Buying property in Portugal as a foreigner

With warm weather, beautiful beaches and friendly communities, Portugal is a popular destination for expats looking to relocate or invest.

If you’re thinking of taking new property opportunities, read along to find everything you need to know about buying a house in Portugal as a foreigner.

What’s the property market like in Portugal?

Due to a steady growth in property prices since 2021, Portugal’s housing market remains strong. After picking up again in recent years, demand has continued to outpace supply in many areas — helping to keep prices on an upward trend.¹

Interest from foreign buyers also remains high, with continued competition in popular locations like Lisbon, Porto and the Algarve. As a result, buyers should expect rising prices in sought-after neighbourhoods, alongside a market where well-priced homes can move quickly.

This means that if you’re planning to buy in Portugal — whether it’s a holiday home or part of a longer-term move to join the country’s growing expat communities — it’s worth being prepared and ready to act when the right property comes along.

Can Americans buy property in Portugal?

There aren’t any special restrictions for foreigners to buy property in Portugal. This means that US citizens can freely buy houses in the country.

Portugal is also known for incentivizing foreign investment, but it’s important to know that real estate is no longer an eligible route for the Golden Visa². While you can still buy property, you’ll need to qualify through other options such as fund subscriptions (€500,000), scientific research (€500,000), cultural or artistic donations (€250,000), job creation (10 jobs), or setting up a company (€500,000 investment + 5 jobs³.

If you’re considering this route, make sure to check the latest rules on the relevant government websites before you commit — especially as Portugal’s 2026 nationality law reform has extended the typical citizenship timeline from 5 to 10 years for most applicants (or 7 years for EU/CPLP nationals).

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How to buy real estate in Portugal as an American: step by step

Once you’ve set your budget and chosen your property, you can go over the steps below on how to buy a home in Portugal⁴:

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Step 1. Decide which mortgages might suit you, and get an offer in principle so you have a budget in mind

Step 2. Engage an independent solicitor to help check contracts and make sure the property is surveyed, once that is done, you can make an offer to the seller.

Step 3. Sign the Contrato de Promessa de Compra e Venda (sales contract) with the notary — that’s usually when you pay for your deposit, which ranges from 1% - 10% of the purchase price.

Step 4. You're now liable for property transfer tax (Imposto Municipal sobre Transmissões)

Step 5. The last step is to sign the Escritura Publica de Compra e Venda (Deed of Purchase and Sale) and have the property registered in your name — this is when the remainder is to be paid.

A recent legislation change in Portugal made it easier for sellers to list their property on the market, but also brought considerable changes from the buyers’ perspective.

"A law enacted in January 2024 implies that simplified urban planning licences have "simplified" the procedures involved in purchasing and selling real estate in Portugal. To be more precise, you don’t need to show the Licença de Utilização (Habitation License) and the Ficha Técnica da Habitação (FTH) when signing the Portuguese reservation contract CPCV. This is a good step since it makes it possible for more properties to be listed on the real estate market and it makes the process of buying a home easier. Nonetheless, you should always insist on seeing these documents as the buyer. As a foreigner, it is in your best interest to make sure the property you are buying is in good condition, and these two documents verify that."

– Pearls of Portugal, a leading buyer's agent in Portugal, will help you with your purchase in Portugal and clarify all the questions that you have concerning the Licença de Utilização

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What are the requirements to buy a house?

The overall process of – is pretty straightforward, so you just need to make sure you have all the necessary documents, such as⁵:

Buying property in Portugal as a foreigner: costs

If you’re thinking of buying a property in Portugal, the price you pay will be influenced significantly by where you want to live.

While Lisbon is the most sought after location, you can find houses with more reasonable prices along the Algarve coast, in cities like Faro and Albufeira.

But Portugal has properties to offer for every kind of pocket, so make sure to check your options and pick the one that best suits your needs.

Below you can find some average prices to help you get started:

What kind of taxes and fees will you need to pay?

Other than the property price on itself, as a buyer you’re liable to certain taxes and fees over what you’re purchasing.

Below you find a breakdown of the most common fees you’ll need to pay.

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Getting a mortgage in portugal as a foreigner

Portugal has a sophisticated banking system with plenty of choice in local and international banks. The largest banks include Caixa Geral de Depósitos, Millennium BCP, Santander, Novo Banco, BBVA and Bankinter. You might recognize the brands as many have a global presence.

For example, global banking giant Santander has a Portuguese operation, offering many of the same accounts and deals that you can get elsewhere in the world. If you have an account with them already, you may find it easier to switch to their local business in Portugal.

It’s advisable to get a mortgage agreement while you’re still at the beginning of your property purchase process. This will give you a more realistic idea on your budget, and will also help to avoid any complications down the road.

Can expats get a mortgage in Portugal?

Yes, it’s possible for expats to get a mortgage in Portugal. The only difference you’ll face is that when it comes to financing, banks usually offer loans between 60% - 70% of the purchase price for foreigners¹⁰.

If you’re in need of a larger percentage for your loan, it might be worth checking your local options of international mortgage lenders.

How much deposit do you need for a mortgage in Portugal?

