Buying property in Portugal as a UK foreigner in 2026

Dreaming of buying property in Portugal is the easy part. It usually involves a glass of Vinho Verde and a sudden realization that your budget goes significantly further in the Algarve than it does in the Cotswolds.

Whether you're chasing a Lisbon bolthole or a permanent spot to retire under the silver coast sun, navigating the Portuguese market requires a bit more than just a pair of sunglasses and a sense of adventure. In this guide, we’ll cover everything you need to know from the latest Portuguese property prices to pitfalls to avoid.

We’ll also introduce a reliable and cost-effective way to send large sums internationally from the money services provider Wise. Over 14.8 million people worldwide use Wise to move £36 billion every quarter.

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Table of contents

Can UK foreigners buy property in Portugal? What’s the real estate market like in Portugal? How to search for a property in Portugal How to buy property in Portugal as a foreigner - a step-by-step guide Fees and costs of buying property in Portugal Risks and pitfalls of buying property in Portugal Moving into your Portugal property Save on currency conversion fees with Wise when buying property in Portugal Key takeaways

Can UK foreigners buy property in Portugal?

Yes, foreigners including UK citizens can buy property in Portugal, as long as they have the right visa and a local tax number (Número de Identificação Fiscal or NIF).

You should find the process much the same as a local, although you may not be able to borrow as much from a Portuguese bank.

There may also be additional costs to pay as a foreign buyer, especially if you need to have documents translated or use a specialist broker to find a mortgage.

Can you buy real estate and get residency?

Portugal has a Golden Visa scheme, which is a residency by investment program, but unfortunately it doesn’t apply to property purchases anymore.

It used to be the case that you could invest in property and qualify for residency, but a 2023 change has meant that this is no longer the case. The scheme no longer accepts real estate purchases as qualifying investment options.¹

This means you’ll need to choose another qualifying investment to be eligible for the Golden Visa scheme.

Or you’ll need to apply for residency in Portugal as a non-EU national through one of these routes - employment, starting a business, studying or having family ties in Portugal.

📚 Read more: Countries that offer citizenship by investment visa

What’s the real estate market like in Portugal?

The Portugal property market is enjoying a sustained period of growth, with house prices rising 17.66% in October 2025 compared to the year before. The rise recorded in this month was the thirteenth consecutive month where prices increased in the double digits.²

The biggest price rises during this period were for both apartments and villas in the Greater Lisbon area and the Algarve.²

Nationwide, house price increases are driven by sustained demand for properties, along with a persistent housing shortage.

What this means for you as a buyer is that you can expect to pay more for your dream Portuguese property. You’ll also face stiffer competition from other buyers, so you’ll need to be systematic in your search and move fast if you find something you like.

Is property a good investment in Portugal?

Weighing up whether Portugal is a good place to buy property abroad? Here are some pros and cons to consider.

Pros:

• No restrictions on foreigners buying property or land
• Good rental potential - with consistently high demand and rents in the largest cities expected to continue growing²
• The cost of living in Portugal is affordable - lower than the UK and many parts of Europe too, so your money goes further.
• High quality of life - if you’re planning to move to Portugal, you can expect a warm climate, fantastic food, rich cultural experiences and friendly people.

Cons:

• No route to residency under Portugal’s Golden Visa programme by buying real estate
• Rules on short-term lets (i.e. Airbnb) have tightened in areas such as Lisbon,³ so you’ll need to check local rules if you’re buying a property to let out to tourists
• Mortgage conditions may be stricter and harder to meet for foreign applicants, and you may need a larger deposit.

📚 Read more: Pros and cons of living in Portugal: You'll wanna read this

How much are the property prices?

So, how much is property in Portugal? This is an essential thing to know as you set your budget and start your search.

Generally speaking, Portuguese property prices are between 30.4% and 36.7% lower than in the UK,⁴ depending on whether you buy inside or outside of a city centre.

If you're wondering where to buy a home in Portugal, here are the average property prices per square metre across regions:²

Region	Average property price (per sq.m in EUR) - apartment	Average property price (per sq.m in EUR) - villa
North	€2,342	€1,465
Centre	€1,959	€1,407
West and Tagus Valley	€1,533	€1,084
Greater Lisbon	€1,674	€1,495
Setúbal Peninsula	€3,058	€2,711
Alentejo	€2,465	€2,415
Algarve	€1,548	€1,146
The Azores (autonomous region)	€2,757	€2,499
Madeira (autonomous region)	€2,203	€1,392

However, it very much depends on exactly what and where you buy, along with other factors.

And, if you’re arranging your property purchase from the UK, you’ll need a safe, reliable and preferably low-cost way to send over fees, deposits and other payments.

The Wise account could be a great solution, with transparent, low fees, and multiple layers of security, so you can safely transfer large amounts both in the UK and overseas.

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Where is the cheapest place to buy property in Portugal?

If you’re property hunting on a budget, some areas to check out include:

• The North, Centre and Alentejo regions
• Provinces such as Guarda, Castelo Branco and Coimbra
• Municipalities such as Subugal (Guarda), Alcanena (Santarém) and Mangualde (Viseu).

