Buying a home in Portugal as a foreigner follows a fixed order: a Portuguese tax number (NIF), a lawyer of your own, checks on the property, a promissory contract with a deposit, payment of the purchase taxes, and then the deed and registration. The process itself is predictable. The part that changed in 2026 is the cost: since Decree-Law 97/2026, a buyer who is not tax resident in Portugal pays a flat 7.5% transfer tax on a home, plus 0.8% stamp duty.
This guide goes through each step for a resale or new-build home, with the figures that are fixed by law. Fees for lawyers and agents are agreed freely, so they are not in here.
Step 1: get your NIF and decide on a tax representative
The NIF (número de identificação fiscal) is your Portuguese tax number. You need it to sign a promissory contract, pay the purchase taxes, open a bank account and sign the deed. A non-resident can request one from the tax authority (Autoridade Tributária, AT), in person or through a lawyer acting for you.
The rule on a tax representative depends on where you live. Under article 19 of the General Tax Law, a non-resident must appoint a representative in Portugal, but for residents of an EU member state this is optional. Since 2022, anyone who signs up for electronic notifications on the Portal das Finanças is also exempt. In practice, a buyer living in the Netherlands, Belgium or Germany can do without one, provided they actually read the tax letters that arrive in their online inbox.
Step 2: open a Portuguese bank account and plan the transfer
A Portuguese account is not a legal requirement for the purchase, but it makes ownership much easier: the annual property tax (IMI), condominium fees and utilities are usually paid from one, and a Portuguese mortgage requires it.
Payments must be traceable. Portuguese law prohibits cash payments of €3,000 or more, or €10,000 for non-resident private individuals, so the deposit and the price move by bank transfer or bank cheque. If your money sits in another currency, the rate on completion day can differ from the one you had in mind when you agreed the price. Our article on paying for property in another currency covers the options, and you can find currency and payment specialists on Onora.
Step 3: hire your own lawyer
In Portugal, as in Spain, the notary authenticates the deed and checks that the documents needed for it are in order, but does not investigate the property on your behalf or negotiate for you. That is the job of a lawyer (advogado) or solicitor (solicitador) who acts only for you, not for the seller or the agent.
Agree the fee and the scope in writing before work starts: checks, contract review, tax payments, the deed and registration. You can find lawyers who work with international buyers in Find your specialist.
Step 4: check the property before you sign anything
Your lawyer runs these checks. Ask for the results in writing.
- Land registry certificate (certidão permanente). Shows the registered owner, the description of the property and any mortgages, seizures or other charges. It can be requested online through Predial Online, and your lawyer should check it again just before the deed.
- Tax record (caderneta predial). The property's entry at the tax office, including its taxable value (valor patrimonial tributário, VPT). This value matters later, because transfer tax is charged on the price or the VPT, whichever is higher (IMT Code, article 12).
- Match between paper and reality. Registry, tax record and the building itself should describe the same areas and use. Extensions, closed balconies or pools that were never licensed are a common gap.
- Use permit. Since the 2024 planning reform (Decree-Law 10/2024), the use permit (autorização de utilização) no longer has to be shown at the deed. That removed a formality, not the risk: your lawyer should still confirm that the home was licensed for residential use.
- Energy certificate. Required for a sale, and its number must be recorded in the deed, according to the national energy certification system (SCE). Advertisements must also show the energy class.
- Debts. Ask for proof that IMI has been paid and a statement from the building's administrator showing the seller is up to date with condominium fees.
- For new builds and off-plan. Check the building licence and how your stage payments are protected before completion. Our new-build checklist goes through this.
- If you plan to rent short term. Holiday letting (alojamento local) requires a registration, and municipalities set their own limits. Check the status of any existing registration and the local rules before you sign, not after.
For a wider list that works in any country, see the due diligence checklist for buying abroad.
Step 5: sign the promissory contract and pay the deposit
When the checks are clean, buyer and seller usually sign a contrato-promessa de compra e venda. It fixes the price, the deposit, the date of the deed and the conditions. For a building or apartment, the Civil Code (article 410) requires the signatures to be recognised in person and the existence of a use or construction licence to be certified.
