Guide · Buying

Buying a house in Portugal: process, taxes and purchase costs

As of November 2026 · about 8 minutes' read

As an EU citizen you can buy property in Portugal without restrictions. You need a Portuguese tax number, but no permit. The process is straightforward: preliminary contract, deed, registration. Since 2026, though, a lot depends on whether you are tax resident in Portugal. For buyers who do not live there, the property transfer tax has risen sharply.

The process at a glance

From agreement to handover usually takes two to three months in Portugal, longer with a mortgage.

1. Tax number. You apply for a “NIF”, the Portuguese tax number.
2. Checks. Your lawyer checks the land registry, tax record and permits.
3. Preliminary contract. You sign the “contrato-promessa de compra e venda”, or CPCV, and pay a deposit.
4. Deed. The “escritura” is signed before a notary or a public office. You pay the transfer tax beforehand.
5. Registration. The purchase is entered in the land registry (“registo predial”).

NIF, bank account and lawyer

You can get a NIF at a tax office (“Finanças”) in Portugal, through the citizens' portal or through a lawyer with a power of attorney. As an EU citizen living in another EU country, you do not need a tax representative in Portugal. What matters is that letters from the tax office reach you. Set up the electronic mailbox in the Portal das Finanças.

A Portuguese bank account is not required for the purchase, but it is practical for utilities and property tax. Unlike in Italy or France, no notary automatically checks everything for you in Portugal. Many buyers therefore hire their own lawyer (“advogado”). They handle the checks, the contracts and the appointments, by power of attorney if you prefer.

Documents and checks

Before the preliminary contract, your lawyer should see these documents:

• Land registry extract (“certidão permanente”): owner, mortgages, seizures and third-party rights.
• Tax record (“caderneta predial”): area, use and the taxable value (“VPT”) on which property tax is based.
• Habitation licence (“licença de utilização”): it confirms that the building may be lived in. Buildings from before 1951 often do not need one; a certificate is required instead.
• Energy certificate (“certificado energético”): mandatory for a sale.
• Owners' association: for apartments, confirmation that no service charges are outstanding.

Compare the documents with each other and with the house. If the area, number of rooms or use differ, an extension has often not been approved.

The preliminary contract: CPCV

The CPCV sets out the price, date and conditions. When you sign, you pay a deposit (“sinal”), usually 10 to 30 per cent.

Deed and registration

The “escritura” is signed before a notary, before a lawyer authorised to certify it, or through the state fast-track service “Casa Pronta” at the land registry. Before the appointment you pay the transfer tax and stamp duty. Without proof of payment, the deed is not signed.

The purchase is then entered in the land registry and the tax office records you as the new owner. With “Casa Pronta” both happen in one step. If you do not speak Portuguese, you need an interpreter at the signing or a lawyer acting for you.

Purchase costs

The largest item is the transfer tax IMT. It depends on whether the house becomes your permanent main residence and whether you are tax resident in Portugal.

An example for a 300,000-euro holiday home: as a buyer not resident in Portugal you pay 22,500 euros IMT and 2,400 euros stamp duty. If you lived in Portugal, the second-home table would give about 11,600 euros IMT.

There are exceptions to the flat 7.5 per cent. It does not apply if you become tax resident in Portugal within two years of the purchase (see Moving to Portugal). Nor does it apply if you let the property long term at a legally capped rent. In those cases you can reclaim part of the tax. The rule is new, and the details are still being settled in practice. Have your lawyer confirm the current position before the preliminary contract. The legal text is in the Diário da República.

The purchase cost calculator works it out in euros for your price, with and without residence in Portugal.

For the costs after the purchase, read Costs and taxes for a holiday home abroad.

Ongoing taxes and letting

• IMI: the property tax. Depending on the municipality it is 0.3 to 0.45 per cent of the taxable value VPT, which is usually below the purchase price. It is paid by whoever owns the property on 31 December.
• AIMI: an additional tax on residential property with a combined taxable value of more than 600,000 euros per person.
• Holiday letting: You need to register as “alojamento local” with the municipality. In Lisbon, Porto and parts of the Algarve, municipalities heavily restrict new registrations. Check whether it is possible for the address before you buy.

Rental income from Portugal is taxed in Portugal. Your home country may also take it into account. Germany, for example, exempts it and, for property in the EU, does not use it to set the tax rate on your other income either; you still have to declare it.

Typical pitfalls

• Rústico instead of urbano. In the countryside many plots are registered as “rústico”, meaning agricultural land. As a rule you may not build on it, even if a ruin stands there. Check the registration and the local land-use plan (“PDM”).
• Unapproved extensions. Pools, terraces or extra rooms are often missing from the documents. Legalising them can be expensive or fail.
• Protected areas. On the coast and in the countryside, much land lies in protected zones for nature or agriculture (“REN”, “RAN”). Building work there is heavily restricted.
• Damp and heating. Many houses are barely insulated and have no heating. In winter it gets damp inside. Budget for insulation and heating.
• Out-of-date promises. The golden visa is no longer available for property purchases since October 2023. The old tax regime for newcomers (“NHR”) was replaced in 2024 by a narrower scheme for certain professions. Advertising that promises otherwise is out of date.
• Inheritance. Portugal has no inheritance tax as such, but a 10 per cent stamp duty. Spouses, children and parents are exempt. Your home country may still tax the estate, as Germany does. Decide beforehand whose name goes in the land registry.

This article gives a general overview and is not a substitute for legal or tax advice. Tax rates and rules change, and in Portugal they are changing particularly often. Check them with a lawyer or tax adviser in Portugal before you buy.