Last Updated on January 18, 2024 by Laila Oliveira
Starting a new life in Portugal has been a dream come true for numerous people. For many others, it’s a hot topic for real estate investments. This southern European country has so much to offer besides the high quality of life. In this article, we’ll tell you exactly how to buy a house in Portugal; the good news is you don’t have to live in the country to kickstart your goals!
We understand buying a house abroad is a big step to take, and that’s why we’re here to guide you step by step. No matter your level of experience or your requirements for a property in Portugal, you’ll be surprised by how easy it is to find something you like.
Keep reading our article to know everything about the real estate market, why Portugal is all over the news, and what opportunities are there for you. Stay with us till the end to learn more about our expat community that’s ready to help with any concerns!
How can I buy a house in Portugal?
Buying a house in Portugal is possible for both nationals and expats. According to statistics, the homeownership rate in Portugal has increased to 77.3% this year, which is more than what it is in the US and the UK If the Portuguese trust their real estate market, so can you!
Here’s what you have to do:
- Research your options;
- Prepare the paperwork;
- Visit the property;
- Get documentation done in Portugal;
- Transfer the payment;
- Sign the contract.
Voilá! Who knew it could’ve been that straightforward, right?
Before we get into the costs of properties in different regions of Portugal, let’s go over some tips we usually tell our clients.
Tips for buying a house in Portugal
Let’s start from the beginning. Read our top 3 tips for those who are interested in buying a house in Portugal from abroad.
Get to know the real estate market in Portugal
Before any investment, you should take the time to get to know the market. Research, read, and inform yourself about the Portuguese real estate market to create your own critical sense of how to use your money wisely. After all, the decision to invest is entirely yours, so it’s best to invest being aware.
Have a Portuguese translator with you
Portuguese is not a very easy language to learn, especially for native English speakers. If you want to do business, work, or invest in Portugal, you must have someone by your side who speaks the local language very well.
You’ll have to deal with many people, not all of them speak English, and translate countless documents. The best thing to do is to have contact with a reliable translator from the beginning.
In case you haven’t learned the local language yet, you can contact Viv Europe to help you find a reliable translator.
- Interested in knowing more about the local language? Read our guide Learning Portuguese: Do Expats In Portugal Need To Speak The Language?
Be prepared for a lot of bureaucracy
The only thing tricky about buying a house in Portugal is that it involves a lot of bureaucracy. In fact, the country is famous for having detailed procedures for all types of public service.
Still, it’s good to prepare for long hours in line, possible difficulty in making appointments, getting the correct documents, and so on. It’s a long way to finally get the deed of your new house in Portugal in your name, but it’s worth it.
Also, you don’t have to deal with all of it yourself either; keep reading to know how we can help!
How much do properties in Portugal cost?
Property prices in Portugal vary widely but have gradually increased over the last decade. According to official reports from Idealista, the average evolution of Portuguese property value increased by 6.9% from 2022 to 2023.
The best part is that there’s something for everyone. There are beach houses for retirees, working spaces for investors, small apartments for digital nomads, and beautiful homes for families relocating here. Values for these properties also fit any budget; you just have to research a few neighborhoods.
According to the report, Portugal’s average price per square meter is €2,510/m2. That’s €502,000 for a property of about 200m2. This is an average, and property prices can vary for several factors.
Find out how much it costs to invest in real estate in the different Portuguese regions in the table below:
| Region of Portugal | Price per m2 |
|---|---|
| Lisbon metropolitan area | €3,869 |
| Algarve | €3,130 |
| Porto and northern region | €2,445 |
| Madeira | €2,492 |
| Silver Coast and central region | €1,674 |
| Azores | €1,527 |
| Alentejo | €1,055 |
The data in the table is from Idealista (as of May 2023).
As you can see in the table, the real estate market varies from €1,000 to €3,000 per m2. The values have appreciated drastically in the last five years, especially after 2019, since Portugal has become a much more renowned tourist hotspot.
Foreign investors are among the main ones interested in buying properties. Investing in Portuguese real estate can also secure a European Passport, which is one of the many perks for investors!
Now that you know what property prices look like, you must be wondering what the next step is. So, how can you buy a house?
