Real estate in Portugal 2026: how a foreigner buys, prices, taxes, step by step

Can a foreigner buy real estate in Portugal

Let's start with the main question that concerns buyers from Russia and the CIS: yes, a foreigner can buy real estate in Portugal freely. There are no citizenship restrictions whatsoever - neither for EU citizens nor for anyone else. You're entitled to acquire an apartment, house, villa, plot, or country estate (quinta) on the same terms as a local resident. Neither a residence permit, nor special government authorization, nor mandatory physical presence in the country at the time of the deal is required - part of the procedure can be done by power of attorney.

It's important to understand the flip side too. Buying real estate by itself doesn't grant a residence permit or the right to permanent residence. It's simply ownership. If your goal is specifically legalization in Portugal, real estate doesn't lead there directly, and we'll cover this in detail below in the Golden Visa section.

For buyers from Russia and the CIS, one practical condition applies: enhanced compliance. Banks and notaries carefully check the source of funds, requesting documents on the origin of capital, statements, and confirmations. Everything is strictly within the law, with no schemes to circumvent sanctions whatsoever. The more transparent the money's history, the faster and calmer the deal goes. So it's best to assemble the source-of-funds document package in advance, even before choosing a specific property.

The step-by-step buying process: from NIF to registration

A real estate deal in Portugal is a sequence of clear stages. You can't skip over them: without a tax number you can't open an account, without an account you can't make payments, without a preliminary contract there's no protection for the deposit. Let's break down the sequence of actions almost every foreign buyer goes through.

• Step 1. The NIF tax number.This is a personal tax identifier (Numero de Identificacao Fiscal). No financial operation in the country is possible without it. A non-resident gets the NIF through a fiscal representative or in person at the tax office.
• Step 2. Opening a bank account.A Portuguese account is needed to transfer funds and pay taxes and utility bills. At this stage the bank runs a source-of-funds check.
• Step 3. Choosing and reserving the property.After the choice is made, a reservation agreement is signed and a small deposit paid; the property is taken off the market during the check.
• Step 4. Legal due diligence.The lawyer checks the title's cleanliness, absence of debts and liens, construction permits, and that the area matches the documents.
• Step 5. The CPCV preliminary contract.A promise-to-sell agreement is signed with a deposit, usually 10-30% of the value.
• Step 6. The notarial deed (escritura).The final sale-purchase deed at the notary, paying the balance, paying taxes.
• Step 7. Registering ownership.The deal is entered into the land registry (Conservatoria) and the tax authority - you're now the official owner.

With documents and funds ready, the whole process takes on average one and a half to six months - depending on whether a mortgage is needed and how quickly the property check goes.

NIF and a bank account: where the purchase actually starts

The first two building blocks of any deal are the NIF tax number and an account with a Portuguese bank. Without them there's no point moving forward, so they're where you should start, even before actively searching for a property.

NIF (Numero de Identificacao Fiscal)- this is a nine-digit tax identifier. It's needed for literally everything: buying real estate, opening an account, connecting utilities, paying taxes, signing a lease. A non-resident not living in the EU usually gets the NIF through a fiscal representative - this can be a lawyer or a specialized firm. It's a fast and inexpensive procedure, and you receive a document with the number.

Bank accountis opened once you already have the NIF. For buyers from Russia and the CIS this is the most sensitive stage: the bank requests a passport, proof of address, and above all, source-of-funds documents. These can be statements, asset sale agreements, documents on income, dividends, or inheritance. The bank needs to understand where the money comes from. A deal paid from a foreign account is also possible, but then you'll need to separately prove beneficial ownership of those funds (UBO).

A practical tip: don't leave opening the account until the last moment. It's bank compliance that most often slows down deals for Russians. A well-assembled source-of-funds package saves weeks. If you want to also arrange residency, it makes sense to look at visa routes in parallel - for example,the D7 passive income visa.

The CPCV preliminary contract and the deposit: the buyer's key protection

The heart of a Portuguese deal is the preliminary sale-purchase contract, the Contrato de Promessa de Compra e Venda, abbreviated CPCV. Many foreigners underestimate this stage, considering it a formality. In fact, it's the CPCV that protects both parties until the notarial deal, and a mistake here is the costliest of all.

