Before you buy

Preparation — 3 documents you cannot ignore

NIF · Portuguese bank account · Lawyer / fiscal representative

NIF — Número de Identificação Fiscal Mandatory

The NIF is Portugal's tax identification number. It is required for any property transaction, opening a bank account and tax compliance. EU citizens can obtain it in person at any Finanças office; non-EU citizens must appoint a Portuguese fiscal representative.

Portuguese bank account Recommended

Not legally required, but many sellers and developers expect payment from a Portuguese account. It also simplifies post-purchase payments such as IMI (property tax) and insurance. Requires a valid NIF and proof of address.

Lawyer / fiscal representative Essential

In Portugal, the notary certifies the transaction but does not protect the buyer. An independent lawyer performs due diligence, checks the land registry, reviews the CPCV (Promissory Contract) and accompanies you to the deed. Non-residents must also appoint a fiscal representative.

IFICI tax regime (ex-NHR) Check eligibility

The old Non-Habitual Resident (NHR) regime ended on 1 January 2025. Its replacement, IFICI, is much narrower — it only applies to new tax residents working in science, technology, health or green energy under a qualifying contract, for 10 years. It no longer covers retirees or general remote workers. Consult a tax lawyer to check eligibility before deciding where to domicile your income.

Warning: Never sign a CPCV without an independent lawyer. The deposit (typically 10–20% of the purchase price) is forfeited if you withdraw without legal grounds. This is the most important protection you can have in the process.

Finding the property

Agent, buyer's consultant or broker — who works for you?

Property portals · Conflict of interest · In-person viewings

Estate agent (AMI licence)

Licensed by IMPIC under an AMI number. Represents the seller — their commission (typically 3–5% + VAT) is paid by the seller. Their interests are not necessarily aligned with yours as the buyer.

Buyer's consultant Recommended

Works on the side of whoever hires them. Analyses properties with technical criteria, accompanies viewings and negotiates on the client's behalf.

Main property search portals in Portugal

Idealista.pt — largest national coverage, including Lisbon, Porto and the Algarve.
Imovirtual.pt — strong on developer listings and new developments.
Casa.sapo.pt — aggregator with good regional and inland coverage.
Remax, ERA, Century 21, IAD — national networks with exclusive listings.

Portal prices are asking prices, not transaction prices. The typical negotiation margin in Portugal is 5–12% below the listed price.

Data insight: SISO's market dashboard covers 308 municipalities with real INE price data, transaction volumes and historical trends since 2015 — including VMAB (Bank Appraisal Median Value) for 182 of them. Access free →

Reservation & contract

The CPCV — Portugal's Promissory Purchase and Sale Contract

Deposit · Sinal · Legal obligations · Timeline

What is the CPCV?

The CPCV (Contrato-Promessa de Compra e Venda) is a legally binding promissory contract between buyer and seller, signed before the final notary deed. It fixes the price, the deposit and the completion date.

The deposit (sinal)

Typically 10–20% of the purchase price. If the buyer withdraws without legal cause, the deposit is forfeited. If the seller withdraws, they must return double the deposit. This is protected by Portuguese law (Art. 442 Civil Code).

Timeline after CPCV

The period between CPCV and the final deed (escritura) is typically 30–90 days — long enough for due diligence, mortgage approval and tax payment. The exact date is agreed between the parties.

What must be included in the CPCV

Full identification of both parties, full property description (including Caderneta Predial reference), exact price and payment terms, deposit amount, completion date, penalty clauses and any conditions precedent (e.g. mortgage approval).

Critical: Have your lawyer review the CPCV before signing. Check for encumbrances, outstanding mortgages, unpaid condomínio fees and planning permissions. Once signed with a deposit paid, exit without loss is very difficult.

Legal verification

Due Diligence — what to check before the deed

Land registry · Caderneta Predial · Licença de Utilização · Debts

Land Registry (Registo Predial) Mandatory

Obtained from the Conservatória do Registo Predial. Confirms ownership, encumbrances (mortgages, liens, easements) and any legal charges. Your lawyer requests the certidão permanente — a live online certificate.

Tax Record (Caderneta Predial) Mandatory

Issued by Autoridade Tributária. Contains the property's fiscal registration, VPT (taxable value used for IMI and IMT calculation), permitted use and area. Essential for verifying that the physical property matches its legal description.

Usage Licence (Licença de Utilização) Essential

Confirms the property is legally approved for residential use. Buildings constructed before 1951 are exempt. Absence of this licence can block mortgage approval and future resale. Verify at the local Câmara Municipal.

Outstanding debts & condominium

Confirm there are no unpaid IMI (property tax), condomínio fees or utility debts. In Portugal, property debts can transfer to the new owner. Request written confirmation from the seller's lawyer and from the condominium administrator.

