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 welcomes foreign property buyers with open arms—there are zero restrictions based on nationality, making it one of Europe's most accessible real estate markets.
Whether you're from the EU, US, China, or anywhere else, you can purchase residential property in Portugal with the same rights as Portuguese citizens, though buying property doesn't automatically grant you residency rights.
If you want to go deeper, you can check our pack of documents related to the real estate market in Portugal, based on reliable facts and data, not opinions or rumors.
Foreigners can buy property in Portugal without restrictions, but need proper visas for long-term stays. The process involves obtaining a tax number (NIF), conducting due diligence, paying transfer taxes of 0-8%, and signing the deed at a notary—hiring a lawyer is strongly recommended to avoid common pitfalls.
Property prices as of June 2025 range from €1,490/m² in the Silver Coast to €4,174/m² in Lisbon, with rental yields between 5-7.2%. Non-residents can get mortgages with 60-80% financing at current rates of 2.3-3.8%, and most foreigners settle in Lisbon, Porto, and the Algarve for their lifestyle benefits and expat communities.
| Key Aspect | Details | Important Notes |
|---|---|---|
| Foreign Ownership Rights | Same as locals, no restrictions | Only need Portuguese tax number (NIF) |
| Property Prices (2025) | €1,490-€4,174 per m² | Silver Coast cheapest, Lisbon most expensive |
| Transaction Costs | 6-10% of purchase price | Includes IMT tax, stamp duty, legal fees |
| Mortgage Options | 60-80% LTV for non-residents | Rates 2.3-3.8%, up to 30-year terms |
| Rental Yields | 5.0-7.2% annually | Silver Coast highest, Algarve lowest |
| Residency Rights | Property doesn't grant residency | Need appropriate visa for stays over 90 days |
| Popular Areas | Lisbon, Porto, Algarve, Silver Coast | Each offers different lifestyle and investment benefits |
Fact-checked and reviewed by our local expert
João Morais 🇵🇹
Founder | Real Estate Advisor, at Wilderness Investments
Can foreigners buy property in Portugal without restrictions?
Yes, foreigners can buy property in Portugal with absolutely no restrictions based on nationality—you have the exact same rights as Portuguese citizens.
The Portuguese property market is completely open to buyers from any country, whether you're from the EU, US, China, Brazil, or anywhere else. There are no quotas, no special permits needed for property ownership, and no limitations on the type or number of properties you can buy.
The only requirement is obtaining a Portuguese Tax Identification Number (NIF), which takes about a week to process and costs around €10-15. This applies equally to residential properties, commercial real estate, and even agricultural land—there are no special barriers for foreign nationals.
Unlike some European countries that restrict foreign ownership in certain regions or property types, Portugal maintains a transparent and welcoming approach. As of June 2025, this policy remains unchanged despite property market pressures, making Portugal one of the most accessible real estate markets in Europe for international buyers.
What visas do I need to buy property or live in Portugal?
You don't need any visa to buy property in Portugal—but owning property doesn't give you the right to live there.
For property purchase alone, you can enter Portugal on a tourist visa (or visa-free for many nationalities), buy your property, and leave. However, if you want to stay longer than 90 days in any 180-day period, you'll need a residence permit.
The main visa options for non-EU citizens as of June 2025 include the D7 Visa for retirees and passive income earners (requiring €820/month income), the D2 Visa for entrepreneurs and investors, and the Digital Nomad Visa for remote workers earning at least €3,280/month. The Golden Visa program, while still available, no longer accepts real estate investments since October 2023.
EU citizens can move freely but must register with local authorities after 90 days. They don't need a visa but do need to prove sufficient income and health insurance. Remember that each visa type has specific requirements and processing times ranging from 2-6 months, so plan accordingly if you intend to relocate.
Do I need to be in Portugal to complete the purchase?
No, you don't need to be physically present in Portugal at any stage of the property purchase process.
You can complete the entire transaction remotely by granting power of attorney to a Portuguese lawyer or trusted representative. This legal document allows them to sign all contracts, including the promissory agreement and final deed, on your behalf.
