How to buy a home in Portugal as a foreign buyer

Before you start: what you need as a foreign buyer

Foreigners can buy property in Portugal on the same legal footing as Portuguese citizens. What changes is the paperwork around you: a tax number, a way for the Tax Authority to reach you, a bank account if you plan to pay or borrow locally, and — very often — someone who can act for you when you are not in the country.

Before you start viewing, it helps to have three things clear:

1. Your budget, including taxes and fees. Taxes on purchase depend on the price, on the type of property and on whether you are tax resident in Portugal. We explain the rates below.
2. Cash or mortgage. If you need a loan, talk to banks early. The bank will commission its own valuation, which can come in below the asking price (see our guide on what to do when the bank valuation is below the price).
3. Who will advise you legally. In Portugal it is common for buyers to hire an independent lawyer or solicitor to check the property and the contracts.

Step 1 — Get a NIF and decide how you will be notified

The NIF (número de identificação fiscal) is your Portuguese tax number. It is free, and you need it to sign the CPCV, pay IMT and Stamp Duty, sign the deed and pay property tax afterwards. We explain the process in detail in our guide Getting a NIF in Portugal as a foreign buyer.

In short: you can apply in person at a Tax Office or Loja do Cidadão by appointment, or a legal representative can apply for you online through the Tax Authority's e-balcão. A fiscal representative may not be mandatory for non-residents. Confirm the requirements with the Portuguese Tax and Customs Authority (AT) or a qualified professional.

Step 2 — Search, view and check the documents

Shortlist properties, visit them (in person or with a trusted person on your behalf) and ask for the documents early. The main ones are:

• Caderneta predial — the tax record of the property, issued by the Tax Authority. It shows the tax value (VPT), which matters for IMT.
• Certidão do registo predial — the land registry certificate, showing who owns the property and any mortgages or other charges.
• Licence of use or planning title, where applicable.
• Energy certificate — required to sell; see our energy certificate guide.
• For apartments: a statement on condominium debts.

Our property viewing checklist lists the questions worth asking on site. For older houses, quintas or land, read our checklists on renovation projects and rural land.

Step 3 — Make an offer and sign the CPCV (promise contract)

Once price and terms are agreed, buyer and seller usually sign a contrato-promessa de compra e venda (CPCV). It is not mandatory, but it is the norm. The CPCV identifies the parties and the property, sets the price, the deposit (sinal), how the balance will be paid, the deadline for the deed and what happens if someone fails to complete.

The deposit has real legal weight. Under article 442 of the Civil Code, if the buyer fails to complete, the seller may keep the deposit; if the seller fails, the buyer may claim double the deposit back.

Have your lawyer review the CPCV before you pay anything. Our CPCV buyer checklist covers the points to check.

Step 4 — Pay IMT and Stamp Duty before completion

Two taxes are paid by the buyer before the deed. The Tax Authority's buyer leaflet states that IMT and Stamp Duty must be paid on the day the payment documents are issued or on the next working day, and always before the purchase is completed. Both are calculated on the higher of the price and the property's tax value (VPT).

IMT 2026 rates (mainland Portugal)

These are the 2026 brackets set by the State Budget Law (Lei n.º 73-A/2025) and published in the Tax Authority's practical tables (Ofício Circulado n.º 40129/2026). They apply to buyers who are not caught by the non-resident rule below.

Main and permanent home (habitação própria e permanente):

Other residential property (e.g. a second home):

Rural property (prédios rústicos) pays 5%; other urban property pays 6.5%. A 10% rate, with no exemption or reduction, applies when the buyer — or an entity that dominates or controls the buyer — has tax domicile in a jurisdiction on Portugal's tax-haven list; this 10% rule does not apply when the buyer is a natural person. The Azores and Madeira have higher brackets.

Illustrative calculation (official formula, not a quote): for a main home in mainland Portugal with a taxable value of €250,000, IMT = 250,000 × 7% − 10,457.96 = €7,042.04. The same value as a second home: 250,000 × 7% − 9,394.50 = €8,105.50.

Buyers aged 35 or under purchasing their first main home may be exempt from IMT up to €330,539, if they meet the legal conditions.

The 7.5% IMT rate for non-resident buyers

Decree-Law 97/2026, published on 20 May 2026, added a new rule to the IMT Code (article 17(10)–(12)). When the buyer of an urban property intended exclusively for housing is not tax resident in Portugal, IMT is charged at a flat 7.5%, with no exemption or reduction, unless:

• the buyer has been considered tax resident in Portugal under the IRS Code;
• the buyer becomes tax resident in Portugal within two years of the purchase; or
• the property is let as housing, within six months of the purchase, at a rent within the limits set in Decree-Law 97/2026, for at least 36 months during the first five years.

In the last two cases you pay 7.5% first and then ask the Tax Authority, within six months, to cancel the difference. For the €250,000 example above, 7.5% would be €18,750. If you plan to move to Portugal, discuss the timing with your lawyer or tax adviser before you sign.

Stamp Duty (Imposto do Selo)

Stamp Duty on the purchase is 0.8% of the same taxable value used for IMT (item 1.1 of the General Stamp Duty Table). If you take out a mortgage of five years or more, Stamp Duty of 0.6% applies to the loan amount (item 17.1.3).

Step 5 — Sign the deed (escritura) or Casa Pronta

Ownership passes when the final contract is signed. This can be a public deed at a notary, a document authenticated by a lawyer or solicitor, or a transaction at a Casa Pronta counter run by the Registry Office, which can deal with the contract, taxes and registration in one go. If you cannot be present, you can sign through a power of attorney — ask your lawyer which form is required.

Step 6 — Registration and the first months as an owner (IMI, AIMI)

IMI is the annual municipal property tax. It is due by whoever owns the property on 31 December of each year. Rates for urban property are set by each municipality between 0.3% and 0.45% of the VPT; rural property pays 0.8%. Bills are paid in May when the amount is €100 or less, in May and November when it is more than €100 and up to €500, or in May, August and November when it is more than €500.

AIMI is an additional tax for owners with large portfolios. For individuals, the total tax value (VPT) of their urban property in Portugal is reduced by €600,000, and the rest is taxed at 0.7%, with marginal rates of 1% above €1 million and 1.5% above €2 million (thresholds doubled for married couples or partners who opt for joint taxation). Companies pay 0.4%.

Our after-purchase checklist covers insurance, utilities and tax.

How long does it take?

There is no fixed legal timeline. The deadline for the deed is whatever buyer and seller agree in the CPCV. What usually sets the pace is the paperwork: getting your NIF and bank account, the seller's documents, and — if you borrow — the bank's approval and valuation. See our mortgage approval to completion checklist.

Who does what: licensed mediator, lawyer, notary, bank

• Licensed real estate mediator. In Portugal, real estate mediation requires a licence from IMPIC. Franetic holds licence AMI 26878. A mediator finds and presents properties, organises viewings, passes on offers, helps you negotiate and coordinates documents and parties through to the deed. A mediator does not give legal or tax advice.
• Lawyer or solicitor. Checks the registry, the charges and the contracts, drafts or reviews the CPCV and can represent you under a power of attorney.
• Notary or Casa Pronta. Formalises the deed and checks that taxes have been paid.
• Bank. Assesses your loan and commissions the valuation.

You can check any agency's licence on the IMPIC website before you work with it.

Thinking about buying on the Silver Coast?

Franetic is based in Alcobaça and works mainly on the Costa de Prata. See our current properties or read our Silver Coast buyer's guide.