Can Foreigners Buy Property In Portugal?

If you’re thinking about buying a home in Portugal — whether as a vacation base, an investment, or somewhere to live full-time — there’s good news: foreigners can buy property in Portugal with almost no restrictions.

It doesn’t matter if you’re from the US, UK, Canada, India, Pakistan, South Africa, Brazil, or anywhere else. You have the same property-buying rights as locals, and the process is straightforward, well-established, and protected by a transparent legal system.

However… buying property in Portugal is not the same as moving here. It doesn’t give you residency, it doesn’t entitle you to stay longer than your visa allows, and since 2023, it doesn’t qualify you for the Golden Visa either.

Also, if you’re relying on a mortgage, non-residents (people who don’t live in Portugal) don’t get the same preferential rates as residents (people who live in Portugal).

This guide explains everything, from the buying process to visas, mortgages, taxes, pitfalls, red flags, renovation quirks, area differences, and what people always wish they’d known beforehand.

Let’s start simple.

Who Typically Buys in Portugal?

Foreigners play a significant role in the Portuguese property market, but most properties are still purchased by residents.

• In the first quarter of 2024, buyers residing outside Portugal accounted for about 6.2% of home sales (by number) and 10.4% of total value.
• In the luxury segment (homes over ~€1 million), foreign buyers represented around 27% of demand in Q1 2025.
• Countries contributing the largest share of foreign demand included the UK (~15 %) and the USA (~13.1 %) for luxury homes in early 2025.

In early 2025, international buyers accounted for around 5.1% of total home sales in Portugal — the lowest share in years — while resident purchasers made up the vast majority of volumes. Despite representing a small share of transactions, foreign buyers often purchase higher-value properties, especially in regions like the Lisbon metropolitan area and the Algarve coast.

• In Q1 2025, the foreign-buyer share by number was ~5.1%.
• Foreign buyer activity is concentrated in select high-value areas: Algarve, Lisbon, possibly the islands. For example, in the islands (Azores / Madeira) foreign buyers in some cases accounted for over 40% of demand for luxury homes.
• While domestic buyers dominate by volume, foreign buyers often pay much higher average prices, making their value-impact disproportionately large.

Residents vs Non-Residents: How Long You Can Stay in Your Portuguese Property

Both residents and non-residents can buy property in Portugal with no restrictions. Where things differ — and where most confusion happens — is how long you’re legally allowed to stay in that property each year.

Here’s what you need to know.

If You’re a Resident of Portugal

You can spend 365 days per year in your property with no limitations. Residency is what determines your right to remain in Portugal long-term — not property ownership.

To become a resident, you need either:

• EU/EEA/Swiss residency registration (CRUE), or
• a Portuguese residency visa (for non-EU/EEA/Swiss nationals).

Once you have residency, you’re free to live in Portugal full-time.

If You’re EU/EEA/Swiss

EU/EEA/Swiss citizens have freedom of movement, so they can come to Portugal for up to 90 days with no paperwork. After 90 days, they are supposed to register their residence through the CRUE process at their local town hall.

In reality? Many EU citizens don’t register immediately.

If You’re from the UK, US, Canada, Australia, India, South Africa, etc.

If you’re a non-EU citizen who hasn’t obtained residency yet, you are bound by the Schengen short-stay rule: You can stay in Portugal for 90 days in every 180 days. This is a rolling calculation — not tied to the calendar year — which makes long stays tricky for second-home owners.

To stay longer, you need residency. The most common residency visas are the D7 and Digital Nomad Visa.

Golden Visa: A Flexible Alternative

Buying property no longer qualifies for the Golden Visa. To apply, you need to:

• invest €500,000, OR
• donate €250,000

The big advantage:

Golden Visa residency only requires you to spend an average of 7 days per year in Portugal (or up to 365 days — your choice). This is the only residency route that does not require you to make a full-time move.

Who is the Golden Visa ideal for?

• people who want to spend more than 90 days per year in Portugal
• but less than 183 days
• and who don’t want to become tax residents
• second-home owners
• frequent travellers
• people who want EU residency without relocating

Can Foreigners Get a Mortgage in Portugal?

Yes — but with important differences between residents and non-residents (note: the distinction is residents and non-residents not Portuguese and foreigners).

Loan-to-Value (LTV)

• Residents: 80–90%
• Non-residents: 60–70%

This means a foreign buyer may need a 30–40% deposit.

