Buying a house in Portugal

Over the last fifteen years Portugal has become one of Europe's most dynamic property markets: demand from foreigners, investors and tourists has pushed prices up sharply, especially in Lisbon, Porto, the Algarve and Madeira, while in the interior homes can still be found at affordable prices. Here is a basic guide to the procedures for buying property in Portugal. It is no substitute for professional advice: tax rules change often and it is always wise to get help.

1. A licensed estate agent

In Portugal estate agencies (agências imobiliárias) must hold a state licence, with an AMI number that must appear in listings, and liability insurance. The commission, around 5% plus VAT, is usually paid by the seller.

2. NIF and bank account

The buyer needs a NIF (Número de Identificação Fiscal), the Portuguese tax number, obtained at a Finanças office or through a lawyer or representative, even remotely. It is also worth opening an account with a Portuguese bank, useful for paying taxes and utilities.

3. Survey

It is not compulsory, but it is advisable to have the property checked by a qualified engineer or surveyor for condition and value, especially for old houses. An energy certificate, supplied by the seller, is compulsory.

4. Mortgage

The buyer can apply for a mortgage (crédito à habitação) in their home country or from a Portuguese bank, which typically lends non-residents up to 60-70% of the property's value, and more to residents. The bank carries out its own valuation.

5. Lawyer

It is very important to be represented by a lawyer (advogado) or solicitador, who checks the property's legal status: the land registry certificate (certidão permanente do registo predial), showing owners and mortgages, the tax record (caderneta predial), the habitation licence (licença de utilização), the absence of debts and compliance with planning rules. If you cannot be present, you can sign a power of attorney (procuração) before a notary, also at a Portuguese consulate abroad.

6. The promissory contract (CPCV)

Once you have found the property, seller and buyer sign the Contrato de Promessa de Compra e Venda (CPCV), the promissory contract, with certified signatures, setting the price, conditions and date of the final deed. On signing, the buyer pays a deposit (sinal), usually 10% to 30% of the price. If the seller pulls out, they must return double the deposit; if the buyer pulls out, they lose it.

7. Taxes before the deed

Before the final deed the buyer pays IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis), the property transfer tax, which replaced the old SISA in 2003, and Imposto do Selo, stamp duty, at 0.8% of the value. IMT is calculated on the price or the property's tax value, whichever is higher, at progressive rates by band; in 2026, for homes used as a permanent main residence:

For second homes and rental properties the bands are similar, but with no exemption in the first band (1%). Young people up to 35 buying their first home as a main residence are exempt from IMT and stamp duty up to 330,539 euros. Rural property pays 5% IMT, and higher rates apply to buyers resident in tax havens.

8. The deed

Then comes the signing of the final deed, the Escritura de Compra e Venda, before a notary, or with a document certified by a lawyer, or at the land registry's Casa Pronta desks, which handle everything in one session. The balance of the price is paid on signing, usually by banker's draft or transfer, and you receive the keys.

9. Registration

After the deed the property must be registered in the new owner's name at the Conservatória do Registo Predial; if the deed is signed before a notary or through Casa Pronta, registration is often done directly. The new owner must then transfer the electricity, water and gas contracts.

Annual taxes and extra costs

• IMI (Imposto Municipal sobre Imóveis): the annual property tax, between 0.3% and 0.45% of the tax value for urban property, depending on the municipality, and 0.8% for rural property. It is paid in one or more instalments, depending on the amount. Very high-value properties also pay AIMI.
• Notary and registration fees: a few hundred euros, generally between 500 and 1,500 euros in total.
• Lawyer: usually 1% to 2% of the price, with a minimum fee.
• Survey and bank valuation: a few hundred euros.
• Condominium fees, if the property is in a building.

If you rent the property out, the income must be declared, and holiday lets require an alojamento local licence, subject to increasingly strict rules in the most touristy areas. Since 2023 buying property no longer qualifies non-EU citizens for the so-called golden visa.

Glossary

For an overview of prices and living costs, see the page on the cost of living in Portugal.