How Foreigners Can Purchase Residential or Commercial Property in Portugal

Buying residential and commercial real estate in Portugal requires distinct approaches: legal requirements, documentation, and taxes differ depending on the property type. This guide outlines how to prepare for a purchase, navigate the key steps, and ensure your transaction is secure and transparent.

How to Prepare for a Real Estate Purchase

Whether you’re aiming for an apartment in Lisbon or an office on the coast, the process begins with the following steps:

Define Your Budget and Obtain a Tax Identification Number (NIF)

Every property purchase in Portugal requires a Número de Identificação Fiscal (NIF), the Portuguese tax number. This number is essential for financial transactions and for opening a bank account. Foreign buyers can obtain a NIF through the tax office or via a lawyer — even remotely if they are not yet in Portugal.

Verify the Legal Status of the Property

Engaging a lawyer is crucial. They’ll ensure the property is free of debts or encumbrances and will oversee the legality of the transaction. Your legal advisor will also clarify which documents are needed and guide you through the notarization process.

Open a Bank Account

Portuguese banks offer tailored services for foreign buyers. Having a local account simplifies fund transfers, tax payments, and mortgage arrangements.

Required Documentation for the Transaction

To proceed with a property purchase, you’ll need a set of documents confirming the buyer’s identity, the seller’s ownership, and the legal status of the asset. Core documents include:

• Número de Identificação Fiscal (NIF): Portuguese tax number
• Passport or ID: proof of identity
• Property Ownership Certificate (Certidão de Teor): confirms legal ownership
• Energy Certificate (Certificado Energético): rates the property’s energy efficiency
• Land Registry Document (Caderneta Predial): shows the taxable value for IMI calculations
• Usage License (Licença de Utilização): mandatory for commercial properties

As of 2024, most of these documents can be accessed online, simplifying the process for international buyers.

Step-by-Step Guide to Buying Residential Property

Portugal offers a diverse property landscape, from coastal villas to historic city apartments. Buying a home involves several key stages:

• Preliminary Agreement: Once a property is selected, both parties sign a Contrato de Promessa de Compra e Venda, which outlines the terms and sets a deposit — typically 10–30% of the property price.
• Notarization: The main deed (Escritura Pública de Compra e Venda) is signed before a notary. The notary does not represent either party but guarantees the legality of the transaction.
• Ownership Registration: After closing, the buyer must register the property at the Conservatória do Registo Predial. This is a mandatory step for the legal recognition of ownership.

Taxes and Fees

When buying residential real estate, foreign buyers should consider the following:

• IMT (Property Transfer Tax): 1% to 6% depending on value and type
• Imposto de Selo (Stamp Duty): 0.8% of the purchase price
• IMI (Annual Municipal Property Tax): 0.3% to 0.8%, depending on location and cadastral value

Being informed of these tax obligations helps avoid unexpected costs and allows better financial planning.

Investing in Commercial Property: What to Know

Commercial real estate can unlock greater business potential but requires deeper due diligence and additional approvals.

Key Steps to Purchase

• Check Zoning and Permits: Confirm that the property is authorized for commercial use. This is validated by a Licença de Utilização issued by the local municipality.
• Preliminary Agreement and Notarization: As with residential transactions, parties sign a pre-sale agreement followed by notarization of the final deed.
• Registering Ownership: The asset must be registered at the Conservatória do Registo Predial for full legal recognition.

Taxes and Fees

• IMT: Flat rate of 6.5% for commercial properties
• Stamp Duty: 0.8%
• IMI: Up to 0.8%, based on cadastral value

Legislative Changes in 2024–2025

Simplifications Introduced in 2024:

• Online NIF Registration: Foreigners can now apply for a tax number remotely.
• Digital Access to Property Documents: Ownership records and cadastral information are now available online.
• Streamlined Licensing for Tourist Properties: Turismo de Portugal has simplified the approval process for short-term rental units.

New Developments in 2025:

• Digital Notarization: In select regions, buyers can now execute the deed online, provided they use an EU-recognized digital signature.
• Unified Verification Platform: A new portal integrates data from the land registry, property ownership records, energy certificates, and licenses.
• Short-Term Rental Restrictions: Municipalities like Lisbon, Porto, and Funchal may temporarily suspend the issuance of new rental licenses in high-density areas. Buyers must verify whether their target property falls within such zones.
• Tax Incentives for Energy-Efficient Homes: Properties rated A or A+ are eligible for up to a 25% IMI reduction for the first three years of ownership.

Who to Consult for Expert Guidance

To make your purchase safe and efficient, rely on trusted professionals:

• Lawyer: Verifies the legal status of the property and prepares the necessary documentation
• Notary: Certifies the transaction in accordance with legal standards
• Accountant: Assists with tax matters, especially important for commercial acquisitions
• Real Estate Agent: Helps find suitable properties, organizes viewings, and supports negotiations

Final Thoughts

Investing in Portuguese real estate is a confident step toward the future. Residential properties are generally easier to acquire, while commercial assets require more preparation — yet offer broader potential for growth and income.

Solid Sorte provides a full range of legal services, from due diligence to closing. Our experts will help you:

• Verify the legal integrity of the property
• Prepare all documentation in line with Portuguese regulations
• Complete the transaction securely and transparently