Buying a house in Portugal as a foreigner: the steps, from budget to deed

Foreigners can buy property in Portugal on the same terms as Portuguese citizens: there is no permit to apply for and no restriction by nationality. What changes is the tax. Since 25 May 2026, buyers who have never been tax resident in Portugal pay a flat 7.5% IMT on homes. The paperwork also takes longer from abroad. These are the steps, in the order they usually happen.

1. Work out the full budget

On top of the price you pay IMT (the transfer tax), 0.8% stamp duty, the deed and registration and, if you borrow, the bank's fees and 0.6% stamp duty on the loan. For a non-resident this usually adds 8% to 9% to the price; a tax resident buying their permanent home pays considerably less. The buying costs calculator adds it all up, including the cash you need on the day.

If you need a mortgage, Bank of Portugal rules cap loans at 90% of the value for a permanent home and 80% for other homes. Banks usually lend non-residents less, often 60% to 70%, so plan for a larger deposit. Ask two or three banks for a pre-approval before you make an offer, and work out the monthly payment with the mortgage calculator.

2. Get a NIF and a Portuguese bank account

You need a Portuguese tax number (NIF) to sign the promissory contract, open a bank account, apply for a mortgage and pay IMT. If you live outside the EU or EEA you will also need a fiscal representative. You can get the NIF in person at a tax office or remotely through a lawyer or accountant: see how to get a NIF.

A Portuguese bank account is not a legal requirement for the purchase, but it makes paying taxes, fees and utilities much easier. If your savings are in another currency, compare exchange rates and transfer fees before moving a large amount.

3. Check the property before you make an offer

Hire an independent lawyer or solicitor (advogado or solicitador), not the one suggested by the seller or the agent. They will check:

• The land registry certificate (certidão permanente): who owns the property and whether there are mortgages, liens or other charges on it.
• The tax record (caderneta predial): the property's tax value (VPT), area and registration number. It should match the registry and the home you visited.
• The energy certificate (certificado energético): mandatory for any sale.
• The urban planning title, such as the habitation licence (autorização de utilização). Since October 2026 the deed must state whether the home has one.
• The condominium statement, for an apartment: the building charges and any debts on the unit. If you waive it at the deed, any debts pass to you.

For an older house, a building survey is worth paying for: damp, plumbing, wiring and windows are the usual problems.

4. Sign the promissory contract (CPCV)

Once the price is agreed, buyer and seller sign a promissory contract (contrato-promessa de compra e venda, or CPCV) and the buyer pays a deposit, usually 10% to 20% of the price. If the buyer pulls out, they lose the deposit; if the seller pulls out, they must pay it back twice over.

Before signing, check the deadline for the deed, what happens if the mortgage is refused or the bank values the home below the price, and the condition the property must be in on handover. Have the signatures witnessed by a notary, lawyer or solicitor.

5. Finalise the mortgage

If you are borrowing, the bank values the property and lends on the lower of the price and the valuation. Compare the standard information sheets (FINE) from several banks using the APRC (TAEG), which includes fees, not just the spread. The bank will require life and home insurance, but you can take them out with another insurer if the cover is equivalent.

6. Pay IMT and stamp duty before the deed

IMT is assessed through a Modelo 1 declaration, usually filed by your lawyer or at the Casa Pronta desk, and must be paid before the deed together with the 0.8% stamp duty. Your residency status decides the rate. A buyer who has never been tax resident in Portugal pays 7.5% on a home, with no exemptions. A tax resident buying their permanent home pays nothing on the first band and progressive rates above it. The non-resident IMT guide explains who counts as resident and how couples are taxed.

7. Sign the deed and register the property

The deed (escritura) is signed at a notary, with a lawyer or solicitor, or at a Casa Pronta desk, where the deed and the land registration are done in one appointment for a fixed fee. All buyers sign, in person or through a power of attorney. The price is paid on the day, by bank cheque or transfer, and you receive the keys. Read the deed before signing: price, the property, the buyers and each one's share.

Afterwards, check the land registry certificate to confirm that the property is in your name and that any mortgage of the seller has been cancelled.

8. After you buy

• IMI, the annual property tax, is charged from the year after the purchase. Work out how much with the IMI calculator.
• Utilities: transfer electricity, water, gas and internet into your name.
• If you move to Portugal, update your tax address. A buyer who paid 7.5% and becomes tax resident within two years can claim back the difference to the standard rates, within six months of becoming resident.
• If you let the property, the rental income must be declared in Portugal every year.
• Keep the deed and receipts: you will need them, and the invoices for any building work, to work out capital gains tax when you sell.

* General information, not legal advice. Each purchase has its own details: confirm with the lawyer, solicitor or notary handling your deed.

Sources

• IMT Code, article 17(10) to (12), and article 36, as amended by Decree-Law 97/2026 of 20 May
• Stamp Duty General Table, items 1.1 (0.8%) and 17.1.3 (0.6%)
• Civil Code, article 442 (deposit in the promissory contract)
• Bank of Portugal, macroprudential measure on mortgage lending (loan-to-value limits)
• gov.pt, Casa Pronta service