgage-related stamp duties).
For most standard residential transactions in Portugal, you should budget somewhere in the 7% to 12% range to cover all buyer-side costs including taxes, registration, notary fees, and professional services.
The main fee categories that make up closing costs in Portugal are IMT (property transfer tax), Stamp Duty (Imposto do Selo), land registry fees, notary or Casa Pronta fees, and legal fees if you hire a lawyer.
The single biggest contributor to closing costs in Portugal is usually the IMT transfer tax, which is calculated on a progressive scale and can reach 6% to 8% for higher-value properties or non-primary residences.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Portugal.
What annual property tax should I budget in Portugal in 2026?
As of January 2026, you should budget roughly 0.10% to 0.30% of your purchase price per year for annual property tax (IMI) in Portugal, which translates to around 300 to 1,500 euros per year for a typical mid-range property, or approximately 325 to 1,600 USD.
IMI in Portugal is assessed on the property's tax value (Valor Patrimonial Tributário or VPT), which is typically 30% to 50% below the market price you paid, and then a municipal rate (usually between 0.3% and 0.45% for urban properties) is applied to that tax value.
How is rental income taxed for foreigners in Portugal in 2026?
As of January 2026, non-resident foreigners earning rental income from property in Portugal typically face a flat withholding tax rate of 28% on gross rental income, though effective rates can vary depending on the rental structure (long-term versus Alojamento Local) and any applicable tax treaty with your home country.
The basic requirement for foreign landlords is to declare rental income to the Portuguese tax authority (Autoridade Tributária), either through annual tax filings or via withholding arrangements if you use a local property manager, and you may also need to coordinate with your home country's tax authorities to avoid double taxation.
What insurance is common and how much in Portugal in 2026?
As of January 2026, typical annual home insurance premiums in Portugal range from around 150 to 400 euros (160 to 430 USD) for apartments and 300 to 900 euros (325 to 970 USD) for villas or detached houses, depending on location, rebuild value, and coverage level.
The most common type of property insurance in Portugal is building insurance (seguro multirriscos), which covers fire, water damage, storms, and other structural risks, and this is often required by banks if you have a mortgage.
The biggest factor that makes insurance premiums higher or lower in Portugal is the property's location and associated risk profile, with coastal properties, flood-prone areas, and higher-value homes in Lisbon or the Algarve typically commanding higher premiums than inland properties.
Get the full checklist for your due diligence in Portugal
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Portugal, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Portal das Finanças (Tax Authority) | Portugal's official tax authority portal for all property-related taxes and filings. | We used it to confirm what taxes exist (IMI, IMT, Stamp Duty) and where owners interact with the system. We treated it as the source of truth for tax administration steps. |
| Portal das Finanças Stamp Duty Table | The official published Stamp Duty table used in Portugal. | We used it to confirm the 0.8% stamp duty on property transfers and mortgage-related duties. We kept our closing-cost math grounded in these official rates. |
| Gov.pt IMI Payment Service | Official Portuguese public-services portal summarizing annual property tax rules. | We used it to confirm who pays IMI, the annual nature of the tax, and payment timing. We set realistic ongoing cost expectations based on this source. |
| Gov.pt Land Registry Certificate | Official state portal explaining the online registry extract for properties. | We used it to define the core title and ownership check foreigners should run before signing. We explained what the certificate proves and why it matters. |
| Ministry of Justice Casa Pronta | Official Ministry of Justice service for deed and registration workflows. | We used it to explain the one-stop route for deed plus registration. We set expectations for what happens at completion. |
| AIMA (Immigration Agency) | Portugal's official immigration and asylum agency for all residency matters. | We used it to ground visa and residency claims in the current official authority. We avoided outdated SEF-era guidance by referencing AIMA directly. |
| Portuguese Foreign Ministry Visa Portal | Official visa portal from the Ministry of Foreign Affairs. | We used it to support how visas become residence permits and where appointment systems live. We kept visa workflow guidance consistent with official portals. |
| Banco de Portugal BPstat | Portuguese central bank's official statistics portal for housing credit. | We used it to ground mortgage discussions in central-bank data series. We anchored our rate estimates and foreigner lending narrative in these official statistics. |
| ECB Data Portal | Official European Central Bank data on house-purchase lending rates. | We used it to triangulate rate trends at euro-area level and validate directionality into late 2025. We avoided relying solely on marketing rates from private sites. |
| INE (Statistics Portugal) | Portugal's official national statistics institute for housing data. | We used it to reference official house-price and transaction releases. We ensured the article reflects market reality as of late 2025. |
| Turismo de Portugal (AL Framework) | National tourism authority describing short-term rental legal framework updates. | We used it to explain what renting out can mean in practice and why Alojamento Local is not just "Airbnb and done." We warned foreigners about licensing and municipal constraints. |
| Gov.pt SNIT/DGT Planning Portal | Official route to check planning instruments deposited with the territorial authority. | We used it to explain how to verify zoning and planning constraints at the right source. We helped prevent the classic "I thought I could rebuild" mistake. |
| PwC Portugal 2026 Tax Summary | Major global tax advisory firm with transparent legislative references. | We used it to cross-check 2026 budget-driven updates like bracket indexation. We kept the tax section consistent with 2026 framing. |
| Banco BPI Non-Resident Mortgages | Major Portuguese bank explicitly marketing solutions to non-resident foreigners. | We used it as direct evidence that banks serve foreign buyers. We referenced their non-resident product page to show what terms are available. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Portugal. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.