A step-by-step guide to buying a house in Portugal
Now that you know the Portuguese real estate market and are ready to deal with bureaucracy, it’s time to invest!
1. Choose what and where to invest
As you’ve seen, Portugal has many variations in price, opportunities, and valuation depending on the country’s regions. The first step is establishing your investment objective and the type of property you’re looking for.
Is it a house or an apartment?
Is it downtown for rent or in the countryside to enjoy your vacation?
Will you resell the property later, or do you want to keep it for your family?
Once you’ve answered these and many other initial questions, you’re ready to move on.
2. Prepare your documents to buy a house
You don’t need to be Portuguese or a legal resident to buy a house in Portugal. However, you need some Portuguese documents to make the purchase and have the house deed in your name.
- NIF (Número de Identificação Fiscal): Portugal’s Tax Identification Number that you must request in person at Finanças (the Finance Department in Portugal);
- Valid passport or identification document valid in Portugal (such as the residence card of any EU country);
- Proof of income in your home country.
Here’s the list of documents to prepare before negotiating any property purchase in Portugal:
3. Find your property in Portugal
It may seem simple, but finding the ideal home to buy in Portugal is not quick, much less when you want to invest from abroad.
Now it’s time to browse real estate websites, contact real estate agencies, and even join Facebook groups for buying and selling properties.
As your search progresses, you’ll have reached a few finalists according to your preferences for price, type, and location.
- Before you start searching for a property, check out How To Buy A House In The 8 Cities That Most Attract Expats.
4. Travel to Portugal or have someone visit the properties for you
At this point in the process of buying a home from abroad, consider traveling to Portugal to visit properties first-hand and choose the best one. It’s also an excellent opportunity to go on a scouting trip to Portugal.
If it’s easier, a good option is to hire a trusted legal representative to do it for you. So you’re sure of the validity of the investment and avoid scams.
It’s always safer to meet the landlord or former owner of the house in person. Additionally, ensure your contract has been reviewed by a legal or real estate professional in Portugal before signing it.
Staying away from complications is only one reason why people choose Viv Europe and our real estate services. Having professionals by your side can also help you negotiate the price of the property and ensure you get the best deal possible.
- Remember, Viv Europe can help you search for better deals and inspect properties on your behalf. Contact us now and discuss your goals to turn them into a reality!
5. Prepare the property’s documents for purchase
We said there would be a lot of bureaucracy, didn’t we? To buy a house in Portugal, you’ll still need to gather a few more documents regarding the property you wish to purchase.
- Housing Technical File (Ficha Técnica de Habitação): technical descriptive document of the property;
- The license of Use (Licença de Utilização): a document describing the purpose of the property that you must request from the parish council of your house;
- Building book (Caderneta Predial): document proving the tax regularity of the property, which you must request from the Finance Department (Finanças);
- Certificate of Land Registry (Certidão do Registo Predial): a document certifying the content of the house to confirm both your legitimacy as a buyer and the previous owner’s.
Once all these documents are ready, the payment still needs to be made. But how is the amount transferred to Portugal?
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6. Set the purchase amount for the transfer
This process can be even more complicated if you’re outside the Eurozone. Sending money to Portugal, however, is much easier these days and doesn’t necessarily require the assistance of a bank.
There are several good companies online that can help you convert and transfer your money to a Portuguese account. Some of which we can recommend:
- Wise (previously Transferwise);
- Xoom (from Paypal);
- World Remit.
Remember to check the transfer limits and when is the best time to convert your money to euros. And, of course, do not make any transfers without first having the contract duly signed and being sure of the security of the transaction.
Depending on the type of transfer you choose, the money can arrive in Portugal between 1 to 14 days. You’ll only be able to proceed with buying the house after the seller has received the payment.
7. Time to sign the deed
Here comes the most exciting part!
Once the documents are delivered and you’ve paid, it’s time to transfer the deed of your new home to your name.
The seller must be present when you sign the deed, and then you’ll be the new property owner in Portugal.
Where can I find houses for sale in Portugal online?