These are all relatively affordable compared to major cities like Lisbon, where city centre properties come at a premium.

And speaking more generally, you’re likely to find cheaper property if you look outside of city centres and popular urban areas.

Best places to buy property in Portugal

The best place to buy property in Portugal all depends on why you’re buying.

If you’re looking to live in Portugal as an expat, a major city like Lisbon or Porto offers all you could want in terms of lifestyle, culture, job opportunities, amenities and connections to the rest of Europe and the UK. These cities also have large expat communities.

For rental potential, holiday hotspots like the Algarve offer affordable options, while university cities such as Braga, Aveiro and Coimbra could be good for student lets.

Wanting to retire abroad? The silver coast to the north of Lisbon is a popular spot for expat retirees. Madeira and the Algarve are also known for their large English-speaking expat communities.

How to search for a property in Portugal

If you’re new to the Portuguese property market, it could be worth using a specialist real estate agent to help you find the right property.

They’ll have knowledge of the local market, as well as speaking the language and being able to guide you through the buying process. This service is likely to come with a fee, however.

You can also start the search online yourself, using one of these Portuguese property websites and portals:

• Idealista
• Imovirtual (in Portuguese)
• RE/MAX
• Century 21
• ERA Portugal
• Casa Sapo
• Rightmove Overseas

What to check before you buy

Here’s a quick list of important things to check before you buy property in Portugal:

• Restrictions/bans on short-term lets in cities like Lisbon - if you’re buying a property for holiday lets
• It’s crucial to verify the legal and registry status of the property before entering into any legal agreement - your solicitor will need to carry out a detailed registry check
• If you’re buying land - that it has clear boundaries, proper registration and the right to build. Planning restrictions can affect your construction or renovation plans.

You may also want to have a building survey carried out. While not mandatory, this could help to flag up any structural or other issues which could be expensive to fix.

How to buy property in Portugal as a foreigner - a step-by-step guide

Now, let’s run through the steps involved in buying property in Portugal as a foreigner:

1. Get your finances in order

Before you do anything, it’s crucial to get your finances in order. You need to set your budget, get a mortgage offer in place and define exactly what you’re looking for.

You’ll need to apply for your NIF (Portuguese tax number). You may also want to open a Portuguese bank account, as this may be required for transactions related to property and mortgages.

2. Find a property and arrange viewings

Now it’s time to start searching for your dream home. You can use online property portals and/or local estate agents to find properties.

If you’ve found somewhere you like, arrange a viewing as soon as you can, and start researching the area in the meantime.

3. Appoint a solicitor

While it’s not mandatory, it’s a good idea to find and appoint a property lawyer. They will check over and translate all documents and contracts, as well as carrying out due diligence on the transaction.

A personal recommendation is a good way to find a solicitor, but you can also find a list of English-speaking property solicitors on the UK Government website.

4. Ask for the Licença de Utilização and Ficha Técnica da Habitação

A recent legislation change in Portugal made it easier for sellers to list their property on the market, but also brought considerable changes from the buyers’ perspective.

"A law enacted in January 2024 implies that simplified urban planning licences have "simplified" the procedures involved in purchasing and selling real estate in Portugal. To be more precise, you don’t need to show the Licença de Utilização (Habitation License) and the Ficha Técnica da Habitação (FTH) when signing the Portuguese reservation contract CPCV. This is a good step since it makes it possible for more properties to be listed on the real estate market and it makes the process of buying a home easier. Nonetheless, you should always insist on seeing these documents as the buyer. As a foreigner, it is in your best interest to make sure the property you are buying is in good condition, and these two documents verify that."

– Pearls of Portugal, a leading buyer's agent in Portugal, will help you with your purchase in Portugal and clarify all the questions that you have concerning the Licença de Utilização

5. Get a survey

Contrary to how it works in the UK, in Portugal it's common practice to hire a surveyor to check the property for structural or other issues before submitting an offer. If the survey flags anything up, you may be able to negotiate on price when putting in your offer.

6. Make an offer

If the survey and due diligence checks come out clean, you can make a competitive offer to the real estate agent or directly to the seller. You can do it over the phone or in person, but it may be best to do it over email so that you have something in writing.

Negotiation is common, so there may be a bit of back and forth before a final purchase price is agreed on.

7. Sign the purchase proposal contract

If your offer is accepted, the next step is for both parties to sign the purchase proposal contract. In Portugal, this is known as the Contrato de Promessa de Compra e Venda (CPCV). It’s provided by the estate agent, and once signed you’ll have to pay a compensation fee if you back out of the deal.

At this stage, you might want to contact your mortgage provider to finalise the financing for your purchase.

8. Pay the deposit

After signing the agreement, you will also need to arrange a transfer to pay your deposit. This is usually 10%. If you back out of the purchase, you’ll lose the deposit. If the seller pulls out, they’ll have to pay you back twice the deposit amount in compensation.

