How to Buy Property in Portugal as a Foreigner (The Golden Visa Guide)

Buying property in Portugal as a foreigner has long been a popular ambition, thanks to the country’s stunning coastline, high quality of life, and affordable cost of living compared to other Western European nations. For years, this process was closely linked with the nation’s popular “Golden Visa” program. However, significant legislative changes have recently altered this landscape. Understanding Portugal’s residency by investment rules is now more critical than ever.

This guide provides a comprehensive overview of how to buy property in Portugal as a foreigner, clarifies the current status of the Golden Visa program, and explores the essential legal and financial steps you’ll need to navigate. While the direct real estate investment option for the Golden Visa was discontinued, the dream of owning a home in Portugal is still very much alive, and the market remains attractive. Industry analysis from property portals like Idealista continues to show sustained interest from international buyers, particularly in regions like the Algarve, Lisbon, and Porto.

Whether you’re seeking a holiday home, a retirement destination, or a strategic investment, this guide will walk you through the process. We’ll cover everything from getting your NIF number to understanding property taxes and alternative residency solutions. Explore our complete guide to living in Portugal for more details on relocation.

Table of Contents

• Why Buy Property in Portugal in 2025?
• The Golden Visa Guide: A Crucial 2024/2025 Update
• The Step-by-Step Process to Buy Property (Independent of a Visa)
• Key Legal and Financial Requirements
• Understanding Property Taxes and Ownership Costs
• Financing Your Portuguese Property as a Foreigner
• Alternative Residency Visas for Property Owners

Why Buy Property in Portugal in 2025?

Even without the Golden Visa incentive, Portugal’s real estate market offers compelling advantages for foreign investors and lifestyle buyers. The nation consistently ranks high for safety, quality of life, and infrastructure. Here’s why it matters.

• Exceptional Quality of Life: From the beaches of the Algarve to the historic cities of Lisbon and Porto, Portugal offers a diverse and appealing lifestyle, a temperate climate, and a welcoming culture.
• Market Resilience: While growth has moderated, the Portuguese property market has shown considerable resilience. Data from Portugal’s statistics institute (INE) often indicates that demand in prime areas continues to be robust, driven by a shortage of housing stock and strong international interest.
• Affordability: Compared to property prices in major hubs like London, Paris, or New York, Portugal still offers significant value, allowing foreigners to purchase larger or better-located properties for their investment.
• Strong Rental Market: In tourist hotspots and major cities, the demand for short-term and long-term rentals provides a viable path to generating return on investment (ROI) from a property purchase.

The Golden Visa Guide: A Crucial 2024/2025 Update

This is the most critical update for any prospective buyer: As of late 2023, purchasing real estate (either residential or commercial) no longer qualifies you for the Portugal Golden Visa.

The program, now officially managed by AIMA (Agency for Integration, Migration and Asylum), was restructured to address housing market pressures. The “Golden Visa” still exists, but the qualifying investment options have completely changed. If residency is your primary goal, you must now consider these alternative paths:

• Investment Funds: The most popular new route. This involves a significant investment (often starting at €500,000) into a qualifying Portuguese-regulated venture capital or private equity fund.
• Cultural Heritage Donation: A donation to support artistic production or the maintenance of national cultural heritage.
• Job Creation: Creating and maintaining a set number of jobs (typically 10) through a Portuguese company.
• Scientific Research: Capital transfers for research activities conducted by public or private scientific research institutions.

Therefore, you must now separate the process of buying property from the process of obtaining a Golden Visa. You can still buy property, but it is a lifestyle or financial investment, not a direct path to an EU visa. For expert guidance on the new visa solutions, consulting a specialized immigration advisory firm is highly recommended.

The Step-by-Step Process to Buy Property (Independent of a Visa)

For foreigners buying property in Portugal, the process is straightforward and well-defined, though it requires professional legal assistance. Here’s a breakdown of the typical steps.

