Dreaming of a vacation rental in Lisbon, a new home in Cascais, or retirement in the Algarve? Create a free account to access excellent exchange rates or read our guide below to help plan your Portuguese property purchase.
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Portugal has grown in popularity over the years, both as a vacation destination and a place to move permanently, thanks to its exquisite seafood, world-renowned beaches, and rich cultural heritage.
From bustling cities and tourist hotspots to quaint medieval towns nestled in lush valleys, this small country offers a wide range of property opportunities.
However, if you’re considering buying property in Portugal, it’s important to understand the process and what to include in your budget. This guide takes you through the key considerations, from house hunting to transferring money overseas.
When buying property in Portugal, the process is very similar to the USA, although there are some key differences. Here’s an outline of the path to completing a purchase.
Establish a budget, considering all potential costs, and arrange financing. This could include mortgage options and a plan for currency exchange.
Use online property portals and engage with estate agents to find properties. Be sure to check that the agent you’re using is properly registered.
It’s best to hire a legal representative, either a solicitor (solicitador) or a qualified lawyer (advogado). You also need to obtain a fiscal identification number (NIF) for Portugal.
With your legal advisor on side, it’s time to submit your offer. Feel free to negotiate on the asking price, but make sure you know the market and make a reasonable offer.
When the offer is accepted, you’ll pay a deposit – usually around 10% – and sign a purchase agreement (contrato de promessa de compra e venda) with a notary present.
Pay property transfer tax (IMT) and stamp duty before signing the deed of sale (escritura publica de compra e venda) to officially take ownership of the property.
From charming coastal towns to lively tourist hotspots, here are some of the best places in Portugal to buy property.
Portugal’s bustling capital is a costlier option but it’s an excellent choice for investors, thanks to appreciating prices and strong rental demand.
Not far from Lisbon you’ll find Cascais – a large, cosmopolitan, coastal town. Its closeness to the capital makes it excellent for working expats.
Known for its incredible coastline, year-round sun, and huge range of activities, the Algarve is a firm favourite among tourists and retirees.
One of Portugal’s more affordable major cities, Braga is famous for its religious history and architecture. It’s also increasingly popular among expats and students.
The country’s second-largest city boasts plenty of employment options, with multinational companies and a thriving tech sector.
The seaside towns on this sandy stretch of coastline are perfect for expats, while the city of Aveiro is an increasingly popular place to visit or live in.
As part of your journey to purchase a property, it’s likely you’ll need to send money to Portugal. If so, it’s crucial you get a strong exchange rate, otherwise you could end up getting less from your currency transfer.
At Currencies Direct, we offer excellent exchange rates and we don’t charge transfer fees, so you could get a much better deal when sending money overseas.
What’s more, we’ll help you time your transfer. We’ll monitor the market on your behalf, providing you with updates and insights. You can also set rate alerts, secure an exchange rate in advance, and much more.
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While buying a property in Portugal can at times be complex, sending money overseas needn’t be. We can help ease the hassle of the payment side of things.
As a Currencies Direct customer, you’ll have your own personal account manager. They’re on hand to help you with your currency needs, guide you through the options, and provide support in any way they can.
Our services also make money transfer easy. You can hold currency on account, set up automated regular payments, and make swift on-the-spot transfers 24/7 using your online account or in our app.
Thinking about buying property overseas? Create a free Currencies Direct account in minutes. You can then start sending money or talk through your transfer needs with a friendly currency expert.
Buying a property in Portugal comes with additional costs beyond the deposit, the price of the property and any travel expenses. Make sure you factor them into your budget.
Property transfer tax (IMT) can reach up to 8%, varying based on property price, usage, and location. Stamp duty adds an extra 0.8%.
You’ll cover the notary fees, which range from 0.2% to 1.2%. Legal fees come in at around 1% plus VAT, although they also vary.
Account for potential currency exchange costs when converting pounds to euros. We can help you time your transfer to get a strong exchange rate.
In addition to things like bills and mortgage payments, you’ll pay annual property tax (IMI). This ranges from 0.3% to 0.8% of the property's tax value, with an additional tax on high-value properties.
There are two main ways to search for Portuguese property. You can find real estate online by yourself or contact a licensed realtor or agent.
A great place to start is by searching for properties yourself online. You can use property portals to find real estate matching your criteria.
