A practical 14-step walkthrough for first-time foreign buyers. From your first market research to keys in the door: what to do, in what order, and where to be careful.
Can foreigners buy property in Portugal?
Yes. There are no nationality or residency restrictions on buying property in Portugal. You’ll need a NIF (Portuguese tax number) and, in practice, a Portuguese bank account. Since 2026, non-residents pay a flat 7.5% IMT on homes, so budget more than the old 6–8% rule of thumb if you don’t plan to move here.
I’ve been looking at Portuguese property listings since around 2012. Some things have improved enormously. Back then the photos looked like they’d been taken on a family digital camera, sometimes with the owners still in the room, and in at least one case with the dog. Now most listings have professional photos.
Other things haven’t changed at all. Listings still won’t tell you where the house is, or sometimes how big it is. Sellers still insist the pool that isn’t on the plans is “not an issue.” And houses can still be colder inside than the street outside. I’ve lived in the north, in Lisbon and in the Algarve, and the houses are different in each, but those surprises turn up everywhere.
None of it is a reason not to buy. All of it is easier when you know it’s coming. This page walks you through the process in the order it actually happens, with what I’ve seen since I started helping readers find property here in 2016, and what the agents and lawyers on my webinars have seen go wrong at each step.
At a glance
The numbers to know
💶 Buying costs: 6–8% if you’re resident; around 9–10% as a non-resident
🏛️ IMT for non-residents: flat 7.5% on homes, plus 0.8% stamp duty
🤝 CPCV deposit: 10% (20–30% for some non-residents)
🏦 Non-resident mortgages: usually 60–75% LTV
⏳ CPCV to keys: about 2 months cash, 2.5–3 with a mortgage
🔍 Survey: €300–€800
⚖️ Independent lawyer: ~1% of the price
Where Do You Want to Start?
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The full guide
All 14 steps in order, from choosing a buyer’s agent to registering the property in your name.
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Just show me how to get a buyer’s agent
We’ll introduce you to one we trust: on your side of the table, and paid through the seller’s commission, not by you.
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Just show me the pitfalls
The mistakes that cost foreign buyers their deposit, or tens of thousands in repairs.
The short version
How to Buy a House in Portugal: The 14 Steps
Three stages. Most of the risk sits in the middle one, between finding a property and signing the CPCV.
Before you start looking
Find and check the property
Complete the purchase
Get help
Find a Buyer’s Agent Who Works for You, Not the Seller
Most Portuguese estate agents are paid by the seller, work for the seller, and represent the seller. A buyer’s agent does the opposite. We work with a small number of buyer’s agents, and we’re very careful about which ones.
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No fee to you
The buyer’s agents we work with are paid by the seller-side agent through a standard commission split, so you don’t pay them.
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Transparent
They should explain who pays whom, and how, before they start. If one won’t, we don’t work with them.
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English-speaking
They handle the WhatsApp threads, the bank emails, the notary scheduling, and the municipality calls. In English, to you.
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Chosen carefully
“Buyer’s agent” isn’t a protected term in Portugal. You don’t want someone who will simply push you to purchase the property. They’d get the biggest commission on.
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How is it free for you, really?
Seller-side agents in Portugal typically charge the seller around 5% commission. When a buyer’s agent introduces the buyer, a portion of that 5% is paid across as a finder’s fee: a standard commission split between the two agencies. The seller’s agent still gets a healthy fee. The buyer’s agent gets paid for representing you. You pay nothing extra.
Not all buyer’s agents are free. Some charge for their services and say that this allows them to be unbiased. If your buyer’s agent is working for you for free on a commission-split basis and the seller’s agent doesn’t want to split the commission, they may need to charge you if they are going to continue representing you. A good buyer’s agent will explain the situation when it happens, rather than trying to covertly steer you towards a property they’d get a commission on.
Tell Us What You’re Looking For
Region, budget, type of property, timeline. We’ll come back within 48 hours with an introduction and a no-obligation chat. We can also help you plan a scouting trip if you haven’t settled on an area yet.
I Want To Buy a Property in Portugal
Read this first
How Buying Property in Portugal Is Different
Notaries, agents and lawyers play roles that don’t map neatly onto American or British expectations. And the day-to-day process runs on relationships and WhatsApp as much as it does on paperwork.