Mortgage requirements

Banks will ask for:

• passport or European ID
• NIF
• bank statements
• proof of income e.g. tax returns or employment letters
• credit report (sometimes, if your country has one)

Nationality-specific notes:

• Americans: Banks sometimes request extra FATCA compliance.
• UK buyers: Still easy for banks, but slightly more documentation post-Brexit.

The Buying Process (Simplified)

Here’s a streamlined overview of how buying property in Portugal typically works.

1. Set Your Budget

Decide how much you can spend. If you need a mortgage, speak to a broker early or use an online calculator for estimates.
Don’t forget transaction costs — usually 6–10% of the purchase price.

2. Start Your Property Search

Browse online portals or work with a buyer’s agent who can:

• Identify suitable properties
• Check pricing
• Find off-market opportunities

3. View Homes & Make an Offer

Viewings can be in person or virtual.
Before offering, consider getting a survey and check that fibre-optic internet is available.

Offers can involve some negotiation, but in competitive areas the seller often has the upper hand.
Some agents request a reserva to hold the property temporarily.

4. Sign the Promissory Contract (CPCV)

Once the price is agreed, both parties draft and sign the CPCV.
This sets:

• the terms of the deal
• timelines
• any conditions (e.g., satisfactory survey)

You’ll typically pay a 10% deposit:

• You lose it if you back out.
• The seller pays you double if they back out.

5. Mortgage Valuation (If Applicable)

If you’re using a mortgage, the bank will:

• conduct a valuation
• review documents
• issue final approval

6. Arrange Insurance

If buying with a mortgage:

• Home insurance is mandatory
• Life insurance is often required

Banks sell these policies, but it’s worth comparing quotes.

7. Pay IMT & Stamp Duty

Before the final deed, you must:

• pay IMT (property transfer tax)
• pay IS (stamp duty)
• prepare the remaining balance, usually as a banker’s draft

8. Sign the Escritura (Final Deed)

The deed is signed at the notary’s office.
Both parties (or their lawyers via power of attorney) attend, and the deed is read aloud in Portuguese.
A translator is needed if you don’t speak the language.

Once signed, ownership officially transfers and final payment is made.

9. Register the Property & Transfer Utilities

After signing, the property must be registered at:

• the Land Registry (Registo Predial)
• the Tax Office (Finanças)

You’ll also need to set up utilities: electricity, water, gas, and internet.
For fibre availability, always verify in person or through a specialist — online checkers are not always accurate.

Common Mistakes Foreign Buyers Make (and How to Avoid Them)

Buying property in Portugal is relatively safe and straightforward, but there are patterns — the same mistakes appear again and again. Here are the ones foreign buyers most often make, and how you can avoid them.

1. Not Hiring a Lawyer

Portugal has an excellent notary system, but the notary does not protect you — their job is only to verify signatures and confirm legal formalities. They do not check whether:

• the seller actually owns the property
• the property is free of debts
• the boundaries match the land registry
• there are illegal extensions
• the condominium has major issues

A lawyer handles due diligence, ensures the property is clean, checks licensing, reviews the promissory contract (CPCV), and protects your deposit.

2. Not Checking AL Restrictions (Short-Term Rental Rules)

Many foreign buyers expect to run a holiday rental — only to discover that the building or area is closed to new licences.

Cities like Lisbon, Porto, and parts of the Algarve have strict AL (Alojamento Local) restrictions:

• Entire zones where new licences are suspended
• Condominium rules that prohibit short-term rentals
• Municipal quotas that affect tourist-heavy areas

If rental income matters, confirm AL eligibility before making an offer, not after signing the CPCV.

3. Confusing VPT with Market Price

Portugal’s VPT (Valor Patrimonial Tributário) is the property’s taxable value. It is usually 30–60% lower than the market price and has nothing to do with true market value.

Why it matters:

• IMI (annual property tax) is based on VPT
• AIMI (wealth tax) is based on VPT
• Capital gains calculations use VPT
• Renovations can trigger a reassessment

Some buyers wrongly assume a low VPT means a bargain. In reality, it often means the VPT hasn’t been updated for years — and may rise sharply after inspection or renovations.

