Market guide · Portugal

Buying property in Portugal as a foreignerPortugal is open to foreign buyers, but buyers living abroad now pay 7.5% to buy.

Anyone can buy in Portugal with a Portuguese tax number. Prices rose 16.5% in a year while sales fell, the property route to the Golden Visa is closed, and since May 2026 buyers who live abroad pay a flat 7.5% transfer tax, partly refundable if they move to Portugal within two years.

5-minute read · checked 17 October 2026

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Home prices in one year: +16.5%; Statistics Portugal (INE), second quarter 2026
Transfer tax for buyers living abroad: 7.5%; Decree-Law 97/2026
Median sale price, Lisbon city, per square metre: €5,292; Statistics Portugal (INE), first quarter 2026
Share of 2025 home sales to buyers based abroad: About 5%; Statistics Portugal (INE)

Can foreigners buy property in Portugal?Yes, through the same steps as a Portuguese buyer.

What this means for youGet your tax number first, and have a lawyer read the promissory contract before you sign. Walking away later costs you the deposit.

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Every buyer, resident or not, needs a Portuguese tax number, called a NIF. Someone living abroad can request it online through a legal representative.

Most purchases start with a promissory contract, called a CPCV, with a deposit often of 10% to 20%. If the buyer pulls out the deposit is lost; if the seller pulls out it is paid back twice over.

The sale is completed by deed and registered in the land registry. The state Casa Pronta counter can do both in one visit.

From: Tax and Customs Authority (Portal das Financas); gov.pt; Literacia Financeira

Property taxes in Portugal for foreign buyersBuying from abroad now costs a flat 7.5%.

What this means for youIf you plan to move to Portugal, ask a tax adviser about timing. Becoming tax resident within two years can win back part of the 7.5%.

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Since Decree-Law 97/2026 of 20 May 2026, buyers who live abroad pay a flat 7.5% transfer tax (IMT) on a home, with no reductions. Part can be refunded if the buyer becomes tax resident within two years or lets the home at a moderate rent. Stamp duty of 0.8% is added.

Owners pay a yearly council tax (IMI) of 0.3% to 0.45% of the official tax value. An extra tax (AIMI) of 0.7% to 1.5% applies to holdings above EUR 600,000 per person.

Rent is generally taxed at 25%, or 10% on rents up to EUR 2,300 a month. When someone living abroad sells, only half of the gain is taxed, at the normal income tax rates.

From: Decree-Law 97/2026 (Andersen); Tax and Customs Authority; AICEP Portugal Global; PwC

Portugal property market in 2026Prices still climbing fast, sales falling.

What this means for youDo not price your purchase on last year's rise. Where sales are falling fastest, in the Algarve and Madeira, there may be room to negotiate.

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House prices rose 16.5% in the year to mid-2026, after 17.6% in 2025. Yet home sales fell 6.4%, most in Madeira (down 15.2%) and the Algarve (down 12.4%).

The median sale price was EUR 5,292 per square metre in Lisbon city, EUR 3,836 in Greater Lisbon, EUR 3,352 in the Algarve and EUR 2,552 around Porto. Buyers based abroad paid a median EUR 3,000, against EUR 2,313 for buyers in Portugal.

Banco de Portugal names a fall in home prices as an important risk to the financial system.

From: Statistics Portugal (INE); Banco de Portugal (via DN)

Mortgages in Portugal for foreign buyersBanks lend less on second homes since August.

What this means for youPlan to put down at least 20% on a holiday home, and ask the bank for its own terms for buyers living abroad before you sign a deposit.

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Since 1 August 2026 the Banco de Portugal recommendation limits home loans to 90% of value for your own permanent home and 80% for other homes. Monthly payments should be no more than 45% of net income.

Most variable loans follow Euribor; the 12-month rate was 3.186% on 5 October 2026. New loans in the three months to August 2026 averaged 2.910%.

The European Central Bank raised its rates in June 2026, its first rise since September 2023.

From: Caixa Geral de Depositos; Lusa; Statistics Portugal (INE)

Portugal Golden Visa, D7 and digital nomad visaBuying a home no longer brings a residence permit.

What this means for youChoose your visa before you choose your home, and allow for slow decisions at the immigration agency.

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Property purchases stopped qualifying for the Golden Visa on 7 October 2023. A EUR 500,000 investment in qualifying Portuguese funds is still a route.

The remote work visa (D8) needs income of four times the minimum wage, EUR 3,680 a month in 2026. The passive income visa (D7) needs proof of pension or investment income.

The old tax regime for newcomers (NHR) closed on 1 January 2024. Its replacement, IFICI, gives a flat 20% rate only for qualifying work such as research or highly skilled jobs. Citizenship now needs 10 years of residence for most people.

From: PwC; AIMA; Ministry of Foreign Affairs; Tax and Customs Authority; Organic Law 1/2026

Short-term rental rules in PortugalHoliday-let rules depend on the town hall.

What this means for youBefore you count on holiday-let income, check the licence rules for the exact street with the town hall or a local lawyer.

