Why Foreign Buyers Choose Portugal
Portugal has consistently ranked as one of Europe's most attractive destinations for international property investment. With its combination of affordable property prices compared to Western Europe, excellent quality of life, and welcoming residency programmes, it's no wonder that Russians, British, Americans and other international buyers are choosing Portugal for their European property investment.
In 2024 alone, foreign buyers accounted for over 20% of all property transactions in Lisbon and Porto — a testament to Portugal's enduring appeal.
Can Foreigners Buy Property in Portugal?
Absolutely yes. Portugal imposes no restrictions on foreign property ownership. Whether you're an EU citizen, a Russian national, a British buyer post-Brexit, or from any other country, you have the same property rights as Portuguese citizens.
The process is transparent, legally secure, and — with the right guidance — straightforward.
Step 1: Get Your NIF (Tax Identification Number)
Before you can do anything in Portugal — open a bank account, sign a property contract — you need a NIF (Número de Identificação Fiscal). This is Portugal's tax identification number.
How to get your NIF:
- Visit any Portuguese tax office (Finanças) in person
- Apply through a legal representative (recommended for non-EU citizens)
- You can now apply through a fiscal representative without visiting Portugal
The process typically takes 24–48 hours and costs €10.20.
Step 2: Open a Portuguese Bank Account
While not strictly mandatory, having a Portuguese bank account makes the purchase process significantly smoother — particularly for transferring funds and paying ongoing costs like IMI (property tax).
Major Portuguese banks that welcome international clients include:
- Millennium BCP (excellent English and Russian language support)
- Caixa Geral de Depósitos
- Novo Banco
- Santander Portugal
Step 3: Choose Your Property and Region
Portugal offers remarkable variety. Your ideal location depends on your priorities:
- Lisbon: Europe's trendiest capital, strong rental yields, cosmopolitan lifestyle
- Porto: Authentically Portuguese, UNESCO heritage, growing tech scene
- Algarve: Sunshine, golf, beach — ideal for holidays and retirement
- Cascais: Riviera lifestyle 30 minutes from Lisbon
- Comporta: Unspoilt luxury, Portugal's best-kept secret
At Alex Estate, our multilingual team helps you identify properties that match your lifestyle, investment goals and budget. Contact us at alexestate@qvisa.eu or +351 965 007 667 for a personalised consultation.
Step 4: Hire a Portuguese Property Lawyer
This step is non-negotiable. A qualified property lawyer (advogado) will:
- Conduct full due diligence on the property
- Verify there are no debts, liens or legal encumbrances
- Review and negotiate the purchase contract
- Represent you at the notary
- Handle property registration
Legal fees typically range from 1–1.5% of the purchase price.
Step 5: Sign the CPCV (Promissory Contract)
The Contrato de Promessa de Compra e Venda (CPCV) is the preliminary purchase contract. When you sign it:
- You pay a deposit (typically 10–30% of the purchase price)
- The seller is committed to selling to you
- If the seller pulls out, they must return double your deposit
- If you pull out, you forfeit your deposit
This contract formally takes the property off the market.
Step 6: Pay Taxes Before Completion
Two key taxes must be paid before the final deed:
IMT (Imposto Municipal sobre as Transmissões)
This is the property transfer tax. Rates vary from 0% to 7.5% depending on the property value and intended use (primary residence vs investment).
Example for a €500,000 investment property:
- IMT rate: approximately 6–6.5%
- IMT payable: approximately €30,000–32,500
Stamp Duty (Imposto de Selo)
A flat 0.8% of the purchase price, paid before completion.
Step 7: Sign the Final Deed (Escritura)
The Escritura Pública de Compra e Venda is the final notarial deed that transfers ownership to you. It is signed at a Notary (Cartório Notarial) and requires:
- Buyer and seller (or their representatives)
- Your lawyer
- The notary public
- Original identification documents
At this point, you pay the remaining purchase price, and the keys are handed over. You are now a Portuguese property owner.
Step 8: Register Your Property
Within 30 days of the Escritura, your lawyer must register the property in your name at the Conservatória do Registo Predial (Land Registry). This is what makes your ownership officially and publicly recorded.
Ongoing Costs to Budget For
| Cost | Amount | Frequency |
|------|--------|-----------|
| IMI (Property Tax) | 0.3–0.45% of rateable value | Annual |
| Condominium fees | €50–500/month | Monthly |
| Contents insurance | €200–1,000/year | Annual |
| Property management | 8–15% of rental income | If renting |
Total Purchase Costs to Budget
Beyond the purchase price, budget approximately 7–10% for transaction costs:
- IMT: 0–7.5% (depending on property value and use)
- Stamp Duty: 0.8%
- Legal fees: 1–1.5%
- Notary and registration fees: 0.5–1%
Ready to Start Your Portuguese Property Journey?
Alex Estate is a boutique real estate agency based in Lisbon, with a multilingual team fluent in English, Russian and Portuguese. We specialise in helping international buyers find and acquire premium properties across Portugal.
Contact us today:
- Email: alexestate@qvisa.eu
- Portugal: +351 965 007 667
- Russia: +7 920 070 0607
We offer free initial consultations and can guide you through every step of the buying process — in your language.