The power of attorney must be notarized in your home country and then apostilled (for countries in the Hague Convention) or legalized through the Portuguese consulate. This typically costs €200-500 depending on your location and takes 1-2 weeks to process.
Many foreign buyers choose this route to save on travel costs and time. Your lawyer can handle everything from property searches and negotiations to tax payments and registration. However, most buyers prefer to visit at least once to view properties personally, as photos and virtual tours don't always capture the full picture of a property's condition and neighborhood.
What's the complete step-by-step process for buying property in Portugal?
| Step | Action Required | Timeline & Key Documents |
|---|---|---|
| 1. Get Tax Number | Apply for NIF at tax office or through representative | 1-5 days; need passport and proof of address |
| 2. Open Bank Account | Portuguese account for payments and utilities | 1-2 days; requires NIF and passport |
| 3. Property Search | Work with agent, view properties, check legals | 2-8 weeks; energy certificate required |
| 4. Due Diligence | Lawyer checks title, debts, permits, zoning | 3-7 days; land registry certificate needed |
| 5. Make Offer | Negotiate price and terms through agent | 1-3 days; written offer recommended |
| 6. Sign CPCV | Promissory contract with 10-30% deposit | Within 1-2 weeks of accepted offer |
| 7. Pay Taxes | IMT and stamp duty before final deed | 1-3 days before completion |
| 8. Final Deed | Sign at notary with all parties present | 30-60 days after CPCV typically |
| 9. Registration | Register ownership at Land Registry | Same day or within 5 days |
The entire process typically takes 60-90 days from offer to completion. Essential documents include your passport, NIF, proof of funds, and Portuguese bank details. The property needs updated land registry certificates, energy performance certificate, habitation license, and proof of no outstanding debts.
It's something we explore in detail in our Portugal property pack.
Should I hire a lawyer when buying property in Portugal?
While not legally mandatory, hiring an independent lawyer is strongly recommended and considered essential by most property experts.
A Portuguese property lawyer typically charges 1-3% of the purchase price or a flat fee of €2,000-€5,000. They conduct crucial due diligence including checking the property title for encumbrances, verifying no outstanding debts exist, confirming building permits and licenses are in order, and ensuring the property boundaries match official records.
Your lawyer also reviews and explains all contracts in detail, protects your interests during negotiations, handles the power of attorney if you're buying remotely, and can manage the entire transaction on your behalf. They're particularly important because notaries in Portugal are neutral parties who don't represent either buyer or seller.
Without a lawyer, foreign buyers risk missing critical issues like illegal constructions, property disputes, or hidden debts that become your responsibility after purchase. Given that property law varies significantly from other countries and documents are in Portuguese, professional legal representation isn't just advisable—it's a crucial investment in protecting your purchase.
Don't lose money on your property in Portugal
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What are all the taxes and costs when buying and selling property?
Expect to pay 6-10% of the property price in taxes and fees when buying, plus ongoing annual costs.
The main purchase tax is IMT (Property Transfer Tax), which varies from 0-8% depending on the property value and whether it's your main residence. For a €400,000 property as main residence, you'll pay approximately €11,000 in IMT. Stamp duty adds another 0.8% of the purchase price.
| Cost Type | When Buying | Ongoing/When Selling |
|---|---|---|
| IMT Tax | 0-8% progressive rate | N/A |
| Stamp Duty | 0.8% of purchase price | N/A |
| Notary & Registration | €1,000-€2,000 | N/A |
| Legal Fees | 1-3% or €2,000-€5,000 | Similar when selling |
| IMI (Annual Tax) | N/A | 0.3-0.8% of tax value yearly |
| Wealth Tax (AIMI) | N/A | For properties over €600,000 |
| Capital Gains Tax | N/A | Residents: 50% of gain taxed; Non-residents: 100% |
Annual property tax (IMI) typically costs €1,000-€4,000 per year for average properties. When selling, capital gains tax can be significant—non-residents pay tax on 100% of the profit at 28%, while residents only pay on 50% of the gain at progressive rates. Rental income is taxed at a flat 28% for non-residents.
Can foreigners get mortgages in Portugal?
