Portugal has quietly transformed from a budget holiday destination into one of the world’s most sought-after property markets. Often compared to California for its surf, sun and tech scene, but with a pace of life that is distinctly Old World, it offers a blend of safety, climate and culture that is hard to find elsewhere.
However, the days of “cheap renovations” and easy visa-via-property schemes have evolved. The market is now more mature, the bureaucracy remains famously slow and the tax landscape for new residents has shifted significantly in the last two years.
For international buyers in 2026, the dream is still very much alive, but the route to achieving it requires sharper navigation.
This guide walks you through the essential steps of buying in Portugal, from obtaining your tax number to signing the deed. We also cover a critical financial factor: your currency exchange. Buying in euros while holding funds in pounds, dollars or other currencies leaves you exposed to market volatility. We explain how to manage that risk so you can buy with confidence.
Can foreigners buy property in Portugal?
Yes. Portugal has no restrictions on foreign property ownership. You do not need to be a resident to buy land or property here.
However, the very first step—before you even look at a house—is to obtain a NIF (Número de Identificação Fiscal). This is your tax identification number. You cannot open a bank account, sign a contract or even set up internet service without one.
Visas and residency in Portugal
For non-EU citizens (including British, American and Australian buyers), spending more than 90 days in Portugal requires a visa. Note that the rules have changed significantly recently:
- The Golden Visa: The route to residency via property investment is closed. While the Golden Visa still exists for specific investment funds (typically €500,000+), buying a holiday home no longer qualifies you for a visa.
- D7 Visa (Retirement/Passive Income): This remains the most popular route for retirees. It requires proof of regular, stable passive income (such as a pension) and a clean criminal record.
- Digital Nomad Visa: Designed for remote workers earning a salary from outside Portugal.
- Non-Habitual Resident (NHR) Status: The “old” NHR regime, which offered broad tax breaks for retirees, ended in 2024. A new, more restricted version (often called NHR 2.0 or IFICI) exists, but it is strictly targeted at specific high-value professions and scientific research. We recommend seeking specialist tax advice to see if you qualify.
Why buy property in Portugal?
Despite the changes to visa rules, the fundamental appeal of Portugal remains untouched:
- Safety: consistently ranked as one of the safest countries in the world.
- English Proficiency: widely spoken, especially in the Algarve, Lisbon and Porto.
- Cost of Living: while rising, it remains significantly lower than the UK, France or the USA.
- Lifestyle: over 300 days of sunshine a year and a relaxed, family-focused culture.
The property-buying process in Portugal
The buying process is formal and document-heavy. It typically follows this structure:
- Get your NIF and open a bank account: You will need a fiscal representative if you are resident outside the EU.
- Make an offer: Once accepted, your lawyer will conduct due diligence (checking the Certidão do Registo Predial for debts and ownership).
- Reservation (Optional): You may pay a small fee to take the property off the market while legal checks are done.
- Promissory Contract (CPCV): The Contrato de Promessa de Compra e Venda is the point of no return. You pay a deposit (usually 10% to 30%). If you pull out, you lose the deposit. If the seller pulls out, they must refund you double.
- The Deed (Escritura): Signed before a Notary. You pay the balance and the property is yours.
Costs of buying a property in Portugal
You should budget approximately 8-10% on top of the purchase price for taxes and fees.
- IMT (Transfer Tax): The largest cost. It works on a sliding scale based on the property value, ranging up to 7.5% for high-value homes.
- Stamp Duty (Imposto de Selo): Fixed at 0.8% of the purchase price.
- Notary and Land Registry Fees: Typically around €500 to €1,000.
- Legal Fees: Usually 1% to 1.5% + VAT.
Why currency exchange is critical
You will need to send money at several stages:
- Initial reservation fee
- The CPCV deposit (often a large sum, e.g., €50,000 on a €500,000 home)
- Final balance
- Taxes (IMT and Stamp Duty must be paid before the deed is signed)
Most overseas buyers underestimate the impact of exchange rate volatility. If you hold pounds, dollars, yen or krone, the price of your Portuguese home is constantly moving.
For illustration, a €400,000 property could cost:
- £338,000 at a GBP/EUR rate of 1.18
- £357,000 at a GBP/EUR rate of 1.12
That is a difference of roughly £19,000 purely due to currency movement. This shift can happen in the weeks between signing the Promissory Contract and the Final Deed.
How to manage currency risk
You can reduce or remove this uncertainty with a plan.
- Forward contract: Fix today’s exchange rate for a future payment (such as your final deed balance). This locks in the cost of the property in your home currency and protects you if the euro strengthens.
- Market order: If you have time before you need to buy, you can set a target rate. We will automatically buy the currency for you if the market hits that level.
Why use a specialist currency provider?
Portuguese bureaucracy waits for no one. The Escritura (Deed) is a formal appointment at a Notary. If your funds have not arrived and cleared in your Portuguese bank account or your lawyer’s client account, the purchase cannot complete.
Banks can be slow and often charge high margins. Smart Currency Exchange specialises in these high-value property transactions. We ensure your funds arrive in Portugal on time and at a competitive rate. Your dedicated account manager can also speak to you about the specific payment deadlines in your Promissory Contract to ensure you never miss a date.
Making transfers on time
To keep your purchase on track, make sure you:
- Understand the exact payment method required for the Deed (often a Cheque Bancário or Bank Draft).
- Send funds a few days early to allow for clearance.
- Factor in weekends and public holidays which can delay international transfers.
In summary: buying property in Portugal
To make your purchase smooth and financially secure, plan early.
- Get your NIF number first.
- Budget 8-10% for taxes and fees.
- Protect your budget from currency volatility using a Forward Contract.
Frequently Asked Questions about buying property in Portugal
Is it safe to buy property in Portugal?
Yes, but due diligence is vital. Rural properties, in particular, can have issues with boundaries or illegal extensions. Always use an independent lawyer (Advogado) to check the paperwork.
Can I get a mortgage in Portugal?
Yes. Portuguese banks lend to non-residents, typically offering up to 60-70% Loan-to-Value (LTV). You will need to prove your income and pass affordability checks.
Do I need a lawyer?
Yes. Do not rely on the notary alone. The notary acts for the state to ensure taxes are paid; your lawyer acts for you to ensure the property is legal and debt-free.
