Can foreigners buy property in Portugal?

Yes. Portugal places no restrictions on foreign nationals purchasing property, regardless of citizenship. Both EU and non-EU citizens can buy freely, subject to the same legal process and tax obligations.

What is a NIF and do I need one to buy property in Portugal?

A NIF (Número de Identificação Fiscal) is Portugal's tax identification number. You must have one before signing any purchase contract or opening a bank account. Non-residents can apply at a tax office or through a fiscal representative.

How much does it cost to buy property in Lisbon including taxes?

Budget 7%–10% above the purchase price for total acquisition costs. This includes IMT transfer tax (variable, typically 6%–8% for secondary/investment properties), stamp duty (0.8%), notary and registry fees, and legal fees (1%–2%).

Can non-residents get a mortgage in Portugal?

Yes, Portuguese banks lend to non-residents, though typically at lower LTV ratios — usually 60%–70% of the appraised value versus up to 90% for residents. Proof of income and assets from your home country is required.

What is the Promissory Contract (CPCV) in Portugal?

The CPCV (Contrato de Promessa de Compra e Venda) is the binding preliminary contract signed before the final deed. The buyer typically pays a 10%–20% deposit. If the buyer withdraws, they lose the deposit; if the seller withdraws, they owe double the deposit.

Do I need a lawyer to buy property in Portugal?

While not legally mandatory, engaging an independent property lawyer is strongly recommended. They conduct title searches, verify licences, review contracts, and represent your interests at the notary — protecting you from costly surprises.

Complete Guide to Buying Property in Lisbon as a Foreigner

Why Foreigners Are Buying in Lisbon

Lisbon has become one of Europe's most sought-after destinations for international property buyers. A combination of year-round sunshine, a low cost of living relative to Western European capitals, cultural richness, and a welcoming attitude toward foreign residents has made Portugal — and Lisbon in particular — a top destination for relocation, investment, and second-home ownership.

The good news: Portugal places no legal restrictions on foreign nationals purchasing property. Whether you are an EU citizen or from outside the EU, the buying process is largely the same. What differs is how you structure your purchase, the taxes you may owe, and what financing is available to you.

Step 1: Get Your NIF Number

Before you can sign any contract or open a Portuguese bank account, you need a NIF (Número de Identificação Fiscal) — Portugal's tax identification number. Think of it as Portugal's equivalent of a Social Security number.

Non-residents can apply at any Finanças (tax authority) office, or increasingly via a fiscal representative based in Portugal. If you're applying from abroad, you can appoint a local lawyer or representative to act on your behalf. The process typically takes one to five business days and costs a nominal administrative fee (around €10–€15).

You will need your NIF for virtually every step that follows: signing the Promissory Contract, completing the final deed, opening a bank account, and filing tax declarations.

Step 2: Open a Portuguese Bank Account

While not strictly required to purchase property, a Portuguese bank account makes the process significantly smoother — particularly for transferring purchase funds, paying ongoing bills, and if you eventually receive rental income.

Major Portuguese banks — including Millennium BCP, Caixa Geral de Depósitos, and Banco BPI — accept non-resident accounts. Requirements typically include your NIF, a valid passport, proof of address from your home country, and proof of income. Some banks require you to visit a branch in person; others allow online account opening for non-residents.

If you plan to take out a Portuguese mortgage, a local bank account is generally mandatory.

Step 3: Engage a Property Lawyer

This step is non-negotiable. Portugal's property market is well-regulated, but the legal process has nuances — particularly around title searches, urban rehabilitation areas, and planning permissions — that make an experienced property solicitor essential.

Your lawyer will:

Run a Certidão Permanente — the land registry certificate that confirms ownership and any encumbrances
Obtain the property's Caderneta Predial from the tax authority to verify the taxable value and property record
Check the Licença de Habitabilidade (habitation licence) or Licença de Utilização (usage licence) is in order
Review the condominium rules if you're buying in a building with shared areas
Draft or review the Promissory Contract and represent you at the notary for the final Escritura

Legal fees in Portugal typically run between 1% and 2% of the purchase price, though many lawyers offer flat-rate packages for standard transactions.

Step 4: Understand the Costs — Beyond the Purchase Price

Foreign buyers are sometimes caught off guard by Portugal's transaction costs. Budgeting around 7%–10% above the purchase price for total acquisition costs is a reasonable rule of thumb, depending on the property type and value.

Here is a breakdown of the main costs:

IMT — Imposto Municipal sobre Transmissões (Transfer Tax)

IMT is Portugal's property transfer tax, paid by the buyer. The rate is progressive and depends on the property type, value, and whether it will be your primary residence. As a general reference:

Primary residences: rates range from 0% to 8% depending on the declared value, with an exemption for properties below a threshold set annually by the government
Secondary residences or investment properties: a flat rate of 6% typically applies (8% for properties declared above a certain high-value threshold)
Commercial property: 6.5% flat rate

Your lawyer will calculate the exact IMT before you sign, and it must be paid before the final deed is completed.