✗ What you won’t find
- No MLS: listings are spread across portals and agents’ own websites
- No escrow: your deposit goes straight to the seller
- No title insurance industry
- No standardized seller disclosures, and no records of materials in most older buildings
✓ What you will find
- Strong legal protections for foreign buyers
- Notaries, agents and lawyers in unfamiliar roles
- A process that runs on relationships and WhatsApp
- More illegal extensions, annexes and pools than you’re used to
None of that means it’s risky. It means knowing the order things happen in, and where to be careful, matters more than it would at home. Bruno Silva, a buyer’s agent who spent nearly 20 years in Canada before moving back to Ponte de Lima, puts it best:
You’re used to 100 miles an hour. When you come to Portugal, think 10 miles an hour.
Bruno Silva, Exclusive Homes Portugal, on my February 2026 webinar
The market has also sped up. When I was coming out here as an adult between 2008 and 2012, properties sat on the market for a long time. Now good ones go quickly, and offers over the asking price are far more common than they were.
Before you start
Should You Buy or Rent First in Portugal?
It’s genuinely up to you. Most of the people I see who move on a D7 or D8 visa rent first and buy later. But I’ve also had readers rent and buy without ever having visited Portugal, and they’re still happy.
The real question
What would it cost you to change your mind? Moving at the end of a lease is easy. Selling a house you’ve just bought isn’t cheap here.
| The cost of changing your mind | Roughly |
|---|---|
| Buying costs (paid when you buy) | 6–8% resident; 9–10% non-resident |
| Estate agent commission when you sell | Typically about 5%, plus 23% VAT on the commission (22% in Madeira and 16% in the Azores) |
| Capital gains tax | Depends on your residency and the gain |
| Other selling costs | Energy certificate, lawyer, any documents the câmara asks for |
Put those together and buying, then selling within a few years, can cost 12–16% of the price before any capital gains tax. A rising market can cover that. You can’t count on it.
✓ Rent first if…
- You haven’t spent a winter in the area
- You’re choosing between towns, not streets
- You want to learn what good value looks like before you pay for it
✓ Buy first if…
- You already know Portugal, and the town, well
- You’ve found the right place and the numbers work
- You’re comfortable being a landlord or seller if it doesn’t work out
Renting in Portugal → · Selling property in Portugal → · Selling without an estate agent →
Step 1 of 14 · Optional, but do this first
Step 1: Speak With a Buyer’s Agent
A buyer’s agent isn’t essential, but if you’re going to use one, speak to them before you start contacting estate agents yourself.
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Why the order matters
In Portugal, once you’ve inquired about a property through a seller-side estate agent, that agent typically “owns” you as the lead. If you later try to involve a buyer’s agent, the seller-side agent may refuse the commission split, which means your buyer’s agent can no longer represent you on that property without charging you directly. Paulo Silva, who has worked as a buyer’s agent since around 2013, says he’d typically ask about 1% in that situation.
I’d rather be told up front that there’s a fee on the house I want than be quietly steered toward a different one that pays better. If an agent won’t have that conversation with you, that tells you something.
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“Buyer’s agent” isn’t a protected term
Anyone can call themselves one, and there are good and bad ones here. The right one works with you, not just for the commission on whichever house pays them most. Ask how they’re paid on each property, and check they work through a licensed agency: licensed agencies have an AMI number from the regulator, IMPIC, and it’s a fair thing to ask to see.
What About Off-Market Properties?
You’ll hear that a buyer’s agent unlocks off-market properties: homes that haven’t been listed on Idealista or Imovirtual. The agents I’ve had on webinars disagree about how much that’s worth.
There’s just no rationale for you to keep your property off market if you want to maximize the value.
Miguel Tabuado, Moviinn, May 2026 webinar
Over the last couple years, probably between 15 and 20% of the deals that I’ve made have been off market.
Bruno Silva, Exclusive Homes Portugal, February 2026 webinar
Both can be true. Miguel was talking about homes under about €1 million, where a public listing gets the seller the best price. Bruno works the north, where plenty of sales still happen by word of mouth. My view: off-market homes exist, mostly at the top of the market and in smaller towns, but I wouldn’t choose an agent because they promise them.