Step 1: Obtain Your NIF (Número de Identificação Fiscal)

This is your Portuguese tax identification number, and it is mandatory for almost any financial transaction in Portugal, including opening a bank account, buying a car, and purchasing property. You can obtain a NIF by visiting a local Finanças (tax office) or, more commonly, by appointing a Portuguese lawyer or fiscal representative to acquire one on your behalf.

Step 2: Open a Portuguese Bank Account

You will need a Portuguese bank account to transfer funds for the property purchase and to pay associated taxes and fees. This also requires your NIF and proof of identity/address. Most major Portuguese banks are accustomed to opening accounts for non-residents.

Step 3: Property Search and Legal Due Diligence

Once you find a property, your lawyer is your most important asset. They will conduct comprehensive due diligence to ensure:

• The seller legally owns the property.
• The property has a valid habitation license (Licença de Utilização).
• The property registry (Registo Predial) is clean, with no outstanding debts, mortgages, or liens.
• The tax record (Caderneta Predial) matches the registry.

Never skip this step. Paying for thorough legal checks provides essential security for your investment.

Step 4: The Promissory Contract (CPCV)

The Contrato de Promessa de Compra e Venda (CPCV) is a legally binding contract between you and the seller. Upon signing, you will typically pay a deposit (usually 10-20% of the purchase price). The CPCV outlines all the terms of the sale, the timeline, and the penalties if either party defaults.

Step 5: The Final Deed (Escritura)

This is the final step. The Escritura de Compra e Venda (Final Deed of Sale) is signed in front of a Notary. At this meeting, you pay the remaining balance of the purchase price, and the Notary witnesses the transfer of ownership. You will also pay the property transfer taxes (IMT and Stamp Duty) just before or at this stage. The property is then registered in your name at the Land Registry Office (Conservatória do Registo Predial).

Key Legal and Financial Requirements

Navigating the purchase process smoothly depends on having the right team. As a foreigner, you should budget for several key professional services beyond the property price itself. These include legal fees, notary fees, and potentially a mortgage broker. Understanding these costs is vital for accurate financial planning and assessing the total ROI of your purchase.

The most critical component is your l. Their role is not just to review documents but to act as your representative, protecting your interests, verifying legal compliance, and ensuring a clean title transfer. You can learn more about European real estate trends to better contextualize your investment.

Name	Key Features	Pros	Cons	Best For
Golden Visa (Investment Fund)	€500k+ investment in qualifying funds.	Minimal physical stay (7 days/year). Clear path to citizenship. Includes family.	High capital requirement. Investment risk. No direct property link.	High-Net-Worth Individuals (HNWIs) seeking flexibility.
D7 Visa (Passive Income)	Proof of stable passive income (e.g., pensions, rent, dividends) of ~€820/month.	Low financial threshold. Direct path to residency.	Requires significant physical presence in Portugal (6-8 months/year).	Retirees or individuals with stable passive income.
Digital Nomad Visa	Proof of active remote work income (min. ~€3,280/month).	Designed for modern remote workers.	Higher income proof than D7. Requires physical presence.	Remote employees and freelancers wanting to live in Portugal.
Property Purchase (No Visa)	Simple property ownership.	Full ownership rights. No residency strings attached.	Does not grant residency rights or free EU travel (beyond 90/180 Schengen rule).	Lifestyle buyers, holiday home owners, or pure investors.

Understanding Property Taxes and Ownership Costs

Budgeting for a property in Portugal must include the associated taxes and fees. These one-time and recurring costs are a significant part of your investment analysis.

• IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis): This is the Property Transfer Tax. It’s the largest tax you’ll pay and is calculated on a sliding scale based on the purchase price. The rate varies depending on whether it’s a primary residence or a second home.
• Stamp Duty (Imposto do Selo): A flat-rate tax paid on the purchase price at the time of the final deed. It is typically a small percentage (e.g., 0.8%) of the property’s value.
• IMI (Imposto Municipal sobre Imóveis): This is the annual council tax, similar to property taxes in other countries. It’s paid yearly by the property owner. The rate is set by the local municipality and is based on the property’s registered tax value (VPT), which is usually lower than the market price.

