Key steps to successfully buying property in Portugal

Although tax incentives for foreign investors have recently changed, Portugal continues to attract many expatriates and retirees. In 2025, the cost of living remains on average 20% lower than in France. Added to this is an annual sunshine rate of over 2,800 hours and still attractive tax measures.
 

How to buy property in Portugal?

Seek professional support
To become the owner of a house or apartment in Portugal, start by surrounding yourself with trusted professionals who will assist you in every step. Choose a licensed real estate agent with an AMI number (Portuguese professional card), as well as a lawyer and notary registered with the Bar.

In most cases, the lawyer handles property verifications and prepares the required documents. Hiring a specialized lawyer is also necessary to draft the sales contract. They ensure that all debts and charges related to the property are settled before the transaction.

Obtain a NIF
Issued by the local tax office, the Tax Identification Number (Número de Contribuinte) is required to purchase property in Portugal. It is mandatory for any fiscal procedure, such as opening a bank account, purchasing real estate, or paying taxes. If you are not a resident in Portugal, you must appoint a fiscal representative domiciled in the country to apply for it.

Conduct due diligence on the property
Check the local land registry (Conservatória do Registo Predial) to ensure the seller is the rightful owner. Also obtain the property’s land registry document (Caderneta Predial) and technical file, which details the building’s specifications, number of rooms, and location.

Other necessary documents include a copy of the usage permit (Licença de Utilização) and the habitation license, proving the property has been inspected by local authorities and complies with current laws and regulations.

If the property is part of a tourist complex, verify the validity of the complex’s licenses with the town hall and confirm the existence of a constitutive title registered with the land registry office and the national tourism board (Turismo de Portugal LP).

Sign the sales contract
Once these steps are completed, the sales contract (Contrato de Compra e Venda) can be signed. This legally binds both parties: if the seller fails to meet their obligations, they must refund double the deposit paid by the buyer. Conversely, if the buyer withdraws, they forfeit their deposit.

Finally, the final deed of sale is signed before a notary. If the buyer does not speak Portuguese, a translation can be provided to ensure a full understanding of the contract.
 

What are the costs of owning property in Portugal?

Paying property purchase fees
The IMT (property transfer tax) must be paid before signing the deed of sale at the notary. It is calculated based on the property’s value, with a rate of up to 6% for residential transactions exceeding €500,000. For building plots, the rate is 5%, while residential properties worth less than €90,000 are exempt.

IMI is the equivalent of property tax. Set by municipalities, it typically ranges between 0.3% and 0.45% of the property’s taxable value (Valor Patrimonial Tributário - VPT).

Depending on the type of investment, other taxes may apply, such as annual stamp duty for properties worth more than €1 million, rental income tax, or capital gains tax upon resale.
 

What status do foreign property owners have in Portugal?

Tax resident status
If you stay in Portugal for more than 183 days a year, you become a tax resident and are subject to the IRS (Portuguese income tax) on your worldwide income.

Non-habitual resident (NHR) status
If you have lived in Portugal for more than 183 days per year but have not been a resident in the past five years and work in a high-value profession according to the Portuguese Classification of Professions, you may qualify for Non-Habitual Resident (NHR) status. This allows you to benefit from a reduced income tax rate of 20% for 10 years.

Golden Visa
This program allows non-European citizens to obtain residency by investing in commercial or residential real estate. Obtaining the Golden Visa is subject to specific conditions, including minimum investment amounts and geographic restrictions depending on the type of investment.

Non-resident status
If you do not stay in Portugal for more than 183 days per year, you remain a tax resident in your home country. In Portugal, you are only taxed on local income, such as rental income.