4. Not Reading Condominium Meeting Notes

If you’re buying an apartment, ask for the last 12 months of condominium minutes. They reveal everything the listing won’t:

• upcoming major expenses (roofs, facades, lifts)
• neighbour conflicts
• building disputes
• structural issues
• unpaid condo fees
• plans for renovations or special assessments

Foreign buyers often skip this step and are shocked later when they receive a €3,000–€10,000 special assessment.

5. Underestimating Renovation Costs

Renovations in Portugal often cost more and take longer than buyers expect. Why?

• labour shortages in cities
• construction delays
• bureaucratic permitting
• older buildings with hidden problems
• difficulty sourcing specialised materials
• moisture and insulation issues

A €10,000 “light renovation” can easily turn into €40,000 once walls are opened up. Always add a healthy contingency to renovation estimates.

6. Not Budgeting for IMI (Annual Property Tax)

IMI is usually modest, but it’s still an annual cost that many overlook — especially those coming from countries without annual property taxes.

IMI depends on:

• location
• VPT
• municipal rates

For high-value homes, AIMI (wealth tax) may also apply.

7. Not Understanding Deposit Penalties (CPCV Rules)

The CPCV is legally binding, and the 10% deposit is serious.

• If you withdraw: you lose your deposit.
• If the seller withdraws: they must pay you double your deposit.

Foreign buyers sometimes sign CPCVs casually, not realising it’s not just a “reservation”—it’s binding contract law.

Never sign without:

• a lawyer
• a translated version (if needed)
• clarity on all terms and deadlines
• mortgage or survey contingencies (if necessary)

8. Buying on Emotion

Portugal is beautiful — beaches, tiles, sunsets, wine — and emotion can easily overpower logic, especially if you’re viewing on holiday.

Emotional buyers often:

• ignore practical issues
• overlook renovation challenges
• pay too much
• buy in the wrong area
• forget to consider internet, transport, or winter climate

Take a breath, revisit the property twice, and compare it with alternatives. A buyer’s agent or lawyer can provide objective feedback.

9. Ignoring Mould, Damp, and Humidity Issues

Portugal’s climate is mild, but many older properties struggle with:

• rising damp
• poor ventilation
• uninsulated walls
• humidity-related mould
• condensation problems

Many foreign buyers underestimate this because heating and insulation standards differ from their home countries.

Red flags:

• mould behind furniture
• bubbling paint
• musty smell
• dehumidifiers running during viewings
• wardrobes placed oddly (often to hide damp spots)

Mitigation costs can be significant.

10. Assuming the Building Has Insulation (It Often Doesn’t)

Even modern-looking buildings may lack:

• wall insulation
• thermal breaks
• double glazing
• sound insulation

This leads to:

• cold indoor winters
• overheating in summer
• high electricity bills
• noise from neighbours or traffic

Always ask for the Energy Certificate and look for:

• window type
• construction year
• insulation grade
• expected heating/cooling performance

11. Assuming Internet Is Fibre Everywhere

Portugal has excellent fibre-optic internet, but not everywhere. Urban and suburban areas are usually fibre-ready, but:

• rural areas may rely on 4G
• some properties have fibre along the road, but not to the house
• online ISP maps are often incorrect
• villages may have patchy coverage
• some islands and mountainous regions still lack full fibre coverage

Before making an offer, check fibre availability:

• in-store at MEO/Vodafone/NOS
• through a local specialist
• by confirming the fibre cabinet number

For remote workers, this is critical.

Conclusion

Foreigners can absolutely buy property in Portugal — and the process is more open and accessible than in many other parts of the world. Whether you’re coming from the US, UK, Canada, the EU, or further afield, you have the same rights as local buyers, and there are no special restrictions or permits required. But buying a home and being able to live in it full-time are two separate things. If you want to spend more than 90 days at a time in Portugal, you’ll need to think carefully about residency options like the D7, Digital Nomad Visa, or, for maximum flexibility, the Golden Visa.

Portugal is a wonderful place to live and invest, but it has its quirks — from older buildings needing renovation, to AL restrictions, to the 90/180-day rule for non-EU citizens. Navigating all of this is easier when you understand how the market works and what to look out for. While it’s not mandatory, many foreign buyers — especially first-timers — benefit from working with a buyer’s agent. A good agent can help you find suitable homes, avoid pitfalls, negotiate effectively, and handle details that are unfamiliar to newcomers.

With the right preparation, the right support, and a clear understanding of the residency rules, buying property in Portugal can be a smooth and rewarding experience — and the beginning of a great new chapter in your life.