Yes, Portuguese banks actively lend to foreign buyers, though terms are less favorable than for residents.
Non-residents can typically borrow 60-80% of the property value (LTV), meaning you need a 20-40% deposit. As of June 2025, mortgage rates have dropped significantly, with fixed rates at 2.5-3.8%, variable rates at 2.3-3.2%, and mixed rates at 2.7-3.5%. Most banks offer terms up to 30 years, though your age at the end of the term usually can't exceed 70-80 years.
To improve your approval chances, prepare comprehensive documentation including proof of income for the last 3 years, bank statements showing savings, credit reports from your home country, and employment contracts. Banks typically require your debt-to-income ratio to stay below 30-35%.
Using a mortgage broker can significantly help, as they know which banks are most foreign-friendly and can navigate Portuguese requirements. Banks like Millennium BCP, Santander Totta, and BPI have dedicated international departments. Processing typically takes 4-8 weeks, so start your application early in your property search.
How do property prices compare across Portugal's regions?
Property prices in Portugal vary dramatically by region, with Lisbon commanding the highest prices at €3,799-€4,174 per square meter as of June 2025.
Porto offers better value at €2,764-€3,667/m² while maintaining city amenities and strong rental demand. The Algarve's prices range widely from €2,583-€4,213/m² depending on proximity to beaches and golf courses, with premium locations like Quinta do Lago reaching €8,000/m². The Silver Coast remains Portugal's hidden gem at just €1,490-€1,800/m², offering coastal living at a fraction of Lisbon or Algarve prices.
For perspective, a 100m² apartment costs approximately €400,000 in Lisbon, €300,000 in Porto, €280,000 in Faro, and just €165,000 on the Silver Coast. These prices have increased 5-12% over the past year, with the strongest growth in previously overlooked areas like Braga and Aveiro.
Rental yields inversely correlate with prices—the expensive Lisbon yields 5.7-6.1%, while the affordable Silver Coast delivers impressive 7.2%+ returns. This makes secondary cities increasingly attractive for investment-focused buyers seeking both capital appreciation and rental income. It's something we analyze thoroughly in our Portugal property pack.
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.
Which Portuguese regions offer the best investment potential?
The Silver Coast and Porto currently offer the strongest investment potential, combining affordable entry prices with rising demand.
The Silver Coast, stretching from Peniche to Figueira da Foz, delivers Portugal's highest rental yields at 7.2%+ due to low property prices (€1,490-€1,800/m²) and growing tourist demand. Towns like Nazaré and São Martinho do Porto are seeing 10-15% annual price growth as remote workers discover these coastal gems.
- Porto and Northern Portugal: Yields 5.7-6.7% with prices 30% below Lisbon, strong tourism growth, and major infrastructure investments
- Braga and Guimarães: University cities with steady rental demand, prices under €2,000/m², and 8-12% annual appreciation
- Central Algarve (Vilamoura, Albufeira): Established rental markets with 5.5-6% yields and year-round tourism
- Lisbon's periphery (Cascais, Setúbal): Benefits from capital spillover while offering better value than central Lisbon
- Madeira: Limited supply drives 7-10% annual appreciation, especially in Funchal's luxury segment
For capital appreciation, focus on areas with new infrastructure like the expanded Porto metro or regions benefiting from digital nomad influx. For rental income, tourist hotspots with year-round appeal outperform seasonal destinations. The sweet spot combines both—emerging areas just beginning to attract international attention.
Where do most foreigners choose to live in Portugal?
Foreign residents concentrate in Lisbon, the Algarve, and Porto, with each region attracting different expat profiles.
Lisbon and its suburbs host the largest international community, particularly in neighborhoods like Príncipe Real, Santos, and Cascais. The capital attracts young professionals, digital nomads, and families drawn to international schools, cultural activities, and career opportunities. English is widely spoken, and you'll find expat groups for every nationality.
The Algarve dominates for retirees and lifestyle buyers, with hotspots including Lagos (young, social expats), Vilamoura (golf enthusiasts), Tavira (authentic Portugal seekers), and Quinta do Lago (luxury lifestyle). The region's 300+ sunny days, golf courses, beaches, and established expat infrastructure make integration easy.