What to ask in the first call
Where do you want to live? What’s your budget? What does “the right property” look like: city apartment, beach villa, countryside quinta? A good buyer’s agent will help you narrow this fast, then start scouting from day one.
Get introduced to a buyer’s agent
One we trust: free to you, English-speaking, and on your side of the table.
Step 2 of 14
Step 2: Research the Market
Before you fall in love with any property, work out three things: how much it will cost to buy, where you actually want to live, and what you want from the home itself.
1. Figure Out the True Cost of Buying
Budget for
6–8% on top of the price if you’re a Portuguese tax resident. As a non-resident buying a home, closer to 9–10%, because IMT is now a flat 7.5%. On a €500,000 home, that’s roughly €30,000–€40,000 for a resident and €47,000–€49,000 for a non-resident.
| Cost | What it is | Typical amount |
|---|---|---|
| IMT | Property transfer tax | Sliding scale up to ~7.5% for residents; flat 7.5% for non-residents buying a home |
| IS | Stamp duty (Imposto do Selo) | 0.8% |
| Notary and registry | Fees for the deed and registration | ~€800–€2,000 |
| Lawyer | Your independent advogado | ~1% |
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New in 2026: the 7.5% IMT rate for non-residents
Decreto-Lei 97/2026, published on May 20, 2026, replaced the sliding scale with a flat 7.5% IMT for non-residents buying residential property. The reports I’ve read describe two ways to claim the difference back: become a Portuguese tax resident within two years of buying, or rent the home out at €2,300 a month or less for at least 36 months. Miguel Tabu flagged it on my May 2026 webinar the week it was approved, and it’s the biggest change to buying costs in years. Ask your lawyer which rate applies before you sign the CPCV, not after.
How much will it actually cost?
Enter the purchase price and see your estimated IMT, stamp duty, notary fees, and total cost of buying.
The full breakdown: How much does buying a property in Portugal really cost? →
2. Decide Where You Actually Want to Live
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Lisbon and Porto
Cosmopolitan, but expensive. Porto is still much cheaper per square meter than Lisbon.
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The Algarve
The best weather and the largest expat community, and more variety than people expect. Go inland and it’s slightly cheaper than the coast. Lagos and the Golden Triangle around Quinta do Lago and Vale do Lobo are the expensive end.
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Aveiro, Setúbal and Braga
Three of my favorites. Braga has grown seriously popular in the last few years. On my May 2026 webinar, Miguel Tabu picked Braga, Coimbra and Setúbal as the cities to watch.
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The Azores
I think they’re beautiful. I’d probably choose São Miguel or Terceira, because they have more services. There’s something beautiful about the remoteness of Flores, and living on one of the central islands puts several others within easy reach.
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Madeira
Fantastic hiking, great views from your property on most of the island, and that mild weather all year.
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Visit before you commit
A vacation in summer is a very different thing from living somewhere in winter. We can help you plan a scouting trip.
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Check what your budget gets you
Browse Idealista and Imovirtual. If the answer is “not what I want,” widen your search radius rather than your wallet.
3. Make a Wishlist, and a “Non-Negotiable” List
3 bedrooms? Garage? Pool? Garden? Walking distance to a beach? Air-conditioning? A wishlist is helpful. A short list of non-negotiables (the things you’d walk away over) is even more helpful, both to keep yourself honest and to brief any buyer’s agent you’re working with.
Put insulation and heating on it. On my May 2026 webinar, Miguel Tabu said foreign buyers look at insulation, air-conditioning and layout far more closely than Portuguese buyers do. I think that’s because we’re the ones who find out in January.
Step 3 of 14 · Optional if paying cash
Step 3: Get a Portuguese Mortgage Simulation
If you’ll be financing any part of the purchase, get a pre-approval simulation from a Portuguese bank or broker before you start serious viewings. You’ll know your borrowing range, and you’ll be far more credible to sellers.
| Portuguese mortgages | What to expect |
|---|---|
| Loan-to-value, non-residents | Usually 60–75%, occasionally 80%. It’s bank policy, not a legal cap |
| Loan-to-value, residents | Up to 90% for your permanent home, 80% otherwise (Banco de Portugal limits). |
| Term | Capped by age: the loan typically has to end by 70–75, depending on the bank |
| Rates | Around 3.5–6% |
| Insurance | Life and building insurance are mandatory |
| Approval time | Usually 3–6 weeks once you have a specific property |
| Lender | Has to be a bank operating in Portugal |
| Extra stamp duty | Normally 0.6% of the amount borrowed |
Plenty of the Americans I hear from take a mortgage even when they could pay cash, because rates here have often been lower than at home. The same has been true for British buyers. It’s worth running the numbers before you assume cash is the better option.