You may also want to contact local and national realtors or agents who can connect you with suitable properties. Make sure you use a licensed agent.
Once you’ve bought your property, there are still a few more things to check off your checklist before you move in.
Check what documentation you’ll need, such as your passport and proof of address, and make sure you have it ready to go.
It’s best to work with an experienced relocation company to avoid unnecessary stress. You’ll also need to obtain a baggage certificate ahead of time.
You can bring pet dogs, cats and ferrets to Portugal, as long as they have the appropriate vaccinations and you have an accompanying health certificate.
You’ll need health cover to apply for residency, after which you can register for the Portuguese national health service (SNS).
Get your utilities set up as soon as possible. Oftentimes you can do this online, but you’ll need ID, proof of address, and your Portuguese NIF.
It’s also crucial you sort out your finances before you go, perhaps opening a Portuguese bank account and considering any future currency transfers.
When the time comes to sell your Portuguese property, it’s important that you know what to expect and get good advice along the way. Here are the main steps of selling your property.
The first stage is to get the property ready to be listed. Tidy it, fix any maintenance issues and perhaps give it a fresh lick of paint.
Make sure you have all the necessary documentation in order, including your own ID and any certificates or permits related to the property.
If you go with an estate agent, they’ll handle the listing for you. Otherwise, you need to take pictures, set a price, and advertise the property.
As with buying a property, it’s definitely a good idea to hire a lawyer. They can navigate all the legal requirements for you.
When you accept an offer, you’ll then sign a purchase agreement. At this stage, the buyer will pay you a deposit of around 10%.
After the final checks have been made, you and the seller will sign the deed of sale, you’ll be paid in full, and the ownership is transferred.
Create a free Currencies Direct account to access excellent exchange rates, expert insights, and outstanding customer support.
At the time of the purchase, the main tax you’ll need to pay is the property transfer tax (IMT). This can reach up to 8% and varies based on factors such as property price, usage, and location (the Portuguese mainland or islands). You’ll also be liable for stamp duty, which is an additional 0.8% of the property price.
There are also ongoing taxes for owning property. The annual property tax (IMI) varies from around 0.3% to 0.8% of the property’s tax value, or valor patrimonial, which tends to be much lower than the market value.
Real estate over €600,000 attracts an additional property tax (AIMI). The amount you’ll pay depends on the property’s tax value and ranges from 0.7% up to 1.5%.
There’s no official requirement that you have a Portuguese bank account when buying property in the country. However, you might want to consider opening an account, particularly if you’re planning on moving to or retiring in Portugal.
Yes, as a foreigner you can obtain a mortgage from a Portuguese bank to buy property in Portugal. Requirements vary, but you'll likely need to provide proof of income, identity, and details about the property.
Generally speaking, you’ll only be able to borrow between 65% and 75% of the property value. It's best to contact several banks to compare terms and interest rates.
The property buying process in Portugal typically takes around three to six months to complete. However, this can vary depending on different factors, such as the complexity of the transaction or any legal issues that may arise.
There currently aren’t any legal requirements for purchasing property in Portugal as a foreigner. That said, you will need a fiscal identification number (NIF), which you can apply for online or at a local municipality office in Portugal.
Portugal’s Golden Visa scheme allows non-EU citizens to obtain a Portuguese residency permit by investing in the country. Previously this included buying property, but property purchases are no longer eligible for the Golden Visa scheme.
The exchange rate you get depends on when you transfer, how much you send, and who you choose to work with. Here at Currencies Direct we offer highly competitive exchange rates, and we can help you time your transfers to move your money when the rate is strong.
Yes, you can use a forward contract to lock in an exchange rate for up to a year in advance of making a money transfer.
The main currency exchange risk is that the exchange rate will weaken when you need to send money. There are two key ways to minimise the risk.
The first is to plan your transfer ahead of time. This could give you the possibility to seize on a strong exchange rate and it means you’re not rushed into sending money when the rate is potentially weak.
The other key thing is to work with us. We offer expert support, market insights and a range of specialist services – such as forward contracts – to help you navigate currency volatility.
You can set up regular payments to automatically go out every month or quarter with Currencies Direct.
You can even use a forward contract along with your regular payments, locking in an exchange rate so you know exactly how much you’ll get from each transfer.