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Buying Property in Portugal as a Foreigner: 2024 Legal Guide
Essential legal considerations for foreign buyers purchasing real estate in Portugal, including tax implications, NIF requirements, and the conveyancing process.
Portugal welcomes foreign property buyers with few restrictions. Here’s what international purchasers need to know in 2024.
Prerequisites
Before purchasing property, foreigners need:
NIF (Tax Identification Number)
- Required for all property transactions
- Non-residents may need a fiscal representative
- Can be obtained through Tax Authority or authorized representatives
Portuguese Bank Account
- Highly recommended for transaction management
- Required for mortgage financing
- Facilitates utility and tax payments
The Purchase Process
1. Property Search and Negotiation
- Work with licensed real estate agents (AMI registration)
- Verify property documentation and legal status
2. Preliminary Contract (CPCV)
- Locks in price and terms
- Typically requires 10-20% deposit
- Legally binding on both parties
3. Due Diligence
- Title verification at Land Registry
- Check for encumbrances and debts
- Review municipal licenses and permits
4. Final Deed (Escritura)
- Signed before notary
- Full payment made
- Ownership transfers to buyer
Tax Implications
- IMT (Property Transfer Tax): Rates vary by property value and type
- Stamp Duty: 0.8% of purchase price
- Annual IMI (Property Tax): 0.3-0.45% of rateable value
- Rental Income Tax: If property is let
Professional legal representation is strongly recommended to navigate the Portuguese property market safely.