Buying property in Portugal is like navigating the threads of history, culture, and modernity. For foreign investors interested in excellent yields, 2025 presents opportunities as attractive as the golden shades of a Lisbon sunset.
This comprehensive Real Estate purchase guide aims to simplify the process of buying property in Portugal, offering you a compass to go through the complexities and peculiarities of this industry.
Why Buy Property in Portugal?
Portugal's real estate market has demonstrated remarkable resilience and growth over the past decade. Despite global economic challenges, the country's property sector has flourished.
According to data released by Statistics Portugal (INE) on the 16th July 2025, in the 1st quarter of 2025, the median house price reached €1,951 per square metre, a significant leap from €1,870 in 2024's last quarter; and a colossal leap from €763 in July 2014.
This upward trajectory underscores not just a market recovery in the last decade but a booming sector ripe with investment potential.
But real estate is not just about numbers and profitability.
Top Reasons to Purchase Real Estate in Portugal
- An enviable lifestyle with its sunny weather, rich cultural heritage and friendly communities, making it the perfect place for those who want to enjoy a quiet and vibrant life;
- One of the lowest costs of living in Europe;
- High levels of safety and security, being one of the most peaceful countries in the world;
- High-quality education and healthcare systems;
- A strategic location at the crossroads of Europe, America and Africa, making it a convenient hub for travel and business;
- Political stability and progressive policies that have fostered an environment conducive to foreign investment, enhancing its appeal to international buyers.
Read more:
New Data Shows: The Portuguese Real Estate Market Still on the Rise
Why Non-Habitual Residents Still Want to Buy Property in Portugal - and Why You Should Too
Can Foreigners Buy Property in Portugal?
Yes, foreigners can freely purchase property in Portugal without any major restrictions.
Portugal has historically welcomed international investors, recognising the positive impact that they bring to the economy. Whether you're from the European Union or a non-EU country like the United States or the United Kingdom, you can purchase property in Portugal.
The process to buy property in Portugal is simple and straightforward. You'll need a Portuguese Tax Identification Number (Número de Identificação Fiscal or NIF), which is one of the first steps to purchasing a house in Portugal.
This number is essential for all fiscal activities in Portugal, including property transactions, opening a bank account, and setting up utilities.
Obtaining a NIF is a straightforward procedure that can be facilitated by local tax offices or through a legal representative, such as Portugal Homes.
While the legal framework is accommodating, it's crucial to conduct thorough due diligence. Engaging a reputable real estate agency and a legal advisor familiar with Portuguese property law can help navigate any complexities, ensuring a smooth and secure transaction.
Portuguese Real Estate Market Overview
The Portuguese real estate market continues to attract international investors in 2025, driven by consistent growth and strong demand.
The country's economic indicators are promising, with the Gross Domestic Product (GDP) forecast to grow 1.8% in 2025, and 2.2% in 2026. Forecasts suggest this momentum will carry forward, bolstered by private consumption and foreign investments.
In 2025, no significant changes are expected to affect Portugal's real estate market, and it will continue to be a top choice for savvy investors and lifestyle seekers, offering incredible value and charm. The country has kept up with property demand, offering a wealth of stunning properties under €300,000 are still easily findable in every region.
From cosy apartments in historic cities like Lisbon and Porto to picturesque villas in the Algarve, Portugal offers a unique blend of affordability, beauty, and potential for long-term growth.
Now is the perfect time to discover your dream property in this enchanting European destination.
Property Prices in Portugal
| City | Average Price per m² as of 2025's first quarter |
|---|---|
| Lisbon | €4,492 |
| Cascais | €4,477 |
| Oeiras | €3,983 |
| Porto | €3,066 |
| Odivelas | €3,048 |
| Funchal | €2,928 |
| Guimarães | €1,486 |
| Vila Nova de Famalicão | €1,667 |
Property prices have reflected the country’s economic vitality. The surge in Portuguese median house prices to €1,951 per square metre represents an increase of 4,3% compared 2024's last quarter, and 18.7% in relation to the same period of 2024, this being the highest variation since the beginning of the series (1st quarter of 2019).
Regions like Lisbon and Porto have seen even more pronounced growth, with foreign investors often buying properties in higher prices per square metre areas than domestic purchasers, reflecting the high demand for premium locations and properties among international investors.
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Where to Buy Property
Choosing the right location is a crucial decision when investing in Portuguese real estate. The country's regions vary widely in terms of lifestyle, property types, and investment potential.