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Americans: your bank at home won’t lend on a Portuguese house
A US (or Canadian or UK) bank won’t write a mortgage on a property in Portugal. Paulo Silva, a former banker, says the buyers he’s seen do it without a Portuguese mortgage borrowed against their home back in the US or France and brought the cash over. Income doesn’t have to be a salary: pensions and dividends count, as long as you can show you’ll repay.
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Pre-approval is not full approval
A pre-approval confirms your income range. Final approval only comes after the bank’s valuer visits the specific property. Where the seller allows it, Paulo advises getting the bank’s valuation done before you pay any deposit. More on valuations in Step 10 ↓.
Simulate your Portuguese mortgage
Enter the property price, deposit and term to see your monthly repayment and the maximum you’re likely to be lent.
Financing the purchase? Getting a mortgage in Portugal →
Step 4 of 14
Step 4: Line Up Your Team and Your Paperwork
You’ll want three people lined up before you make an offer, and two pieces of paperwork. The exact moment you engage each one varies, but knowing who they are makes the rest of the process much faster.
What I’d do
Use all three. A lawyer, 100% of the time. A buyer’s agent, as long as it’s the right one. And a survey. As a cautious buyer, I’d want every layer of protection available.
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An independent lawyer (advogado)
Not the agent’s recommended lawyer. Not the seller’s lawyer. An advogado who works only for you. They run due diligence, draft or review the CPCV with protective clauses, and represent you at the escritura. Expect to pay around 1% of the purchase price, sometimes a flat fee for smaller properties.
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A property inspector or surveyor
Not culturally standard in Portugal, but increasingly common for foreign buyers. A proper survey costs €300–€800 and can save you tens of thousands.
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A buyer’s agent (if you haven’t already)
If you skipped Step 1, now’s the time. They’ll handle viewings, negotiations, document coordination, and notary scheduling, and they’re paid by the seller-side commission, so you don’t pay them.
Paperwork to sort early
NIF (Portuguese tax number)
Every agent I’ve had on a property webinar says the same thing: get this first. You can’t sign the CPCV or the deeds without one. Non-residents can get one remotely through a tax representative.
A Portuguese bank account
Paulo Silva says the CPCV deposit can come from any bank in the world, but the balance at the deed has to come from a Portuguese account, yours or your representative’s. I’ve seen people try to get by with Wise or something similar. My advice: just open a Portuguese bank account. It’s easier, and without Multibanco you’ll find paying many everyday bills awkward.
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We can recommend people we’ve worked with
Lawyers, surveyors, mortgage brokers: independent professionals we’ve sent dozens of clients to. Get in touch ↓
Step 5 of 14
Step 5: Find a Property You Like
With your research, costs, and team in place, the actual hunt begins.
If you’re working with a buyer’s agent, they’ll shortlist properties and arrange viewings, and email seller-side agents first so the commission split is preserved.
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Buying from abroad?
If you’re not yet in Portugal, ask your buyer’s agent to visit on your behalf. Many will do a full video walkthrough on WhatsApp or record the place for you. It’s not as good as being there, but it’s good enough to shortlist. Paulo Silva goes further and films the street and the drive around the neighborhood, because the house is only half of what you’re buying.
Five Quirks of the Portuguese Property Search
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Addresses are usually hidden
Listings show a parish or rough map pin, not the street. Agencies hide addresses so competitors and buyers can’t contact the seller directly. You can’t research the area until you (or your buyer’s agent) have contacted the seller’s agent.
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Duplicate listings are standard
Most properties are listed non-exclusively, so the same house appears across multiple agencies, sometimes at different prices, with different photos or descriptions. Assume any listing you like is also listed elsewhere.
