Portugal lets anyone buy property, whatever their nationality and whether or not they live in the country. A buyer from the United States, the United Kingdom, Canada, Brazil, or anywhere else gets the same ownership rights as a Portuguese citizen. The thing that changed in 2026 is the cost. Non-residents now pay a flat 7.5% transfer tax on homes, which reshapes the budget for many foreign buyers.
This guide covers the whole journey: what to arrange before you start, every step from offer to ownership, how long it takes, what it costs in 2026, and how to complete the entire purchase from abroad without flying to Portugal.
Key takeaways: the process in seven steps
The simplified process
- Get a Portuguese tax number (NIF).
- Open a Portuguese bank account and appoint an independent lawyer.
- Find a property and agree on the price.
- Sign the promissory contract (CPCV) and pay a deposit, usually 10%.
- Your lawyer checks the title, licences, and any debts.
- Pay the transfer tax (IMT) and stamp duty, then sign the deed (escritura) before a notary.
- Register the property in your name.
Quick facts
- You do not need to live in Portugal, or hold a visa, to own property here.
- Buying a home no longer grants a Golden Visa. That route closed in October 2023.
- Budget roughly 10% to 12% of the price in taxes and fees as a non-resident, or about 6% to 8% as a resident.
- The whole purchase can be completed remotely through a power of attorney.
Can foreigners buy property in Portugal?
Yes. There are no restrictions based on nationality and no residency requirement. Non-EU citizens, including Americans, British, and Canadians, buy on the same legal footing as locals, and so do EU buyers. Foreign demand is a real force in the market. In 2025, buyers with tax residence abroad paid a median 49% more per square metre than domestic buyers in Greater Lisbon, and 35.6% more in the Porto area, while the national median price reached 2,198 euros per square metre at the end of 2025, up 17.5% on the year.
Keep one distinction clear: owning a home and living in Portugal are separate matters. A purchase gives you property, not the right to reside. Since October 2023, buying real estate no longer qualifies for the Golden Visa residency programme. If your aim is to move, look at routes such as the D7 visa (passive income) or the D8 visa (remote work), which do not depend on owning property.
What to arrange before you start
NIF (tax number). A Número de Identificação Fiscal is required for any property transaction. You can get one in person at a tax office, or, more commonly for buyers abroad, through a lawyer or representative. People resident outside the EU or EEA usually appoint a fiscal representative in Portugal, which your lawyer can set up.
A Portuguese bank account. Not strictly required, but it makes paying the deposit, taxes, and utilities far simpler, and most sellers expect funds to move through a Portuguese account.
An independent lawyer. Not legally mandatory, but strongly advised. Use a lawyer who acts for you alone, not one recommended only by the seller. Their job is to confirm the property is clean and the contract protects you.
The buying process, step by step
Find the property and agree a price. Work with an agent who represents your interests. A buyer's agent searches against your brief and negotiates on your side, rather than selling you a listing. Agree the price and main terms in principle.
Reservation agreement (optional). Some sellers ask for a short reservation contract and a small holding deposit to take the property off the market while checks happen. This step is not always used.
Promissory contract (CPCV). The Contrato de Promessa de Compra e Venda is the binding agreement. It sets the price, deposit, completion date, and conditions. The deposit (sinal) is usually 10%. The law protects both sides: if you pull out, you lose the deposit; if the seller pulls out, they owe you double it back. Have your lawyer draft or review this before you sign anything or transfer money.
Due diligence. Between the CPCV and the deed, your lawyer confirms the property is legally sound. The key documents to check are:
- Caderneta Predial Urbana: the tax register record, with the property's official details and taxable value.
- Certidão Permanente do Registo Predial: the land registry certificate, showing the legal owner and any mortgages, charges, or disputes.
- Licença de Utilização: the habitation licence, confirming the property is approved to be lived in.
- Ficha Técnica de Habitação: the technical data sheet, required for properties built or substantially renovated since 2004.
- Energy certificate: mandatory for any sale, and a guide to the property's efficiency rating.
Pay IMT and stamp duty. Both taxes are paid before the deed is signed. Without proof of payment, the notary cannot complete the sale. The amounts are explained in the costs section below.
Sign the deed (escritura). Completion happens before a notary, or at a Casa Pronta one-stop registry office. Both parties sign the Escritura Pública de Compra e Venda, you pay the balance, and ownership transfers on the spot.
Register the property. The sale is recorded at the Land Registry (Conservatória do Registo Predial) and the tax office updates the owner. At Casa Pronta this is handled immediately; otherwise your lawyer files it.
How long does it take?
From an accepted offer to a signed deed, a straightforward purchase usually takes six to ten weeks. The rough split:
- NIF and bank setup: a few days to two weeks, and faster if you do it before you find a property.
- Offer to CPCV: one to three weeks, depending on negotiation and how quickly documents are gathered.
- CPCV to deed: four to eight weeks, set by the completion date in the contract and by mortgage timing if you are financing.
A mortgage adds time, because the bank needs to value the property and approve the loan. Cash purchases move fastest.
Buying from abroad: the remote process
You do not need to set foot in Portugal at any stage. A power of attorney (procuração) lets your lawyer act for you, including signing the CPCV and the final deed. A typical remote purchase works like this:
- Your NIF and bank account are arranged by your representative in Portugal.
- You sign a power of attorney in front of a notary in your own country, with an apostille and a certified Portuguese translation where needed.
