How to Buy Real Estate in Portugal?

Owning real estate in Portugal's warm coastal towns and historic cities is the dream of many Estonians. Whether it's a retirement home, an investment, or a vacation property, Portugal has diverse options to offer. In 2025, Portuguese real estate remains attractive, and Kinnisvara24 helps Estonians navigate this process.

Why choose Portugal for real estate investment?

Portugal is an attractive destination for foreign investors for several reasons. The country offers warm weather and over 300 sunny days a year, a stable economic environment, and a safe living environment. Compared to other Western European countries, the cost of living here is significantly lower, while infrastructure and healthcare systems are of a high standard.

Buying real estate in Portugal is particularly favorable for foreigners thanks to clear and transparent laws and the absence of restrictions on foreign buyers. This ensures the smoothness of the entire process and provides confidence that your investment is legally protected.

Discover Portuguese real estate from Estonians to Estonians

Kinnisvara24 offers a platform specially designed for Estonians, where you can familiarize yourself with Portuguese real estate market offerings mediated by other Estonians.

At the beginning of 2025, Invego independently began selling villas at Silves Hills in Portugal, as part of which a significant portion of the real estate has already found owners from Holland and Norway. This project is an excellent example of how Estonian developers operate successfully in Portugal.

Through Kinnisvara24, you can easily familiarize yourself with foreign real estate intended for Estonians and find a suitable home or investment opportunity safely and conveniently.

Step-by-step guide to buying real estate in Portugal

1. Preparations

Before starting specific real estate transactions, it is recommended to go through some preparatory steps. First, it is necessary to obtain a Portuguese tax registration number (NIF), which is used when buying real estate, opening a bank account, and in various financial procedures. As an EU citizen, you can apply for a NIF at the Portuguese Tax Authority (Finanças) by presenting a valid identity document and proof of residence, or if you wish, use an authorized representative who will help organize the application process.

Next, it is customary to open a Portuguese bank account, which is necessary for formalizing the transaction. To do this, you need a NIF, an identity document, and proof of address.

If financing is needed to purchase real estate, Portuguese banks offer options for residents of other countries as well. When applying for a loan, you typically need to submit an identity document, documents reflecting income and financial status, and information about existing obligations. Specific conditions and options are assessed individually for each applicant.

2. Real estate search

Through the Kinnisvara24 portal, you can familiarize yourself with diverse foreign real estate offerings, which help you find an object suitable for you. Our advantage lies in the fact that we mediate real estate from Estonian sources, which ensures reliability, Estonian-language communication, and often better terms.

There are several popular regions in Portugal worth considering. Lisbon's city center and suburbs offer urban living opportunities, but with a higher price level. The Algarve coastal area is known for its resort towns and golf projects. Porto, the country's second-largest city, is gaining increasing popularity. The Silver Coast, on the other hand, offers a more affordable alternative.

3. Purchase transaction process

Once you have found a suitable property, the purchase transaction process begins with making an initial offer to the seller. The next step is a thorough inspection of the property and due diligence. Similar to buying real estate in Spain, it is important to check the legal cleanliness of the property, possible debts, legal disputes, and zoning restrictions. Although hiring a lawyer is not mandatory, it is strongly recommended.

As the next step, a preliminary contract (Contrato de Promessa de Compra e Venda) is often concluded, which confirms the buyer's and seller's agreement to proceed with the transaction and is typically accompanied by a deposit made by the buyer. The final transaction (Escritura Pública) is formalized at a notary's office, where the property ownership is transferred and the remaining amount of the transaction is paid.

After the final transaction, the new owner must be registered in the land register (Conservatória do Registo Predial), which formally formalizes the transfer of ownership. The duration of the entire process depends on the buyer's residency, financing, and the complexity of the transaction.

4. Costs and taxes

When buying real estate in Portugal, you must account for several transaction-related costs and taxes. One-time costs include real estate transfer tax (IMT), the amount of which depends on the property's value, type, and purpose. Additionally, stamp duty (Imposto de Selo) applies to the purchase, which is calculated based on the transaction value.

The transaction also involves notary and registration fees, the exact amount of which depends on the chosen notary and the complexity of the transaction. The buyer may also use legal services, the cost of which is formed based on the amount of work and agreements. The obligation to pay a real estate agent's commission depends on the contract terms and whether the mediation fee is paid by the buyer, seller, or both parties by mutual agreement.

Additionally, you must account for the annual real estate tax (IMI), the amount of which is determined by the tax rates set by the local municipality and the property's tax assessment value.

Financing and investment strategies

There are several options for financing Portuguese real estate. Portuguese banks offer mortgage loans to foreigners as well, although for non-residents, the loan-to-value (LTV) ratio may be lower and some banks may require a larger down payment.

Investment strategies depend on your goals. Short-term vacation rentals – for example, in the Algarve region – can potentially generate good income, while long-term rentals offer more stable but generally lower returns. Additionally, purchasing real estate in areas with growth potential may be of interest, where value may increase over time.

Why choose Kinnisvara24 for buying Portuguese real estate?

Buying Portuguese real estate is becoming increasingly popular among Estonians, offering both a pleasant living environment and strong investment potential. Although the process is multi-stage, thorough preparation and reliable information help make informed decisions.

Kinnisvara24 offers the opportunity to familiarize yourself with Portuguese real estate offerings mediated by Estonians and find suitable properties directly through the platform.

If the Portuguese sun is not calling yet and you prefer to operate in the domestic market, take a look at our Estonian offerings. Kinnisvara24 brings together fresh apartment sales listings and carefully selected house sales offerings throughout Estonia – from urban charm to private natural locations.