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“Bait” listings exist
Attractive prices for properties that already sold, were never available, or exist mainly to generate inquiries. Not universal, but treat any unusually good listing with healthy skepticism until a viewing is confirmed.
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WhatsApp is the real channel
Viewings, offers, document forwarding, follow-ups: all on WhatsApp. It feels informal but it’s standard practice. If it matters legally or financially, send it again by email. You want a paper trail when contracts are involved.
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Asking price is an opening, not a verdict
Older homes, rural properties, and long-listed apartments are usually priced optimistically. Offering 5–15% below asking is normal; larger reductions are possible for properties that have sat unsold. Prime urban areas can still go above asking when cash buyers compete.
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Where to search
There’s no single dominant portal, and no Zillow or Rightmove equivalent that has everything. Bruno Silva estimates 80–90% of listings are on Idealista; the rest sit on agents’ own websites.
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What I still find frustrating
The listings with no address, and sometimes no size. I’m used to seeing close to the exact address. (Americans may not be, since US listings don’t always show it either.) Somewhere I know well, like Lisbon, I can usually work out roughly where a place is, but not exactly, and that matters when you’re weighing schools, supermarkets and public transport nearby. So you email every agent, one by one, and some reply to say it sold months ago.
The other thing that surprises people: prices that go up when a house doesn’t sell. I’ve seen properties listed, sit unsold, then come back on the market €50,000 higher, sometimes more. Some sellers are testing the ceiling rather than trying to sell.
Step 6 of 14
Step 6: Document Due Diligence
Found a property you like? Before you put in an offer, your buyer’s agent and lawyer should verify that what’s on paper matches what’s on the ground. A Portuguese property is defined by three separate official records, and they don’t always agree.
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Certidão Permanente
Land Registry. Who legally owns it, how, and any mortgages or claims against it. It comes with a code you can use to check it online.
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Caderneta Predial
Tax Registry. Official value, property type (urban/rustic), and size on record. This is where you check the square meters you’re actually buying.
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Licença de Utilização
Habitation License. Confirms the building was constructed to approved plans and is authorized for residential use.
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Simplex 2024: legal to sell ≠ legal to live in
Since 2024, the notary no longer requires a valid habitation license to complete a sale; the buyer can waive it. But waiving the license does not legalize the building. It only shifts the risk to you. Most Portuguese banks still refuse to lend on properties without a valid license. Paulo Silva’s rule is simpler: never buy without one, because the law could swing back and leave you unable to sell. Buildings from before 1951 are generally exempt, but he still asks the câmara (city hall) for a document confirming the exemption, since later unlicensed work can cancel it.
What Due Diligence Actually Turns Up
I’ve been in deals where there’s as many as 27 people to sign for a deed, and if one of them doesn’t sign, the deal doesn’t go through.
Bruno Silva, Exclusive Homes Portugal, on my February 2026 webinar
Why Your Lawyer Won’t Catch Everything
Lawyers read documents. They don’t usually visit the property, and that’s the gap.
The lawyers check papers. They don’t see any swimming pool on the papers. But I saw a swimming pool.
Paulo Silva, Exclusive Homes Portugal, February 2026 webinar
I’ve had this email more than once: the pool isn’t legal, but the seller says it’s not an issue, and so does the estate agent. Here’s the thing. If it wasn’t an issue, they’d register it themselves, because a legal pool would let them sell the house for a lot more.
Illegal isn’t automatically a dealbreaker. Scott’s advice is to go to the câmara yourself, before they come to you: councils are far more willing to legalize something you’ve volunteered than something they spotted on a satellite photo. It also works as leverage on price.
Step 7 of 14 · Optional but strongly recommended
Step 7: Arrange a Home Inspection
Surveys aren’t culturally standard in Portugal. Estate agents don’t push them. Notaries don’t require them. Lawyers don’t inspect buildings. Unless you commission one, nobody else is checking the structure for you.
A proper survey costs €300–€800. The potential saving is tens of thousands. It’s worth doing on anything older than a recent new-build, and essential for stone houses, rural properties, and anything with a tiled roof.
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Do it before the CPCV, not after
In the US or Canada you’d make an offer “subject to inspection.” Bruno Silva says that mostly doesn’t work in Portugal: a survey usually can’t be used as a condition to walk away. So get it done before you sign anything binding, and accept that you might pay for a survey on a house you don’t buy.
