Portugal property buying guide: Invest in a haven of peace

April 22, 2024

Portugal is increasingly attracting property investors and second-home buyers for its many assets: sunny climate, magnificent landscapes, rich culture and attractive lifestyle. Whether you're looking for a profitable investment or an idyllic place to live, Portugal has something to offer you.

Why buy in Portugal?

Investing in Portuguese property has many advantages, which you'll discover by following this Complete guide to purchasing real estate in Portugal.

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Economic and political stability

Portugal has a stable economy and a democratic political system, providing a secure environment for property investment.

Tax advantages

The Portuguese government offers attractive tax incentives for foreign investors, including tax exemptions on capital gains and rental income.

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Growing rental demand

Demand for rental property in Portugal is strong, guaranteeing attractive potential rental yields for landlords.

Affordable prices

Property prices in Portugal are still relatively affordable compared with other Western European countries, offering excellent value for money.

Pleasant climate

Portugal enjoys a sunny Mediterranean climate with mild winters and hot summers, ideal for enjoying an outdoor lifestyle.

High quality of life

Portugal offers an excellent quality of life with access to quality healthcare, affordable education and modern infrastructure.

Diverse landscape

From idyllic beaches to rolling green hills and charming historic towns, Portugal offers a diverse landscape to suit all tastes.

Welcoming culture

The Portuguese people are known for their hospitality and friendliness, which makes it easy for foreigners to integrate into the local community.

Understanding the Portuguese property market

The Portuguese property market is booming, with growing demand and ever-increasing prices. Popular areas include:

  • Lisbon: Portugal's dynamic capital, with a vibrant historic city centre and a wide range of cultural and gastronomic attractions.
  • Porto: Portugal's second largest city, known for its picturesque charm, world-renowned wines and authentic atmosphere.
  • Algarve: A beautiful coastal region with sandy beaches, lively resorts and peaceful villages.
  • Lisbon: The region offers a peaceful setting with lush green landscapes, historic towns and access to the coast.

The process of buying property in Portugal

Buying a property in Portugal is a relatively straightforward and transparent process, but it is important to be accompanied by experienced professionals to ensure that it runs smoothly and complies with the regulations.

Key stages in the buying process include:

  1. Obtaining a Tax Identification Number (TIN): A TIN is required for all property transactions in Portugal.
  2. Property search and selection: Define your budget, your search criteria and visit the properties that interest you.
  3. Purchase proposal and negotiation: Submit a formal offer and negotiate the price and conditions of sale with the seller.
  4. Opening a Portuguese bank account: A bank account is required for financial transactions related to the purchase.
  5. Obtaining mortgage finance (if required): Portuguese banks offer mortgage loans to residents and non-residents.
  6. Sales contract : A formal contract of sale is drawn up between the buyer and seller, setting out the terms and conditions of the sale.
  7. Deed of sale: The signing of the deed of sale at the notary's office completes the transfer of ownership.
  8. Payment of taxes and fees: Acquisition taxes and other fees associated with the purchase must be paid.

The importance of assistance with mortgages and legal advice

It is highly recommended that you use a mortgage broker and a property lawyer to guide you through the financing and property law process. They will help you find the best mortgage conditions. In fact, mortgage brokers compare offers from different banks to obtain the most advantageous interest rate and conditions for your profile.

Financial and legal considerations

Buying a property in Portugal involves some important financial and legal considerations. Firstly, there is the municipal tax on property transactions (IMT), a tax that varies according to the value of the property and the status of the buyer (resident or non-resident). Notary and registration fees are also fixed costs associated with the deed and registration of the property with the relevant authorities.

In addition, it is strongly recommended that you use the services of a specialist lawyer to manage the legal aspects of the transaction. Their fees should therefore be factored into the overall budget. If you use an estate agent, you should also factor in a commission to be paid to the agent for his or her services in finding and negotiating the property.

It is essential to calculate all these costs in addition to the purchase itself, in order to draw up a complete and realistic financing plan. Meticulous financial and legal preparation will enable you to complete your property purchase in Portugal with complete peace of mind.

Important regulations to be aware of

Non-EU nationals may need a visa and residence permit to buy a property in Portugal. If you plan to rent out your property for tourist purposes, you will need to obtain a tourist accommodation licence (AL).


Investing in property in Portugal is a wise decision for many reasons. The country offers political and economic stability, a pleasant climate, a rich culture and a booming property market. With the right information and support from qualified professionals, you can turn your dream of a Portuguese property into a reality.