Buying a home in Portugal can be one of the most rewarding decisions you’ll ever make. With 300 days of sunshine in some regions, charming towns, and a cost of living that often beats northern Europe, it’s no wonder international buyers continue to flock here. But before you start picturing yourself scoffing pastel de nata on a tiled balcony, you’ll need to understand the buying process.
This guide takes you step by step through buying a property in Portugal, from the very first search to signing the final deed. We’ll cover legal requirements, costs, taxes, and common pitfalls, so you can move forward with confidence, and maybe even a chilled bottle of vinho espumante waiting for completion day.
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1. Start your property search
The first step is also the most fun: browsing properties. Portugal has a huge variety of homes, from Algarve beach apartments and Lisbon townhouses to rustic farmhouses in central Portugal.
When you’re starting out:
Explore different regions: Coastal Algarve, vibrant Lisbon, historical Porto, the quieter Alentejo, or even the islands of Madeira and the Azores. Each offers a completely different lifestyle.
Use Kyero’s location guides: These help you understand local culture, amenities, and average prices—because a two-bedroom apartment in central Lisbon costs very differently to one in rural Castelo Branco.
Set property alerts: The Portuguese market can move quickly in popular areas. Setting alerts on Kyero ensures you’re the first to hear about new listings. To do this you'll need to register your free account with us.
When you shortlist properties, it’s worth visiting in person if possible. Portugal can feel different depending on the season, quiet towns in winter can transform into tourist hotspots in summer. If you can’t travel immediately, many agents now offer video tours or live walkthroughs. If you’re looking for inspiration, check out our roundup of the best properties and locations in Portugal to see what’s currently turning heads on the market.
2. Prepare to buy: paperwork and practicalities
Once you’ve found a property you like, it’s time to get the practicalities sorted. Unlike in some countries, you can’t progress a purchase in Portugal without a few essentials.
Get your NIF
The Número de Identificação Fiscal (NIF) is your Portuguese tax number. You’ll need it for:
Buying property
Opening a bank account
Setting up utilities
It’s easy to get, either at a local tax office in Portugal or through your lawyer. Read how to get your NIF number for more information.
Appoint a fiscal representative
If you’re a non-EU citizen (including UK buyers post-Brexit), you’ll need a fiscal representative with a Portuguese address. They receive official tax correspondence on your behalf. Many buyers appoint their independent lawyer to do this.
Open a Portuguese bank account While some transactions can be done from abroad, a local bank account simplifies life.
Residents: Open a standard account
Non-residents: Most banks offer non-resident accounts
A local account allows you to transfer funds for the deposit, final payment, and taxes more easily.
Hire an independent lawyer (advogado) This is arguably your most important step. A Portuguese lawyer will:
Conduct property checks
Handle contracts and deposits
Liaise with the notary
Ensure you don’t buy a property with hidden legal problems
Many foreign buyers give their lawyer Power of Attorney, so they can sign documents on your behalf if you’re not in Portugal.
3. Do your due diligence
The next phase is less glamorous but absolutely critical. Due diligence protects you from nasty surprises.
Your lawyer will:
Confirm the seller legally owns the property
Check for mortgages, debts, or charges
Verify the property has a valid habitation licence (Licença de Utilização) for urban properties
Confirm there are no illegal extensions or building infringements
Check the property’s energy certificate (Certificado Energético), which is required by law
If you plan to renovate or build, your lawyer can help verify that local authorities will approve your plans. Rural properties in particular can have restrictions on land use, and some charming stone barns may never legally become homes.
4. Understand the costs of buying in Portugal
Before you sign anything, it’s essential to know the total cost of your purchase. The headline price is only part of the story.
IMT (Property Transfer Tax): Varies based on price, location, and whether the property is a primary or secondary residence. Here’s how IMT works.
Stamp Duty (Imposto do Selo): 0.8% of the purchase price.
Notary and land registration fees: Usually a few hundred euros combined.
Lawyer fees: Typically 1–2% of the property price.
On top of that, consider ongoing costs:
IMI (Municipal Property Tax): Paid annually, based on the property’s tax value.
Utilities and insurance: Especially if the property will be empty for periods.
Condominium fees (for apartments): Cover maintenance of shared areas.
A safe rule of thumb is to budget an extra 7–10% of the purchase price, and you can use our budget calculator to work out your affordability.
5. Sign the Promissory Contract (CPCV)
Once all checks are complete and you’re ready to commit, you’ll sign the Contrato de Promessa de Compra e Venda (CPCV). This is the promissory contract that secures the deal.
You’ll pay a deposit, usually 10–30% of the property price.
The contract will include a completion date and terms for withdrawal.
Important: If you pull out without a legal reason, you’ll typically lose your deposit. If the seller pulls out, they usually owe you double the deposit, a strong incentive for both sides to complete the sale.
8. Common pitfalls to avoid
While buying in Portugal is generally straightforward, some buyers do get caught out.
Incomplete paperwork: Rural homes sometimes lack proper habitation licences.
Underestimating costs: Failing to budget for taxes, fees, and ongoing IMI can be a shock.
Seasonal surprises: That bustling summer resort may be silent in winter.
Language barriers: Official documents are in Portuguese; a lawyer is essential.
Avoiding these pitfalls means your purchase will be a pleasant story, not a cautionary tale.
6. Completion day
Completion in Portugal is refreshingly straightforward, but it’s still a formal process.
You (or your lawyer via Power of Attorney) will sign the final deed (Escritura de Compra e Venda) in front of a notary.
The remaining balance of the purchase price is paid.
The notary registers the transaction, making you the official owner.
Immediately after completion:
Register the property with the Land Registry (Conservatória do Registo Predial)
Pay any remaining taxes
Transfer utilities into your name
Tip: Ask for multiple certified copies of the deed—you’ll need them for utilities, insurance, and tax purposes.
7. After the purchase
Owning property in Portugal brings a few ongoing responsibilities.
Set up insurance and maintenance While insurance isn’t always mandatory for cash buyers, it’s strongly recommended. Properties in rural areas may need additional fire or flood coverage. If your property will be empty for long periods, arrange regular checks or a local caretaker.
Understand your tax obligations
IMI (Property Tax) is billed annually.
If you plan to rent your property, you may need an Alojamento Local (AL) licence for short-term lets.
Non-residents should declare any rental income to Portuguese tax authorities.
Residency and visas If you’re non-EU and plan to spend more than 90 days in Portugal:
Golden Visa no longer applies to residential property (phased out in 2023).
D7 Visa is the main route for retirees or those with passive income (read our Portugal visa guide).
Citizenship is typically available after five years of legal residency, not immediately after buying.
Consider making a Portuguese will Inheritance law in Portugal follows forced heirship, which may differ from your home country. A local will ensures your property passes according to your wishes (learn about inheritance in Portugal).
Your next step
Buying a property in Portugal is a journey, but with the right preparation, it can be an incredibly smooth one. From your very first property alert to the satisfying click of the notary’s pen, you’ll be guided by professionals every step of the way.
Updated every six weeks: from rustic river-view cottages and island hideaways to farmhouse pairs with pond-to-pool potential, we’ve cherry-picked Portugal’s latest bargains—each still cheaper than a Lisbon studio. Think Algarve boltholes, Braga farmsteads, and Azores retreats begging for your grand design. This edition brims with off-grid charm and coastal cool.
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