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The bubbling-paint test
Bubbling paint on a wall costs ~€200 to repaint. Fixing the cause (rising damp, water ingress, roof leakage, failed render) costs €5,000–€20,000+. The agent will tell you it’s “just a bit of paint needed.” A survey tells you whether that’s true. Mold that’s been painted over before a sale is common, and a surveyor can still spot the signs.
The checklist
What to inspect
✔ Roof structure and water ingress (especially traditional tiled roofs)
✔ Wall moisture readings
✔ Window glazing: single-glazed aluminum is common, and expensive to replace
✔ Ventilation: older homes rarely have any
✔ Drainage and ground levels around the foundations
✔ Electrical system age and safety
✔ Plumbing condition
✔ Water supply: is the borehole actually producing water?
✔ Signs of structural movement
✔ The shared areas of the building, if it’s an apartment
The Cold House Problem
The first winter I rented in the Algarve, I’d be taking layers off outside and putting on gloves and a jacket when I went back indoors.
That’s normal here. Much of the older housing stock, especially in the Algarve, was built for summer: little insulation, no ventilation, and humidity that has nowhere to go. Bruno Silva’s fix for damp and black mold is mechanical ventilation (a VMC or CTA system) before you touch the kitchen or bathroom; he puts it at about €7,000–€8,000 for a home of up to 300 cubic meters. Paulo adds one rule of his own: avoid ground-floor apartments, which get more damp, less light and less privacy.
More and more of the people I speak to are budgeting for upgrades from day one: external insulation (capoto), solar panels, heat pumps, and air-conditioning units that also heat. If you’re planning any of them, price them before you make an offer, not after.
Who Should Do the Survey?
An engineer, an architect, or one of the inspection companies aimed at international buyers. Some of the expat-focused companies are very good and go further than a typical engineer’s report. But a lot of them have popped up recently, some run by people who’ve only just moved here themselves and may not know Portuguese houses well. Ask what they’ll check, whether you’ll get a written report, and how long they’ve been doing it here.
Buying New: Fewer Problems, Not No Problems
Over the past few years I’ve seen a big rise in people wanting new properties, and a boom in building to match. I think a lot of that is the difficulty of renovating an older house here. A new build solves plenty: insulation, windows, ventilation, parking. It doesn’t solve everything. You’ll still have a punch list of snags, and I’ve seen new apartments with noise problems despite being, presumably, better insulated.
We found out that this property was just ready for the habitation license for about 15 years.
Scott Kirk, BuyProperty.com, on my July 2024 webinar, about a house still marketed as nearly finished, with rebar sticking out of the roof
Building standards had changed in the meantime, so finishing it would have meant redoing work. The buyer walked away. With anything new or nearly new: research the developer, have the property inspected before the deed, and get the specification, completion date and your right to have defects fixed in the CPCV. Professional sellers are generally liable for structural defects for 10 years and other defects for five.
Step 8 of 14
Step 8: Put in an Offer
Is it binding?
No. Until a written contract exists, either side can walk away without penalty, and nothing stops a better offer from arriving the next day.
In Portugal, most offers begin verbally. You tell the agent your price, your timeline, whether you need a mortgage, and how much you’ll put down at the CPCV. The agent takes it to the seller. There may be a bit of back-and-forth. When agreement is reached, everyone considers the property “agreed,” but at this stage, nothing is legally binding.
✓ What works
- Opening about 15% under on a property that’s overpriced, then meeting in the middle. Paulo Silva says deals often land around 10% below.
- On new builds and off-plan, asking for upgrades (better appliances, finishes) instead of a discount. Developers rarely cut the price.
- Moving quickly to the CPCV if there’s competition.
✗ What doesn’t
- Offers 50% under asking. Camille Ramiere of Bloom Spaces has seen sellers simply stop replying.
- Assuming an accepted offer means the house is yours.
- Paying anything before your lawyer has read it.
- Agreeing to pay part of the price “in cash.” Some sellers ask. It’s illegal, and a lower declared price means a bigger capital gains bill when you sell.
