How to Buy Property in Portugal — Step-by-Step Guide for Foreign Buyers
A comprehensive walkthrough of the Portuguese property purchase process for international investors and expatriates, from initial research through final registration.
Step 1 — Get Your NIF (Tax Number)
Before any property transaction in Portugal, you must obtain a Número de Identificação Fiscal (NIF). This is your Portuguese tax identification number, mandatory for all financial and legal activities. You can get one at any Serviço de Finanças office, or appoint a fiscal representative to do it remotely.
Step 2 — Open a Portuguese Bank Account
A Portuguese bank account (conta bancária) is required to pay IMT transfer tax, Stamp Duty, notary fees, and ongoing expenses like IMI annual property tax. Major banks serving foreign buyers include BCP Millennium, Novo Banco, BPI, and Caixa Geral de Depósitos. Non-residents can usually open accounts in one visit.
Step 3 — Reserve the Property (CPCV)
The Contrato de Promessa de Compra e Venda (CPCV) is the promissory purchase contract that legally binds both parties. A deposit of 10–30% of the purchase price is paid at signing. If the buyer withdraws, the deposit is forfeited. If the seller withdraws, they must return double the deposit. The CPCV should include: agreed price, completion date, list of included fixtures, and conditions precedent.
Step 4 — Due Diligence
Before signing the escritura, your lawyer should verify: Caderneta Predial (land/tax registry), Certidão Permanente (property registration), Licença de Habitação (habitation licence), Certidão de Teor (full land registry extract), condominium minutes (for apartments), and energy certificate (EPC, mandatory). Outstanding debts or encumbrances must be cleared at completion.
Step 5 — Pay Taxes Before Completion
Taxes must be paid before signing the escritura: IMT (Imposto Municipal sobre Transmissões) — Portugal's property transfer tax, rates from 0% to 8% for residential property; Imposto de Selo (Stamp Duty) — 0.8% on the purchase price; and any applicable VAT on new builds. First-time primary residence buyers under €97,064 pay zero IMT.
Step 6 — Sign the Escritura (Final Deed)
The escritura publica is signed at a notary (cartório notarial) in the presence of buyer, seller, and any mortgage lender. The full purchase price balance is transferred at this point, typically via certified banker's draft. The notary registers the deed at the Conservatória do Registo Predial within 30 days.
Post-Purchase Obligations
- Register as property owner with Finanças for annual IMI tax assessments
- If renting out: register with Finanças (Category F income) and obtain Alojamento Local licence if short-term letting
- Pay condominium fees (condomínio) for apartments in managed buildings
- Obtain Seguro Multirriscos (multi-risk property insurance) — usually required by mortgage lenders