Buying a House in Portugal from Abroad: A Step-by-Step Guide

You've found the dream: a whitewashed house with a terrace, an orange tree in the garden and the sea in the distance. Now comes the part nobody posts on Instagram: buying it, in another country, in another language, often from more than a thousand miles away.

The good news? Foreigners can buy property in Portugal with no restrictions. You don't need to live here, have a visa or be an EU citizen. The process is well established, and thousands of international buyers complete it every year. This guide walks you through every step, with the real costs for 2026.

The process at a glance

1. Get your Portuguese tax number (NIF)
2. Open a Portuguese bank account
3. Arrange your financing (if you need a mortgage)
4. Find the property and make an offer
5. Run the legal and technical checks
6. Sign the promissory contract (CPCV) and pay the deposit
7. Pay the purchase taxes (IMT and stamp duty)
8. Sign the deed (escritura) and register the property
9. Set up utilities, internet and insurance, and move in

From accepted offer to keys, a cash purchase typically takes 6 to 10 weeks. With a mortgage, allow 2 to 4 months.

Step 1: Get your NIF (tax number)

The Número de Identificação Fiscal is your Portuguese tax number, and you need it for almost everything: buying property, opening a bank account, signing up for utilities, even getting a phone contract.

You can get it at any Finanças (tax office) in Portugal, or remotely through a lawyer. If you live outside the EU/EEA, which now includes the UK, you will normally need a fiscal representative in Portugal, unless you opt into the tax portal's electronic notifications. Many buyers simply appoint their lawyer.

Step 2: Open a Portuguese bank account

It isn't strictly required by law, but in practice you'll want one. It makes paying the deposit, taxes and bills much easier, and you'll need one for a Portuguese mortgage. Most banks will open an account for non-residents with your passport, NIF, proof of address and proof of income. Some can do it remotely.

Step 3: Sort out your financing first

If you need a mortgage, get it approved in writing before you sign anything. A verbal "that should be fine" from a bank is not enough. Once you sign the promissory contract, your deposit is at risk if the finance falls through.

Portuguese banks do lend to non-residents, but usually on stricter terms than to residents. Expect to borrow a lower share of the property's value, often around 60% to 75%, and to show stable income. Your monthly debt payments generally shouldn't exceed about 45% of your net income. A mortgage broker who works with foreign buyers can compare several banks for you.

Step 4: Find the property and make an offer

Most properties are listed on portals such as Idealista and Imovirtual, or through local estate agents. Remember that in Portugal the agent normally works for the seller: their commission is paid by the seller, and their job is to get the best deal for the seller.

Offers are usually made in writing through the agent. There's often room to negotiate, especially on properties that have been on the market for a while or that need work. If you're buying from abroad, a trusted person on the ground who can view properties for you, film them and ask the awkward questions is worth their weight in gold.

Step 5: Legal and technical checks (don't skip these)

This is where buying from abroad goes wrong most often. Before you sign anything, an independent lawyer (one who works for you, not the seller) should check at least:

• Land registry certificate (certidão permanente): who really owns the property, and whether there are any mortgages, liens or seizures on it
• Tax record (caderneta predial): that the description, size and taxable value match what you're buying
• Habitation licence (licença de utilização): that the house is legally allowed to be lived in, including any extensions, annexes or pools
• Energy certificate (certificado energético): legally required for any sale
• Debts: unpaid property tax (IMI) or condominium fees that could pass to you

Legal checks and a building survey answer different questions. The lawyer confirms that the house is legally sound. A technical inspection tells you whether it's physically sound: damp, roof, structure, electrics, plumbing and, if there is one, the pool. In older rural properties especially, unregistered extensions and hidden damp are common, and both are expensive surprises.

Step 6: Sign the promissory contract (CPCV)

The Contrato Promessa de Compra e Venda (CPCV) is the binding agreement in which you and the seller commit to the sale. It sets the price, the deposit, the completion date and any conditions, such as getting your mortgage approved.