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The “reserva”: sometimes asked for
Some agencies ask for a reservation agreement (reserva) to take the property off the market, typically €2,000–€10,000, held for 15–30 days while due diligence runs. The catch: reservation agreements in Portugal are lightly regulated and often poorly drafted. Refund conditions can be vague. Money sometimes goes to the agent directly rather than into escrow. Don’t sign one, and don’t pay anything, without your lawyer reviewing it first. Many experienced buyers skip the reserva entirely and move straight to the CPCV.
Step 9 of 14 · Read this section twice
Step 9: Sign the CPCV (Promissory Contract)
The Contrato de Promessa de Compra e Venda is Portugal’s equivalent of going under contract, or exchanging contracts in the UK. Once signed, the deal is binding.
The deposit (sinal)
Usually 10% of the purchase price (sometimes 20–30% for non-residents), and it goes directly to the seller. Not into escrow. Not into a notary account.
This is also the single biggest risk point for foreign buyers, because Portuguese deposit law is asymmetric:
If the buyer defaults
The seller keeps the entire deposit. Automatically.
If the seller defaults
The seller must pay back double. It does happen: Bruno Silva has had sellers simply not turn up on the day of the deed.
The Clauses to Ask For
Portuguese courts are slow and don’t follow precedent the way US or UK courts do. That’s the real argument for getting the contract right: fixing a problem in the CPCV is cheap, and fixing it afterward rarely is.
Without these, you have no cooling-off period and no “subject to” assumption. You can lose your full deposit if your mortgage is refused, the valuation comes in low, or a licensing problem surfaces later. Some sellers won’t accept any clauses at all. If that’s the house you want, the due diligence has to be finished before you sign.
On the inventory: I’ve heard from buyers at both extremes. One had to rent a dumpster for the furniture that was left behind. Another arrived to find the light bulbs gone.
More on the promissory contract: The CPCV explained →
Step 10 of 14 · Where many deals quietly break
Step 10: Await the Bank’s Decision and Valuation
If you’re financing, the CPCV is the trigger for the bank to instruct its own valuer. Their number is what counts, not what you agreed to pay. It usually takes two to three weeks, longer in August.
Expect
The valuation to come in below the price more often than not. Paulo Silva usually sees up to 10% below; in fast-rising areas the gap can be bigger, and occasionally the bank values above the price. If it comes in low, the gap becomes your problem.
A Real-World Example
| Amount | |
|---|---|
| Price you agreed | €500,000 |
| Bank’s valuation | €420,000 |
| Loan at 70% LTV (of valuation, not price) | €294,000 |
| Extra cash you must find, or lose your deposit | €56,000 |
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This is why your CPCV needs a valuation clause
If your CPCV (Step 9 ↑) included a mortgage-approval and bank-valuation clause, you can renegotiate or withdraw without losing your deposit. Without it, you have to find the cash gap or walk away, losing 10% of the purchase price.
One thing the valuation isn’t: an inspection. Bruno Silva has watched bank valuers walk through a house in three minutes. Don’t take a mortgage thinking the bank will check the building for you.
Step 11 of 14
Step 11: Pay the Taxes and Arrange Logistics
In the days before the escritura, several things happen in parallel. Your buyer’s agent will coordinate most of this; you just need to have the funds ready, in a Portuguese account.
Taxes, due before the escritura
IMT: Property Transfer Tax
The big one. For residents, a sliding scale from 0% up to around 7.5% depending on price, primary-residence status, and property location. For non-residents buying a home, a flat 7.5% since Decreto-Lei 97/2026 (see Step 2 ↑). Must be paid before the escritura. Your lawyer will give you the exact figure.
IS: Imposto do Selo (Stamp Duty)
0.8% of the purchase price. Also payable before the escritura.
Logistics
Home insurance
Mandatory if you have a mortgage. Recommended even if you don’t. Cover for the building (not contents) is usually €200–€600/year depending on size and location.
Utility transfers
Electricity (EDP / Endesa / Galp), water (council), gas if applicable, internet. Your buyer’s agent can arrange these to switch to your name on completion day. Otherwise, expect to spend a day on hold.
Every tax and fee in one place: The cost of buying property in Portugal →
Step 12 of 14
Step 12: Sign the Deeds (Escritura)
The escritura is the final deed, signed at the notary’s office, in person (or by power of attorney if you can’t attend). The notary reads the document aloud, both parties sign, the balance is paid, and the property changes hands.
