How Can Foreigners Buy Real Estate in Portugal?

Before you can buy real estate in Portugal, you’ll have to answer many questions. First, you’ll need to prove your income in your home country. Next, you’ll want to browse real estate websites, talk to real estate agencies, and join Facebook groups. Once you have all the information, you’ll be ready to buy a property! Below, you’ll learn how to buy a property in Portugal.

Golden visa

After 2022, the golden visa program for foreigners buying real estate in Portugal will no longer be available in coastal areas. This is due to the government’s decision to spread out investments and encourage cultural heritage. The program does have geographic restrictions, however. For example, the Golden Visa is not available in the cities of Porto or Lisbon. Commercial real estate can be bought in any region of Portugal, though. There are several factors that determine whether or not a property qualifies for a golden visa.

Although the residency requirements are relatively easy to meet, they can still be confusing. For example, you must spend seven days in Portugal the first year and 14 days every two-year period after that. Additionally, you must pay a fee for the Golden Visa. The initial application approval fee is EUR5,325 and applies to the investor as well as any family members. You can complete the application process yourself, or hire a lawyer. Legal fees range from EUR6000 to EUR8000 per family.

Another way to invest in Portugal is through a Portugal investment fund. Portugal’s residence by investment program is one of the most coveted in the EU, and is a popular choice for investors looking for residency opportunities. For those with fortunes above EUR1 million, it can be a lucrative way to secure residency. However, there is no guarantee of a positive return on investment. The Portuguese government does not offer residency for every investor, but there are several options for those interested in acquiring permanent residency.

Tax regimes

While property taxes are lower in Portugal than in the U.S. or Canada, income taxes on rental properties are higher. Portugal taxes rental properties at a rate of about 28% after expenses. Because rental properties are deemed to be businesses, they are taxed like any other business, so it is important to contact your personal tax advisor to make sure you won’t be caught short by this rule. Portugal also charges tax on the purchase price, which is paid by the seller of the property.

Depending on your residency status, you may be eligible for tax exemptions on certain assets. If you’re not a Portuguese resident, your capital gains may be exempt. If you’re a UK citizen, your Portuguese assets will be taxable in your country as well. Fortunately, Portugal allows you to apply for credits for double taxation. If you sell your Portugal property, you can use the funds to purchase another one.

One important consideration for foreign buyers is property tax. In Portugal, property is taxed annually by municipalities. Each municipality assigns patrimonial values to each property. This tax amount may range from 0.5% to 8% of the purchase price, depending on several factors. The IMT applies to the sale of a primary or second home in Portugal and may affect the overall value of the property. The rate can be higher for rural properties.


Buying real estate in Portugal requires a lot of paperwork and formalities. For example, it requires you to provide proof of your income from your home country and other relevant documents. Additionally, you will have to negotiate the purchase of real estate with a Portuguese attorney and pay taxes in the country. Finally, you must sign the deeds and take possession of the property. To avoid mistakes, you should make a checklist of the things you need in a property and determine a budget. In order to determine your budget, it is necessary to factor in all closing costs. Moreover, you should know what not to buy in Portugal.

Aside from the Algarve and Lisbon, Portugal also has a number of unique locations where foreigners can buy a property. In Lisbon, investors find the market to be attractive and the Algarve region provides a variety of properties. Depending on the desired location, prices in Portugal can range from EUR2,154/m2 in Portimao to EUR3,300/m2 in Vilamoura.

While there are many benefits to buying property in Portugal, it is important to know the legalities involved. Foreigners can own property with no restrictions and purchase a property for a good price. Furthermore, property laws in Portugal are highly flexible, which means you can easily buy a property that suits your needs and budget. In addition, you can enjoy lower property costs compared to other European countries. Buying property in Portugal is a smart choice, especially if you are planning to retire in the country.


If you are a foreign national, you may wonder what the costs of buying real estate in Portugal are for foreigners. First, you will need to find a solicitor or lawyer in Portugal. Most lawyers in Portugal speak English. Another important factor is how much money you plan to borrow. Banks usually offer loans of up to 70 percent of the purchase price. Other costs include the costs of closing. Estate agents usually charge between three and five percent of the purchase price. If you’re buying a property through an estate agent, you may need to cover the fees yourself, but they are often covered by the seller.

A survey is not mandatory in Portugal but it is highly recommended, especially if you’re buying an older house. Although it is not required by law, a survey will help you find out if any hidden defects are present in the property. In addition, you’ll need a fiscal number to buy property in Portugal. You can obtain this number by contacting the local tax office, but it can also be obtained when you open a bank account in Portugal.

It’s possible to purchase land in Portugal legally without a visit. You can file your NIF application in Portugal, visit the land lot in question, set up a bank account, and meet a real estate agent in person. However, in the present day, this can prove to be a logistical nightmare. For this reason, you should consider whether you can perform these actions remotely instead of visiting the country.


The minimum deposit amount for a mortgage for foreigners buying real estate in Portugal is 30%. Depending on the lender, the maximum loan-to-value for foreigners buying real estate in Portugal is 70%. Most banks in Portugal offer loans for up to 70% of the value of the property. Other banks require additional documents based on risk assessment. However, you should be aware of the minimum deposit amount for foreigners buying real estate in Portugal.

There are several ways to obtain a mortgage for foreigners buying real estate in Portugal. First, you must be a Portuguese citizen or a fiscal resident to be able to buy property in Portugal. Portuguese banks will not lend more than 70% of the property value to foreigners. If the value of the property is $100,000, you can obtain a mortgage for 70% of its value. You must have an additional $30,000 in cash to cover the rest of the cost of the property.

You will also need to provide documentation to verify your income. Banks in Portugal typically require proof of current income such as dividend payments, pensions, rental income, and investment income. In addition to obtaining a mortgage, banks will also review your employment and debt history. Banks will then commission an independent engineer to assess the value of the property you wish to purchase. This process will require a 30% deposit, which is the standard for foreigners buying real estate in Portugal.

Is it worth buying a home in Portugal?

If you are thinking about buying a home in Portugal, the first thing to know is that the process can take from four to six months. You can speed up the process by getting pre-approved for a mortgage before you start looking for a home. Also, if you are thinking of buying an apartment, it’s wise to find out whether the building is insured. A lawyer can help you make the process go smoothly.

Property prices in Portugal are still below those of the UK, Ireland, and France. If you are thinking of downsizing, you will find the cost of living in Portugal much lower than in other European countries. The climate in Portugal is unbeatable, with warm winters and cool summers. There are only a few heavy rains a year, but the weather never becomes grey and dull. Investing in real estate in Portugal can be a good way to get a slice of European sunshine.

Another important factor to consider is the time you plan to spend in the property. Will you be staying in Portugal for a long time? Will you be using it as your primary residence or a vacation home? Or will you be renting it out? If you are buying a home to live in Portugal indefinitely, you may have to apply for a residency visa. But once you have the right visa, you can rent your home out to tourists if you choose.