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
Yes, buying property in Portugal as a foreigner can be risky if you skip the verification steps that locals never miss.
Scams targeting foreign buyers are real, and in May 2025, Portuguese police dismantled a fraud ring in the Algarve that stole over 7 million euros from property buyers.
We constantly update this blog post to reflect the latest risks, regulations, and insider knowledge about the Portuguese real estate market.
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.
How risky is buying property in Portugal as a foreigner in 2026?
Can foreigners legally own properties in Portugal in 2026?
As of early 2026, Portugal places no restrictions on foreign ownership of standard residential property, meaning you can buy apartments and houses under the same legal framework as Portuguese citizens.
There are no special permits or conditions required for foreigners buying residential property in Portugal, though you will need a Portuguese tax number (NIF) and to complete the standard deed and registration process.
Since direct ownership is fully permitted in Portugal, foreigners rarely need special legal structures, although some investors choose to hold property through companies for tax planning reasons.
The real question in Portugal is not whether you can own property, but whether you properly verify what you are buying through the Registo Predial (land registry), because ownership certainty comes from official registration, not from what anyone tells you.
What buyer rights do foreigners actually have in Portugal in 2026?
As of early 2026, foreigners in Portugal have the same legal buyer rights as locals, including full access to the land registry system and the same contractual protections under Portuguese civil law.
If a seller breaches a contract in Portugal, you can pursue legal action through Portuguese courts and potentially claim damages or specific performance, though enforcement timelines can vary.
The most common mistake foreigners make in Portugal is assuming that a signed private agreement (contrato promessa) automatically guarantees ownership, when in reality only the official deed (escritura) followed by registration at the land registry actually transfers legal ownership.
How strong is contract enforcement in Portugal right now?
Contract enforcement in Portugal is meaningfully stronger than in many emerging markets, with Portugal ranking 28th out of 142 countries in the World Justice Project's 2024 Rule of Law Index, which places it in a similar tier to France and Spain.
The main weakness foreigners should know about in Portugal is that court proceedings can be slow, so while you can win a dispute, it may take considerable time, which is why prevention through proper verification matters more than relying on after-the-fact enforcement.
By the way, we detail all the documents you need and what they mean in our property pack covering Portugal.
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.
Which scams target foreign buyers in Portugal right now?
Are scams against foreigners common in Portugal right now?
Real estate scams targeting foreigners in Portugal are common enough that you should assume scammers are actively working the foreign buyer market, particularly in high-demand tourist and expat areas.
The type of property transaction most frequently targeted by scammers in Portugal involves off-market or "exclusive" deals, especially renovated apartments in Lisbon, Porto, and Algarve coastal towns where foreigners buy remotely or under time pressure.
The profile of foreign buyer most commonly targeted in Portugal is someone purchasing remotely, unfamiliar with Portuguese systems, and eager to close quickly to secure a property in a hot market.
The single biggest warning sign that a deal may be a scam in Portugal is pressure to pay a deposit or reservation fee before you have independently verified ownership through the official land registry.
What are the top three scams foreigners face in Portugal right now?
The top three scams foreigners face when buying property in Portugal are fake or unauthorized sellers (someone claiming to own or represent a property they cannot legally sell), pressure to pay deposits before verification is complete, and "renovated" properties that hide serious legal or structural problems.
The most common scam typically unfolds when a convincing intermediary shows you an attractive property, creates urgency by claiming other buyers are interested, asks for a cash deposit to "hold" the deal, and then either disappears or leaves you with no legal claim because verification was never done.
The single most effective way to protect yourself from each scam in Portugal is to always request the certidão permanente predial (land registry certificate) before any payment, verify any agent's AMI license on the IMPIC website, and hire an independent inspector before trusting that a renovation is compliant.
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.
How do I verify the seller and ownership in Portugal without getting fooled?
How do I confirm the seller is the real owner in Portugal?
The standard verification process to confirm the seller is the real owner in Portugal is to obtain the certidão permanente do registo predial (permanent land registry certificate) and match the registered owner's name to the person signing the contract.
The official document foreigners should check in Portugal is the certidão permanente predial, which you can request online through the Justice Ministry's portal for a small fee of around 15 euros.
The most common trick fake sellers use to appear legitimate in Portugal is presenting themselves as representatives of the owner (often claiming the owner is abroad or elderly) without proper documented authority, and this happens often enough that you should treat any "representative" situation as high risk until proven otherwise.
Where do I check liens or mortgages on a property in Portugal?
The official place to check liens or mortgages on a property in Portugal is the land registry (Conservatória do Registo Predial), and you can access this information through the certidão permanente predial online.
When checking for liens in Portugal, you should specifically request to see all registered encumbrances (ónus) and any pending registry applications (pedidos pendentes), which can reveal claims that are in process but not yet finalized.
