Buying Property in Portugal as a Foreigner: 2026 Costs

Buying property in Portugal in 2026? Non-residents may pay 7.5% IMT. See CPCV deposit risks, mortgage rules, costs and checks before you sign.

Yes, foreigners can buy property in Portugal.

The question that changed in 2026 is how much tax you may pay if you buy before becoming Portuguese tax-resident.

For an urban home bought by a non-resident, the current IMT Code can impose a flat 7.5% transfer-tax rate instead of the normal progressive table. On a €300,000 purchase, that is €22,500 of IMT before stamp duty, legal work or registration costs.

So before you negotiate the CPCV deposit, work out two things:

what your tax-residence status will be on the purchase date; and
what could make you lose or recover the deposit if the deal does not complete.

Quick Answer: You do not need Portuguese citizenship or a residence permit to buy a home in Portugal. You do need a Portuguese NIF for the tax side of the transaction. If you are non-resident for Portuguese tax purposes when you buy an urban residential property, the 2026 IMT rules can charge 7.5%, unless a statutory exception applies. Buying the property does not itself give you Portuguese residency.

The 7.5% IMT rule for non-resident buyers

Decreto-Lei n.º 97/2026 added Article 17(10) to the IMT Code.

It applies a 7.5% IMT rate to the acquisition of an urban property or autonomous unit intended exclusively for housing when the buyer is non-resident.

The normal IMT exemption or reduction does not apply unless one of the exceptions in Article 17(10) is met.

Nationality does not decide this; Portuguese tax residence does.

Position when the property is acquired	2026 treatment to check
Portuguese tax resident	Normal IMT rules can apply
Tax-resident abroad — EU, Portuguese or non-EU citizen	The 7.5% non-resident rule can apply
Non-resident who later becomes Portuguese tax-resident	A later adjustment may be available if the statutory deadlines are met

I would calculate this before signing the CPCV, not the week of the deed. A tax difference of €10,000 or €20,000 can change the financing plan completely.

Can you recover the extra IMT after moving to Portugal?

Potentially, yes.

Article 17 provides an exception where the buyer becomes Portuguese tax-resident within two years of the acquisition.

In that situation, the buyer can request cancellation of the difference between:

the 7.5% IMT already paid; and
the amount that would result from the normal Article 17 rates.

The request is not automatic. It must be submitted within six months from the date you become tax-resident.

There is a separate exception for qualifying residential rental where the rent stays within the statutory ceiling, with its own six-month start deadline and minimum rental-duration conditions.

Can foreigners buy property in Portugal without residency?

Yes.

Portugal’s 2026 IMT change did not create a foreign-ownership ban.

You can own Portuguese property while living abroad. You can also complete a purchase through a properly authorised representative if the power of attorney and supporting documents meet the required form.

You normally need a Portuguese NIF because the transaction creates Portuguese tax obligations.

If you do not have one yet, see How to Get a NIF in Portugal.

Does buying a house give you Portuguese residency?

No.

Property ownership and immigration status are separate.

Portugal removed real-estate acquisitions from the qualifying Golden Visa investment routes in 2023. Buying a €250,000 apartment or a €1 million villa does not by itself create a residence permit.

If residency is part of your plan, choose the immigration route separately.

See Portugal Golden Visa Investment Fund for the investment routes that remain.

Cash buyer vs mortgage buyer

For a cash buyer, there is no statutory minimum salary simply because the house costs a certain amount.

If you can fund an €800,000 purchase without borrowing, Portuguese property law does not require an €X salary to own that €800,000 property.

A mortgage buyer has a different problem: the bank has to approve both you and the property.

Banco de Portugal’s current creditworthiness framework says the loan should generally not exceed:

90% of the property value for the borrower’s own permanent home;
80% for other purposes.

For this calculation, the property value is the lower of the purchase price and the bank valuation.

The current DSTI guideline also says total monthly debt payments should not, as a rule, exceed 45% of net income after taxes and mandatory Social Security contributions.

Banks can be stricter than these ceilings, particularly for non-resident applicants.

Why the bank valuation can break the deal

Suppose you agree to buy for €400,000.

Your bank values the property at €350,000.

Even if the bank is willing to lend 80% of the relevant value, it calculates from the lower figure:

80% of €350,000 = €280,000

You then need €120,000 for the price difference before even adding purchase taxes and costs.

A mortgage simulation or initial pre-approval does not remove this property-specific risk.

What if the seller refuses a financing clause?

This is showing up repeatedly in 2026 buyer discussions.

If the mortgage is essential to your purchase and the seller refuses a financing condition, the financing risk is being pushed back onto you.

That does not automatically make the property bad. It does change what can happen to your deposit if final financing fails.

If I need the mortgage to complete, I would not let “this is standard in Portugal” talk me out of a clause I actually need.

Have your own lawyer review exactly what happens if:

final credit approval is refused;
the valuation is too low;
the bank finds a property-document problem;
the approved loan amount changes.

Before signing the CPCV, check the property

The seller’s legal documents and a building inspection answer different questions.

Start with the legal file.

