Buying Real Estate in Portugal (2025 Guide): Costs, Taxes, and Legal Process
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Learn how to buy real estate in Portugal in 2025. Step-by-step guide covering property types, taxes, legal requirements, and the market outlook for international investors.
Intro
Portugal remains one of Europe’s most attractive destinations for international real estate buyers. With strong property rights, a stable market, and no restrictions on foreign ownership, investors continue to view Portuguese real estate as a safe and rewarding long-term asset.
Even though property investments are no longer eligible for the Golden Visa, real estate remains a key part of many investors’ portfolios. Whether you are buying a home, a rental property, or a vacation investment, understanding the process and tax implications is essential.
At Golden Visa Funds Portugal (GVFP), we help investors compare fund-based and direct property routes so they can make informed decisions with full transparency.
Key Point | Details |
|---|---|
Foreign Ownership | Fully permitted |
Golden Visa Eligibility | Property no longer qualifies since 2023 |
Typical Buying Costs | 7–10 % of the purchase price |
Property Transfer Tax (IMT) | 1–8 % depending on value |
Stamp Duty (IS) | 0.8 % |
Annual Municipal Tax (IMI) | 0.3–0.45 % of property value |
Capital Gains Tax (non-residents) | Generally 28 % on net gain (seek personal tax guidance) |
Legal Representation | Recommended for transactions |
Portugal offers a unique combination of lifestyle and financial stability.
Strong property ownership laws with no leasehold limits.
Steady appreciation in major cities such as Lisbon, Porto, and Faro.
A growing rental market driven by tourism and digital nomads.
Low transaction costs compared with other Western European markets.
The Portuguese Land Registry is fully digitized, and transactions are typically straightforward when handled through a qualified lawyer or notary.
Step 1: Obtain a Portuguese Tax Number (NIF)
Every buyer must obtain a Número de Identificação Fiscal (NIF). This is used for all tax, banking, and property registration purposes.
Step 2: Open a Portuguese Bank Account
Foreign buyers must have a local bank account to complete the property purchase.
Step 3: Choose and Reserve the Property
Once you find the right property, you sign a Promissory Contract (Contrato de Promessa de Compra e Venda) and pay a deposit of 10–30 % of the purchase price.
Step 4: Conduct Due Diligence
Your lawyer will verify:
Property ownership and title deed.
Building licenses and zoning compliance.
Outstanding debts or encumbrances.
Step 5: Final Deed and Registration
The Deed of Purchase (Escritura Pública de Compra e Venda) is signed in front of a notary. Payment is made, and the property is registered in your name at the Land Registry (Conservatória do Registo Predial).
1. Property Transfer Tax (IMT)
A one-time tax paid by the buyer. Rates vary depending on property type and value.
Urban property for permanent residence: 1–8 %
Secondary residences and investment properties: flat 8 % above €1,000,000
2. Stamp Duty (IS)
A flat 0.8 % on the purchase price.
3. Annual Municipal Property Tax (IMI)
An annual tax charged by municipalities based on the property’s taxable value.
Typical range: 0.3–0.45 %
Rural properties: 0.8 %
4. Capital Gains Tax
When selling, non-residents pay a flat 28 % on profits after deductible expenses.
Residents pay tax on 50 % of the gain at progressive income rates.
Discover Portugal's NHR 2.0 Tax Regime
Portugal offers competitive mortgage rates for foreign buyers.
Loan-to-value (LTV): 60–70 % for non-residents.
Interest rates: from 3.5 % variable or 4 % fixed (2025 averages).
Term: up to 30 years depending on age and income.
Applicants must provide proof of income, bank statements, and a credit report from their home country.
Category | Description | Typical Yield |
|---|---|---|
Residential | Apartments, villas, and homes in Lisbon, Porto, and the Algarve | 3–6 % |
Tourist Rentals | Licensed AL properties or serviced apartments | 5–9 % |
Commercial | Office or retail investments in urban areas | 6–8 % |
Development Projects | Off-plan or renovation opportunities | 10–15 % (higher risk) |
While Golden Visa-eligible real estate has ended, investors continue to profit through renovation projects and long-term rentals, especially in areas with high demand from digital nomads and expats.
Cost Type | Typical Annual Cost | Notes |
|---|---|---|
IMI (Property Tax) | 0.3–0.45 % | Based on taxable value |
Insurance | €250–€600 | Depends on property size and location |
Maintenance Fees | €500–€2,000 | For condominiums and shared services |
Utilities | €100–€250/month | Electricity, water, gas, internet |
Despite the end of Golden Visa property eligibility, Portugal’s housing market remains strong.
Prices rose approximately 6.5 % in 2024, driven by foreign demand and limited supply.
The Lisbon and Cascais markets remain premium, while Alentejo and the Silver Coast are attracting lifestyle buyers seeking better value.
New regulations supporting affordable housing may slow speculative growth but not foreign interest in quality assets.
For investors focused on returns rather than residency, real estate continues to offer stable yields and capital preservation in a low-volatility EU market.
Q1: Can foreigners buy property in Portugal?
Yes. There are no restrictions on foreign ownership.
Q2: Can I still get a Golden Visa by buying property?
No. Real estate is no longer an eligible route for the Golden Visa as of October 2023.
Q3: Do I need a lawyer to buy property?
Yes. Legal representation is mandatory for non-residents.
Q4: Are there taxes when renting out my property?
Yes. Rental income is taxed at a flat 28 % for non-residents, with deductible expenses.
Q5: How long does the buying process take?
Usually, 30–60 days from reservation to final registration.
Buying property in Portugal remains a secure and rewarding way to diversify your portfolio and enjoy a European base of operations. The key is to plan your acquisition carefully and understand how ownership fits into your broader financial and residency strategy.
GVFP works with independent legal partners and advisors to help investors compare real estate vs fund-based investments and select the best route for their goals.
Book a discovery call to discuss your Portugal investment strategy or to receive our latest list of regulated funds and high-potential real estate opportunities.
Tariq El-Asad
Founder at goldenvisafundsportugal.com
Tariq El-Asad is a seasoned real estate professional with more than 20 years of experience across four continents.
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