It’s also worth noting that Portugal’s popular Non-Habitual Resident (NHR) tax scheme, which offered significant tax breaks to new residents, also saw major changes and is no longer available in its original form for new applicants. A new, more limited tax incentive for specific professions has replaced it.

Financing Your Portuguese Property as a Foreigner

While many foreign buyers purchase with cash, it is possible for non-residents to get a mortgage from a Portuguese bank. However, the lending criteria are stricter than for residents.

Typically, you can expect:

• Lower Loan-to-Value (LTV): Banks will usually only finance 60-70% of the purchase price for non-residents, meaning you will need a larger deposit (30-40%) plus extra funds for taxes and fees.
• Stricter Affordability Checks: You will need to provide extensive documentation of your international income, assets, and credit history.
• Higher Interest Rates: Non-residents may be offered slightly higher interest rates than residents to offset the bank’s perceived risk.

Using a specialized mortgage broker who works with international clients can be extremely helpful in finding the best financing solutions and navigating the complex application process. Research from sources like the Global Property Guide often highlights the financing challenges and opportunities for foreign investors in the Portuguese market.

Alternative Residency Visas for Property Owners

Since buying property no longer grants a Golden Visa, what are the options for foreigners who want to live in the home they buy? Portugal offers several other excellent visa pathways.

1. The D7 Visa (Passive Income Visa): This is the most popular route for retirees or those with stable passive income (pensions, investments, rental income, etc.). You must prove a minimum passive income (currently just over the Portuguese minimum wage). This visa requires you to spend a significant portion of the year in Portugal.
2. The Digital Nomad Visa: Introduced recently, this visa is for remote workers or freelancers who can prove a stable monthly income from their remote work (at least four times the Portuguese minimum wage).

Both of these visas allow you to apply for residency, and owning a property in Portugal can strengthen your application by demonstrating your commitment to the country and your financial stability. Check our guide on navigating all EU visa options for a broader comparison.

Ready to Find Your Dream Property in Portugal?

Understanding the new rules is the first step to a successful investment. While the Golden Visa rules have changed, Portugal remains one of the best places in Europe to own property. [Contact Our Experts] or [Book a Consultation] to discuss your property goals and explore the right residency solutions for your needs.

Frequently Asked Questions (FAQ)

1. Can I still get the Portugal Golden Visa by buying a house?

No. As of October 2023, the Portuguese government removed all direct real estate investment options from the Golden Visa program. You can no longer qualify by purchasing a residential or commercial property. The program now focuses on investments into funds, job creation, or cultural donations.

2. What is a NIF number and why do I need it?

A NIF (Número de Identificação Fiscal) is your personal Portuguese tax identification number. It is absolutely essential for any foreigner to conduct financial transactions in Portugal. You will need it to open a bank account, sign a rental contract, set up utilities, and, most importantly, to purchase or sell property.

3. What are the main taxes I have to pay when buying property in Portugal?

There are two main one-time taxes paid at purchase:

1. IMT (Property Transfer Tax): A variable tax based on the property’s value, type, and intended use (main home vs. second home).
2. Stamp Duty (Imposto do Selo): A flat-rate tax (currently 0.8%) on the purchase price.

After purchasing, you will also pay an annual property tax called IMI (Municipal Property Tax).

Sources & Further Reading

• AIMA (Agency for Integration, Migration and Asylum) – ARI/Golden Visa
• Idealista Portugal – Property Market Data
• Global Citizen Solutions – Portugal Golden Visa Advisory
• Global Property Guide – Portugal Real Estate Analysis
• Bloomberg – European Economic and Market News