Buying a property in Portugal
Whether it’s coastal calm or village charm you’re after, Portugal offers sunshine, character, and great value for UK buyers. Designed to simplify your property purchase, our Portugal guide includes everything you need to know, such as:
- Essential information on Portugal’s property laws, residency options, and buyer obligations
- Explanations of taxes, permits, and local administrative processes
- A step-by-step checklist to keep your plans on track
- Helpful insights to make your move to Portugal easier and more informed
Why buy property in Portugal?
People are drawn to Portugal for its rich culture, sunny coastlines, and slower pace of life. Whether you’re looking for lively cities like Lisbon and Porto, or peaceful countryside villages, Portugal has the food, lifestyle, and sense of space that make it a dream location for many UK expats.
The weather
Set on the sunny edge of the Iberian Peninsula, Portugal enjoys over 300 days of sunshine a year in many areas.
Long, warm summers and mild winters make it perfect for alfresco living, whether you’re enjoying a beachside breakfast or a stroll through your local town square.
Affordable properties
Portugal offers excellent value for money, especially outside the big cities with sea-view apartments in the Algarve to stone houses in rural central Portugal.
It’s no surprise Portugal is such a popular choice for UK residents looking to retire, purchase second homes, or relocate abroad.
Accessibility
With regular, year-round flights from the UK to Lisbon, Faro, and Porto, Portugal is just a few hours away from the UK, and in the same time zone.
Whether you’re relocating or planning regular visits, it’s a well-connected and accessible destination.
Can UK residents buy property in Portugal?
Yes, UK residents can buy property in Portugal, but owning a property doesn’t automatically grant you residency. There are also a couple of things to consider post-Brexit.
No restrictions for UK buyers: UK buyers can purchase property in Portugal, whether it’s for a holiday home, investment, or full-time move. You don’t need to be a resident to own property.
Buying property after Brexit: While Brexit hasn’t affected your right to buy, it has changed how long you can stay. You’re allowed to spend up to 90 days in Portugal within any 180-day period without a visa. For longer stays, you’ll need to apply for a residence visa or permit.
Legal and financial checks: To complete a property purchase, you’ll need a Portuguese tax number (NIF), a local bank account, and an independent lawyer – ideally one who speaks your language and understands the Portuguese legal system.
What kind of VISA will I need?
If you’re a UK citizen and plan to spend more than 90 days in Portugal within a 180-day period, you’ll need a visa, unless you were already a resident or are joining a family member covered by the Brexit Withdrawal Agreement.
For first-time long-term stays, you’ll typically need a Residence Visa, which may require proof of income or savings, private health insurance, and a clean criminal record. Note that Portugal’s Golden Visa scheme is still available, but buying property alone won’t qualify you for it. Check the UK government’s foreign travel advice for Portugal to find the right visa for your circumstances.
The information provided is for general information purposes and does not constitute legal, tax or other professional advice from Lumon, and it is not intended as a substitute for obtaining advice. it is recommended you seek professional advice from a financial advisor or any other professional.
Where to buy property in Portugal
The Algarve
Located in the southernmost region of Portugal, the Algarve offers a blend of natural beauty and amenities, featuring some of Europe’s most popular golf courses.
Famous for its beaches, golf courses, and expat-friendly communities, it is a top choice for retirees and holiday homebuyers.
Lisbon
The ‘city of seven hills’ offers ancient ruins, terracotta rooftops with the Atlantic Ocean beyond.
Portugal’s buzzing capital offers strong rental potential, a vibrant lifestyle, and beautiful historic neighbourhoods.
Porto
A cultural gem in the north with river views, great food, and an increasingly popular property market.
The Alentejo
Laid-back and traditional, this region offers rolling hills, olive groves, and plenty of space, ideal for rural escapes.
The Silver Coast
Less crowded than the Algarve, this coastal stretch offers great value and authentic Portuguese living.
Central Portugal
Home to picturesque towns and lower property prices, perfect if you’re looking for a quieter pace of life on a budget.
Exchange rate considerations for British buyers
We’re here to simplify the currency side of your property purchase, helping you transfer funds overseas with ease.
How currency could affect your budget
Exchange rates are constantly changing, and even small fluctuations can have a big impact on your budget. You can visit our live rates page to view the current interbank rates.
Secure payments to Portugal
When it’s time to move your money, we’ll help make it simple. Learn what to expect when sending funds to Portugal.
What costs should you expect when buying property in Portugal?