Certidão permanente (land registry) — up to date, no encumbrances
Caderneta predial — matches the physical property and deed description
Licença de utilização — valid and for residential use
Energy performance certificate (Certificado Energético) — legally required for all transactions
Outstanding IMI payments confirmed as zero
Condominium fees paid up to date (written confirmation)
No pending planning or demolition orders

€

Supplementary topic

Mortgage financing — borrowing in Portugal

Loan-to-Value · Euribor · Spread comparison · Required documents

Portuguese mortgages are accessible to non-residents, but under different conditions than those offered to residents. Understanding the mechanics before submitting a mortgage application avoids unwelcome surprises.

How it works, step by step — a second-home mortgage

For anyone buying a property that won't be their main residence in Portugal — the most common case among investors and international buyers — the bank works through six stages before completion:

Affordability check (DSTI). Before you even start viewing properties, the bank works out what it's willing to lend you. It compares your total monthly loan repayments — including the new mortgage — against your net income. The Banco de Portugal recommends that banks keep this ratio at or below 45% of net income (it was 50% until 31 July 2026); go above that and approval gets harder, or the amount on offer shrinks. It is a recommendation to lenders with a limited margin for exceptions, and each bank applies its own policy.

Apply to three or more banks in parallel. A mortgage simulation costs nothing and doesn't commit you to anything. Approaching several banks at the same time — rather than one after another — lets you compare real offers side by side, and gives you more leverage when it comes to negotiating.

LTV typically up to 80%. For a second home, lenders typically finance up to 80% of whichever is lower — the purchase price or the bank appraisal value — below the 90% available on a main residence. These caps (90% and 80%) are Banco de Portugal recommendations to lenders, set by the purpose of the loan (Macroprudential Recommendation no. 1/2026, in force for contracts assessed from 1 August 2026); your non-resident status (see below) can push it lower still, depending on the bank. In practice, budget for at least 20% of the price as a deposit, on top of completion costs.

The spread is negotiable. Once your profile is approved and the LTV set, each bank quotes its own spread — the margin added on top of Euribor (see below). This is where there's the most room to negotiate, and it varies by bank, by how much you're borrowing relative to the property's value, and by which extra products you take on (insurance, salary transfer, and so on).

Bank appraisal, by an independent surveyor. Before final approval, the bank sends an accredited appraiser to inspect the property and set the value it will actually lend against. That figure can come in below the price you agreed with the seller — if it does, covering the gap is always down to the buyer.

Final approval, loan contract draft, then completion. Once your profile, the LTV and the appraisal are all confirmed, the bank issues final approval and sends over a draft of the loan contract to review. The notary deed then formalises the property purchase and registers the mortgage in the bank's favour, in the same act.

LTV — Loan-to-Value

Residents: up to 90% of the bank appraisal value

Non-residents (common bank practice): typically 60–70% — minimum own capital of 30–40%

These 60–70% already fold in the non-resident condition on top of the 80% second-home cap described in step 3 above — it's the same limit seen from two angles, not two separate limits.

Source: Banco de Portugal, Macroprudential Recommendation no. 1/2026 (LTV and DSTI limits), consulted on 17/10/2026. The 60–70% for non-residents is common bank practice, not a Banco de Portugal limit; deposit, spread and terms vary from bank to bank.

⚠️ Banks finance against the lower of the purchase price and the bank appraisal value. If the appraisal comes in below the agreed price, the difference is always the buyer's responsibility.

Euribor — the reference rate

Most Portuguese mortgages are indexed to Euribor at 6 or 12 months. Monthly payment = Euribor + bank spread. As of September 2026, 12-month Euribor stood at around 3.3%, and 6-month Euribor at around 3.0%.

Variable rate
Euribor + spread
Adjusts periodically

Mixed rate
Fixed 5–10 years
then variable

Fixed rate
Stable throughout
higher spread

Documents required for mortgage approval

✔Valid passport or national ID

✔Portuguese NIF

✔Tax returns (last 2 years)

✔Pay slips (last 3 months)

✔Bank statements (last 6 months)

✔Proof of address

✔Employment contract or self-employment declaration

✔Declaration of any active credit facilities

💡 SISO tip: Request a mortgage pre-approval (pré-aprovação) before signing the CPCV. It confirms exactly how much you can borrow and strengthens your negotiating position with the seller.

Completion

Notary Deed & Acquisition Costs

IMT · Stamp Duty · Notary · Legal fees · Total cost estimate

The Notary Deed (Escritura Pública)

The final act of the purchase is the notary deed, signed at a licensed notary office (cartório notarial) or at the Casa Pronta service (a one-stop municipal service). All parties sign in person (or via power of attorney). Ownership transfers at this moment and the deed is registered at the land registry.