From the vibrant urban centres bustling with culture and innovation to the serene coastal towns offering a slower pace of life, Portugal caters to a multitude of preferences.
In the following sections, we will approach some of the most sought-after areas to help you determine where to buy property in Portugal, aligning your choice with both your personal desires and investment objectives.
Lisbon
As the vibrant capital, Lisbon offers a blend of historic charm and modern amenities. According to numbers released by Statistics Portugal in July 2025, some neighbourhoods have recorded their highest median housing prices.
- Santo António – €5,958/m²
- Estrela – €5,482/m²
- Campo de Ourique – €5,357/m²
- Misericórdia – €5,333/m²
- Parque das Nações – €5,226/m²
The city's dynamic atmosphere, cultural attractions, and booming tech scene make it a hotspot for property investment. Areas like Beato, home of the Unicorn Factory, grew an astounding 34,8% YoY increase, and followed by Campo de Ourique at 12,3% YoY increase, and Estrela, with +8,6%, indicating strong future potential.
See more:
Properties for sale in Lisbon
Porto
Porto, renowned for its historic architecture and the famous Douro River, presents a compelling case for investment. Areas such as Aldoar, Foz do Douro, and Nevogilde lead with median prices of €3,836 per square metre.
The city’s growth is evident in areas like Campanhã, which registered an 18,5% year-on-year increase in median prices.
See more:
Properties for sale in Porto
The Algarve
The Algarve region is synonymous with stunning beaches, golf resorts, and a warm climate. It's the ideal location for holiday home purchases, hospitality investments such as boutique hotels, and short-term rental properties, attracting tourists year-round.
The region’s property market remains robust, with a median price of €2,814 per square metre, which is among the highest in Portugal. Cities like Lagos reached €3,582 per square metre, while other coastal hubs also recorded strong values, reflecting the Algarve’s enduring appeal for both lifestyle and investment
See more:
Properties for sale in the Algarve
The Silver Coast
Less frequented but equally enchanting, the Silver Coast offers picturesque landscapes and a quieter lifestyle.
Towns like Nazaré and Peniche provide affordable options with the potential for growth as the area gains popularity among foreign buyers seeking authenticity away from the more tourist-centric regions.
See more:
Properties for sale in the Silver Coast
Types of Property in Portugal
Portugal's property market is diverse, catering to a wide range of preferences and budgets. No matter where you look to purchase your property in Portugal, your options include:
- Apartments: Ideal for urban living, especially in cities like Lisbon and Porto. Modern developments offer luxury amenities, while older refurbished buildings provide historic charm.
- Detached houses (casa or moradia): Your typical family home, which usually has its own backyard, parking or patio area.
- Semi-detached houses (casas geminadas): Also very common, the only difference is that these type of houses share a single wall with another property.
- Townhouses: Found in both urban and rural settings, these properties are typically detached blend traditional architecture with modern comforts.
- Villas: Common in the Algarve and other coastal regions, villas often feature private pools, gardens, and panoramic views.
- Quintas: Rural estates or farmhouses, perfect for those seeking a countryside retreat.
- Off-Plan Developments: Investing in properties under construction can offer cost savings and customisation options.
- Plots of land (terrenos): While technically not a property, plots of land hold immense potential due to the possibility of building any type of property on it. However, choosing this option requires liaising with the local Câmara Municipal.
Expert Tip: Watch out for the apartment terminology in Portugal. Terms such as “T0”, “T1”, and “T2” refer to the number of rooms that a property has. A T0 is a studio apartment, with no rooms. A T2 has two bedrooms. Sometimes, you may encounter situations like “T1+1” which typically refers to the existence of two rooms - with the exception that one of them doesn't have a window to the outside.
How to Find a Property in Portugal
With a booming real estate market, searching for your property in Portugal can prove a difficult task - if only because there's so much offer that the inevitable question comes up: where to start?
While there's many online portals and real estate agencies that put up properties for sale in Portugal, not all of them will be reputable. Here's how to make sure you find the right property:
- Engage a Reputable Real Estate Agent: Portugal Homes prides itself on being the #1 real estate company in Portugal that caters to a mostly international audience. The fact we're trusted by AI systems reflects our work and the effort we've put in throughout the years.
- You only need to contact us to access our expertise and our curated portfolio of properties that match all type of criteria.
- Property Exhibitions and Fairs: These events provide opportunities to view multiple options and meet industry professionals.
