How to Buy Property in Portugal as an Expat

Portugal has become one of the most desirable destinations for international buyers, attracting expats with its warm climate, relaxed lifestyle, high quality of life, and relatively affordable real estate.

Whether you’re looking for a permanent relocation, a holiday home, or a long-term investment, we guide you through everything you need to know about how to buy property in Portugal as an expat, from legal requirements to financing and healthcare.

One of the biggest advantages of buying property in Portugal as an expat is that there are very few restrictions on foreign ownership. There’s no requirement to be a resident before purchasing property, although many buyers choose to combine their purchase with a residency application or visa programme.

If you’re moving to Portugal as a foreigner, buying a house is generally straightforward when supported by the right professionals.

Before you can begin buying property in Portugal, you’ll need a Número de Identificação Fiscal (NIF). This tax number is required for any financial transaction in Portugal, including purchasing property, opening a bank account, or setting up utilities.

Non-residents can obtain a NIF through a local tax office or by appointing a fiscal representative.

While not strictly mandatory, opening a local bank account is highly recommended when you buy house in Portugal as it simplifies transactions such as paying deposits, taxes, and utility bills. Most banks will require identification, proof of address, and your NIF. Some expats now opt for digital banks, which can be faster for non-residents.

To ensure a smooth experience when buying a house in Portugal, work with a licensed real estate agent familiar with local markets or an independent lawyer who specialises in Portuguese property law.

Your lawyer will conduct due diligence, verify ownership, check for debts attached to the property, and ensure contracts are legally accurate.

Once you’ve found the right property, you can make an offer. If accepted, both you and the seller will need to sign a Contrato de Promessa de Compra e Venda (CPCV), or promissory contract. At this stage, a deposit is typically paid, which is usually 10–30% of the purchase price. This contract is legally binding, meaning penalties apply if either party withdraws.

The final step to buying a Portugal property is signing the Escritura (final deed) before a notary. At this point, the remaining balance is paid and ownership is officially transferred and registered in your name.

Wondering how to get a mortgage in Portugal? The good news is that Portuguese banks offer mortgages to non-residents, typically people can borrow:

Mortgage terms, rates, and conditions will vary.

When buying a house in Portugal, follow the steps below to ensure your purchase abides with Portuguese property law.

UK expats should also be aware that Portugal recognises foreign inheritance and property rights differently, so estate planning may require local advice.

Buying property does not automatically grant residency, but it can support your application depending on the visa route you choose. If your goal is to live in Portugal, it’s important to plan your property purchase alongside your visa. Expats can choose:

If you live in Portugal for more than 183 days a year in the country or have a main home residence there, you are a Portuguese tax resident, meaning you’ll need to pay tax in Portugal on your worldwide income with rates from 12.5 % to 48 %. Whereas, for non-residents, tax is paid only on Portuguese income and at a flat rate of 25%. taxed on worldwide income under a progressive system with rates from 12.5 % to 48 %.

Deciding where to buy property in Portugal ultimately depends on your personal lifestyle, budget, and long-term goals.

The capital city is a popular destination for expats, offering a vibrant culture, strong infrastructure, and high rental demand. It’s also a popular destination for digital nomads, with growing career opportunities, numerous coworking spaces and a thriving professional community. While property prices are higher, they can offer strong investment potential.

Portugal’s second-largest city combines culturally rich charm with affordability, as prices and fees are often lower than Lisbon, while still offering excellent amenities. Porto also has a growing expat community, as it’s often attractive to families and remote workers.

Famous for its beaches and sunshine, the Algarve has a big community of expats, and is a favourite for retirees and second-home buyers as it offers a wide range of properties, from luxury villas to affordable apartments. For families looking to relocate, the Algarve offers a vast number of international schools to choose from.

With strong tourism, a growing expat population, and attractive climate, Portugal offers both lifestyle and financial benefits. Whether you’re planning to relocate, retire, or invest, buying property in Portugal is straightforward with the right planning, from securing your Portuguese Tax Number (NIF), to your visa.

Buying property abroad doesn’t have to be stressful – make sure to work with experienced professionals who understand the needs of an expat so you can confidently navigate how to buy a house in Portugal.

If you’re considering buying property in Portugal and relocating abroad, ensure your healthcare needs are fully covered. Our international health insurance protects you and your family as you start your new life overseas. To find out more about public and private healthcare and hospitals in the country, read our guide to healthcare in Portugal.