The CPCV fixes all essential terms: the property's exact description, the final price, the deposit amount, the timeline to the escritura, the parties' liability, and the property's condition at handover. Once signed, the seller can no longer sell the property to someone else or raise the price.

Special attention goes to the deposit (sinal). It's usually 10-30% of the value. The mechanism works strictly and symmetrically:

• If the buyer backs out of the deal- the deposit stays with the seller, and it can't be recovered.
• If the seller backs out of the deal- they must return the deposit to the buyer doubled.

This is a strong guarantee: it's not in the seller's interest to derail the deal, and the buyer is protected from losing the property. But this is exactly why the CPCV shouldn't be signed until the legal check is complete. If a debt on the property or a title problem surfaces after signing, you either lose the deposit or get pulled into a dispute. So the order is strict: due diligence first, then the CPCV. The contract should only be signed after the lawyer has confirmed the property is clean.

The notarial escritura deed and registering ownership

The final chord of the purchase is the notarial sale-purchase deed, called in Portuguese the escritura publica de compra e venda. This is the "real" deal, after which you become the owner. It takes place at the notary (or a special Casa Pronta office), in the presence of the buyer, the seller, and, with a mortgage, a bank representative.

What happens at the escritura:

• The notary reads out and executes the deed, checking the parties' identities and documents.
• The buyer confirms payment of taxes - the IMT and stamp duty must be paid before signing.
• The final payment is made: the remaining amount is transferred, minus the deposit already paid.
• The parties sign the deed, and ownership transfers to the buyer.

Right after the escritura comes the mandatory final step -registering ownershipin the land registry (Conservatoria do Registo Predial) and updating data with the tax authority. It's registration that makes your ownership protected from third parties. Without it you factually own the property but are legally vulnerable. As a rule, the notary or your lawyer handles the registration right after the deal.

If you can't be present in person, the escritura is conducted via a notarized power of attorney to your representative or lawyer - a common practice for foreign buyers who don't want to fly to Portugal specifically to sign.

Taxes on purchase: IMT, stamp duty, and 2026 changes

When buying real estate in Portugal, budget for not just the property price, but also the deal's taxes. The main one is IMT, and this is exactly where an important change for foreigners happened in 2026.

IMT (Imposto Municipal sobre as Transmissoes)- this is a municipal property transfer tax, a one-off payment made before signing the escritura. It's calculated on the higher of two figures: the declared deal price or the property's cadastral value (VPT).

• The key 2026 innovation:a flat 7.5% rate has been introduced for non-residents on residential real estate. This is noticeably more expensive than before, and this factor must be accounted for when budgeting.
• For Portuguese tax residents buying their primary home, the progressive scale remains, with rates rising as the property gets more expensive, plus relief for lower-priced housing.

Stamp duty (Imposto do Selo)- 0.8% of the deal value, paid together with IMT before the escritura. If you take a mortgage, a separate stamp duty on the loan amount is added: 0.5-0.6% depending on the loan term.

Notary and registration- roughly €1,000-1,500 total for executing the deed and registering it.

We keep a detailed breakdown of all rates and calculations in our article onreal estate taxes in Portugal.

Ownership taxes: IMI, AIMI, and owner expenses

Buying is a one-off cost, but owning real estate in Portugal also costs money every year. This is normal and predictable - the main thing is to understand the expense structure in advance so it doesn't come as a surprise.

IMI (Imposto Municipal sobre Imoveis)- an annual municipal property tax. It's calculated on the property's cadastral value (VPT), and the specific rate within the set range is set by the municipality:

• Urban real estate - in a range of roughly 0.3-0.45% a year.
• Rural (rustico) - its own, higher rate.
• Usually paid in one payment or in several installments a year.

AIMI (additional IMI)- a surcharge for expensive real estate. If the combined cadastral value of your properties exceeds a set high threshold, an additional tax at a progressive rate is charged on the excess. For most buyers of a single apartment or house, AIMI isn't relevant, but owners of a portfolio or luxury property need to keep it in mind.

Besides taxes, annual expenses include utility bills, insurance (mandatory especially with a mortgage), and for apartments, condominium fees (condominio). If you're buying to rent out, income tax on rental income is added. A full breakdown of ownership and rental taxation is in our guide toreal estate taxes in Portugal.