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Holiday lets need a local accommodation licence (Alojamento Local). Since November 2024 each town council can limit them in its own area.

Lisbon has allowed no new licences since December 2025 where holiday lets reach 10% or more of permanent homes, including several central parishes.

Councils with more than 1,000 holiday lets have until 31 December 2026 to decide on their own rules, and may freeze new licences meanwhile.

From: SRS Legal; PLMJ; Observador

Wildfire, drought and earthquake risk in PortugalInsure for earthquake; check fire and water.

What this means for youGet a quote with earthquake cover for the exact home. In the countryside, check wildfire risk; in the Algarve, check water supply.

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Wildfires burned 269,085 hectares in 2025, more than double the ten-year average.

In July 2026 most of mainland Portugal was in moderate drought, worst in the Alentejo and the Algarve. A desalination plant for the Algarve was started in July 2026.

Earthquake risk is highest along the coast and in the centre and south, including Lisbon. In December 2022 only about one home in five had earthquake insurance.

From: ICNF (forest service); IPMA (weather institute); Civil Protection Authority; ASF (via ECO); Government of Portugal

Questions buyers ask

Buying property in Portugal: short answers.

Can foreigners buy property in Portugal?

Yes. Foreign buyers, resident or not, use the same steps as Portuguese buyers: a Portuguese tax number (NIF), a promissory contract, and a deed registered in the land registry. Since May 2026 buyers who live abroad pay a flat 7.5% transfer tax.

Can you still get a Portugal Golden Visa by buying property?

No. Property purchases stopped qualifying on 7 October 2023. Investing at least EUR 500,000 in qualifying Portuguese investment funds, held for five years, is still a route.

What taxes does a non-resident pay when buying property in Portugal?

A flat 7.5% transfer tax (IMT) under Decree-Law 97/2026, plus 0.8% stamp duty. Part of the IMT can be refunded if the buyer becomes tax resident in Portugal within two years. Owners then pay yearly council tax (IMI) of 0.3% to 0.45% of the official tax value.

How is rental income taxed in Portugal for non-residents?

Rent from homes is generally taxed at 25% for residents and non-residents alike, or 10% on rents of up to EUR 2,300 a month, a rate that runs to 31 December 2029.

Are property prices still rising in Portugal?

Yes. Statistics Portugal's index rose 16.5% in the year to the second quarter of 2026, after 17.6% in 2025, although the number of homes sold fell 6.4%.

Can I rent out my property in Portugal as a holiday let?

Only with a local accommodation (Alojamento Local) licence, and each town council can limit new licences. Lisbon allows none in parishes where holiday lets reach 10% of permanent homes.

The evidence

What this guide rests on.

Every sourced fact we hold on Portugal (19)

