Country guide
Buying property in Portugal
Every figure carries its source and last-checked date.
EUR 6,100
Price per m² (capital)
3 to 11%
Total buying costs
4.3%
Gross rental yield
+70%
5-year price trend
Portugal is one of the most popular places in Europe to buy property, and it is easy to see why. Asking prices in Lisbon sit around EUR 6,100 per square metre, the Algarve averages roughly EUR 3,870, and in 139 interior municipalities you can still find homes under EUR 1,000 per square metre. That spread means there is a realistic entry point whether you want a city apartment, a coastal villa or a rural renovation project.
If you plan to buy property in Portugal, the process itself is refreshingly open. Foreigners can buy without ownership restrictions; all you need to get started is a Portuguese tax number (NIF). Prices have climbed about 70% over the past five years, so moving to Portugal has become more expensive, but day-to-day living costs remain below the EU average.
One change matters for 2026: from 1 September 2026, non-resident buyers pay a flat 7.5% IMT transfer tax. The surcharge is refundable if you become a Portuguese tax resident within 2 years, so it mainly affects pure second-home buyers rather than people genuinely relocating.
Key facts
- Price per m² (capital)
- EUR 6,100
- idealista price index (Lisbon city, median asking, May 2026)(2026-07)
- Price per m² (rural)
- EUR 900
- idealista/INE municipality map: 139 interior municipalities under EUR 1,000/m2, several under EUR 700/m2(2026-07)
- 5-year price trend
- +70% over 5 years
- INE house price index, cumulative 2021-2025 (approx. +9.4%, +12.6%, +8.2%, +9.1%, +17.6% per year)(2026-07)
- Total buying costs
- 3 to 11%
- Sum of the transfer tax, notary, registration and legal ranges below(2026-08)
- Gross rental yield
- 4.3%
- Global Property Guide, national average for apartments May 2026 (Lisbon approx. 3.8%, Setubal up to 4.9%)(2026-07)
- Cost of living (EU = 100)
- 87
- Eurostat price level index, household final consumption 2024 (EU-27 = 100)(2026-07)
- Golden visa
- Active, but property does not qualify
- Law 56/2023 (Mais Habitacao) revoked the real-estate route; funds, research, cultural and job-creation routes confirmed still open in 2026(2026-08)
Where in the country, and what it costs
A national average hides the only question that matters once you are serious: which stretch of coast. These are the areas foreign buyers actually shortlist, from cheapest to dearest. Note that these are province or district averages covering everything inside them, inland towns included, so they answer a different question than the single coastal figure in the table above.
- Alentejo coast (Beja)EUR 1,521/m²
Portugal's cheapest coastal option, for buyers who put peace and nature above amenities, with the catch of strict building restrictions inside the Sudoeste Alentejano natural park and few businesses open outside the season.
- Silver Coast (Leiria)EUR 2,071/m²
For buyers who want to avoid Algarve prices but stay within an hour and a half of Lisbon, with the catch of a rougher Atlantic coast, a short beach season and considerably less English-speaking service.
- Porto and the northEUR 3,167/m²
Works for buyers who want a real city with jobs, hospitals and direct flights rather than a holiday town, with the catch of a wetter climate and coastal towns that fill up in July and August.
- MadeiraEUR 3,795/m²
For buyers who want to live outdoors all year without a summer heat peak, with the catch of steep terrain that gives almost every house stairs or a slope, and hardly any sandy beaches.
- Algarve (Faro)EUR 4,202/m²
The region with the largest Dutch and British community and the most agents working in English, with the catch that Faro city became 18.3 percent more expensive in a year and the district has the highest price level in the country after Lisbon.
- Lisbon coast and CascaisEUR 4,759/m²
For buyers who want to combine city, beach and an international school, with the catch that this district average is pulled down by the cheaper northern fringe while Cascais and Estoril themselves sit clearly higher.
Source: idealista prijsindex (relatório de preços à venda), districtsniveau, peilmaand augustus 2026; landelijk gemiddelde 3.207 EUR/m2, methodiek herzien per juli 2026. Checked 2026-09. Asking prices, not transaction prices.
Buying costs
Costs on a €250,000 purchase
EUR 7,500 to EUR 27,500
on top of the purchase price.
