Buying property in Portugal as a foreigner or non-resident

Who can buy a home in Portugal?

If you are a foreign national already living in Portugal, check your tax residence status and whether your address is up to date with the Portuguese Tax and Customs Authority (AT). If you live abroad, you can prepare to buy as a non-resident. Portuguese citizens living abroad can also be non-resident for tax purposes. Foreign nationals who are Portuguese tax residents can come under the general rules if they meet the relevant conditions.

The right to live in Portugal and tax residence are separate. The general tests in Article 16 of the Personal Income Tax Code include spending more than 183 days in a 12-month period that begins or ends in the relevant year, or having a home in circumstances that indicate a current intention to keep and occupy it as your habitual residence, even with a shorter stay. A Portuguese tax number or a second home does not, on its own, make you tax resident. If two countries treat you as resident, check any applicable double taxation treaty. [1]

Portuguese tax number and tax representation

Apply for a Portuguese tax identification number (NIF) before setting a completion date. Prepare a passport or other accepted ID, proof of address if required and, where relevant, evidence of marital status and matrimonial property arrangements. If you already have a NIF, check that your details are current. You can apply through the Portuguese tax authority’s channels, including through a representative where the procedure allows it. [2]

For people living in the EU or European Economic Area, appointing a tax representative is generally optional. If you live outside that area, simply getting a NIF as a non-resident does not in itself require one. Once you establish a tax relationship in Portugal, for example by owning a property, the general rule is to appoint a tax representative or enrol in an electronic notifications channel accepted by the AT, normally within 15 days. Exceptions and special rules apply, particularly for VAT. Tax representation alone does not authorise someone to buy property on your behalf. [3]

Mortgages and budgeting for the purchase

Ask your lender for a preliminary assessment before you commit. It may request evidence of income, tax returns, bank statements, information about debts and evidence of the source of funds. Check how much it will lend, which overseas documents it accepts and whether it requires a Portuguese account. A preliminary assessment does not guarantee final approval. If your income or savings are in another currency, budget for exchange rates and transfer costs. [4]

Alongside your deposit, allow for IMT, Stamp Duty, completion and registration fees, and any valuation, translation or power of attorney costs. Stamp Duty may also apply to mortgage credit.

IMT for non-residents and Stamp Duty

Property transfer tax (IMT) and Stamp Duty on the purchase are generally based on the higher of the purchase price and the official taxable property value (VPT). Purchase Stamp Duty is generally 0.8%. Under the general IMT schedules, the amount depends on factors including value, location and intended use. Main and permanent homes have their own rules, and reliefs depend on meeting the relevant conditions. [5]

Article 17(10) of the IMT Code generally sets a 7.5% rate, without exemptions or reductions, for a non-resident buying an urban property or separate unit intended solely for residential use, subject to the special rule in Article 17(4). Tax residence is what matters for this rule, regardless of citizenship. On a taxable amount of €300,000, if the 7.5% IMT rate and 0.8% Stamp Duty both apply, the purchase would incur €22,500 in IMT and €2,400 in purchase Stamp Duty. [6]

The law provides exceptions for buyers who have previously been Portuguese tax residents, buyers who become tax resident in Portugal within two years of purchase and buyers who put the property to residential letting within six months at or below the statutory rent limits and let it for at least 36 months, consecutive or otherwise, in the first five years. For the latter two cases, the AT cancels the difference in tax on application. Apply within six months of becoming tax resident or signing the qualifying tenancy agreement, as applicable. If you are buying jointly, check the treatment for co-ownership or matrimonial community property. [6] [7]

How I help you check the property documents before the CPCV

Before signing the CPCV, you need access to the property documents so you know exactly what you are buying. We request the relevant documents from the seller, and I help you compare the permanent land register certificate, the property tax record and what we saw at the viewing. We check who can sell, whether there are mortgages, attachments or other charges, and how these will be dealt with before we proceed.

I also help you check the permitted use, the municipal records, the energy certificate and any tenancies or pre-emption rights. For a unit in a condominium, we request the statement of charges and debts and review the minutes and any planned works. Even with simplified completion formalities, we check the planning status and raise any questions with the professionals handling your purchase. [8] [9] [10]

How I support you from the CPCV through to completion and registration

If you decide to sign a promissory sale and purchase agreement (CPCV), I coordinate its preparation with the professionals drafting or reviewing it. I help you negotiate the price, deposit, deadlines and key handover. We also go through the parties’ details, the property description and what happens if either side breaches the agreement. If you need a mortgage, negotiate the conditions and deadlines expressly in the CPCV before paying the deposit. What happens if the lender turns you down depends on the agreement and the applicable rules. [11]

When it is time to complete by public deed or authenticated private document, I help coordinate the date with the seller and the professional handling completion. I help you organise the tax documents, payment arrangements and registration of the purchase. The Casa Pronta service can handle completion and registration in one place. After buying, budget for IMI and, if applicable, AIMI. If you later let or sell the property, check your tax obligations in Portugal and in your country of residence. [12] [8] [13]

Frequently asked questions

Can I buy property in Portugal without travelling?

In many cases, yes, through a power of attorney with the right scope. Before signing it abroad, ask the professional handling completion and your lender, if applicable, about the required form, which powers it must grant and whether an apostille, legalisation or translation is needed. [14]

Does buying property in Portugal give me residency or a Golden Visa?

A purchase does not automatically grant a visa, residence permit or citizenship. If you plan to move, check the rules that apply to you. Buying property is no longer a route for new applications for residence by investment (ARI, often called the Golden Visa), subject to transitional rules for earlier cases. [15] [16]

How can I help?

I can help define your search, compare homes in Lisbon, on the south bank of the Tagus or in the Algarve, and coordinate viewings, documents and deadlines with your advisers. For tax, contract or immigration decisions, check how the rules apply to you with the relevant professional.