How can a foreigner buy a house in the Algarve? 2025 Step by Step Guide
Foreigners can buy a house in the Algarve legally, safely and without restrictions. The process includes obtaining a Portuguese tax number (NIF), opening a bank account, signing a promissory contract (CPCV) and carrying out the public deed. There are also costs such as IMT and Stamp Duty. Below we explain all the essential steps to buy a house in Portugal as a foreign citizen.
1. Do I need authorization to buy a house in Portugal as a foreigner?
No. Any foreign citizen can buy property in Portugal, regardless of nationality or residence status. Portugal is considered one of the most open countries to the purchase of real estate by non-residents.
2. What documents are required to buy a house in Portugal?
-
Tax Identification Number (NIF)
Essential for any transaction. It can be obtained through a tax representative or in person at the Tax Office. -
Valid ID
-
Proof of address or tax residence
-
Portuguese bank account (highly recommended for managing payments and taxes)
3. How does the process of buying a house in the Algarve work?
The process follows these steps:
-
Choice of property and presentation of purchase proposal
-
Signing of the Promissory Contract of Purchase and Sale (CPCV), with payment of a deposit (usually 10%)
-
Legal and tax verification of the property
-
Public deed of purchase and sale at the notary, which concludes the transaction
4. What are the taxes and costs when buying a house in Portugal?
| Cost Type | Approximate value |
|---|---|
| IMT (Municipal Transmission Tax) | 0% to 8% (depends on the value and purpose of the property) |
| Stamp Duty | 0.8% of the purchase price |
| Notary and registration costs | Between €1,000 and €1,500 |
| Attorney/solicitor fees | 1% to 2% of the purchase price (optional) |
Official IMT simulator available on the Finance Portal: portaldasfinancas.gov.pt
5. Is it possible to get a mortgage in Portugal as a foreigner?
Yes, many Portuguese banks offer mortgages to non-residents. Typical conditions include:
-
Initial down payment between 20% and 40%
-
Terms of up to 30 years
-
Fixed or variable fees
-
Required documents: income statement, IRS, payslips, bank statements, among others
6. Can I use the property for Local Accommodation (AL)?
Yes, as long as the local authority allows it. In Tavira, for example, there are still areas where AL is possible. Before investing for this purpose, it is essential to check:
-
Whether the zone is subject to restrictions (containment zones)
-
The legal requirements for AL registration
-
The viability and profitability of the business
- Official information: Turismo de Portugal - AL
7. Why buy with a real estate agency like Real Easy?
Buying a house in a foreign country involves legal, tax and cultural issues. Real Easy offers:
-
Fluent team in Portuguese, English and French
-
Full support with legal and financial partners
-
In-depth knowledge of the real estate market in the Eastern Algarve
-
Expert advice for renovation or construction projects
Faq
Do I need a visa to buy a house in Portugal?
No. The purchase does not require a visa. However, to reside in Portugal for more than 90 days, you may need a suitable visa (e.g., D7 or Golden Visa).
Do I need to live in Portugal to buy a house?
No. Many buyers carry out the entire process remotely, with legal representation.
Does buying a house in Portugal give you the right to nationality?
Not directly. The acquisition of a property can make it easier to obtain a visa or residence permit, and subsequently pave the way for the application for nationality.
Contact Real Easy
Are you planning to buy a house in the Algarve in 2025? Talk to our team and receive expert support throughout the purchase process.
Schedule a free meeting: www.realeasy.pt/contactos
See available properties: https://www.realeasy.pt/lista-propriedades
Author: João Soeiro
Director
Real Easy PT – License AMI 22285
This article is based on Real Easy's experience in accompanying foreign clients in the purchase of property in Portugal, especially in the Eastern Algarve.