Document / check	What it tells you
Certidão Permanente do Registo Predial	Ownership and registered mortgages, seizures, usufructs or other charges
Caderneta Predial	Tax identity, VPT, registered use and property details
Use / building documentation	Whether the property’s use and relevant municipal documentation are in order
Energy certificate	Energy-performance information where required
Ficha Técnica da Habitação	Technical information where applicable
Municipal plans/file where needed	Whether alterations or extensions match approved records
Condominium declaration	Current condominium charges and existing debts for an apartment

A clean land-registry certificate does not tell you whether the roof leaks, the plumbing needs replacement or an extension was built without the right approval.

If the physical condition matters, commission the appropriate inspection before your exit options disappear.

My rule is simple: title due diligence and a technical inspection solve different problems. You may need both.

Buying an apartment? Check the condominium before the deposit

For an apartment, the condominium file can matter as much as the paperwork for the flat itself.

Recent buyers describe discovering weak reserve funds, unpaid neighbours, recurring leaks and major common-area works only after they had already become financially committed to the apartment.

Portuguese law gives you one important document.

Under Article 1424-A of the Civil Code, the seller requests a written declaration from the condominium administrator showing:

current condominium charges;
their amounts and payment deadlines;
any existing debts;
when those debts arose and became due.

The administrator has a maximum of 10 days to issue it.

That declaration is normally an obligatory document for the deed or authenticated sale.

There is an important exception: the buyer can expressly waive it.

If you waive it, the law says you accept responsibility for any seller condominium debt.

I would not waive that declaration casually.

The no-debt declaration is not enough on its own

A seller can have no overdue condominium bill and the building can still be facing a €200,000 roof, façade, lift or pipe project.

Article 1424-A also says condominium charges that become due after the transfer are the responsibility of the new owner.

So for an apartment, I would also ask for:

recent condominium meeting minutes;
the current budget;
reserve-fund position;
major works already approved or being discussed;
insurance information;
recent common-area repairs.

For an older building or one with visible façade, roof, pipe or lift issues, going back several years in the minutes can be worth the effort.

CPCV: the deposit is where the risk becomes real

The Contrato-Promessa de Compra e Venda (CPCV) is the promissory purchase contract.

It is common to pay a deposit (sinal) at this stage. Ten percent is a common market figure, but the amount is negotiable and larger deposits occur.

Under the Civil Code’s normal deposit rules:

if the buyer fails to complete for a reason attributable to the buyer, the seller can keep the deposit;
if the seller is responsible for the failure to complete, the buyer can generally demand double the deposit.

The contract itself matters enormously because it defines the conditions under which each party is required to complete.

If something is essential to the transaction, deal with it before the money is transferred.

Depending on the purchase, that may include:

final mortgage approval;
a minimum bank valuation;
satisfactory technical inspection;
delivery of missing documents;
discharge of registered mortgages;
legalisation/completion of works;
vacant possession;
a fixed completion deadline;
specific remedies if a new build is late.

A mortgage registered against the seller’s property is not automatically fatal

Mortgages and other charges appear on the land-registry certificate.

The important issue is how they will be cancelled as part of the completion.

If the certificate shows several mortgages or another charge you do not understand, stop and have your lawyer and bank explain the discharge mechanics before CPCV.

“Don’t worry, it gets sorted at the deed” is not enough detail for a five-figure deposit.

Buying a new build or unfinished apartment

A 2026 community case involved a CPCV promising completion by May. The expected date then moved to July and later September, while access to inspect the apartment became difficult.

For an unfinished purchase, the dates and remedies matter more than the sales estimate.

Check:

contractual completion date;
any grace period;
what legally counts as delay;
refund or termination rights;
penalties;
whether the developer can change specifications;
inspection/access before completion;
documents that must exist before the deed.

A verbal “we expect it to be ready in March” does not replace a contractual deadline.

Step-by-step: how to buy property in Portugal

1. Get the NIF

Get your Portuguese tax number before the transaction reaches the contract stage.

2. Work out your tax-residence position

For a residential purchase, do this before calculating IMT.

If you are buying shortly before moving to Portugal, get advice on how the two-year residence exception and six-month adjustment deadline fit your dates.

3. Get financing far enough before CPCV

For a cash purchase, prepare the funds, transfer limits and source-of-funds evidence. If you still need local banking, see How to Open a Bank Account in Portugal as a Foreigner.

For a mortgage purchase, get as far through approval as possible and make the CPCV protection match whatever financing risk remains.

4. Make the offer based on your total budget

Do not calculate your ceiling from the sale price alone.

Use:

price + IMT + stamp duty + legal/registration costs + mortgage costs + immediate works

If an agent says another offer is coming, that does not change your ceiling.

5. Run legal due diligence

Have the title, tax documents, municipal/property documents and charges checked.

For an apartment, check the condominium before you sign away the easy exit.

6. Inspect the physical property if needed

Portugal does not make a pre-CPCV structural survey happen automatically for you.

If damp, roof condition, cracks, drainage, electrical work, illegal alterations or structural condition matter to the decision, arrange the appropriate technical inspection.

