With its enchanting landscape and sun-soaked shores, Portugal has become an attractive option for many – offering luxury homes and high-quality living for expats.
However, the process of buying property in Portugal can be arduous and complex, especially for international buyers who are unfamiliar with the processes.
Here is everything you need to know about buying a house in Portugal as a foreigner.
Why consider buying a property in Portugal?
Be it the dynamic capital city of Lisbon, the wild, secluded beaches of Comporta or the prestigious, secluded haven of Cascais – there’s something for every appetite.
Portugal also offers a high standard of living, and some of the lowest crime rates in Europe – not to mention free healthcare and education.
Can foreigners buy a property in Portugal?
Buying real estate property does not grant you automatic residency status in Portugal, as an expat. The door to Portuguese citizenship via property investment, closed in 2023. So, if you’re relocating from the UK, you can apply for temporary residency through the Golden Visa program. This is open to all non EU nationals and it enables you to reside there for a 12-month period.
Eligibility requirements include:
- Be at least 18 years of age.
- Have clean criminal records both in Portugal and your home country.
- Own the money you wish to invest from outside Portugal.
- Maintain the investment funds for at least five years.
If you’re considering using your Golden Visa status to generate investment opportunities, you will still have a range of options:
- Donation to Arts: €250,000
- Venture Capital/Private Equity Fund: €500,000
- Donation to research activities: €500,000
- Company creation: 10 employees or €500,000 + 5 employees
How much does it cost to buy property in Portugal?
If you’re looking to buy in places such as Cascais: a place that attracts the elite, property prices will be considerable. In Lisbon too, prices have risen substantially in recent years, due to high-demand.
There are some beautiful real estate opportunities for expats in Portugal. Prices do vary widely and in some locations properties are hard to come by.
Table of average property prices in Portugal:
Top locations for foreigners to buy real estate in Portugal
Lisbon
A cosmopolitan hub for tech innovation and entrepreneurial vivacity. Lisbon offers friendly neighbors and a laid-back lifestyle. House prices are above the national average here – as is the cost of living. However, nomads, families and retirees all flock here to enjoy the life Lisbon offers.
Cascais
30 minutes out of Lisbon, Cascais is a secluded paradise. Real estate property for expats here will come with an elevated price tag – but that’s because Cascais has been a haven for the elite for more than a century. Sitting aside of the Atlantic ocean, this is a spectacular place to live.
Comporta
A wild, breathtaking landscape situated on the north-western tip of the Alentejo region. Rugged beauty merges with the Atlantic ocean. Golf courses and all year round sunshine make this destination a popular choice amongst foreigners who want to buy property in Portugal.
Potential Portugal pitfalls when buying property
The real estate business operates quite differently to the UK – so does the legal system.
Potential pitfalls are:
- Not seeking professional help
- Avoiding real estate agencies
- Not taking additional costs into consideration
- Not carrying out enough research into the property and its previous owners
- Not considering building and renovation regulations
- Not being aware of Portuguese tax regulations
Employing the service of a professional real-estate agent will give you peace of mind – adding an extra layer of security and know-how as you buy your property.
Steps in buying real estate in Portugal as a foreigner
Buying property in Portugal as a foreigner can be complicated and frustrating. It’s important to be aware of the process involved in buying real estate in Portugal.
- Find a registered real-estate agent (check they hold a license number)
- Select a property
- Obtain a taxpayer identification number, known as an NIF number
- Sign a promissory contract and make the appropriate deposit
- Get the licenses checked by your lawyer – and that the property is free from debt
- Sign the contract and settle the balance
- Register ownership of the property and sign the deeds.
Tips for buying a property in Portugal
At Rizein LDA, our mantra is ‘buyer first.’ We recognise, through first-hand experience, just how challenging the property industry is in Portugal.
If you work with an accredited real-estate agent, they will be able to guide you through the complexities of the legal framework – obtaining required documents and paying the appropriate taxes and fees.
Below is a list of documents needed to complete a purchase:
- Caderneta Predial (property updated fiscal registration)
- Certidão Predial (property updated land central office registration)
- Certificado Energético (Energetic Certificate)
- Licença de Utilização (Property license, and not required for those built before 1951)
- Plantas (Property floor plans)
These documents must be checked before you attempt to purchase a property in Portugal.
Our passion for connecting international buyers, renters and investors with their dream property was born out of our own challenges of the real estate system, when we started life here.
Simply complete our Rizein LDA contact form and we will help you find your perfect Portuguese palace.
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