Portugal

Real estate websites
STEPS
Check Eligibility
- Non-Residents: Foreigners can buy property in Portugal with no restrictions. Non-EU/EEA nationals will need to apply for a Portuguese tax number (NIF) and may need to meet certain legal requirements to purchase property.
- Financing: Non-residents can obtain financing in Portugal, though they may need to make a larger down payment (typically 30% or more) and provide proof of income and financial stability.
Determine the Budget
- Budgeting: Take into account the purchase price, taxes, notary fees, registration fees, and other associated costs like property insurance and utilities.
- Mortgage: Portuguese banks may lend up to 70-80% of the property’s value for non-residents, so expect to cover the remaining 20-30% as a down payment.
Find a Property
- Online Search: Use property search websites such as Idealista.pt, OLX.pt, and Imovirtual.com to find available properties in Portugal. You can filter by location, price, and other specifications.
- Real Estate Agents: It’s advisable to work with a local real estate agent (mediador imobiliário) to assist in the search process and negotiations.
View the Property
- Inspections: Consider hiring an inspector to evaluate the property’s condition, checking the structure, electrical systems, plumbing, and other key features.
- Visiting the Property: If you cannot visit the property in person, you can request a virtual tour or arrange for someone local to inspect it on your behalf.
Make an Offer
- Bidding: Make an offer through your real estate agent or directly to the seller. In Portugal, offers can be negotiated, and there is often room for price reductions.
- Contract: Once an offer is accepted, a preliminary contract (contrato-promessa de compra e venda) is signed, and a deposit (usually 10% of the purchase price) is paid.
Complete Legal Formalities
- Notary Role: A notary (notário) is required to oversee the transaction. The notary prepares the final deed (escritura pública) of sale and ensures the transaction is legally binding.
- Taxes and Fees: The buyer is responsible for paying the IMT (Property Transfer Tax), which varies based on the property value, as well as notary fees and other legal expenses.
Register the Property
- Land Registry: After the notary completes the sale, the property must be registered with the Portuguese Land Registry (Conservatória do Registo Predial) to officially transfer ownership.
- Insurance: It is recommended to obtain property insurance (seguros de casa) to protect the property against possible risks, such as fire or theft.
Move In
- Once all legal formalities are completed and the property is registered, you can move into your new property in Portugal.
ADDITIONAL CONSIDERATIONS
- Legal Assistance: While not mandatory, it is recommended to hire a Portuguese lawyer to help navigate the legal process, especially if you are unfamiliar with the local laws.
- Taxes and Fees: Be aware of the IMT tax, which ranges from 1% to 8% of the property’s purchase price, as well as other legal fees such as notary and registration costs.
ADDITIONAL NOTICES
- Notary Role: A notary is required to oversee the final property sale transaction in Portugal. The notary ensures that the sale is legally binding and prepares the deed of sale.
- IMT Tax: The Property Transfer Tax (IMT) is a progressive tax ranging from 1% to 8% depending on the property's value. It is paid by the buyer during the purchase process.
- Mortgage Financing: Portuguese banks typically offer mortgages to non-residents, with financing up to 70-80% of the property value. Expect to make a down payment of at least 20-30%.

In Portugal, real estate taxes are regulated by the national government and local municipalities. The key types of taxes related to real estate in Portugal include:

Property Ownership Tax

Municipal Property Tax (IMI): The Municipal Property Tax (Imposto Municipal sobre Imóveis, IMI) is an annual property tax applied to both residential and commercial properties. The tax is based on the property's taxable value (Valor Patrimonial Tributário, VPT), which is determined by the tax authorities.

  • The tax rate ranges from 0.3% to 0.8% of the taxable value, depending on the municipality and the type of property.
  • For residential properties, the tax rate is typically 0.3% to 0.45%.
  • For commercial properties, the rate can range from 0.6% to 0.8%.
  • IMI is generally paid annually, and the property owner is responsible for the payment.
Real Estate Transfer Tax

The real estate transfer tax (Imposto de Selo) is levied when a property changes ownership, such as in a sale or inheritance.

  • The standard transfer tax rate is 0.8% of the purchase price or the market value, whichever is higher.
  • For property transfers within the family, such as between spouses or parents and children, tax exemptions or reductions may apply.
  • The buyer typically pays the transfer tax, unless otherwise agreed upon in the sale contract.
Capital Gains Tax on Real Estate

Capital gains tax is applied when a property is sold at a profit, though exemptions or reductions may apply under certain conditions, such as for primary residences.

  • The general capital gains tax rate is 28% on the profit made from the sale of the property (the difference between the sale price and the purchase price).
  • If the property has been owned for more than 2 years, only 50% of the capital gain is taxable.
  • If the property was used as a primary residence for at least 2 years, there may be an exemption from capital gains tax if the proceeds are reinvested in another property within Portugal.
Inheritance and Gift Tax

Portugal imposes a tax on inheritance and gifts, known as the Stamp Duty (Imposto de Selo).

  • There is no inheritance tax on transfers between direct family members, such as spouses, children, and parents.
  • For other beneficiaries, a stamp duty of 10% applies to the value of the property transferred, with certain exemptions for close family members.
  • The tax is based on the market value of the property and is payable by the recipient of the inheritance or gift.
Municipal Tax

In addition to the Municipal Property Tax (IMI), some municipalities may impose additional local taxes or charges, such as fees for public services like waste collection, public lighting, and street cleaning. These taxes vary by municipality.

Income Tax on Rental Income

If rental income is generated from real estate, it is subject to both federal and municipal income taxes. The tax rate depends on the total income and the tax bracket of the property owner.

  • Rental income is taxed as part of the overall personal income tax, with rates ranging from 14.5% to 48%, depending on the income level.
  • Property owners can generally deduct expenses related to the property, such as maintenance costs, property management fees, and mortgage interest, from their rental income.
  • For short-term rentals (e.g., Airbnb), additional tax rules may apply.
Note: Tax rates and regulations can vary by municipality, and exemptions or reductions may apply based on specific circumstances. It is recommended to check with local authorities or consult a tax professional for accurate information.
Official
Portuguese Republic
CIOC
POR
Subregion
Southern Europe
Borders
ESP
Capital
Lisbon
Area
92 090 km²
Population
10 306 000
Timezones
UTC-01:00
UTC
Phone
+351   
Currencies
Euro (EUR €)