Updated for 2025

If you are dreaming of owning a property in Portugal, a sun-soaked country renowned for its captivating landscapes and rich history, you are not alone! Portugal’s real estate market has continued to attract international buyers, with interest steadily growing. This comprehensive guide will take you through each step of buying property in Portugal.

1. Research the Portuguese Real Estate Market

The first step in your journey to property ownership in Portugal is understanding the market. Portugal’s diverse regions, each with unique offerings, make it crucial to research before choosing your ideal location. Whether it’s the lively metropolis of Lisbon, the cultural richness of Porto, the stunning beaches of the Silver Coast or Algarve, or the central interior regions where time is slower and views go for miles, Portugal has something for every prospective homebuyer. In 2025, expect to see growing demand in rural and inland areas as well, as more people seek tranquility away from city life.

2. Budgeting for Your Property in Portugal

Knowing your budget is essential when looking at Portuguese properties. A well-planned budget should consider not just the property price, but also additional costs like taxes, legal fees, and ongoing maintenance. Portugal offers a wide range of property options to fit different budget sizes, from luxury villas to farms, quintas, ruins, and quaint country homes. In 2025, buyers should be mindful of changes in IMT (purchase tax) rates and potential costs related to energy efficiency upgrades, which are becoming more common in property transactions.

3. Engage a Portuguese Property Lawyer

Engaging a lawyer’s services is highly recommended when buying property in Portugal. While not mandatory, they can help you navigate the legal landscape, review contracts, and perform due diligence, providing an added layer of security to your purchase. The lawyer ensures that what you think you’re buying is exactly what you’re getting. In 2025, this process remains critical as legal requirements and property-related paperwork have become more detailed and regulated.

4. Get a Portuguese Fiscal Number

As a foreigner buying property in Portugal, you’ll need a Portuguese fiscal number (Número de Identificação Fiscal or NIF). This can be obtained at your local tax office and is a crucial step in the property purchasing process. The fiscal number is required for everything from opening a bank account to signing contracts and registering your property. The process remains the same for 2025 and is a straightforward procedure.

5. Inspect Your Potential Property in Portugal

Once you’ve shortlisted potential properties, visiting them is highly recommended. A thorough inspection can help you spot any issues, and a professional surveyor can provide invaluable advice. Property prices and demand are higher in some regions than others, and more buyers are opting for detailed surveys to ensure that the condition of the property matches the asking price. In 2025, with the increased popularity of countryside properties, expect to find more opportunities to renovate or restore, so be sure to assess the structural integrity of any potential property.

6. Reserve Your Chosen Property

Once you’ve found the property of your dreams, it’s time to make an offer. After negotiations, you will usually pay a reservation fee to take the property off the market while the initial checks are conducted. This helps ensure you don’t miss out on your chosen property. As of 2025, sellers may also ask for a higher reservation fee due to increased demand in sought-after areas. Be sure to get a clear agreement on what this fee covers.

7. Sign the Promissory Contract (Contrato de Promessa de Compra e Venda)

This is a legally binding document that outlines the specifics of the sale. The buyer and seller sign the promissory contract, and a deposit is made. This is an important milestone in your property-buying journey in Portugal. If you fail to complete the purchase, you will lose your deposit. Conversely, if the seller fails to complete, they must return double the deposit. In 2025, this contract remains vital to the process, and it’s recommended to have your lawyer oversee the terms of this agreement to protect your interests.

8. Finalize Your Property Purchase

The final step is the Escritura (deed of sale) signing before a notary. The remaining balance is paid, and the property officially becomes yours as it gets registered in your name. The notary will register the deed with the Conservatória do Registo Predial, ensuring the property is legally transferred. Be sure to have all necessary documents ready, including proof of payment of taxes, your fiscal number, and identification. The Escritura process remains unchanged in 2025, but it is always best to confirm the details with your lawyer before the signing.

Buying a property in Portugal can open the door to a life filled with beautiful landscapes, historical richness, sunny days, and, ultimately, the good life!

This guide is informational and should not replace professional legal advice. Always consult a lawyer or professional expert in property transactions for up-to-date guidance on regulations and processes specific to your situation.