Buying Property in Portugal as a Foreigner

In short: Foreigners can buy property in Portugal on the same terms as Portuguese citizens. There are no nationality restrictions, but every buyer needs a Portuguese tax number (NIF). Since 25 May 2026, non-resident individuals buying a home pay a flat 7.5% property transfer tax (IMT) unless an exception applies, plus 0.8% stamp duty. Buying property no longer leads to a Golden Visa: the real-estate route closed on 7 October 2023.

This guide reflects Portuguese legislation and official sources as checked on 12 November 2026.

Can foreigners buy property in Portugal?

Yes. Portugal places no nationality restrictions on buying homes, land or commercial property, and the same purchase process applies to everyone. The one requirement for every buyer is a Portuguese tax identification number (NIF), issued by the Tax and Customs Authority (AT). You need it before you sign the deed.

If you live outside the EU and the European Economic Area (EEA), article 19 of the General Tax Law requires you to appoint a fiscal representative resident in Portugal. That obligation does not apply if you sign up for the AT's electronic notifications (the Portal das Finanças notification service or the electronic mailbox). Residents of EU and EEA countries may appoint a representative but do not have to.

What changed in 2026 for non-resident buyers?

Decree-Law 97/2026 of 20 May 2026, published in the Diário da República (1st series, no. 97) the same day, added a new rule to article 17 of the IMT Code. The IMT rate is always 7.5%, with no exemption or reduction, when a non-resident buys an urban property or flat intended exclusively for housing.

When did the 7.5% rate start?

Sources quote 21 May, 25 May and 1 September 2026. The decree itself settles the question. Its article 18 delays only certain measures to 1 September 2026 (a new rental investment contract regime, a simplified affordable-rent regime and two repeals), and it sets no start date for the IMT change. Under Law 74/98, a law with no start date enters into force on the fifth day after publication, counting from the day after it is published. For a decree published on 20 May, that is 25 May 2026. A rectification published on 13 July 2026 (Declaração de Retificação 26/2026/1) corrected other provisions and did not change the IMT rule.

Who does not pay the 7.5% rate?

The normal IMT tables apply instead if the buyer:

has previously been a Portuguese tax resident;
becomes a Portuguese tax resident within two years of the purchase; or
lets the property as a home within six months, at a monthly rent no higher than the decree's moderate-rent limit, and keeps it let for at least 36 months, consecutive or not, in the first five years.

In the second and third cases you pay 7.5% at purchase and then ask the AT to cancel the difference between the tax paid and the tax under the normal tables. The request must be made within six months of becoming resident or signing the lease. According to AT guidance issued in September 2026 (Ofício-Circulado 40131/2026, as reported by idealista), a married couple pays the 7.5% rate only if both spouses are non-resident and neither has ever been resident.

A separate rule already in the IMT Code sets a 10% rate for buyers domiciled in a listed tax-haven jurisdiction and for entities controlled from one. It does not apply to individuals.

How much does it cost to buy? IMT, stamp duty and fees

The normal IMT tables for mainland Portugal in 2026 (brackets set by the 2026 State Budget, Law 73-A/2025) are progressive. For a permanent home, the first €106,346 is tax-free, a flat 6% applies to the whole price from €660,982 to €1,150,853, and a flat 7.5% applies above €1,150,853. A secondary home pays from 1% on the first euro, and its flat 6% band starts at €633,931. Madeira and the Azores use higher thresholds.

Cost	Rate or amount (November 2026)
IMT, non-resident individual	7.5% of the price, unless an exception applies
IMT, resident buyer or exception	Progressive tables: marginal rates up to 8%, then a flat 6% or 7.5% on higher prices
Stamp duty (Imposto do Selo)	0.8%
Casa Pronta deed and registration (one property)	€375 for one registration act; €700 for more than one, for example a purchase with a mortgage
Lawyer	Agreed with your lawyer; not a fixed fee

IMT and stamp duty are charged on the higher of the price and the property's tax value (VPT).