Your lawyer and buyer’s agent will attend with you and translate as needed. If you don’t speak Portuguese, the notary may require a sworn translator. Your lawyer will arrange this in advance.
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Keys handed over at the end
Once everything is signed and the funds confirmed, the seller hands you the keys. It’s yours.
More on signing the deeds: The escritura explained →
What to bring
On the day
✔ Your passport
✔ Your NIF
✔ Proof of funds
✔ The balance, in a Portuguese bank account
Step 13 of 14
Step 13: Register the Property in Your Name
How long it takes
Usually a few weeks, but it can stretch to several months in busy regions.
After the escritura, your lawyer files the new deed with the Conservatória do Registo Predial (Land Registry) and with Finanças for tax purposes. This is what makes you the official, recorded owner.
You’ll receive notarized deed copies and an updated Caderneta Predial in your name once it’s done.
Step 14 of 14
Step 14: Move In and Enjoy
You own a piece of Portugal. Bem-vindo. A few small things in the first weeks:
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Meet the condominium administrator
If you bought an apartment, introduce yourself.
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Check your IMI details
Confirm your IMI (annual property tax) details are correct. It’s set by each municipality, typically 0.3–0.45% of the tax value for urban property, with an extra AIMI charge above €600,000.
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Make a Portuguese will
Portugal has forced-heirship rules, so without a will your home may not pass the way you’d expect.
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Recycling collection
Sign up for the council’s recycling collection schedule.
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Find your local pastelaria
That last one is the most important.
Land and ruins
Buying Land or a Ruin in Portugal
The countryside ruin is the dream a lot of readers email me about. It can be a great deal, but it has its own rules, and all of them come before the price.
The first question
Is the land urban or rustic? On rustic land you generally can’t build a house, only a small agricultural building, depending on the plot size.
A ruin is only as good as its paperwork
A ruin on rustic land can sometimes be rebuilt, but only the part that was legally built, at roughly the same size. Miguel Tabu’s advice: take the documents to the câmara before you buy and confirm what’s legal. Anything that isn’t, the council can order demolished.
Every câmara has its own rules
What’s allowed in Lisbon differs from Faro, Porto or Coimbra. Check the municipal zoning plan (PDM), and consider having an architect file a prior information request (PIP), which tells you what you’re allowed to build before you commit.
The owners may be hard to find
A handwritten “For Sale” sign painted on a wall can lead to a private sale, but check the ownership carefully. Some properties are part of an inheritance that has never been divided, potentially involving heirs living abroad. All relevant heirs generally need to agree to the sale, although they can authorise someone to represent them through a power of attorney. For rural and mixed-use properties, check whether the land has been properly identified and registered. Portuguese law generally requires georeferenced identification of these properties for a sale. Where the municipality does not already have an applicable cadastral map, this is normally done through BUPi, the government’s land-identification platform.
Water and power
Many ruins have neither. Budget for the connection, and have a surveyor check any borehole actually produces water. Scott Kirk has seen one that was dry. If the water crosses a neighbor’s land, you need a registered right to it, not just a pipe.
Protected land and fuzzy boundaries
Some rural houses sit on protected agricultural or ecological land (RAN or REN) and are close to impossible to legalize. Many plots have never been properly surveyed, so get the boundaries established before you buy.
A mobile home isn’t a loophole
A prefab, cabin or container you live in is still a home under planning rules. Scott Kirk says the council in Loulé has said it will clamp down on the mobile homes foreigners have put on rural land.
Wildfire duties
Rural property owners must manage vegetation to reduce wildfire risk. The standard clearance zone is 165 feet (50 metres) around homes bordering forested land, or 33 feet (10 metres) where the surrounding land is agricultural. Around qualifying built-up areas bordering forested land, the standard protection zone extends to 330 feet (100 metres). These areas must be maintained, with annual clearance deadlines set by the authorities.
The upside is real, though. Scott described a property on two plots where only the main house was legal; everything else could be legalized with an architect’s project.
Common mistakes
Pitfalls of Buying Property in Portugal
Every one of these is covered in the steps above. Here they are in one place.
Thinking about Moving to Portugal?