There are several real estate websites in Portugal for all tastes and needs. In addition to offering a good idea of the market, some also offer consulting and even housing loans. Meet some of the most famous ones:
We specifically recommend Kipper Tree, our real estate partner, which has various properties available for you. Rest assured; they know what you need!
Resorting to real estate agencies in Portugal can also be a good idea for those who want to save time. The secret is to be patient and wait for the right moment to invest without haste.
Can I get a Golden Visa when buying a house in Portugal?
Unfortunately, not anymore. As of 2023, it’s now no longer possible to invest in property, residential or commercial, to apply for the Golden Visa, but there are still a number of other options that you can choose in 2024.
The most popular route in 2024 is probably going to be investing in funds, such as a venture capital fund. This route allows you to invest in a managed fund, typically €500,000 or more, and in return, obtain residency in Portugal.
- If you’re wondering where the most luxurious properties are located, check out our article: Where Do The Rich Live In Portugal? See The Most Exclusive Regions.
How to buy ruined houses to restore in Portugal?
Unfortunately, Portugal has many old houses that have turned into ruins over the years. These properties are great real estate investment opportunities scattered across the country in the best locations.
Buying a dilapidated house to restore is the same as for a ready-to-live-in house but requires more attention to other details.
If your plan is to restore the property and build something bigger, you need to check with the parish council of the house to see how much it’s allowed to build on the land of the ruin.
There are all kinds of bureaucracy for restoration too, so professional support is even more recommended.
Should you rent or buy a house in Portugal?
The answer to this question will vary depending on your financial conditions and investment goals. Each case is different, so it’s recommended that every foreign real estate investor has professional legal support.
To estimate how much you can earn from renting your property, you can make nearly $2,500 if you buy a house in Portugal and rent it out for a month. Many people list their properties for rent during tourist peak seasons and move to another area for the time being.
So, it’s a great passive income stream if that’s what you’re looking for. The answer to whether you should rent or buy a house in Portugal depends entirely on your goals.
Viv Europe also assists foreigners in renting real estate in Portugal. Feel free to get in touch with our team and plan your next real estate investment in Portugal.
Is it possible to obtain financing or housing credit in Portugal?
Yes, financing your home or getting a loan in Portugal is possible, even if you’re a foreigner.
However, there are several conditions that vary according to the program of your bank of choice in Portugal.
If you apply for a loan to buy a house in Portugal, make sure that your investment remains valid at the end of the payment installments.
- There really is something for every budget. Check out The 15 Cheapest Cities To Live In Portugal With Quality Of Life and live your dream with ease!
Is it worth buying a house in Portugal?
Whether or not real estate investment is worth it is up to you. The real estate market in Portugal has grown a lot in recent years, and the statistics speak for themselves!
Therefore, investors have been making huge profits every year. Still, there’s a lot to be said about what makes a good investment.
That’s why we recommend that you have trusted local guides who know the real estate market, but also have an investor mindset.
Is it worth moving to Portugal?
This answer is also variable, but most likely, yes! We could list down numerous reasons, but we’ve got many other articles on this topic.
Portugal is the sixth safest country in the world, according to the Global Peace Index 2022. Not many European countries offer a high quality of life at a low cost of living.
Moving to Portugal is a whole different process involving getting a Visa, then a Residence Permit, and all the strategic planning to move to another country.
But no matter how time-consuming all of it can be, most expats in Portugal agree that living in Portugal is absolutely worth it!
Don’t want to miss your chance?
Is the possibility of new opportunities tingling you with excitement? We thought so! Now that you know how to buy a house in Portugal, we’d suggest you start looking into this real estate realm.
The statistics discussed in the article are all promising, so you definitely wouldn’t want to miss your chance. Yes, many took the opportunity to apply for the Golden Visa too, but most did that simply because it’s hard to stay away from Portugal.
If you’ve already decided that you’re going to invest in real estate in Portugal, congratulations, join the club! We have an online community of over 13,000 Portugal enthusiasts on our Facebook Group – All About Portugal For Expats. Be a part of the group and meet other real estate investors moving to Portugal!
And for all expats in Portugal out there, don’t forget: investing in Portugal is equivalent to investing in your future.