- Transfer tax
- 0.8 to 8.8%
- IMT 0-8% progressive (residents) plus 0.8% stamp duty; non-residents pay a flat 7.5% IMT from 1 Sep 2026 (Decreto-Lei n.º 97/2026, de 20 de maio), refundable if they become tax resident within 2 years(2026-07)
- Notary
- 0.1 to 0.4%
- Casa Pronta one-stop fee (IRN): EUR 375 for a single act, EUR 700 with a mortgage, +EUR 50 per extra property; private notary deeds run to about EUR 1,000. Fixed amounts, so roughly 0.1-0.4% on a EUR 200k-500k purchase(2026-07)
Taxes for non-residents
- Annual property tax
- IMI: 0.3-0.45% of the taxable value (VPT) per year for urban property, rate set per municipality; 0.8% for rural property
- Portutax / IMI Code (CIMI)(2026-07)
- Wealth tax for non-residents
- AIMI: 0.7% on the owner's combined residential VPT above EUR 600,000, 1% above EUR 1M, 1.5% above EUR 2M; applies equally to non-residents
- Portutax / AIMI regime (CIMI)(2026-07)
- Rental income tax
- 25%
- Flat IRS rate on residential rental income (28% for non-residential lets; lower rates for long-term contracts)(2026-07)
- Capital gains tax
- 24%
- Since 2023 non-residents are taxed on 50% of the gain at progressive rates of 12.5-48%; 24 = maximum effective rate, most sellers pay an effective 6-24%(2026-07)
- Inheritance
- No inheritance tax; instead 10% stamp duty on Portuguese assets, but spouses, children and parents are exempt (a 0.8% stamp duty on the property still applies to gifts)
- PwC Tax Summaries / Stamp Duty Code (CIS)(2026-07)
The buying process
- Can foreigners buy?
- Yes, no restrictions
- No ownership restrictions for foreigners; a Portuguese tax number (NIF) is required(2026-07)
- Restrictions
- No ownership restrictions, but from 1 September 2026 non-resident buyers pay a flat 7.5% IMT (DL 97/2026); the surcharge over the normal progressive rates is refunded if the buyer becomes a Portuguese tax resident within 2 years or signs a moderate-rent lease (rent up to EUR 2,300/month) within 6 months and keeps it at least 36 months
- Decreto-Lei n.º 97/2026, de 20 de maio (Construir Portugal housing package), Diario da Republica 1.ª serie n.º 97(2026-08)
- Mortgage as non-resident
- Yes
- All large Portuguese retail banks run dedicated non-resident mortgage programmes(2026-07)
- Maximum loan to value, non-resident
- 70%
- Typical non-resident maximum (60-70%; EU/EEA residents with euro income sometimes up to 80%)(2026-07)
- Typical duration
- 6 to 12 weeks
- Cash purchases complete in 4-6 weeks; with a mortgage typically 2-3 months (promissory contract CPCV, then deed)(2026-07)
Residency & golden visa
Portugal still has a golden visa, and it is worth being precise about what that means, because the programme is routinely advertised as a property route long after it stopped being one. Law 56/2023, the Mais Habitacao package, removed every real-estate option in October 2023. What remains in 2026 runs through CMVM-regulated investment funds at a minimum of EUR 500,000 with no direct or indirect property exposure, through job creation, or through cultural and research contributions. Buying an apartment in Lisbon or the Algarve, at any price, does not qualify.
That puts Portugal in the same position as Spain, which ended its programme entirely on 3 April 2025. If the goal is residency against property rather than residency in general, the two remaining options among the countries we cover are Greece, at EUR 400,000 outside the main centres or EUR 800,000 inside them, and Cyprus, at EUR 300,000 plus VAT in a new build. Both are real property routes; the Portuguese one is a fund route that happens to sit in the same country as the house you wanted.
None of this restricts ownership. Foreigners buy in Portugal without restriction and need only a NIF, the Portuguese tax number. Non-EU citizens without a permit are limited to 90 visa-free days in any 180-day period, the same as everywhere else in the Schengen area.
Buying is not the same as living there. What it takes to actually move to Portugal covers the visa routes, the tax position once you are resident, and what it costs.
The buying process step by step
Get a Portuguese tax number (NIF)
The NIF is the key that unlocks everything else: opening a bank account, signing contracts and paying taxes. Non-residents from outside the EU appoint a fiscal representative to obtain one. Most buyers arrange it through a lawyer before they even start viewing.
Open a Portuguese bank account
You will need a local account to pay the deposit, taxes and utilities. Banks ask for your NIF, passport and proof of income or address. All large Portuguese retail banks are used to non-resident customers and run dedicated programmes for them.
Make an offer
Offers are usually negotiated through the estate agent and are not binding until a contract is signed. Once the price is agreed, your lawyer starts the legal checks. If you need a mortgage, this is the moment to get your bank approval moving in parallel.