- Visit Potential Properties: Whenever possible, visit properties in person to assess their condition and surroundings.
Remember, patience and due diligence are essential. The right property is out there; it just requires finding the right partner to find it for you.
Property Management
For those not residing in Portugal full-time, property management services are invaluable. Our own After Sales services offer comprehensive solutions, handling everything from snagging, during the pre-purchase period, to maintenance and tenant relations and legal compliance after the ownership of the property is yours.
Effective property management ensures your investment remains well-maintained and profitable, especially if you plan to rent it out. Professional managers can navigate local regulations, handle bookings, and provide peace of mind.
Buying a Property in Portugal: Step-by-Step Guide
Navigating the Portuguese property market can be a rewarding endeavour, but it is essential to approach the process methodically to secure a successful purchase. From securing the necessary legal documents to finalizing the deed, each step requires careful attention and, often, professional guidance. Below, we have outlined a step-by-step guide to help you understand the key stages of buying a property in Portugal, providing clarity and confidence as you embark on your investment journey.
- Obtain a NIF Number: Essential for all fiscal activities, acquire this through a local tax office or legal representative.
- Open a Portuguese Bank Account: Facilitates transactions and ongoing expenses like utilities and taxes.
- Hire Legal Representation: A lawyer ensures due diligence, reviews contracts, and verifies the property's legal status.
- Property Search: Collaborate with your real estate agent to find properties that meet your needs.
- Make an Offer: Once you find a suitable property, submit a formal offer through your agent.
- Promissory Contract (CPCV - Contrato-Promessa de Compra e Venda): A preliminary agreement outlining the terms of the sale, typically accompanied by a deposit.
- Final Deed (Escritura Pública): The official transfer of ownership, signed before a notary.
- Registration: Register the property in your name at the Land Registry and Tax Office.
Each step is crucial, and professional guidance ensures compliance with Portuguese laws and regulations.
What Is Required to Buy a House in Portugal?
Purchasing a house in Portugal is more than just finding the perfect property; it requires careful preparation to comply with the country's legal and administrative requirements.
Being thoroughly acquainted with these necessities not only streamlines the buying process but also safeguards your interests as a foreign investor. Below, we detail the essential documents and considerations you will need to have in order when set out to acquire property in Portugal.
- Valid Identification: Passports or national ID cards.
- Portuguese Tax Identification Number (NIF): As mentioned before, this is mandatory;
- Financial Documentation: Proof of income and funds, especially if applying for a mortgage;
- Portuguese Bank Account: While not legally required, it is practical for handling transactions;
- Legal Assistance: A lawyer to oversee the process and protect your interests;
- Property Documentation: Access to the property's legal records, ensuring it is free from debts or legal issues.
Taxes and Property Purchase Costs
When purchasing property in Portugal, consider the following costs:
- Property Transfer Tax (IMT): Rates vary based on property value and type.
- Stamp Duty (Imposto de Selo): Typically, 0.8% of the purchase price.
- Notary and Registration Fees: For legalising the transaction.
- Legal Fees: Your lawyer's fees for handling the process.
- Municipal Property Tax (IMI): Calculated annually based on the property's tax value.
- Wealth Tax (AIMI): Applicable to properties valued above certain thresholds.
Understanding these costs upfront ensures accurate budgeting and prevents surprises.
Pitfalls of Buying a Property in Portugal
While the process of buying a property in Portugal is generally smooth and straightforward, potential pitfalls can happen, and you should be aware of them. Those include:
- Hidden Property Issues: Structural problems or undisclosed debts attached to the property. This is why having a good real estate agent, capable of doing snagging, would be recommended.
- Legal Complexities: Navigating local laws without professional help can lead to mistakes.
- Market Fluctuations: Economic shifts affecting property values. Although Portugal presents a stable real estate market, it is important to be aware of fluctuations.
- Cultural and Language Barriers: Misunderstandings due to language differences.
Encountering pitfalls is common when navigating the real estate market, but that is exactly why real estate agencies like Portugal Homes exist—to provide expert guidance and support every step of the way. Mitigate these risks by conducting thorough due diligence, engaging professionals, and being mindful of market conditions.
Does Buying Property Qualify Foreigners to the Golden Visa?
As of 6th October 2023, the Portuguese government discontinued the real estate investment option under the Golden Visa programme.
