Buying Property in Portugal: Key Steps for Foreign Investors

Portugal remains one of Europe’s most appealing destinations for international property buyers, offering a stable market, pleasant climate, and strong legal framework.
Here’s an overview of the main steps involved in purchasing property in Portugal.

1. Obtain a Tax Identification Number (NIF)

The NIF is the first and most essential step in any property transaction in Portugal. It is required for all fiscal and legal processes — from opening a bank account to signing the property deed.
Non-residents can obtain a NIF at a local tax office (Serviço de Finanças) or through a legal representative. 

2. Open a Portuguese Bank Account

Foreign buyers must open a bank account in Portugal to facilitate financial transactions such as property payments, taxes, and related expenses.
A local account simplifies payments, ensures compliance with financial regulations, and is required for issuing a certified bank cheque (cheque visado) — the mandatory form of payment used at the signing of the deed (escritura pública).

3. Work with Qualified Professionals

Buying property abroad involves several legal and administrative procedures. Working with experienced professionals — including real estate consultants, lawyers, and financial advisors — ensures that every step complies with Portuguese law and protects the buyer’s interests.
At The Real Estate Shop, we assist clients throughout the entire process, from identifying the right property to completing registration, making the experience efficient and secure.

4. Sign the Promissory Contract (CPCV)

Once a property is chosen, both parties typically sign a Promissory Contract of Purchase and Sale (Contrato de Promessa de Compra e Venda – CPCV). This document defines the terms of the sale, including price, payment schedule, and completion date. It legally binds both parties and often includes penalty clauses protecting against breach of contract.

5. Pay the Deposit and Related Costs

Upon signing the CPCV, the buyer usually pays a deposit of 10–30% of the purchase price. This secures the transaction and confirms both parties’ commitment.
If either party withdraws without legal justification, the deposit serves as compensation under Portuguese law.

6. Complete the Purchase – The Public Deed

The Public Deed of Sale (Escritura Pública) marks the final stage of the purchase, where ownership is officially transferred before a notary.
At this point, the buyer must also pay the Property Transfer Tax (IMT), Stamp Duty (Imposto de Selo), and the corresponding notarial and registration fees. Settling these charges in advance ensures a smooth and compliant conclusion to the transaction.

7. Register the Property

After signing the deed, the new owner must register the property at the Land Registry Office (Conservatória do Registo Predial). Registration confirms ownership and guarantees legal protection under Portuguese law.

Purchasing property in Portugal is a structured and transparent process. With the guidance of experienced professionals like The Real Estate Shop, foreign investors can navigate each step with confidence, ensuring a secure and successful investment.