7. Negotiate and sign the CPCV

Read the deposit consequences, completion deadline and every condition tied to financing, documentation, occupation or construction.

Do not treat it as a booking form.

8. Pay IMT and stamp duty

IMT is generally calculated using the higher relevant value between the contractual acquisition value and the VPT under the statutory rules. If you are unfamiliar with the tax portal, the Portal das Finanças guide explains the account and main services in English.

Stamp duty on the property acquisition is generally 0.8%.

The applicable IMT treatment depends on the buyer, property and use.

Examples include:

normal progressive rates for qualifying resident housing purchases;
7.5% for a non-resident acquisition of urban residential property unless an Article 17(10) exception applies;
5% for rural property;
6.5% for other urban property.

9. Complete the deed/authenticated transaction and register ownership

Portugal’s Casa Pronta service can combine purchase and registration procedures.

For one property, Justiça currently lists:

€375 for a process involving one registration act;
€700 where more than one registration act is involved, such as a purchase with mortgage.

These are Casa Pronta procedure costs, not your IMT, stamp duty, bank fees or lawyer’s fee.

If the property will become your home, the next practical step after completion is usually transferring or opening the contracts in Setting Up Utilities in Portugal.

What does it cost to buy a house in Portugal?

Build the budget line by line.

Cost	How it is calculated
IMT	Depends on residence status, property, value and use
Stamp duty on purchase	Generally 0.8%
Casa Pronta / registration	Depends on transaction
Lawyer / solicitador	Agreed professional fee
Technical inspection	If commissioned
Bank valuation / mortgage charges	If financed
Stamp duty on credit	If financed
Insurance	Depends on property/lender
Condominium / immediate work	Property-specific

Example: €300,000 home bought by a non-resident

If Article 17(10)‘s 7.5% rate applies:

IMT: €22,500

Stamp duty at 0.8%:

€2,400

The two main acquisition taxes are therefore:

€24,900

That is before registration, legal work, financing costs or a technical survey.

What about an EU citizen buying with cash?

The purchase itself is allowed.

EU nationality does not create an automatic IMT discount.

If the EU citizen is non-resident for Portuguese tax purposes, the same Article 17(10) issue must be checked.

Cash removes the mortgage approval risk. It does not remove IMT, stamp duty or due diligence.

Under 35? Be careful with IMT Jovem calculators

IMT Jovem can still be relevant to a first qualifying permanent-home purchase by a buyer aged 35 or under.

There is, however, a point I would verify before relying on a calculator if you are still tax-resident abroad on the acquisition date.

Finanças’ general IMT Jovem guidance says a person resident abroad can qualify if the property is allocated to their own permanent home within the required period.

The newer Article 17(10), added in May 2026, separately imposes the non-resident 7.5% rule and provides its own exceptions and later-adjustment mechanism.

Those rules need to be applied together to your actual dates and status.

If you are buying before your move to Portugal, get the IMT liquidation confirmed before CPCV rather than assuming a generic IMT Jovem result.

Can you buy a property and rent it out?

Yes.

But a buy-to-rent property has a different tax profile from your permanent home.

The 2026 legislation includes an exception from the non-resident 7.5% treatment for qualifying residential rental where:

the permitted rent conditions are met;
the property enters qualifying rental within the statutory six-month period; and
the minimum rental-duration conditions are satisfied.

That is not a general discount for every investment property.

Ordinary market rent, holiday letting and short-term accommodation should not be assumed to qualify.

Buying land: verify what you can actually build

Rural property is generally subject to 5% IMT.

The tax is often not the biggest risk.

Before buying land, verify:

boundaries;
land-registry and tax-record consistency;
access rights;
planning classification;
construction rights;
easements or restrictions;
whether utilities are actually available.

“Buildable” in a listing is not planning permission.

Annual property tax after the purchase

IMI is the annual municipal property tax.

It is different from IMT:

IMT is paid on the acquisition;
IMI is charged annually after you own the property.

For urban property, municipalities generally set IMI between 0.3% and 0.45% of VPT, with limited exceptional cases up to 0.5%.

The normal payment schedule is:

up to €100: May;
over €100 and up to €500: May and November;
over €500: May, August and November.

Where the annual bill exceeds €100, Finanças also allows full payment in May.

See IMI and AIMI Property Tax in Portugal for the annual-property-tax rules.

Five things I would not do

1. I would not calculate IMT from nationality

Tax residence matters.

2. I would not send a large CPCV deposit before the checks I care about

Once the deposit is committed, a bad survey or missing document becomes a contract problem rather than just a property-search problem.

3. I would not waive the condominium declaration without understanding the consequence

The Civil Code specifically ties that waiver to accepting responsibility for seller condominium debt.

4. I would not rely on verbal mortgage reassurance

Your agent is not your lender, and a simulation is not the same thing as final financing for that property.

5. I would not buy for “residency”

A house is an asset. It is not an immigration status.

Before you sign the CPCV

Most expensive property-purchase mistakes happen before the deed.

The three moments I would slow down are:

the tax calculation, the due-diligence file and the CPCV deposit.

Get those three right before you commit the money.