Statistics Portugal (INE, the national statistics office) estimated that 11,424,031 people lived in Portugal on 31 December 2025. Of these, 1,597,539, about 14.0%, were foreign nationals.
Prices for everyday household spending in Portugal were 86.6% of the European Union average in 2025, meaning goods and services cost about 13% less than the EU norm, according to Eurostat, the EU statistics office.
Antonio Jose Seguro was elected President of Portugal on 8 February 2026, according to the official Presidency website. The President is head of state, while the day-to-day government is run by the Prime Minister.
Any foreigner living legally in Portugal can get a user number for the national health service (SNS, Servico Nacional de Saude), the public health system. To have care covered, registration also needs an identity document, a Portuguese tax number (NIF), a full address in Portugal and a valid residence permit; in an emergency people can call 112, or the SNS 24 line on 808 24 24 24.
Portugal has been a member of the European Union (EU) since 1 January 1986, has used the euro since 1 January 1999 and has been in the Schengen area, the group of European countries with no passport checks between them, since 26 March 1995. Its capital is Lisbon and its land area is 92,226 square kilometres.
Portugal has foreign schools based in the country and private schools that teach international programmes with Ministry of Education authorisation. When a child moves from one of them into the Portuguese system, the Directorate-General for Education (DGE) or the receiving school grants an equivalence free of charge, with a reference time of 30 days once all documents are in.
Portugal's current government, the 25th Constitutional Government, is led by Prime Minister Luis Montenegro. Its 43 secretaries of state, the junior ministers, were sworn in on 6 June 2025 at the Ajuda National Palace in Lisbon, completing the team.
Lisbon averages 17.3 degrees Celsius over the year, with August days averaging 29.0 degrees and January nights 7.8 degrees, and gets about 723 millimetres of rain a year, mostly from October to April, according to the 1991-2020 climate normals of the weather institute IPMA. Porto is cooler and wetter, at 15.3 degrees and about 1,147 millimetres of rain a year.
Portugal's Constitution says the country is made up of its historic land on the European mainland plus the Azores and Madeira island groups. The Azores and Madeira are autonomous regions, which means each has its own regional parliament and government, while Portugal stays one single state.
Portugal's Annual Internal Security Report for 2025, presented on 31 March 2026, found that violent and serious reported crime fell 1.6% and makes up about 4% of all reported crime, while total reported crime rose 3.1%, partly because of more police checks on things like road offences. Theft was the most reported crime.
Portugal's economy grew 1.9% after inflation in 2025, faster than the European Union average of 1.4%, after growth of 2.7% in 2024 and 3.1% in 2023, according to Eurostat, the EU statistics office.
In 2022, 30.1% of adults aged 25 to 64 in Portugal said they knew no foreign language, against 25.3% across the European Union, according to Eurostat's Adult Education Survey. Among young people aged 18 to 24, only 13.5% knew no foreign language.
Portugal's government debt fell to 89.7% of the size of its yearly economy at the end of 2025, from 96.9% in 2023 and 93.5% in 2024, according to Eurostat. Unemployment averaged 6.0% of the workforce in 2025, down from 6.5% in 2024.
Faro in the Algarve averages 18.2 degrees Celsius over the year and only about 455 millimetres of rain, with around 36 days a year at 30 degrees or more, according to IPMA's 1991-2020 climate normals. Funchal in Madeira is milder all year, averaging 20.0 degrees, with monthly averages between 16.8 and 23.7 degrees and about 574 millimetres of rain.
In May 2026 about 115,500 passengers a day landed at Portugal's airports, and 83.9% of arrivals were on international flights. From January to May 2026 the United Kingdom was the biggest country of origin and destination for flights, followed by France, Spain and Germany, with Brazil fifth for arrivals.
Portugal's state railway company CP (Comboios de Portugal) carried 208.2 million passengers in 2025, 19.9 million or 10.6% more than in 2024. The Green Rail Pass (Passe Ferroviario Verde), a cheap monthly pass for regional and Intercidades trains in force since October 2024, had 704,000 subscriptions in 2025.
Portugal had 3,113 kilometres of motorway in 2024, up from 3,098 kilometres in 2018, according to Eurostat, the EU statistics office.
Portugal had 2,526 kilometres of railway line in 2024, of which 1,790 kilometres were electrified, according to Eurostat. Almost all of it, 2,430 kilometres, uses the wide Iberian track gauge, and none uses the standard European gauge, which matters for direct trains to the rest of Europe.
Between January and May 2026 Portugal's airports handled 28.2 million passengers, 3.2% more than a year earlier. Lisbon handled 14.3 million, Porto 6.8 million (up 7.9%) and Faro, the Algarve airport, 3.5 million (up 4.0%), Statistics Portugal (INE) reported on 14 July 2026.

Statistics Portugal (INE), Revista Eletronica do INE, July 2026 issue, population estimates for 2025 · Eurostat, price level indices dataset tec00120, household final consumption expenditure, updated 9 July 2026 · Presidency of the Portuguese Republic (presidencia.pt), official biography page, read 17 October 2026 · Government of Portugal (gov.pt), guide Migrantes: cuidados de saude em Portugal, updated 23 June 2026 · European Union, official country profile page for Portugal, read 17 October 2026 · Directorate-General for Education (DGE), frequently asked questions on equivalence of foreign qualifications, read 17 October 2026 · Government of Portugal (portugal.gov.pt), news release, 6 June 2025 · IPMA (Portuguese Institute for Sea and Atmosphere), climate normals 1991-2020 for Lisboa Gago Coutinho and Porto Pedras Rubras, version 1.0 of 2024 · Assembleia da Republica (Parliament), Constitution of the Portuguese Republic, Articles 5 and 6, read 17 October 2026 · Government of Portugal (portugal.gov.pt), statement on the Annual Internal Security Report 2025, 31 March 2026 · Eurostat, real GDP growth rate dataset tec00115, updated 15 October 2026 · Eurostat, Adult Education Survey dataset edat_aes_l21, persons knowing foreign languages, 2022 data, updated 27 August 2026 · Eurostat, government gross debt dataset teina225, updated 22 April 2026, and unemployment dataset une_rt_a, updated 10 September 2026 · IPMA (Portuguese Institute for Sea and Atmosphere), climate normals 1991-2020 for Faro and Funchal, version 1.0 of 2024 · Statistics Portugal (INE), Atividade dos Transportes, quick air transport statistics for May 2026, 14 July 2026 · CP Comboios de Portugal (state railway company), news release, 29 January 2026 · Eurostat, length of motorways dataset road_if_motorwa, updated 6 October 2026 · Eurostat, length of railway lines by track gauge dataset rail_if_line_ga, updated 6 October 2026, checked 17 October 2026

How a review works

The same six steps, in every market.

DefineClarify intended use, decision participants, timing and constraints.
MapIdentify the property, proposed right and jurisdiction-specific route.
OrganiseAssemble the available title, project, contract, payment and cost evidence.
SeparateLabel what is known, missing, concerning or requires professional confirmation.
CoordinateKeep legal, tax, valuation, immigration and engineering conclusions attributed.
DecidePresent a plain-language record so you can proceed, compare, pause or walk away.

This guide is general. What applies to you depends on your nationality, where you pay tax and the property itself, and that is what a review of your own purchase in Portugal establishes.

Already have a property in mind? Get it reviewed.

Last checked 17 October 2026.