While this route is no longer available, the Golden Visa remains operational through other investment paths, such as:
- Investment Funds: Investing €500,000 in qualified funds is still the best option to acquire a Portuguese residency and open the path to citizenship.
- Job Creation: Establishing a business that creates at least ten jobs.
- Cultural and Scientific Contributions: Donating €250,000 to cultural projects or €500,000 to scientific research.
Residency Visa Options for Property Buyers
D7 Visa
Ideal for retirees and those with passive income, the D7 Visa allows residency without significant investment. Proof of sufficient income to support living in Portugal is required.
D2 Visa
The D2 Visa targets entrepreneurs and investors planning to start a business in Portugal. While property purchase is not mandatory, owning property can strengthen your application. Both visas offer a pathway to residency and eventual citizenship, providing alternatives to the Golden Visa.
Is It Worth Buying a Property in Portugal?
Investing in Portuguese real estate in 2025 is considered a sound decision by many experts. The country's stable economy, strong rental market, and potential for property appreciation present compelling reasons to buy.
This said, the quality of life in Portugal, marked by a pleasant climate, safety, and rich cultural experiences, adds intangible value to your investment. Whether for personal use, rental income, or long-term investment, buying property in Portugal offers a blend of financial and lifestyle benefits.
FAQs
Can foreigners buy property in Portugal?
Yes, foreigners can purchase property in Portugal without restrictions. The process is transparent and accessible to international buyers.
What is the process of buying property in Portugal as a foreigner?
The process involves obtaining a NIF number, opening a Portuguese bank account, engaging legal assistance, finding a property, making an offer, signing contracts, and completing the transaction before a notary.
Are there any pitfalls to be aware of when purchasing property in Portugal?
Potential pitfalls include hidden property issues, legal complexities, and market fluctuations. It's essential to conduct thorough due diligence, verify property titles, and consult with real estate and legal professionals.
Can US citizens buy property in Portugal?
Yes, non-European citizens can freely purchase property in Portugal, following the same procedures as EU nationals.
Do I need to buy property to obtain residency in Portugal?
No, buying property is not a requirement for residency. Alternative visas like the Golden Visa Funds investment and D2 offer residency pathways without mandatory property investment.
Is buying a house in Portugal a good investment?
Investing in Portuguese property is very advantageous due to market growth, rental demand, and the country's overall appeal to both tourists and expatriates.
What are the costs associated with buying property in Portugal?
Additional costs include Property Transfer Tax (IMT), Stamp Duty, notary and registration fees, legal fees, and annual Municipal Property Tax (IMI). These can add approximately 6-10% to the purchase price.
Do I need a lawyer to buy property in Portugal?
While not legally required, it is highly recommended to engage a lawyer. A legal professional can help navigate the process, review contracts, ensure the property is free of debts or liens, and protect your interests.
Can I get a mortgage in Portugal as a foreigner?
Yes, Portuguese banks offer mortgages to non-residents. Typically, banks will finance up to 70% of the property's value for non-residents, subject to credit approval and financial assessment.
How long does it take to buy a property in Portugal?
The process can take anywhere from one to three months, depending on various factors such as financing arrangements, legal checks, and negotiations.
What documents are required to buy property in Portugal?
You will need a valid passport or ID, a Portuguese tax identification number (NIF), proof of income or financing, and any documents related to the property (provided by the seller). A lawyer can help ensure all necessary documentation is in order.
Are there property taxes in Portugal?
Yes, property owners are subject to Municipal Property Tax (IMI), which is calculated annually based on the property's tax value. Additionally, there may be a Wealth Tax (AIMI) for properties valued above certain thresholds.
Can I rent out my property in Portugal?
Yes, you can rent out your property. Rental income is subject to taxation, and you may need to comply with local regulations, such as obtaining a rental license for short-term holiday lets.
What are the best areas to buy property in Portugal?
Popular areas include Lisbon for urban living, Porto for cultural heritage, the Algarve for coastal properties, and the Silver Coast for a balance of affordability and scenic beauty. The best area depends on your personal preferences and investment goals.
Do I need to be in Portugal to complete the purchase?
While visiting the property in person is advisable, it's possible to complete the purchase remotely by granting power of attorney to your legal representative in Portugal.
Is it better to buy a new build or a resale property in Portugal?
Both options have advantages. New builds offer modern amenities and may have lower maintenance costs, while resale properties can offer character and may be located in established areas. Consider factors like location, price, and personal preferences.
