Are you a foreigner considering buying property in Portugal? You’re not alone. The warm climate, beautiful beaches, great cuisine, and high standard of living have made Portugal one of Europe’s top destinations for real estate investment. Whether you’re looking for a retirement residence, holiday home, or a solid investment opportunity, buying property in Portugal for foreigners is easier than you might think. This comprehensive guide will walk you through the process, answer common questions, and help you make the best decision for your move to Portugal in 2026.

Why Buy Property in Portugal as a Foreigner?

There are countless reasons why foreigners are choosing to purchase real estate in Portugal. Here are some of the most popular:

• Lifestyle and Safety: Portugal consistently ranks high for quality of life, safety, and friendly communities.
• Affordable Cost of Living: Compared to other Western European countries, living and property costs in Portugal are quite reasonable.
• Golden Visa Program: Buying property (with some restrictions) can qualify you for residency through Portugal’s famed Golden Visa scheme.
• Expat-Friendly: Portugal is known for its welcoming attitude to expats, with active international communities in Lisbon, Porto, and the Algarve.
• Strong Real Estate Market: While prices have risen, there is still good value and strong rental yields, especially compared to cities like Paris or London.

Can Foreigners Buy Real Estate in Portugal?

Yes! There are no restrictions on buying property in Portugal for foreigners, regardless of your nationality. Both EU and non-EU citizens have the same rights when purchasing real estate. The only difference is that non-EU citizens may need to obtain a Portuguese tax number and may want to consider visa or residency options.

Steps to Buying Property in Portugal for Foreigners

1. Get a Portuguese Tax Number (NIF)

Before you can buy property, open a bank account, or even pay utilities, you’ll need a Portuguese tax number (Número de Identificação Fiscal or NIF). You can obtain this from a local tax office or through a lawyer/fiscal representative.

2. Set Your Budget and Research

Consider not only the property price but also buying costs (usually 6-10% on top of the purchase price for taxes and fees), ongoing expenses, and whether you’ll need a mortgage.

3. Find a Reputable Real Estate Agent

Choose a licensed real estate agent (“imobiliária”) who has experience helping foreigners. They can help you access the best properties and avoid common pitfalls.

4. Property Viewing and Due Diligence

Tour properties in your desired area to get a sense of market value. Once you choose a property, your lawyer will carry out legal due diligence, checking ownership, debts, and permits.

5. Secure a Mortgage (If Needed)

Many Portuguese banks offer mortgages for foreigners, though you may generally qualify for up to 70% loan-to-value and need proof of income and residency status.

6. Sign the Promissory Contract

A “Contrato de Promessa de Compra e Venda” is signed and a deposit (usually around 10%) is paid to reserve the property.

7. Complete the Sale (Escritura)

The final deed (Escritura Pública) is signed in front of a notary, you pay the balance, and the property is officially yours. Your lawyer will register the property under your name.

Most Popular Locations for Foreign Buyers

Lisbon – Portugal’s vibrant capital offers a cosmopolitan lifestyle, historic neighborhoods, and excellent rental potential.

Porto – The country’s second-largest city on the Douro River is known for its wine and charming atmosphere.

Algarve – Sun-drenched beaches, golf courses, and thriving expat communities make this region a favorite for retirees and second-home buyers.

Silver Coast – Less crowded than Lisbon or the Algarve, with affordable homes in picturesque seaside towns.

Cascais and Estoril – Upscale Riviera-like suburbs just outside Lisbon, popular among families and professionals.

Taxes and Fees When Buying Property in Portugal

• IMT (Property Transfer Tax): Ranges from 2%–8% depending on price and type.
• Stamp Duty: 0.8% of the purchase price.
• Notary and Registration Fees: Around €1,000–€2,500.
• Estate Agent Fees: Usually paid by the seller.
• Legal Fees: Typically 1%–2% of purchase price.

The Golden Visa: Buying Property for Residency

Buying property in Portugal for foreigners can lead to residency through the Golden Visa program. The rules have changed (as of 2023), and residential property in high-density areas such as Lisbon, Porto, and the Algarve’s coast is no longer eligible. However, commercial properties, touristic apartments, or properties in low-density (“interior”) areas can still qualify, usually with investments starting from €280,000–€500,000.

If you plan to live in Portugal and not just invest, consider the D7 visa (for retirees and remote workers), which doesn’t require a property investment but renting or owning a home is helpful for your application.

Common Questions About Buying Property in Portugal for Foreigners

Q: Can I buy property remotely?
A: Yes, you can grant power of attorney to a trusted lawyer to handle the entire transaction, including bank account opening and singing deeds.

Q: Do I need a Portuguese bank account?
A: For transactions and paying utilities/taxes, a local bank account is highly recommended.

Q: Are there annual property taxes?
A: Yes, the IMI tax is based on the property value and location, and must be paid every year.

Q: Can I rent out my property?
A: Yes. If you plan to offer short-term/vacation rentals (Alojamento Local), special licensing is needed, especially in popular areas.

Q: Is the process safe for foreigners?
A: Yes, as long as you use a licensed lawyer and reputable agent. Scams are rare but can happen, particularly with unlicensed brokers or “under the table” deals.

Tips for a Smooth Real Estate Experience

• Always work with a trusted lawyer. They will protect your interests.
• Double-check property debts and legalities. Portuguese law makes the buyer liable for outstanding debts on a property.
• Visit different areas and spend time in your chosen location before buying.
• Ask about condominium/association fees and rules if buying an apartment.
• Understand currency exchange rates and use specialized services to save money when transferring large amounts.

The 2026 Portugal Real Estate Market Outlook

Despite global economic shifts, Portugal remains a hotspot for property investment. Foreign buyer interest (especially from America, UK, France, and Brazil) continues to rise, driven by the country’s safety, political stability, digital nomad popularity, and residency programs.

Lisbon and Porto remain more expensive, but the Silver Coast and interior regions offer affordable opportunities for those seeking authenticity and a lower cost of entry.

Final Thoughts: Is Buying Property in Portugal Worth it for Foreigners?

Yes. If you’re looking for a stable country with a high quality of life, potential for residency, and thriving expat life, buying property in Portugal as a foreigner is a decision you won’t regret. Just be sure to take your time, seek local expert advice, and be clear on your goals—whether that’s investment, retirement, or a permanent move.

Ready to make your dream of living in Portugal a reality? Start exploring your options and get in touch with local real estate professionals specializing in helping foreign buyers today!

Are you considering a move to Portugal? Let us know your questions or experiences with the property buying process in the comments below!