You'll usually pay a deposit of 10% to 30% of the price at this point. The rules are strict on both sides:

• If you pull out without a valid reason, you lose the deposit.
• If the seller pulls out, they must normally pay you back double the deposit.

That protection is exactly why your checks need to be finished, and your finance confirmed, before you sign.

Step 7: Pay the purchase taxes

Before the deed, you pay two taxes to the tax office:

• IMT (property transfer tax): the big one, explained below
• Stamp duty (Imposto do Selo): 0.8% of the price

Important change for 2026: since 25 May 2026, buyers who are not tax resident in Portugal pay a flat 7.5% IMT on residential property, from the first euro and with no exemptions (Decree-Law 97/2026). It's based on tax residence, not nationality. A British citizen living in Portugal pays the normal rates, while a Portuguese emigrant living in London pays 7.5%.

You can claim back the difference if, within two years of buying, you become tax resident in Portugal, or if you rent the home out long term at up to €2,300 a month for at least 36 months within the first five years. In both cases you must apply within six months of meeting the condition, so put a reminder in your calendar.

For tax residents, IMT is progressive. On a main home in mainland Portugal it's 0% up to €106,346, rising in bands, and it's slightly higher on a second home.

What it really costs: a €300,000 example

• Tax resident, main home: IMT about €10,542 plus stamp duty €2,400 = about €12,900
• Tax resident, second home: IMT about €11,606 plus stamp duty €2,400 = about €14,000
• Non-resident buyer: IMT €22,500 plus stamp duty €2,400 = €24,900 (partly refundable if you move here within two years)

On top of the taxes, budget for notary and land registry fees (often around €700 to €1,500), legal fees (commonly around 1% of the price plus VAT), a building survey, and mortgage costs if you're borrowing. As a rule of thumb, non-residents should set aside around 10% to 11% of the price for purchase costs, and tax residents 6% to 8%.

Step 8: The deed (escritura) and registration

The sale completes when you and the seller sign the deed in front of a notary, a lawyer or at a Casa Pronta office. You pay the balance, get the keys and, normally on the same day, the property is registered in your name at the land registry.

You don't have to fly over for it. With a power of attorney, your lawyer or representative can sign for you. Many international buyers complete the whole purchase without being in Portugal on the day.

Step 9: After you get the keys

Now the practical work starts: water, electricity and gas contracts in your name, internet (which can take a few weeks in rural areas), home insurance, and possibly furniture, a car and work on the house. You'll also pay IMI, the annual property tax, which is usually between 0.3% and 0.45% of the property's taxable value. Properties worth more than €600,000 per owner can also pay the additional property tax, AIMI.

If the house needs work, it's worth planning that before completion, so your builder can start as soon as you own it. That's exactly what our renovation and home setup service is for.

5 mistakes we see foreign buyers make

1. Using the seller's agent or lawyer instead of an independent lawyer working only for you
2. Signing the CPCV before the mortgage is approved in writing
3. Skipping the building survey on an older or rural property
4. Not checking the habitation licence for extensions, annexes and pools
5. Forgetting the 6-month deadline to claim back the extra IMT after becoming tax resident

Not sure yet? Rent first

Many families choose to rent for six to twelve months before buying. You get to know the area, the commute, the schools and the winter (yes, it rains here too), and you buy with far more confidence. If that sounds like you, see our renting and relocation support.

How we help

Buying from abroad is very doable, but it involves a lot of people: agents, lawyers, surveyors, banks, notaries and builders, often all speaking Portuguese. We coordinate all of them for you, as one local point of contact working on your side. We view properties for you, organise the legal and technical checks, and see you through to completion and beyond.

Find out more about our property buying support, or book a free discovery call and tell us where you are in the process.

This guide is general information, correct as of October 2026, and not legal or tax advice. Rules change, so always confirm the details of your own purchase with a qualified Portuguese lawyer or accountant.