What it actually costs to buy: the property price plus all fees

To understand the real purchase budget, taxes and fees need to be added to the property's own price. For a non-resident, because of the flat 7.5% IMT rate, associated costs in 2026 have grown noticeably, and this needs to be calculated in advance.

Let's take an example: a €300,000 apartment, bought by a non-resident with no mortgage:

That is, on top of the property price, budget roughly 9-11% for taxes and support - for a non-resident this is mostly due to the higher IMT. For a resident buying their primary home on the progressive scale, the final IMT burden is usually lower.

Prices per square meter depend heavily on the region. By 2026 benchmarks: in Lisbon the average level is around €2,100 per sq. m, up to €3,800 and higher in central and premium zones; in Porto - roughly €2,500-3,800 per sq. m in sought-after areas; in the Algarve's western resorts you can realistically stay around €1,000 per sq. m for new builds, while the premium coast costs substantially more. We keep detailed market overviews by city -real estate in Lisbon, real estate in Portoand real estate in the Algarve.

A mortgage for a foreigner: rates, down payment, and insurance

You can buy in Portugal either with your own funds or with a mortgage. Portuguese banks lend to foreigners, including non-residents, though the conditions for them are a bit tighter than for locals.

Key mortgage parameters in 2026:

• Down payment.For non-residents the bank usually finances 60-70% of the appraised value, meaning you need to put down 30-40% yourself. Residents can count on financing up to 80%.
• Rate.The market benchmark is roughly 3-4% a year, depending on the bank, the borrower's profile, and the rate type (fixed or floating, tied to Euribor).
• Term.Up to 30 years, factoring in age limits at repayment.
• Insurance.With a mortgage, the bank requires life insurance for the borrower and insurance on the property itself - this is a mandatory condition, so budget for it.

An important tax nuance: when arranging a loan, a separate stamp duty on the loan amount is added - 0.5-0.6%. The bank also conducts its own appraisal of the property, and if it's lower than the deal price, the loan is calculated on the appraised, not the purchase, value.

To get mortgage approval, a non-resident will need to confirm income and financial stability: income certificates, statements, tax returns. We cover a detailed breakdown of lending terms and choosing a bank in a separate article on mortgages. If you're planning not just to buy property but also to relocate, it makes sense to look right away at visa routes likeD7 visa.

Important and : buying property no longer grants a Golden Visa

This is the most common and most costly myth among CIS buyers, so let's say it plainly and without beating around the bush:buying real estate in Portugal no longer grants the right to a Golden Visa. The "buy a home - get a residence permit" route is closed.

In October 2023 the Mais Habitacao law (Lei 56/2023) took effect, excluding real estate and capital transfers from the list of Golden Visa investments. Before that, buying property was the most popular route - about three-quarters of all applicants went through it. The reform's goal is to ease pressure on the housing market and redirect foreign money into productive sectors.

What remains in the Golden Visa after 2023:

• Investment funds- an investment of €500,000 or more in qualified funds.
• Scientific research- from €500,000.
• Cultural heritage- support from €250,000.
• Job creation and business capitalization- investment in companies plus job creation.

The programme's minimum presence requirement stays soft - roughly 7 days a year. If your goal is specifically a residence permit through investment, look at our currentour guide to Portugal's Golden Visa. And if you want residency without a large investment - take a look atD7 visapassive income visa. Real estate should be bought for its own sake: to live in, rent out, or preserve capital - not as a ticket to residency.

Common mistakes by foreign buyers

In our practice we see that buyers aren't tripped up by rare mishaps, but by the same recurring mistakes. Let's break them down so you don't repeat someone else's costly experience.

• Signing the CPCV before the legal check.The most costly mistake. If a debt or a title problem comes to light after the deposit is paid, getting the money back will be extremely difficult. Due diligence first, then the contract.
• Not budgeting for taxes.Especially painful for non-residents: IMT at 7.5% plus stamp duty adds almost a tenth to the price. You need to calculate the full amount, not just the property's value.
• Putting off the NIF and account for later.Without them the deal stands still, and bank compliance for Russians takes time. You need to start with them.
• A weak source-of-funds package.Incomplete documents on the origin of funds are the main reason for bank delays and refusals for CIS buyers.
• Believing in "Golden Visa for an apartment".People buy property expecting a residence permit and find out the route has been closed since 2023. Goals need to be kept separate: real estate on one hand, residency on the other.
• Ignoring the cadastral value (VPT).IMT is calculated on the higher of the two figures - the price or the VPT. If the VPT is above the price, the tax will be higher, and this needs to be checked in advance.