Porto appeals to creative professionals and those seeking authentic city life at lower costs. The Silver Coast attracts families and remote workers wanting affordability and Portuguese culture. Madeira has a growing digital nomad scene centered in Funchal.
These areas succeed because they offer crucial expat infrastructure: international schools, English-speaking services, direct flights to major cities, active social communities, and quality healthcare. Most foreigners report feeling welcomed by locals, particularly in smaller communities where making an effort to learn Portuguese is appreciated.
What are the tax implications of owning property in Portugal?
Property ownership in Portugal triggers various tax obligations that vary significantly based on your residency status.
Non-residents pay a flat 28% tax on rental income, though you can deduct expenses like property management, maintenance, and IMI tax. If you're from a country with a double taxation treaty (most EU nations, US, UK, Canada), you can offset Portuguese tax against tax paid in your home country.
The Non-Habitual Resident (NHR) regime offers substantial benefits for new residents, including reduced tax rates on Portuguese income and potential exemptions on foreign income for 10 years. This makes Portugal particularly attractive for retirees and remote workers.
Annual property tax (IMI) runs 0.3-0.8% of the tax value, typically €1,000-€3,000 yearly for average properties. Properties valued above €600,000 per owner also pay AIMI wealth tax. When selling, residents benefit from exempting 50% of capital gains from tax, while non-residents pay tax on the full gain.
Strategic tax planning is essential—many buyers establish Portuguese residency to access better rates, use company structures for multiple properties, or time their sale to minimize capital gains. Professional tax advice specific to your situation and home country is strongly recommended. We cover tax optimization strategies in our Portugal property pack.
What mistakes do foreign buyers commonly make?
The biggest mistake foreign buyers make is inadequate due diligence, particularly regarding property legality and hidden costs.
Many buyers skip hiring an independent lawyer to save money, not realizing Portuguese property law differs significantly from their home country. This leads to purchasing properties with illegal additions, outstanding debts, or unclear ownership that become expensive problems later. Always verify that any renovations or extensions have proper licenses—illegal constructions can result in demolition orders or hefty fines.
- Underestimating total costs: Buyers budget for purchase price but forget the 6-10% in taxes and fees, plus ongoing costs like condominium fees (€50-€500/month), utilities, and maintenance
- Assuming property ownership grants residency: Many believe buying property allows them to live in Portugal year-round, then face visa issues
- Ignoring location seasonality: Properties perfect in summer can be isolated in winter, especially in tourist areas
- Overpaying due to poor research: Not comparing prices across neighborhoods or relying solely on tourist-focused agencies
- Language barriers: Signing documents they don't understand or trusting verbal translations of contracts
- Currency exposure: Not hedging exchange rates during the 2-3 month purchase process
Avoid these pitfalls by engaging a recommended independent lawyer from day one, researching the local market thoroughly, visiting properties in different seasons, getting professional translations of all documents, and budgeting an extra 15% above purchase price for all costs. Most importantly, never rush—Portugal's relaxed pace extends to property transactions, and pushing for quick completion often leads to missed red flags.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Portugal's property market continues to offer excellent opportunities for foreign buyers in 2025, with transparent regulations and diverse options from affordable Silver Coast properties to premium Lisbon real estate.
Success in the Portuguese property market comes down to thorough preparation, professional guidance, and understanding both the opportunities and obligations of property ownership. Whether you're seeking investment returns, a retirement haven, or a new life in Europe, Portugal's welcoming approach to foreign buyers makes it an attractive destination—just ensure you navigate the process with proper legal and financial advice.
Sources
- Emigre - Buying Property in Portugal
- Portugal Homes - Buying Property Guide
- Global Citizen Solutions - Portugal Property
- Portugal Buyers Agent - Complete Guide
- Expatica - Buying Property in Portugal
- Wise - Portugal Mortgages Guide
- Portugal Investment Properties - House Prices
- Idealista - Portugal Property Prices
- Leading RE - Best Investment Locations
- Portugal Residency Advisors - Common Mistakes