Stamp Duty (Imposto de Selo)

A flat 0.8% of the purchase price is charged as stamp duty, paid at the same time as IMT.

Notary and Land Registry Fees

Notary fees for drafting and certifying the Escritura (final deed) typically run between €500 and €1,500 depending on the transaction value. Land registry inscription fees are additional, usually a few hundred euros.

Legal Fees

As noted above, typically 1%–2% of the purchase price, or a flat rate agreed in advance.

Real Estate Agent Commission

In Portugal, seller typically pays agent commission. As a buyer, you generally do not pay a buyer's agent commission — though independent buyer's agents (rare but growing) may charge a fee separately agreed.

Step 5: Mortgages for Non-Residents

Foreign buyers can access Portuguese mortgages — both from Portuguese banks and from international lenders familiar with Portuguese property law. The conditions for non-residents differ somewhat from resident borrowers:

Loan-to-Value (LTV): Portuguese banks typically lend non-residents up to 60%–70% of the property's appraised value (compared to up to 80%–90% for residents purchasing a primary home)
Interest rates: Portuguese mortgage rates are linked to Euribor plus a bank spread. As of early 2026, rates have moderated following the ECB's easing cycle, though exact offers vary by bank and borrower profile
Income documentation: Banks will require proof of income, tax returns, and employment or business documentation from your home country — often requiring certified translations
Currency risk: If your income is not in euros, factor in exchange rate risk on your repayments

It is worth engaging a mortgage broker with Portuguese market expertise. They can access multiple lenders, compare offers, and help with the documentation process — typically for a fee of 0.5%–1% of the loan amount.

Step 6: The Purchase Process — Step by Step

Reservation Agreement (Contrato de Reserva)

Before the formal Promissory Contract, it is common to sign a reservation agreement and pay a deposit — usually €5,000–€10,000 — to take the property off the market while due diligence is conducted. This is not a legally binding contract in the same sense as the CPCV, but it signals serious intent.

Promissory Contract (CPCV — Contrato de Promessa de Compra e Venda)

The CPCV is the key binding document. It sets out all the terms of the sale — price, payment schedule, completion date, and penalty clauses. Typically, the buyer pays 10%–20% of the purchase price as a deposit at CPCV signing. If the buyer withdraws, they lose the deposit. If the seller withdraws, they pay double the deposit back to the buyer.

Final Deed (Escritura Pública de Compra e Venda)

The final transfer of ownership happens at a Portuguese notary. The buyer pays the balance of the purchase price, the notary certifies the transaction, and the title passes. IMT and stamp duty must be paid before this step.

Step 7: Tax Considerations for Foreign Buyers

NHR — Non-Habitual Resident Tax Regime

Portugal's Non-Habitual Resident (NHR) regime historically offered significant tax advantages to new tax residents, including a 20% flat rate on Portuguese-source income and exemptions on most foreign-source income. Following legislative changes in 2024, the original NHR was replaced by the IFICI (Incentivo Fiscal à Investigação Científica e Inovação) programme, with different eligibility criteria focused on specific qualifying professions and activities.

If you are considering becoming a Portuguese tax resident after purchasing, understanding your options under current legislation — with the help of a qualified tax adviser — is strongly recommended before committing.

IMI — Annual Property Tax

Annual property tax (IMI) is set by municipalities and calculated on the property's Valor Patrimonial Tributário (taxable patrimonial value). Rates for urban properties typically range from 0.3% to 0.45% per year of the taxable value — which is generally lower than the market purchase price.

Rental Income Tax

If you plan to rent your Lisbon property, rental income is taxable in Portugal. Non-residents pay a flat 28% on net rental income. Residents can opt for this rate or have rental income included in their general income tax calculation.

Common Pitfalls to Avoid

Skipping the title search: Always verify the property is free of debts, liens, and encumbrances before signing the CPCV
Underestimating transaction costs: Budget at least 7%–10% above the purchase price
Relying on the seller's lawyer: Always engage your own independent legal representation
Not verifying licensing: Confirm the property has valid habitation or utilisation licences, especially for older buildings or recent renovations
Overlooking condominium charges: Ask for at least two years of condominium meeting minutes and fee history

Working with Lisbonos

Navigating a property purchase in a foreign country is complex — but it does not have to be stressful. The Lisbonos team connects international buyers with vetted properties, trusted legal professionals, and local expertise built from years of experience in the Portuguese market. Whether you're buying your first Portuguese apartment or expanding an investment portfolio, we're here to guide you through every step.