Can foreigners really buy property in Portugal?
Yes, without qualification. Portugal places no nationality or residency restrictions on buying property — an American, a Brit, a South African or anyone else can purchase in their own name, remotely, without ever needing to be physically present at closing. The entire transaction can be handled through a lawyer under power of attorney.
CALLOUT: Buying property no longer grants a path to residency on its own. Portugal’s Golden Visa closed its real estate route in October 2023 — you can still buy a home freely, but it won’t itself qualify you for residency the way it once did. If residency is the goal, that now runs through a separate route like the D7 or D8 visa, or the Golden Visa’s fund-investment path.
The new 2026 rule: 7.5% flat IMT for non-residents
This is the single most important update for anyone reading this guide right now. As part of Portugal’s Construir Portugal – Arrendamento e Simplificação housing programme, approved by Parliament in February 2026, non-resident buyers purchasing a second home or holiday property now pay a flat 7.5% IMT rate, effective 1 September 2026 — regardless of the property’s price. This replaces the progressive scale non-residents previously used, which topped out at a similar rate only on higher-value properties.
Worked example: A €450,000 apartment bought as a primary residence on the standard progressive scale generates roughly €22,810 in IMT. The same property, bought by a non-resident as a second home under the new flat rate, generates €33,750 — nearly €11,000 more.
Who’s exempt from the flat rate:
- Buyers who become Portuguese tax residents within two years of the purchase
- Government officials
- Buyers who commit to renting the property long-term under specific moderate-rent conditions
- (Standard IMT Jovem exemptions for buyers under 35 purchasing a first primary home continue to apply separately, but rarely help foreign buyers purchasing a holiday property)
CALLOUT: If you’re planning to relocate to Portugal within a couple of years of buying — rather than purely holding a holiday property — the tax-residency exemption is worth discussing with a lawyer or tax adviser before you sign anything, since it can be the difference between the standard rate and this new flat 7.5%.
IMT rates at a glance
TABLE
| Buyer / property type | 2026 IMT rate |
| Resident, primary residence | Progressive scale, 0%–8% depending on value |
| Non-resident, second home / holiday property (from 1 Sept 2026) | Flat 7.5%, regardless of price |
| Rural land (prédios rústicos) | Flat 5% |
| Commercial property / building plots | Flat 6.5% |
| First-time buyer under 35, primary home | Full exemption up to ~€330,539; partial exemption up to ~€660,982 (IMT Jovem) |
IMT is calculated on whichever is higher: the actual purchase price, or the property’s official tax value (VPT). It applies whether you’re a resident or not, but the rate and structure differ sharply depending on your status and the property’s intended use.
Stamp duty (Imposto de Selo)
Separate from IMT, stamp duty is a flat 0.8% of the purchase price (or VPT, whichever is higher), applied to essentially every property transaction regardless of residency or property type. If you’re financing the purchase with a Portuguese mortgage, an additional 0.5–0.6% stamp duty applies to the loan amount itself (0.6% for loans over five years, 0.5% for shorter terms).
CALLOUT: Both IMT and stamp duty must be paid before the deed (escritura) is signed at the notary — the notary is legally barred from proceeding without proof of payment. Your lawyer typically handles this through the Portal das Finanças, generating a payment reference you settle via Multibanco, direct debit, or at a tax office.
Other costs: notary, registration, legal fees
TABLE
| Cost | Typical amount |
| IMT | 0% (exempt) to 8% progressive (residents), or flat 7.5% (non-resident second homes, from Sept 2026) |
| Stamp duty | 0.8% flat, plus 0.5–0.6% on any mortgage loan |
| Notary & land registry fees | ~1–1.5% combined, often capped around €1,200–2,500 in practice |
| Independent legal fees | ~1% of purchase price, or a flat €1,500–3,500 for a straightforward purchase |
Altogether, budget roughly 5–10% of the purchase price in taxes and fees on top of the property cost itself — the exact figure depends heavily on your residency status, the property type, and whether you’re financing with a mortgage.
How to buy: step by step
- Get your NIF — required before you can sign anything.
- Engage an independent lawyer — not the same as, and separate from, the notary, who is a neutral party in the transaction.
- Reserve the property and run due diligence — check the land registry certificate and urban property tax record before committing.
- Sign the CPCV (contrato de promessa de compra e venda) — the promissory contract, usually with a deposit of 10–30% of the purchase price.
- Pay IMT and stamp duty — via the Portal das Finanças, before the deed can be signed.
- Sign the escritura (deed) before a notary — the final legal transfer of ownership.
- Register the transfer — your lawyer or notary completes registration with the land registry.
The full process can be completed entirely remotely via power of attorney, which is common for foreign buyers who can’t or don’t want to travel for closing.
Ongoing costs after purchase (IMI and AIMI)
- IMI (Imposto Municipal sobre Imóveis) — an annual municipal property tax paid by every owner, varying by municipality and property value.
- AIMI (Adicional ao IMI) — an additional annual “wealth tax” that only kicks in on properties valued above roughly €600,000, at 0.7–1% for individuals (a flat 1% above €1 million), and a lower 0.4% rate for properties held through a company.
Both are worth factoring into your long-term cost picture, not just the one-off purchase costs above.
Finding a licensed real estate agent
Every legitimate agency operating in Portugal must hold an AMI licence number — ask for it before working with anyone, and treat reluctance to provide it as a red flag. A good local agent is especially valuable for foreign buyers navigating regional price differences and due diligence on unfamiliar paperwork.
TABLE — Regional price context (per m², 2026)
| Region | Typical range |
| Lisbon & Cascais | €4,200–8,500 |
| Porto | €3,200–5,800 |
| The Algarve | €2,700–6,200 |
| Silver Coast & inland areas | €1,100–3,200 |
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