Acquisition taxes and costs

Cost	Basis	Rate / Amount	Notes
IMT — Property Transfer Tax	Purchase price or VPT (whichever is higher)	0–8%	Progressive rates. Primary residence (2026): 0% up to €106,346, rising to 8%; flat 6% from €660,982 and flat 7.5% above €1,150,853 (tables below). Non-residents: flat 7.5% (see the special rule below). Rural land: 5%. Other urban property: 6.5%.
IS — Stamp Duty	Purchase price	0.8%	Fixed rate on all property purchases.
Notary & Land Registry	Fixed fees	€500–1,500	Varies by property value and complexity. Land registry certificate: ~€20.
Lawyer fees	Negotiated	1–1.5% or fixed	Highly recommended. Covers due diligence, CPCV review and deed accompaniment.
Mortgage stamp duty (if applicable)	Loan amount	0.6%	Only applies if purchasing with a mortgage.
Typical total acquisition costs		6–10%	Of purchase price. Budget 8% as a prudent working estimate.

Special rule for non-residents (since 25 May 2026): a buyer who is not a tax resident in Portugal pays a flat 7.5% IMT on residential property, not the progressive table below (Decree-Law no. 97/2026, IMT Code art. 17(10)). No exemption for low values and no cap.

Three situations remove this rate:
• You have previously been a tax resident in Portugal — the normal progressive table applies
• You become a tax resident within 2 years of the purchase — you can request a refund of the difference (within 6 months of becoming resident)
• The property is let for housing at a moderate rent (up to €2,300/month), within 6 months of the purchase and for at least 36 months in the first 5 years

IMT table — primary and permanent residence (2026)

Property value	Marginal rate	Deduction
Up to €106,346	Exempt	—
€106,346 – €145,470	2%	€2,126.92
€145,470 – €198,347	5%	€6,491.02
€198,347 – €330,539	7%	€10,457.96
€330,539 – €660,982	8%	€13,763.35
€660,982 – €1,150,853	Flat rate 6%	—
Above €1,150,853	Flat rate 7.5%	—

* 2026 figures for mainland Portugal (State Budget for 2026, Law no. 73-A/2025). In bands with a marginal rate, IMT = value × rate − deduction; in "flat rate" bands the rate applies to the whole value. IMT is charged on the higher of the purchase price and the property's tax value (VPT). Applies to tax residents, or to non-residents who fall under one of the exceptions above.

Housing that is not a primary and permanent residence (second home or investment)

Property value	Marginal rate	Deduction
Up to €106,346	1%	—
€106,346 – €145,470	2%	€1,063.46
€145,470 – €198,347	5%	€5,427.56
€198,347 – €330,539	7%	€9,394.50
€330,539 – €633,931	8%	€12,699.89
€633,931 – €1,150,853	Flat rate 6%	—
Above €1,150,853	Flat rate 7.5%	—

Same calculation. Applies when the home will not be your primary and permanent residence.

IMT Jovem (young buyers). The first purchase of a primary and permanent residence is exempt from IMT up to €330,539 for buyers aged 35 or under on the purchase date who are not dependants for IRS purposes that year and did not own residential property on that date or in the previous three years (CIMT, art. 9, paras. 2–4). Above €330,539 the exemption is not total: IMT is charged only on the part above that value (8% up to €660,982).

Source: Portal das Finanças (Portuguese Tax Authority) — IMT Code (arts. 9 and 17); latest code update: Decree-Law no. 97/2026 of 20 May. Reviewed on 17/10/2026; next review 31/01/2027. General information, not tax advice.

Note: IMT must be paid on the day it is assessed or within the following 30 days (IMT Code, art. 36(1), as amended by Decree-Law no. 97/2026). Agree with your lawyer or the notary when and how it will be paid in your case, and keep the proof of payment.

After the purchase

Post-purchase obligations & ongoing costs

IMI · Condominium · Utilities · Income declaration

IMI — Annual Property Tax

IMI (Imposto Municipal sobre Imóveis) is an annual tax levied on the taxable value (VPT). Urban residential properties: 0.3%–0.45% per year (set by each municipality). Paid in one instalment in May (tax up to €100), two in May and November (€100–€500) or three in May, August and November (above €500).

Condominium fees

If the property is in a condominium (apartment building or gated development), monthly or quarterly fees are charged for maintenance of common areas, lifts, gardens and security. Confirm the current fee and any planned extraordinary works before purchase.

Utilities transfer

Electricity, gas, water and internet contracts must be transferred to your name after the deed. Your lawyer or the notary can advise on the process. The IBAN of your Portuguese bank account is usually required for direct debit.

Tax declarations & rental income

If you rent the property, rental income must be declared in Portugal (even as a non-resident). Non-residents are generally taxed at a flat 25% on rental income; residents are taxed under different rules. Confirm your case with a tax adviser. If you become a tax resident and qualify for IFICI (see above), special rules may apply.

You are now a property owner in Portugal. Keep all purchase documentation (CPCV, deed, tax receipts) in a safe place — they are needed for any future resale and for calculating capital gains tax (mais-valias) at disposal.

Buying property in Portugal
as a foreign national

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