Slider with alias slider 2 1 not found.

Safe Environment, Sunny Weather, World Class Healthcare. Simply Top Quality of Life

With its enviable climate, stunning landscapes, amazing gastronomy and affordable cost of living, Portugal is fast becoming one of the most popular destinations worldwide. It is still the most reasonably priced country in western Europe offering a very comfortable lifestyle. Utilities, groceries, eating out, education, healthcare, childcare, taxes, social security and even property are still affordable in the third safest country in the world.

Multiple two to three hour daily direct flights to cities such as Paris, London, Rome, Madrid, Brussels, Copenhagen, Geneva, Marrakesh and the closest continental European country to the U.S. with direct flights to New York, Boston, Washington, Miami, Chicago and San Francisco as well as to multiple destinations in South America, Africa and the Middle East. Portugal is one of the most convenient places to live today.


Learn about regulations before buying.

Investing in Property

It is important to be aware of the legal processes and required registrations as well as property transaction costs, capital gains, tax and other associated fees.

There are no restrictions in foreign propery ownership and non-EU citizens can get a five year residency permit (known as a golden-visa) if they buy a property worth a minimum of EUR 500,000. In addition to allowing you to work or study in Portugal, the golden visa allows you to apply permanent residency after five years and then citizenship with an E.U. passport. 

To buy a property in Portugal, you’ll need to have a Portuguese Personal Fiscal Number (NIF-Numero de Identification Fiscal), which you can obtain from your local tax office or ask a specialized agency to take care of it for you. If you choose to open a bank account, it is recommendable as it is very useful when transferring money and making direct debit payments on things like utilities and taxes etc. Alternatively, we can recommend you a lawyer that is a one stop shop for all the above requirements.


Whether you should rent or buy depends on location and property type. While renting allows flexibility, long-term let’s maybe in shortage in popular resort areas, where some owners are happy to charge high rents for short-term holiday lets and leave empty during quiet  season. 

With the current historical low interest rates, however, buying property in Portugal can sometime work out cheaper than monthly rent payments. For buyers, property prices in Portugal are on the rise as the economy recovers but are still relatively low following the country’s economic crisis.


Once you have found a property for sale you want to buy it is advisable to use a lawyer, especially if you’re not a fluent Portuguese speaker. Your lawyer can take charge of verifying contractual information and help arrange a house survey to check if there is anything wrong with the property.

Your lawyer or a notary office can inspect the details of the transaction and check the details of the property with the Land Registry (Conservatoria de Registro Predial) and Inland Revenue (Reparticao de Financas). If you’re happy to proceed, you’ll sign a contract (Contracto de Promessa de Compara e Venda). Once this is signed, both parties are then legally obliged to finalize the transaction. 

At this point you will be asked to pay your deposit (usually 20%) and schedule a completion date before paying the IMT (property transfer tax), basically a sales tax. Finally, the ‘Deed of Purchase and Sale’ (Escritura Publica de Compra e Venda) is signed and the property is registered in your name.


There are a number of additional costs involved. The most significant cost is the property transfer tax (Imposto Municipal sobre Transmissoes, IMT). If the property is your main residence, you wont need to pay IMT on the firs EUR 92,407 of the purchase price. After this, it’s reduced using a scale system. Ask your lawyer to confirm the cost for you.

Other costs to budget to include:

    • Stamp duty (Imposto do Selo): charged at 0.8 percent of the purchase price. 
    • Notary and Land Registry Fees 
    • Lawyers Fees
    • Mortgage Fees: such as valuation fees and registration fees


If you decide to sell a property in Portugal, you’ll need to factor capital gains tax into your calculation. If you’re a Portuguese resident, you’ll only need to pay capital gains tax on 50% of your gains, although you can deduct the costs of any improvements you’ve made on the property in the five years before you sell it. Your rate will depend on your circumstances, as capital gains tax is factored into your overall income tax in Portugal. If you’re not officially a resident, however, you’ll need to pay a fixed rate of 28 percent on all capital gains.

When selling your property you will also need to factor in the standard real estate commission which in Portugal is 5 percent ( plus 23 percent Value Added Tax/VAT) of the property’s value. 

Pátria Lusa