Our buying guide for Portugal goes into depth about how to buy property in Portugal and what to bear in mind, including:
Property taxes to plan for: When you buy a home in Portugal, you’ll need to budget for several property taxes, including IMT (property transfer tax), stamp duty, and annual municipal property tax (IMI).
Legal and Notary fees: To buy your property, you’ll need to cover legal and notary fees, which usually come to around 1–2% of the property’s value.
Other costs to consider: From mortgage and reservation fees to surveys and administrative charges, it’s a good idea to build in a buffer for extra costs that may arise along the way.
Residency Visa
The Residency Visa is ideal if you’re moving to Portugal to live full-time, for work, study, or joining family. This visa grants entry for four months while you apply for your residence permit with SEF. Once approved, you’ll gain full residency rights.
Temporary Stay Visa
For visits to Portugal exceeding 90 days, the Temporary Stay Visa might be the option for you. It’s valid for up to a year, with multiple entries. Suitable for short-term work, study, or travel, without needing permanent residency.
D7 visa
The D7 Visa, also called the Passive Income Visa, is a great option if you have a stable income from pensions, rentals, or investments. This visa supports long-term living in Portugal, with a path to permanent residency or citizenship over time.
Frequently asked questions
What tax do you pay when buying a property in Portugal?
When you buy property in Portugal, you’ll typically pay IMT (Property Transfer Tax), stamp duty (Imposto de Selo), and notary and registration fees. The IMT rate depends on the purchase price and property type, while stamp duty is usually 0.8% of the sale price.
How can I get a mortgage to buy property in Portugal?
You can apply for a mortgage through a Portuguese bank or use an international mortgage broker. Non-residents may need a larger deposit and must provide proof of income. Be sure to factor in currency exchange if your income is in GBP and the mortgage is in euros.
How long can you stay in Portugal if you own a house?
Owning property in Portugal doesn’t automatically grant residency. UK citizens can stay for up to 90 days in any 180-day period without a visa. If you plan to live there full-time, you’ll need to apply for a long-stay visa or residence permit.
Does owning property in Portugal make you a tax resident?
Not automatically. You’re generally considered a tax resident if you spend more than 183 days per year in Portugal, or if Portugal is your main home. Tax residency affects your obligations around income and property taxes, so it’s worth getting local advice if you’re planning a permanent move.
Legal tips for buying property in Portugal
Work with your own lawyer: Choose an independent solicitor who understands Portuguese property law and speaks your language. They’ll act on your behalf and help you navigate the process clearly and confidently.
Be aware of local rules: While Portugal welcomes foreign buyers, local planning laws and zoning restrictions can vary. A legal expert will help you understand what applies in your chosen area.
Avoid legal pitfalls: Your lawyer will check for outstanding debts, confirm the legal ownership, and review all documents to ensure everything’s in order before you commit.
The step-by-step process of buying property in Portugal
1. Define your needs
Before you can buy property in Portugal, you’ll need a NIF (Número de Identificação Fiscal), a tax number used for all financial transactions. You’ll also need a local bank account to pay taxes and complete the purchase.
2. Conduct property viewings and legal checks
Once you’ve shortlisted options, arrange viewings and appoint an independent lawyer to carry out due diligence, including land registry checks and confirming the property is free of debts.
3. Make an offer and sign a preliminary contract
When you’re ready to move forward, your agent will help negotiate terms. Once agreed, you’ll sign the Contrato de Promessa de Compra e Venda (promissory contract) and typically pay a 10% deposit.
4. Finalise mortgage arrangements and sign the deed of sale
If you’re using a mortgage, this is when your financing needs to be in place. The purchase is completed by signing the Escritura (deed of sale) in front of a notary. A Lumon specialist can support you in transferring funds securely and at a competitive exchange rate.
5. Register the property and pay associated taxes and fees:
After the deed is signed, your lawyer or notary will register the property in your name. You’ll also need to pay Portuguese Property Taxes, both at the point of purchase and on an ongoing basis once you become the property owner. When you purchase the property, this will include IMT (property transfer tax), stamp duty, and any notary or registration fees.
Working with Lumon – your trusted currency partner
Our team of currency specialists have the local market knowledge to help you navigate the process of buying a property in Portugal. With our international real estate expertise, we’re here to help make the process hassle-free.
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Your property buying guide
Our property buying guide is packed with information and resources to support you on your property journey, including:
- Important considerations when buying a property in Portugal
- Information on navigating local taxes, visas and other regulations
- A handy checklist for ensuring you’re on track
- Lots of other little tips to support your dream move
