Guide for foreign buyers

Portugal stands out as one of the most attractive destinations in Europe for international buyers. With its security, quality of life, mild climate, and a stable real estate market, the country becomes the ideal choice for those looking to invest, change their lives, or acquire a second home.

If you're thinking of buying a property in Portugal, this guide details the process, from legal requirements to essential costs and care.

1. Can Foreigners Buy Real Estate in Portugal?

Yes! Foreigners can acquire property in Portugal without significant restrictions, regardless of nationality or residence status. It is possible to buy even without:

• Residence in the country;
• Visa or residence permit;
• Be a resident outside the European Union.

However, be careful: some land or properties in protected areas may require special conditions. Therefore, the verification of the property is essential.

2. Required Documents

Before you start your purchase, you'll need a few essential documents:

• Tax Identification Number (NIF):
• Necessary for any real estate transaction.
• It can be obtained in person or remotely.
• In certain cases, especially for non-residents, it may be necessary to appoint a tax representative in Portugal.
• Bank Account in Portugal:
• Although it is not mandatory, it is highly recommended to facilitate tax payments and transactions.
• Identification Document:
• Passport or citizen card (EU);
• In some cases, the tax number of the country of origin.

3. Choosing the Right Property

Portugal has distinct markets, each with unique characteristics. The most popular areas among international buyers include: Lisbon, Cascais, Estoril, Porto and the Algarve. Among the most popular areas, the Algarve stands out for its stunning beaches, mild climate, and relaxing atmosphere.

A local professional can help you:

• Evaluate prices and locations;
• Identify unique opportunities;
• Avoid legal or urban problems.

4. Proposal, Reservation and Contract

After choosing the property, the process usually involves:

• Purchase Proposal: Formalization of interest, indicating value and conditions.
• Promissory Contract of Purchase and Sale (CPCV):
• Legal document that sets price and conditions, defines deadlines and establishes a down payment (usually between 10% and 20% of the value of the property).
• It is advisable for a lawyer to analyze the CPCV, especially for distance purchases.

5. Costs and Taxes

In addition to the price of the property, there are additional costs that must be considered:

• IMT (Municipal Transmission Tax): Paid before the deed, it varies between 0% and 8%, depending on the value and type of property.
• Stamp Duty: 0.8% on the purchase value.
• Deed and Records: Usually carried out through the Casa Pronta Counter, with approximate costs of €700.
• IMI (Municipal Property Tax): Paid annually, it varies between 0.3% and 0.45%.

6. Funding

Foreigners can obtain a mortgage in Portugal, including non-residents. Generally, banks finance up to 60–70% of the value of the property for non-residents. The conditions vary according to the bank and the buyer's profile.

7. Deed and Completion of Purchase

After the payment of taxes, the deed is carried out, at which time:

• The property officially passes to the buyer's name;
• The records are updated;
• The keys are delivered.

8. Purchase of Property and Residence

Acquiring a property does not automatically guarantee the right to residency, but it can facilitate proof of accommodation and integrate a broader strategy for moving to Portugal. There are several visa options, each with specific requirements.

Why choose Local Properties?

Buying a property requires more than just knowledge of prices and locations. It is essential to have specialized monitoring and a deep understanding of the local market.

At Local Properties, we offer complete support to national and international buyers in acquiring property in and around Lagos, as well as in other premium areas of the Algarve. We are ready to help you make informed decisions and identify opportunities that align with your goals.

Note: Legal and tax rules may vary. This guide is informative and is not a substitute for expert advice.