Due diligence
Your lawyer verifies the land registry record, checks for debts and charges on the property, and confirms the building has the right licences. An independent lawyer typically charges 1-2% of the purchase price. Skipping this step is the most common and most expensive mistake foreign buyers make.
Sign the promissory contract (CPCV)
The CPCV (contrato de promessa de compra e venda) fixes the price, the deposit and the completion date, and is legally binding on both sides. If the seller pulls out, they owe you double the deposit back; if you pull out, you lose it. It is the real point of commitment in a Portuguese purchase.
Final deed (escritura) and registration
Completion happens before a notary, where you sign the escritura and pay the balance. The deed plus land registration via the one-stop Casa Pronta service costs a largely fixed EUR 375, or EUR 700 when there is a mortgage, with registration included. Cash purchases complete in 4-6 weeks overall; with a mortgage, expect 2-3 months.
Is Portugal right for you?
Portugal has quietly become a country that rewards people who actually move there and charges everyone else for the privilege of not moving. From 1 September 2026 non-resident buyers pay a flat 7.5 percent IMT under Decreto-Lei 97/2026 instead of the progressive resident scale, and that surcharge comes back only if you become a Portuguese tax resident within two years or sign a moderate-rent lease within six months and keep it for at least 36. If you are relocating, the tax is a temporary cash-flow item. If you want a second home you will visit six weeks a year, it is a permanent 7.5 percent on the purchase price.
The rest of the case is genuinely good: no ownership restrictions, a NIF and a bank account are most of the admin, cash purchases complete in four to six weeks, and the price spread is the widest of the four countries here, from roughly EUR 6,100 per square metre in Lisbon down to under EUR 1,000 in 139 interior municipalities. Gross rental yields of about 4.3 percent are the lowest of the four, so this is a lifestyle and capital-appreciation market rather than an income one. The head-to-head that most buyers actually need is Spain versus Portugal.
Frequently asked questions
Can foreigners buy property in Portugal?
Yes, foreigners can buy property in Portugal without any ownership restrictions. You do not need to be a resident or an EU citizen; the only formal requirement is a Portuguese tax number (NIF). Non-EU buyers appoint a fiscal representative to obtain the NIF, which a lawyer can arrange remotely.
What are the total costs of buying a home in Portugal?
Expect total purchase costs of roughly 3-11% on top of the price. That covers IMT transfer tax (0-8% progressive for residents), 0.8% stamp duty, the deed plus registration via the one-stop Casa Pronta service at a largely fixed EUR 375 (EUR 700 with a mortgage), and a lawyer at 1-2%. From 1 September 2026, non-resident buyers instead pay a flat 7.5% IMT; the surcharge over the normal progressive rates is refunded if you become a Portuguese tax resident within 2 years.
Which taxes do I pay each year as a property owner?
The main annual tax is IMI, at 0.3-0.45% of the property's taxable value (VPT) for urban property, with the exact rate set by each municipality; rural property pays 0.8%. On top of that, AIMI applies to higher-value portfolios: 0.7% on your combined residential VPT above EUR 600,000, 1% above EUR 1 million and 1.5% above EUR 2 million, and it applies equally to non-residents.
Can I get a Portuguese mortgage as a non-resident?
Yes, all large Portuguese retail banks run dedicated non-resident mortgage programmes. As a non-resident you can typically borrow up to 60-70% of the property value, so plan for a deposit of at least 30% plus purchase costs. EU or EEA residents with euro income are sometimes offered up to 80%.
How long does buying a house in Portugal take?
A typical purchase takes 6-12 weeks from accepted offer to final deed. Cash purchases complete in 4-6 weeks, while a mortgage usually stretches the process to 2-3 months. The main stages are the promissory contract (CPCV) followed by the notarised deed (escritura).
Does buying property still qualify for the golden visa?
No, Portugal removed all real estate routes from the golden visa in October 2023. The programme itself is still active in 2026, but qualification now runs through CMVM-regulated investment funds with a minimum of EUR 500,000 and no direct or indirect real estate exposure, or through job creation or cultural donations. Buying a home no longer grants residency by itself.
Can I rent out my Portuguese property to holidaymakers?
Yes, but short-term lets require an Alojamento Local (AL) registration, and operating without one risks fines of up to EUR 40,000. Decree-Law 76/2024 lifted the national freeze in November 2024 and made licences permanent and transferable again, handing control to municipalities; larger cities such as Lisbon still restrict new registrations in containment zones. Gross rental yields average about 4.3% nationally, and residential rental income is taxed at a flat 25%.
The next step
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