- Your agent arranges viewings or a video walkthrough, your lawyer runs due diligence, signs on your behalf, and registers the property.
This is how many international buyers complete a purchase, especially when relocating later or buying an investment. It relies on a lawyer you trust, since you are authorising someone to sign for you, so keep the power of attorney scoped narrowly to the specific transaction.
What buying costs in 2026: taxes and fees
On top of the purchase price, plan for the costs below.
Property transfer tax (IMT)
This is the largest extra cost, and how it works changed in 2026:
- Residents buying a permanent home pay nothing on the first 106,346 euros of value in 2026, then progressive rates, with marginal rates rising to 8% on mid-value bands. Second homes have no exempt band.
- Non-residents pay a flat 7.5% on residential property, a measure introduced by the 2026 housing law and in force since it was published on 20 May 2026.
Worked example on a 300,000 euro home: a resident buying it as a second home pays about 11,600 euros in IMT, while a non-resident pays 22,500 euros (7.5%).
The flat rate can be cancelled or refunded if you become a Portuguese tax resident within two years of buying, or if you commit the property to long-term letting at capped rents. In practice you pay the 7.5% upfront and reclaim the difference if you later qualify.
Property transfer tax (IMT)
This is the largest extra cost, and how it works changed in 2026:
- Residents buying a permanent home pay nothing on the first 106,346 euros of value in 2026, then progressive rates, with marginal rates rising to 8% on mid-value bands. Second homes have no exempt band.
- Non-residents pay a flat 7.5% on residential property, a measure introduced by the 2026 housing law and in force since it was published on 20 May 2026.
Worked example on a 300,000 euro home: a resident buying it as a second home pays about 11,600 euros in IMT, while a non-resident pays 22,500 euros (7.5%).
The flat rate can be cancelled or refunded if you become a Portuguese tax resident within two years of buying, or if you commit the property to long-term letting at capped rents. In practice you pay the 7.5% upfront and reclaim the difference if you later qualify.
Cost summary
Annual costs after purchase
- IMI (municipal property tax): 0.3% to 0.45% of the taxable value for urban homes, set by each municipality, and 0.8% for rural property.
- AIMI (wealth tax): applies only to higher-value holdings, charged on the portion of a person's Portuguese property value above 600,000 euros.
Total upfront budget. As a rule of thumb, non-resident buyers should plan for roughly 10% to 12% of the price in taxes and fees in 2026, mostly driven by the 7.5% IMT. Resident buyers of a primary home often land around 6% to 8%.
[[banner:trial-simple-1]]
Getting a mortgage as a non-resident
Portuguese banks lend to non-residents. Expect to borrow a smaller share of the price than a resident would, typically up to around 60% to 70% for non-residents against 80% to 90% for residents, with the exact figure depending on the bank and your profile. Banks assess your income, existing debts, and the property valuation. Getting an agreement in principle before you make an offer strengthens your position, and some sellers will not accept an offer that depends on financing unless the lending is already lined up.
Common mistakes to avoid
- Skipping independent legal advice, or relying on the seller's lawyer for your side of the deal.
- Signing the CPCV or transferring a deposit before due diligence is finished.
- Forgetting the non-resident tax when budgeting, which can roughly double the IMT bill compared with the old progressive rates.
- Assuming a purchase grants residency or a visa. It does not.
- Buying a property with an unlicensed extension, or a registered use that does not match reality, which can block a future sale or rental.
- Judging affordability by the asking price alone and underestimating the one-off and annual costs.
Where foreigners are buying
Demand concentrates in a handful of areas, each with a different profile:
- Lisbon and Cascais: the highest prices and the deepest rental market, popular with professionals and investors.
- Porto: lower entry prices than Lisbon, with strong rental demand.
- The Algarve: beaches, golf, and holiday rentals, the classic second-home region.
- The Setúbal Peninsula and Comporta: coast within reach of Lisbon, rising quickly in popularity.
- The Silver Coast and inland cities like Coimbra: more affordable and quieter, with growing interest from foreign buyers.
Frequently asked questions
Can Americans buy property in Portugal?
Yes, with no restrictions and no residency requirement. You need a NIF and, in practice, a Portuguese bank account.
Do I need to live in Portugal to buy a house there?
No. Ownership carries no residency requirement, and you can complete the purchase from abroad.
Does buying property give me residency or a Golden Visa?
No. The Golden Visa real estate route ended in October 2023. Residency comes through separate visa routes such as the D7 or D8.
How much tax do foreigners pay when buying?
In 2026, non-residents pay a flat 7.5% IMT plus 0.8% stamp duty. Residents pay progressive IMT, with a permanent home exempt up to 106,346 euros.
Do I need a lawyer?
Not legally, but it is strongly recommended. Use one who represents only you.
How long does the purchase take?
Usually six to ten weeks from an accepted offer to a signed deed, longer if you are arranging a mortgage.
Can I buy without visiting Portugal?
Yes. A power of attorney lets your lawyer sign the contracts on your behalf.
Can I get a mortgage as a foreigner?
Yes. Non-residents typically borrow up to around 60% to 70% of the price, subject to the bank's assessment.
Thinking about buying in Portugal?
Ola Estate works as a buyer's agent, searching for properties that match your brief, negotiating on your behalf, and handling the process from the first viewing to keys in hand, including fully remote purchases. If you want to talk through what your specific plan would look like, get in touch and we will map out the steps and the budget.
[[banner:trial-simple-1]]