Worked example: a €500,000 flat in Lisbon

Buyer	IMT	Stamp duty	Total taxes
Resident, permanent home	about €26,237	€4,000	about €30,237
Resident, secondary home	about €27,300	€4,000	about €31,300
Non-resident (7.5%)	€37,500	€4,000	€41,500

A non-resident pays about €10,200 more in tax than a resident buying the same flat as a second home. If you become resident within two years, you can claim back the difference. The figures assume the price is higher than the tax value and leave out registration, legal and bank costs. To see how these taxes compare with Turkey, Northern Cyprus, Spain, Dubai and the UK, read our buying costs comparison.

How does the buying process work, step by step?

Get a NIF: apply at a tax office or through a representative, and appoint a fiscal representative or join electronic notifications if you live outside the EU and EEA.
Arrange your money: many buyers open a Portuguese bank account, which makes it easier to pay taxes, fees and utilities in euros.
Check the property: ask for the land registry certificate (certidão permanente), which shows the owner and any mortgages or charges; the tax record (caderneta predial), which shows the tax value; the use licence (licença de utilização) or proof of exemption; and the energy certificate.
Sign the promissory contract (CPCV) and pay a deposit (sinal): under the Civil Code, if the buyer pulls out the deposit is lost, and if the seller pulls out they must return double.
Pay IMT and stamp duty: these are settled before the deed is signed.
Sign the deed (escritura): before a notary or at a Casa Pronta desk, where you pay the balance and receive the keys.
Register the purchase: the new ownership is entered at the land registry; Casa Pronta does this in the same visit.

Buying off-plan or a new build

When you buy before completion, the CPCV sets the price, the payment stages and the delivery date, and the deed is signed once the building has its use licence. Ask how your stage payments are protected, for example by a bank guarantee, what happens if completion is late, and whether the project has its planning approvals from the municipality. The 7.5% IMT rule covers any purchase of a home by a non-resident, so it applies to new builds too.

Can non-residents get a mortgage in Portugal?

Yes, from some Portuguese banks, on their own credit criteria. The Banco de Portugal's Macroprudential Recommendation 1/2026 caps new home loans at 90% of the property's value for your own permanent home and 80% for other purposes, which includes most holiday homes and investment purchases. These are ceilings, and banks may lend less to non-residents. A mortgage also adds registration costs and stamp duty on the loan, so ask your bank for the full figures.

What are the yearly costs of owning property in Portugal?

IMI (municipal property tax): 0.3% to 0.45% of the tax value for urban property, set each year by the municipality, and 0.8% for rural property.
AIMI (additional IMI): charged on residential property when an individual's total tax value is above €600,000. The rate is 0.7% on the value above that deduction, 1% on the part above €1 million and 1.5% on the part above €2 million. These thresholds double if married couples opt for joint taxation, and companies pay 0.4%.
Condominium fees: set by each building's owners' assembly to cover shared services and repairs.

Can you rent the property out?

Long-term lets

Non-residents pay a flat 25% tax on rent from residential leases (28% on other rental income). From 1 January 2026 to 31 December 2029, a 10% rate applies to residential leases where the monthly rent does not exceed 2.5 times the 2026 national minimum wage, which is €2,300. Residents of EU and EEA countries can choose to be taxed at the progressive rates instead. Your home country may also tax the income.

Short-term lets (Alojamento Local)

Holiday letting needs an Alojamento Local (AL) registration with the municipality. Decree-Law 76/2024, in force since 1 November 2024, gave municipalities the power to set containment areas where new registrations are limited. Lisbon has restricted new registrations in parts of the city since 2018, and under its 2019 municipal regulation the Baixa and Avenida da Liberdade fall in "absolute containment" zones where new registrations are generally not accepted. Lisbon's rules have been under review, so check the current position with the Câmara Municipal de Lisboa for the exact address before you buy with short lets in mind.

Does buying property give you residency in Portugal?