The type of encumbrance most commonly missed by foreign buyers in Portugal is pending registry requests (inscrições provisórias), because these do not always appear prominently and can represent mortgages or claims that are about to be registered.
It's one of the aspects we cover in our our pack about the real estate market in Portugal.
How do I spot forged documents in Portugal right now?
The most common type of forged document used in property scams in Portugal is a fake or altered power of attorney (procuração), which allows scammers to pretend they have authority to sell on behalf of the registered owner, and while serious forgeries are relatively rare, they do sometimes happen in organized fraud schemes.
Specific red flags that indicate a document may be forged in Portugal include documents that only exist as scans or copies, reluctance to provide originals, inconsistencies between document details and registry records, and pressure to skip notarial verification steps.
The official verification method in Portugal is to cross-check any critical document against the land registry (certidão permanente) and, for powers of attorney, request notarial certification or verify directly with the issuing notary.
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 "grey-area" practices should I watch for in Portugal?
What hidden costs surprise foreigners when buying a property in Portugal?
The three most common hidden costs that foreigners overlook when buying property in Portugal are IMT transfer tax (which can reach 6% to 8% of the purchase price, or 15,000 to 40,000 euros on a 500,000 euro property), stamp duty (0.8% of the price, around 4,000 euros on the same property), and notary plus registry fees (typically 1,000 to 2,000 euros combined).
The hidden cost most often deliberately concealed by sellers or agents in Portugal is the true condition and compliance status of "renovated" properties, where buyers later discover expensive remediation needs for humidity, outdated wiring, or unpermitted alterations, and this happens commonly enough that you should budget for a thorough inspection.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Portugal.
Are "cash under the table" requests common in Portugal right now?
Cash under the table requests in Portugal are not the mainstream practice, but they do appear occasionally, particularly for reservation fees or when dealing with small contractors and unlicensed intermediaries.
The typical reason sellers or intermediaries give for requesting undeclared cash in Portugal is to "secure" a property quickly or to reduce the declared purchase price for tax purposes.
If you agree to an undeclared cash payment in Portugal, you face serious legal risks including loss of any legal recourse if the deal goes wrong (cash cannot be traced or proven), potential tax fraud liability, and difficulty obtaining mortgage financing since banks require documented transactions.
Are side agreements used to bypass rules in Portugal right now?
Side agreements in Portugal are sometimes used to bypass official rules, particularly around what is included in the sale, responsibility for unfinished works, and timing or penalty clauses that parties want to keep off the main contract.
The most common type of side agreement in Portugal involves informal understandings about fixtures, furniture, or completion of renovation works that are not included in the official promissory contract or deed.
If a side agreement is discovered by Portuguese authorities, foreigners face the risk that the agreement will be unenforceable in court, potential tax reassessment if the side deal affected the declared price, and reputational issues that can complicate future property transactions in Portugal.
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.
Can I trust real estate agents in Portugal in 2026?
Are real estate agents regulated in Portugal in 2026?
As of early 2026, real estate agents in Portugal are regulated under Law 15/2013, which requires agencies to hold an AMI license issued by the public regulator IMPIC.
A legitimate real estate agent in Portugal should have a valid AMI (Atividade de Mediação Imobiliária) license number, which identifies them as a legally operating brokerage.
Foreigners can verify whether an agent is properly licensed in Portugal by visiting the IMPIC website and using the public license lookup tool, which takes about 60 seconds and shows whether the agency exists and holds a current license.
Please note that we have a list of contacts for you in our property pack about Portugal.
What agent fee percentage is normal in Portugal in 2026?
As of early 2026, the normal agent fee in Portugal is around 5% of the sale price plus VAT (23%), though you may see fees ranging from 4% to 6% depending on the region and property type.
The typical range of agent fees in Portugal covers most residential transactions at between 4% and 6% plus VAT, with higher-value properties sometimes negotiating lower percentages.
In Portugal, the seller typically pays the agent commission, so as a buyer you should not normally be charged a fee, and any request for a "buyer fee" should be clearly justified, documented, and invoiced by a licensed entity.
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 due diligence actually prevents disasters in Portugal?
What structural inspection is standard in Portugal right now?
Portugal does not have a mandatory buyer inspection culture like some countries, so the standard practice for smart foreign buyers in early 2026 is to proactively hire an independent engineer or surveyor to conduct a technical inspection before committing to purchase.
A qualified inspector in Portugal should check the roof and water ingress points, structural walls and foundations, electrical wiring and plumbing systems, humidity and ventilation quality, and any signs of unpermitted alterations.
The type of professional qualified to perform structural inspections in Portugal is a licensed civil engineer (engenheiro civil) or a qualified building surveyor with experience in residential property assessments.
