Frequently Asked Questions
Can foreigners legally buy property in Portugal?
Yes. There are no restrictions—foreigners (EU or non-EU) can freely buy residential, commercial, or land property.
What are the main costs for buyers besides the purchase price?
- IMT (Property Transfer Tax) – Tax paid upon completion, see our calculator for up to date information: Buyers Guide Portugal Property – Spencer Becks
- Stamp Duty (Imposto do Selo) – Flat 0.8% of purchase price
- Notary Fees – Usually up to €1,000.
- Land Registration Fees – Around €250–€500.
- Legal Fees (Lawyer) – Varies, but normally up to 1% of property price.
What is the IMI (annual municipal property tax)?
IMI is the annual municipal property tax you pay once you own real estate in Portugal. It is calculated on the VPT (Valor Patrimonial Tributário), the property’s taxable value set by the tax authorities (often lower than the market price). The tax is paid yearly to the local municipality where the property is located.
Is financing available to non-residents?
Yes, Portuguese banks offer mortgages to non-residents. Usually banks can finance up to 80% of property value (residents can get 80–90%), and interest rates may be slightly higher for non-residents.
What documents do I need to buy?
You will need to acquire a NIF (Número de Identificação Fiscal) – essentially your Portuguese tax identification number. It is required for any financial or legal transaction in Portugal, such as buying property, opening a bank account, getting utilities set up, signing contracts, paying taxes, etc.
You will also need a valid form of ID, such as a valid passport or EU residency card. It can also be very helpful to have a Portuguese bank account (usually required for payments and taxes).
What are the ongoing ownership costs (condo fees, utilities, insurance, maintenance)?
IMI (annual property tax), Condominium fees (if apartment, €50–€200/month depending on services), Utilities (electricity, water, gas, internet), Insurance (home insurance is recommended, ~€200–€400/year), Maintenance (gardens, pool, repairs).
Do I need a local bank account?
Yes, it can be a lot more practical to have a Portuguese domiciled account, as it will be required for paying taxes, utilities, and mortgage (if applicable).
What documents does a property need to have in order to be sold?
Land Registry Certificate (Certidão de Registo Predial) – proves ownership and provides up-to-date information regarding any liens, charges and encumbrances.
Caderneta Predial (Tax Certificate) – providing property tax details. Habitation License (Licença de Utilização) – document issued by the City Council that certifies that a property is fit for its intended purpose (housing, commerce, industry, etc.), confirming that it complies with legal and safety standards. Older properties might have a license exemption, if built before regulation came into effect.
Energy Certificate – shows how energy-efficient a property is, what it will cost to run, and how you could save money with improvements, it is legally required for any property transactions.
Do you have any investment properties available?
Please check out all income-generating properties that we currently have for sale here: https://spencerbecks.com/for-sale_tag/income-generating/.