When it comes to deposits for non-resident foreign buyers, the minimum should be approximately 30-40% of the full property price¹¹.

After the documentation is done, you’re expected to pay your fees. Besides the deposit, the commitment fee is usually applicable and it will cost you around 600-2,500 EUR.

Have in mind that, depending on the bank you choose to follow through with, other fees and taxes might be applicable, so make sure you do your research before making any commitments.

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Buying property abroad? Send money the hassle-free way with Wise

Now that we covered all the basic costs of purchasing your dream Portuguese home, the only question left is: how to send money to pay for your property overseas?

Wise offers you a quick, secure and transparent way of sending money to Portugal. You get the mid-market exchange rate for your payments and see how much it’s charged for the transfer before sending the money from your bank.

With the Wise Multi-currency Account you can also hold 40+ currencies, spend money in 160 countries and territories, and receive like a local in 22 different currencies.

Get started with Wise

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How can you find real estate in Portugal?

There are several avenues you can take to find a property in Portugal:

• Through an agent (imobiliaria)
• Through an online portal which puts sellers in touch with buyers directly
• Through word of mouth.

An estate agent, if used, generally works on behalf of the seller. The estate agent fees are likely to be between 3% and 5% of the price of the property, and will be covered by the seller.

Avoiding scams and pitfalls

To avoid scams and pitfalls, make sure your chosen realtor is properly registered. All agents have to be registered with the proper body (known as the Associação de Mediadores Imobiliários) and hold a licence number. Check out your agent’s credentials by talking to the Instituto da Construção e do Imobiliário (the body responsible for construction and realty).

When it comes to finding your own independent solicitor it’s also important to do your research carefully. You should know that there are both professionals known as a solicitador and an advogado in Portugal.

A solicitador is a conveying specialist, and an advogado is a qualified lawyer. In most cases, an advogado, although more expensive, will be the better choice when arranging your house purchase. Don’t feel you have to take the recommendation of your broker or the seller — your lawyer will work for you, so you must find someone who you’re comfortable with.

Online Taxman insight: US tax considerations

US citizens and Green Card holders must adhere to US tax and reporting requirements on their global income and assets, regardless of their country of residence.

If you live in Portugal, you may also face Portuguese tax liabilities. The Portuguese tax authority is called the Autoridade Tributária e Aduaneira. A US expat tax specialist can help you to avoid double taxation.

Property overseas owned in your name typically doesn’t require reporting to the US government, but tax consequences can arise in certain circumstances.

For example, if you acquire property through a corporation or other legal structure, that entity will have annual US reporting obligations.

You’ll also have to report any rental income you or your entity earns from Portuguese real estate on your US federal tax return.

You also need to disclose your foreign bank or other financial accounts, including those held by companies you own, under FBAR and sometimes FATCA rules.

If you sell your foreign property, you may owe capital gains taxes in both the US and Portugal. Keeping thorough records of your acquisition costs and any improvements is important, as these can help offset your taxable gain.

US tax and reporting compliance for Americans with overseas residences or assets can be complicated, and there are significant penalties for non-compliance. To stay compliant and make the process hassle free, consult a US expat tax professional.

How to choose the right property

Property types

You'll have a wide choice of apartments, houses or even land if you want to build your dream home in Portugal yourself. Naturally, you'll find more flats available in built up areas and cities, with houses and villas more readily available in newer developments in the suburbs, and in towns and villages.

The recent rise in house prices has fuelled new construction in the cities and the coastal areas along with Algarve in particular, and you'll find a good mix of older properties and new-build condos there.

Condition of the property

It’s a smart idea, though not required by law, to get a survey done on any property you choose, before you commit to buying it. Older houses in particular can have hidden problems which are costly to fix. Your solicitor can help you find a registered surveyor.

Other things to look out for

You must have a fiscal number (Numero de Contribuinte) to purchase a property in Portugal. You can get this through the local tax office or it's issued when you open a local bank account.

What are the legal requirements of buying property in Portugal?

The notary works as a middleman on behalf of the state, and has an extremely important role in house sales in Portugal. He’ll check the Land Registry (Conservatória de Registo Predial) and Inland Revenue (Repartição de Finanças)

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Now that we’ve been through all the steps of buying a house in Portugal, you can take your plans off the paper and go after your dream home abroad.

And don’t forget to get a Wise Account, this way you’ll have one less thing to worry about when settling in a new country.

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Sources:

1. Global Property Guide - Portugal price history
2. Get Golden Visa - Portugal residence by investment
3. Get Golden Visa - Portugal golden visa program
4. Proper Star - How to buy a house as a foreigner
5. Get Golden Visa - Buying property in Portugal
6. Numbeo - Price comparison: Lisbon and Porto
7. Numbeo - Price comparison: Coimbra and Albufeira
8. Numbeo - Price comparison: Faro and Cascais
9. Global Property Guide - Buying guide
10. Expatica - Mortgages in Portugal
11. Traverse International Finance - Portugal mortgages
12. Please see Terms of Use for your region or visit Wise Fees & Pricing: only pay for what you use for the most up to date pricing and fee information)

Sources checked on 05.21.2026