The deposit (sinal) is the part to understand before you sign. Under article 441 of the Civil Code, money the buyer pays under a promissory contract of sale is presumed to be a deposit. Article 442 then sets the consequences: if the buyer pulls out, the seller keeps the deposit; if the seller pulls out, they must pay back double. Instead, the party that kept its word can ask a court to enforce the sale. The amount of the deposit is negotiated: there is no legal percentage.
There is no general cooling-off period once you have signed. For Dutch buyers, that is a key difference: the three-day bedenktijd you know from buying a home in the Netherlands does not exist here. The checks in step 4 therefore belong before this contract.
Step 6: pay IMT and stamp duty before the deed
In Portugal the purchase taxes are paid before the deed, not after. The notary, lawyer or registry officer may not sign the deed without proof that IMT has been paid (IMT Code, article 49). Your lawyer files the declaration and you pay the tax a few days before completion.
IMT for non-residents. Since Decree-Law 97/2026 of 20 May 2026, article 17(10) of the IMT Code sets a flat rate of 7.5% when a non-resident buys an urban property used exclusively as a home. No exemption or reduction applies. Residents keep the progressive scale, which starts at 0% for a main home up to €106,346.
There are three exceptions. The flat rate does not apply if you:
- have been considered tax resident in Portugal under the Personal Income Tax Code (how this is read for someone who lived there years ago is a question for your adviser);
- become tax resident in Portugal within two years of the purchase; or
- let the home as long-term housing at a moderate rent, within six months of the purchase, for at least 36 months during the first five years.
In cases 2 and 3 you still pay 7.5% at completion. Afterwards you can ask the tax authority to cancel the difference with the normal rates, within six months of becoming resident or signing the lease. Treat that as a possible later refund, not as a discount on the day.
Stamp duty. On top of IMT you pay 0.8% stamp duty (imposto do selo) on the value, under item 1.1 of the Stamp Duty Table.
Worked example (illustration only)
A non-resident buys an apartment for €400,000, with a VPT below that price. The figures below show the arithmetic, not what any given purchase will cost.
| Item | Rate | Amount |
|---|---|---|
| IMT | 7.5% | €30,000 |
| Stamp duty | 0.8% | €3,200 |
| Taxes before fees | €33,200 |
Add the deed, registration and your lawyer's fee. More on the change in Portugal's flat 7.5% IMT for non-residents, and a comparison with other countries in the costs on top of the asking price.
Step 7: sign the deed and register the home
The sale itself can be formalised in three ways: a public deed (escritura) before a notary, an authenticated private document (documento particular autenticado) prepared by a lawyer or solicitor, or at a Casa Pronta counter of the land registry, which combines deed and registration in one appointment. The legal effect is the same; the choice is mostly about cost and convenience.
On the day, the balance is paid by traceable transfer or bank cheque, and the keys change hands. You do not have to be there in person: many foreign buyers sign through a power of attorney. Registration in your name at the land registry (Conservatória do Registo Predial) follows straight after; make sure your lawyer sends you the updated certificate showing you as the owner.
After the purchase: yearly costs and taxes
Owning the home brings yearly costs. The municipality charges IMI of 0.3% to 0.45% of the VPT for urban property, with the rate set locally; a separate additional tax (AIMI) applies to high total values. If you rent the home out, the rental income is taxed in Portugal. The details are in our guide to Portugal property taxes for investors.
Your home country may tax the property as well. For Dutch residents, a holiday home abroad counts as a box 3 asset, and the treaty with Portugal can give relief; see foreign property and Dutch tax and check it with a Dutch tax adviser.
Golden visa: no longer through property
Buying property no longer leads to a Portuguese residence permit. Law 56/2023 revoked residence permits for real estate investment in October 2023. Other investment routes still exist, but a home purchase is not one of them, and for EU citizens it never mattered.
The short version
- NIF first; a tax representative is optional for EU residents and for anyone who uses electronic notifications.
- A lawyer of your own, because the notary does not act for you.
- All checks before the promissory contract, because the deposit is at stake.
- As a non-resident, budget 7.5% IMT plus 0.8% stamp duty, paid before the deed.
- Traceable payments, then deed and registration in one go.
When you are ready to look at what is on the market, browse homes in Portugal on Onora or start with the Algarve. Each listing shows its price and figures up front, and you contact the seller directly.
This article is general information, not legal or tax advice. Rules and rates change and depend on the region and your own situation. Check them with a lawyer or tax adviser before you buy. Rates checked on 6 November 2026.