The most common structural issues inspections reveal in Portuguese properties are humidity and moisture problems (especially in older Lisbon and Porto buildings), roof leaks in top-floor apartments, outdated electrical systems, and DIY renovations that hide plumbing or wiring shortcuts.
How do I confirm exact boundaries in Portugal right now?
The standard process for confirming exact property boundaries in Portugal, particularly for houses with land or rural properties, is to use the BUPi (Balcão Único do Prédio) system, which helps identify and register property limits.
The official document showing legal boundaries in Portugal is the caderneta predial (tax registry extract) combined with the land registry description, though for properties with land you may also need a topographic survey.
The most common boundary dispute affecting foreign buyers in Portugal involves rural or semi-rural properties where historical boundaries were never formally surveyed, leading to disagreements with neighbors about where one property ends and another begins.
To physically verify boundaries on the ground in Portugal, you should hire a licensed topographer (topógrafo) or surveyor who can mark the property limits based on official records and resolve ambiguities before you buy.
What defects are commonly hidden in Portugal right now?
The top three defects that sellers commonly conceal from buyers in Portugal are humidity and moisture problems (very common in older buildings and coastal areas), poor thermal and acoustic insulation (common, especially in pre-1990 construction), and legal or administrative mismatches between what is advertised and what is officially registered (sometimes happens).
The inspection techniques that help uncover hidden defects in Portugal include moisture meters and thermal imaging cameras for humidity problems, and always cross-checking the property's energy certificate on the SCE system against what the seller claims about comfort and efficiency.
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.
What insider lessons do foreigners share after buying in Portugal?
What do foreigners say they did wrong in Portugal right now?
The most common mistake foreigners say they made when buying property in Portugal is trusting verbal assurances from agents or sellers instead of independently verifying ownership through the official land registry (certidão permanente).
The top three regrets foreigners most frequently mention after buying in Portugal are paying a deposit before completing verification, buying a "renovated" property without getting an independent technical inspection, and working with someone who turned out not to be a licensed agent.
The single piece of advice experienced foreign buyers most often give to newcomers in Portugal is to pull the certidão permanente yourself before you pay anything, because this one step would have prevented most of the problems they encountered.
The mistake foreigners say cost them the most money or caused the most stress in Portugal is discovering serious humidity or structural problems after moving in, problems that a 300 to 500 euro inspection would have revealed before purchase.
What do locals do differently when buying in Portugal right now?
The key difference in how locals approach buying property in Portugal is that they treat the land registry check (certidão permanente) as the first step in evaluating a property, not a formality to complete just before signing.
The verification step locals routinely take that foreigners often skip in Portugal is checking the agent's AMI license on the IMPIC website before engaging seriously with any agency, which takes 60 seconds and immediately filters out unlicensed operators.
The local knowledge advantage that helps Portuguese buyers get better deals is their neighborhood-level understanding of which streets and buildings have problems (humidity issues, difficult neighbors, upcoming construction), information that allows them to negotiate harder on properties in hot foreigner zones like Príncipe Real, Chiado, and Campo de Ourique in Lisbon, Foz do Douro and Cedofeita in Porto, or Lagos and Vilamoura in the Algarve.
Don't buy the wrong property, in the wrong area of Portugal
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
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 |
|---|---|---|
| Statistics Portugal (INE) | Portugal's official statistics agency for housing data. | We used it to describe price and transaction trends in early 2026. We cross-checked private market reports against INE's official figures. |
| Justice Ministry (certidão permanente) | Official service explaining land registry certificates. | We used it to explain ownership verification steps. We built the "how to check" guidance directly from this official source. |
| IMPIC License Registry | The public regulator's official agent license lookup. | We used it to show exactly how to verify an agent. We turned "trust your agent" into "verify your agent yourself." |
| Polícia Judiciária | Portugal's criminal investigation police publishing case details. | We used it to show scams are real with a documented 2025 case. We mapped fraud patterns to practical defenses. |
| World Justice Project | Independent global index for rule of law comparisons. | We used it to benchmark Portugal's enforcement strength. We avoided relying on a single ranking by triangulating sources. |
| European Commission Rule of Law Report | EU institutional assessment of justice performance. | We used it to discuss court effectiveness and enforcement context. We complemented index scores with qualitative detail. |
| Portal das Finanças (IMT Code) | The tax authority's official legal reference for transfer tax. | We used it to anchor transfer tax discussion in official law. We avoided using blog tax tables as primary references. |
| Diário da República (Law 15/2013) | Official legal gazette with the brokerage regulation text. | We used it to confirm brokerage activity is regulated by law. We supported what consumers can demand from agents. |
| SCE Energy Certification System | Official portal for Portugal's building energy certificates. | We used it to explain energy document verification. We included it in the hidden defects checklist. |
| BUPi Official Platform | Government platform for property boundary identification. | We used it to explain boundary risk for rural properties. We pointed buyers to the right tool for land verification. |
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.