Real estate in Portugal

Buyer's guide

• Who can buy real estate

  

  Portugal has no restrictions on purchasing of real estate: it can be bought by citizens, residents, and foreigners. Residential and commercial properties, as well as plots of land, are available to them.

  The buying process is the same for everyone. A buyer’s first and foremost condition is an Individual Tax Identification Number or NIF. A number like that can be obtained at the tax office. Foreigners obtain NIF through their tax representative in the country.

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• Real estate cost by region

  

  The cost of 1 m² of residential real estate has been increasing quarterly by an average of 1,9% over the past five years. Eurostat data confirm the dynamic: in the last 12 years, property prices have increased by 70%.

  The average cost of buying real estate in Portugal is €2,590 per 1 m². The regions with the highest residential real estate price per 1 m² are Lisbon (€4,220), Algarve (€3,100), and Madeira (€2,250). Portalegre is part of the Alentejo region — the city with the lowest prices: the average cost of housing there is €635 per 1 m².

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• Real estate buying process

  

  Buying a property takes up to six months. The buyer chooses a property from Immigrant Invest’s verified real estate database. Then, they receive a tax number (NIF), sign a promise of sale and purchase agreement and deposit 10—30% of the property price.

  The next step is paying Property Transfer Tax (IMT) at a rate of up to 8% and signing the Deed of Purchase and Sale in the notary’s presence. The notary certifies the contract copies and sends them to the Land Registry office, the tax office, and the land cadastre.

  After registering the property, the buyer receives a Property Registration Certificate — Certidão de Teor — and a title deed.

• Taxes on property purchase

  

  Real estate buyers in Portugal pay a one-time transfer tax, stamp duty, and service fees. In total, the expenses amount to 9—11% of the Deed value:

  • the transfer tax is 0—8%;

  • stamp duty is 0.4—0.8%;

  • legal and notarial services for the transaction — 2,5%;

  • registration of ownership — €250.

• Residence permit through real estate purchase

  

  Portugal has a Golden Residence Permit Program. In the past, foreign investors could obtain a residence permit by purchasing real estate for at least €280,000.

  In October 2023, the Government of Portugal suspended this option from the Golden Visa program. To get a Portugal residence permit, investors now choose one of five options:

  • supporting arts and restoring cultural heritage — €250,000+;

  • purchase of investment fund units — €500,000+;

  • investments in research activities — €500,000+;

  • business investments — €500,000+ with the creation of at least 5 jobs;

  • opening a company with the creation of at least 10 jobs.

  The condition of buying or renting property in Portugal applies when obtaining a D7 Visa for financially independent foreigners and a Digital Nomad Visa.