Short version: get a tax number, open a bank account, agree a price, sign a promissory contract with a 10% deposit, then sign the deed at a notary. Budget about 5–6% of the price for taxes and fees on top, and 10 to 14 weeks if you need a mortgage.
The seven steps
1. Get a tax number (NIF)
You need a Portuguese tax number for almost everything, from making an offer to paying the taxes. If you live outside the EU or EEA you usually also need a fiscal representative in Portugal, unless you sign up for the tax authority's electronic notifications. We arrange whichever applies.
2. Open a Portuguese bank account
Not strictly required for a cash purchase, but needed for a mortgage and for paying bills and receiving rent. Most banks can open one remotely with your passport, NIF, proof of address and proof of income.
3. Find the home and check it
Before any offer, check the land registry certificate (certidão predial) for debts and charges, the habitation licence, the energy certificate and the condominium's accounts. These are free or cheap to get and tell you most of what can go wrong.
4. Make an offer and arrange the mortgage
Offers are usually made in writing through the agency. Make yours conditional on mortgage approval and a building survey if you need them.
5. Sign the promissory contract (CPCV)
This is the binding step. You pay a deposit, usually 10%, and the deed date is fixed. If you pull out, you lose the deposit; if the seller does, they must pay you back double.
6. Sign the deed (escritura)
At a notary or a land registry office. You pay IMT and stamp duty just before, and the balance of the price on the day. The home is then registered in your name.
7. Let it
A long-term lease must be registered with the tax authority, and the deposit and yearly rent review follow the terms of the lease. If we manage the home, we handle both.
What it costs
- Property transfer tax (IMT): on a sliding scale for homes you won't live in, from 1% to 8%, then a flat 6% or 7.5% above about €634,000 on the mainland.
- Stamp duty (Imposto do Selo): 0.8% of the price, plus 0.6% of any mortgage.
- Notary and land registry: about €700–€1,200.
- Lawyer: about €1,000–€1,500, optional but recommended.
- Mortgage: valuation and bank fees of about €600–€1,200.
A worked example
A one-bedroom flat in Arroios, Lisbon, bought for €312,000 to let long-term:
With a 70% mortgage you'd also pay about €1,300 in stamp duty on the loan and around €1,000 in bank costs. Try your own numbers.
How long it takes
In cash, 4 to 8 weeks from offer to deed is realistic. With a mortgage, allow 10 to 14 weeks: the bank needs your documents, a valuation and then must give you its final offer at least 7 days before you sign.
Buying from abroad
You can do every step without travelling. A power of attorney lets someone sign the CPCV and the deed for you; you sign it once in front of a notary or at a Portuguese consulate where you live, and it may need an apostille.
Common mistakes
- Comparing gross yields. Costs and empty months usually take 30% or more off the rent.
- Signing the CPCV before the mortgage is approved, without making it conditional.
- Pricing the rent from portal asking prices instead of leases actually signed nearby.
- Forgetting condominium works already voted, which the buyer may inherit.