9. Sign the property deed

This is the final crucial piece of paperwork, and it must be formally signed in the presence of a notary or solicitor. You’ll need a translator to hand if you’re not a fluent Portuguese speaker.

Once you’ve signed the property deed, the property will be officially registered in your name.

10. Transfer the remaining balance

The final stage before the purchase is complete is the transfer of funds. You’ll need to pay the remaining balance, plus any fees and taxes. Consider using the Wise account here to convert your pounds to euros, avoiding hidden fees and getting the mid-market exchange rate.

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How long does it take to buy a property?

Buying property in Portugal is a reasonably quick process, which on average takes around 4 to 12 weeks.³

However, it can take longer if mortgage approval doesn’t come through quickly, or if there are complex title issues to resolve.

📚 Read more: How to transfer large amounts of money from the UK

Fees and costs of buying property in Portugal

Here are the main fees and taxes for buying property in Portugal, which you’ll need to factor into your budget:⁵

Fee/tax	Amount
Property transfer tax - Imposto Municipal sobre Transmissões Onerosas de Imóveis (IMT)	- 0% to 7.5% (for primary residences - rates are higher and exemptions removed for second homes) - 7.5% for non-resident buyers
Stamp duty (Imposto do Selo)	0.7%
Legal/notary fees	1% to 2%
Admin fees - Land Registry and Tax Office registrations	€500 to €1,000
Real estate agency fees (if using a buyer’s agent)	1% to 2%
Mortgage valuation fee	€300 to €600
Mortgage setup fees	1% to 1.5% of the loan amount

Taxes and fees for owning property

Once you’ve bought your Portuguese property and paid all those initial costs, you’ll also have some ongoing fees and taxes to cover as a property owner.

This includes:⁵

• IMI (Municipal Property Tax) - 0.3% to 0.45% a year, based on the property’s taxable value
• Condominium fees (for apartments) - €20 to €300+ per month

If you rent out the property, you may also pay personal income tax as a landlord.

Loans and mortgages for non-residents

Banks in Portugal do offer mortgages to foreign nationals and non-residents.

However, bear in mind that foreign buyers tend to face stricter lending criteria, and you may only be able to borrow between 60% and 70% of the total property value (compared to 80% or 90% for locals).³ This means you’ll need a larger deposit.

Risks and pitfalls of buying property in Portugal

One of the main things to watch out for when buying property abroad are scams.

To avoid these, it’s strongly recommended to work with qualified and credible professionals such as real estate agents and solicitors.

Ideally, you should also check for membership of a professional body when working with any property experts, brokers or agents - and make sure they’re not linked to the seller or estate agent.

Other important things to remember include the following:

• Be cautious and do your homework (including meeting or speaking to the seller) before sending money or a deposit.
• Hire a solicitor and do as much due diligence as possible - including ensuring that the seller has the legal right to sell the property.
• Visit the property in person (don’t rely on online listings alone)
• Get an inspection/survey carried out if you have any concerns about the property.

📚 Read more: Risks and pitfalls of buying property in Portugal

Moving into your Portugal property

Before you can get the keys to your new home, you’ll have a final few tasks to check off your list.

Insurance

It’s strongly recommended to take out a buildings insurance policy starting from your completion date. In fact, you might find it's a mandatory condition of your mortgage offer.

Setting up utilities

If you know when your completion date will be, it makes sense to get some essentials set up in advance of moving in.

A prime example is utilities, such as heating, power and water. Get these sorted as early as you can, and the moving process should be a little smoother.

Energy efficiency renovations

If you’ve bought an older Portuguese property, you might want to make some energy efficiency improvements to it. For example, improving the insulation, upgrading the windows or installing a modern, more efficient air conditioning system.

Save on currency conversion fees with Wise when buying property in Portugal

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Key takeaways

• You must obtain a Portuguese tax number (NIF) and a local bank account to complete any property transaction in the country.
• Portugal's Golden Visa program no longer allows real estate purchases as a qualifying investment, so you must explore alternative visa routes for residency.
• Starting in 2026, most non-resident buyers of second homes or holiday properties must pay a flat 7.5% IMT (Property Transfer Tax), regardless of the purchase price.
• Portugal’s housing market remains a "seller's market" with prices reaching a national median of approximately €3,019 per square metre as of January 2026.
• Portuguese banks offer mortgages to non-residents, though you should expect a lower Loan-to-Value (LTV) ratio of 60% to 70% compared to the 80%+ available to locals.
• You must sign a Contrato de Promessa de Compra e Venda (CPCV) and pay a typical 10% deposit, which you forfeit if you withdraw from the deal.

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Sources used:

1. Guest Ready - Portugal Golden Visa: complete guide to residency by investment
2. Global Property Guide - Portugal's Residential Property Market Analysis 2025
3. Investropa - Buying and owning a property as a foreigner in Portugal (January 2026)
4. Numbeo - Cost of Living Comparison Between United Kingdom and Portugal
5. Idealista - The real cost of buying property in Portugal in 2026: a guide for foreigners

Sources last checked 19-Jan-2026