Buying Property in Portugal

Buying Property in Portugal

Being one of the most family-friendly countries in Europe, Portugal is a very special place to enjoy your stay. Many expats prefer to move to Portugal thanks to many attractions. Some of these attractions are the low cost of living, affordable real estate as well as friendly residents.

The affordability of the real estate market has benefitted both locals and international investors. With the Golden Visa program, foreigners have had an opportunity to get Portuguese residency through buying property in Portugal.

The rate of homeowners in Portugal is another indication that properties are affordable to buy. Around 75 percent of the population in Portugal owns a house there.

Let’s now review the process of buying a house in Portugal.

What are the Advantages of Buying a Home in Portugal?

Buying home in Portugal comes with many benefits including Portugal’s favorable location, and the affordability of the real estate market.


In general, Portugal offers a very low cost of living compared to other European countries. Getting a Portugal property is an example of this. You can find quite affordable areas to get properties.

Low Taxes

You can get properties, stay for a certain duration, and benefit from tax breaks in Portugal. The Non-Habitual Resident (NHR) program offers this opportunity. You can become exempt from taxation on much of your foreign income for 10 years. Tax reductions are also possible. In addition, inherited properties bring no wealth or gift tax.

Besides these, Portugal has signed tax treaties with many countries worldwide. If your native country is one of them, you’ll not be subject to double taxation.


The geography of Portugal is a huge attraction for its residents. One can have access to beaches, historical areas, and buildings as well as nature reserves. In addition, its mild climate enables the country to attract more people. You can easily enjoy the landscape throughout the year in Portugal. That makes the Portugal property a great and pleasant investment.

Easygoing People

You’ll not easily feel like a foreigner in Portugal because people are quite friendly to everyone. Also, it’s a very safe country ranking as the third safest among 163 countries.

You also have more than one option when it comes to lifestyle. Buying property in Portugal is possible in metropolitan areas like Lisbon. But it’s not your only option. Portugal offers beautiful countryside where it’s possible to get properties.

The Process of Buying Property in Portugal

Before buying property in Portugal, you need to decide on your criteria. For example, you need to decide if you need a big or a small house. Or, if you’re planning to rent the property later. In addition, considering your budget in mind while searching for properties makes the process easier.

At this point, it’s highly advisable to consult a professional before buying property in Portugal. If you find licensed and experienced real estate agents, it’ll save you both time and money.

After taking these issues into account, you can find the basic steps of how to get properties in Portugal:

  • Get your Portuguese tax number (NIF) from any government finance office
  • Then, choose the property, and agree on the price with the seller
  • Make a down payment
  • Sign a CPCV. It’s a pre-sale-purchase contract, and
  • Finally, sign and notarize the property deed.

Besides the ones above, the documents mentioned below are necessary in order to sign the sales contract:

  • CPCV (Contrato-Promessa De Compra e Venda)
  • Energy certificate of the property
  • A photo ID
  • Stamp payment (Imposto de Selo), and
  • Land register (Caderneta Predial).

Portugal Golden Visa is an Option While Buying Property in Portugal

The Golden Visa Program in Portugal has offered more than 10,000 investors residency in Portugal. If buying a house in Portugal is your ultimate aim, the Golden Visa may provide more than that. For example, firstly, you buy a property in Portugal and apply for Portugal Golden Visa. When you get approval, you can bring your family members with you. Furthermore, you can live, work, and study in Portugal with your family. The visa-free access to the Schengen zone also comes with these rights.

It can even provide you with citizenship when you satisfy the necessary residence conditions.

Related Fees and Taxes While Buying Property in Portugal

  • There are certain taxes you must pay once you get properties in Portugal. IMT (Imposto Municipal sobre Transmissões) transfer tax is one of these required taxes. IMT rate is determined based on the value of your property
  • Notary and land registry fees also apply when you buy property in Portugal. Usually, they cost between 0.2 percent to 1.2 percent of the property value
  • Stamp duty (Imposto do Selo) also applies in buying home in Portugal. Usually, it costs 0.8 percent of the property value.
  • The purchase price includes VAT as well. It can apply to all newly-constructed properties.
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