No. Law 56/2023 removed property purchases from the Golden Visa (ARI) programme with effect from 7 October 2023. The investment routes that remain do not involve buying a home: for example, €500,000 in Portuguese investment funds that are not real-estate funds, or company and job-creation routes. If you want to live in Portugal, ask an immigration lawyer which visa fits your situation. The new Nationality Law (Organic Law 1/2026, published 18 May 2026) also lengthened the residence period for naturalisation; according to law-firm summaries, it is now 10 years, or 7 years for EU and Portuguese-speaking (CPLP) nationals.

What tax do you pay when you sell?

Since 1 January 2023, non-residents have been taxed on 50% of the gain from selling Portuguese property, at progressive rates from 12.5% to 48%, plus a solidarity surcharge on high incomes. The rate depends on your worldwide income. Decree-Law 97/2026 also created a relief for sales from 2026 to 2029: the gain is not taxed if the proceeds are reinvested in Portuguese homes let at a moderate rent, between 24 months before and 36 months after the sale, and the conditions on letting are kept for five years. Whether non-residents can use this relief has not yet been clarified, so confirm with a tax adviser before you rely on it.

Where do our buyers look in Portugal?

As of 11 November 2026 we list 25 properties in Portugal, priced from €350,000 to €1,650,000. Most are in Lisbon: 16 homes from €495,000 to €1,650,000, mainly apartments in the Baixa, Santos, Chiado and Avenida da Liberdade. On the Silver Coast we have a smaller selection around Óbidos, Peniche, Caldas da Rainha and São Martinho do Porto, from €350,000 to €998,000. This is a small sample of our own stock, not a market average. For higher-end homes, see our luxury properties in Portugal.

What should you check before you sign?

Your tax status: whether you will be resident or non-resident on the day of the deed, and whether your spouse has ever been resident, because this decides between 7.5% and the normal IMT tables.
Title and charges: that the seller in the land registry certificate is the person selling to you, and that any mortgage will be cleared at the deed.
Licences: that the use licence matches the property as built, including any extensions or converted spaces.
Short-let rights: if you plan holiday lets, whether a new AL registration is possible at that address, or whether an existing one can pass to you.
Running costs: the current IMI, condominium fees and any unpaid charges.
Refund deadlines: if you expect to become resident or to let at a moderate rent, diarise the two-year, six-month and 36-month conditions.

Key takeaways

Foreigners can buy any type of property in Portugal; a NIF is the one requirement.
Non-resident individuals buying a home have paid a flat 7.5% IMT since 25 May 2026, with a refund route if they become resident within two years or let at a moderate rent.
Stamp duty is 0.8%, and Casa Pronta deed and registration costs €375 or €700.
Annual IMI is 0.3% to 0.45% of the tax value; AIMI applies above €600,000 per individual.
Property no longer qualifies for the Golden Visa, and non-residents are taxed on 50% of any gain when they sell.

Frequently asked questions

Can a foreigner buy property in Portugal without living there?

Yes. You need a NIF, and if you live outside the EU and EEA, a fiscal representative or a sign-up to the AT's electronic notifications. As a non-resident you pay the 7.5% IMT rate on a home unless an exception applies.

Is the 7.5% IMT rate in force?

Yes. It applies to purchases from 25 May 2026, the fifth day after Decree-Law 97/2026 was published. The 1 September 2026 date in the decree covers other measures.

Can I get the extra IMT back?

Yes, if you become a Portuguese tax resident within two years of buying, or let the home at a moderate rent within six months and keep it let for 36 of the first 60 months. Apply to the AT within six months.

Does buying a home in Portugal give me a Golden Visa?

No. Real estate stopped qualifying on 7 October 2023 under Law 56/2023.

How is rental income taxed for non-residents?

At 25% on residential leases, or 10% from 2026 to 2029 where the rent is no more than €2,300 a month.

Explore homes in Portugal

Browse our properties in Portugal, compare markets in our country guides (including Dubai, Northern Cyprus and the UK), read our comparison of Turkey and Portugal or our buyer guide for Turkey, and contact us with any questions.

Sources (checked November 2026)

Updated: November 2026

This guide is general information, not legal, tax or immigration advice; rules and fees change, so check the current position with the relevant authority and a qualified adviser before you act.

Buying Property in Portugal as a Foreigner: 2026 Rules, Taxes and Steps