Almost all of these mistakes are cured by one thing - competent preparation and legal support from the very first step.

Checking the property and an expert's view on a safe deal

The property's legal due diligence is what separates a calm deal from lengthy disputes. Before signing the CPCV and paying the deposit, an experienced lawyer checks a whole range of things, and this stage can't be skipped no matter how much the seller urges you to hurry.

What's always checked:

• Title cleanliness.Who the real owner is, whether there are any disputed rights, inheritance claims, or spousal joint ownership.
• Liens and debts.Mortgages, seizures, and tax debts on the property all "move" with the real estate to the new owner if not checked.
• Documents and permits.The usage license (licenca de utilizacao), a technical passport, and for new builds - a construction and completion permit.
• Matching the area and description.The actual area must match the registry and cadastre data, and any extensions must be legalized.

Separately for buyers from Russia and the CIS, let's remind you about source-of-funds compliance - this isn't the bank being picky, it's a mandatory condition of a lawful deal. All current requirements and forms for real estate deals can be checked on the official government portalgov.pt. The more thorough the check up front, the calmer the ownership down the line.

We'll help you safely buy real estate in Portugal

Buying real estate in Portugal for a foreigner from Russia and the CIS isn't just about choosing a property, but also the NIF tax number, opening an account, passing bank source-of-funds compliance, a competent CPCV, and a clean escritura. A mistake at any stage costs money and time, and for a non-resident with the higher IMT, the price of a miscalculation is especially high. We handle turnkey deal support: we check the property, conduct negotiations, prepare source-of-funds documents, calculate all taxes in advance, and see it through to registering ownership.

Discuss your purchase with a BRIDGES GLOBAL expert- we'll break down your budget in detail and show you how to complete the deal without risks or overpaying.

Conditions and documents: what a foreigner needs to prepare

For the deal to go smoothly, it's best to start with a ready set of conditions and documents. Let's gather them into a practical checklist - it also shows exactly what the bank, notary, and lawyer check.

• A valid international passport- the main document proving the buyer's identity.
• NIF tax number- arranged in advance; no operation is possible without it.
• A bank account in Portugal- for payments, taxes, and utility bills.
• Source-of-funds documents- for citizens of Russia and the CIS this is critical: statements, asset sale agreements, proof of income, dividends, inheritance. All legal and transparent.
• Proof of residential address- often required by the bank when opening an account.
• Power of attorney- if your representative handles the deal, a notarized power of attorney with an apostille and translation is arranged.

The purchase terms are the same for residents and non-residents as far as the deal itself goes - the difference is only in the IMT tax rate and the depth of the bank check. For buyers from Russia and the CIS, the key success factor is a source-of-funds package assembled carefully and in advance. It's this that determines whether bank compliance goes quickly or drags on for weeks.

Separately, note: language. All the deal's documents are in Portuguese. A foreigner needs either a bilingual lawyer or a certified translation of the key deeds to understand exactly what they're signing.

Bottom line: how to buy real estate in Portugal without risk

Buying real estate in Portugal as a foreigner is an entirely real and legal task, including for citizens of Russia and the CIS. There are no citizenship restrictions, the process is well-established, and ownership is protected by the registry. But this deal has its own rules, and it needs to be conducted in the right order.

Let's gather the essentials:

• Start with the NIF and bank account, and prepare your source-of-funds package in advance.
• Never sign the CPCV before the property's legal check is complete.
• Budget for taxes: for a non-resident, IMT 7.5%, stamp duty 0.8%, notary and registration, annual IMI 0.3-0.45%.
• Remember: buying property doesn't grant a Golden Visa - this route has been closed since 2023.
• If you need both real estate and residency, separate the goals and look at distinct visa routes.

Next, choose the route for your goal: sort outreal estate taxes, study the marketsLisbon, Portoand The Algarve, and if you also need a residence permit - compareGolden Visaand D7 visa. Competent preparation and support turn a seemingly complex deal into a clear and safe process.