Buying a home in Porto as a foreigner: a complete guide to living in Portugal

Moving to Porto is much more than a change of residence: it's a life decision. Its balance between tradition and modernity, its human scale, and its growing international profile have made it one of the most attractive places to live in Europe.

But what is the actual buying process like for a foreigner? What are the requirements? How long does it take? Is financing available?

We guide international clients through the entire process, combining analysis, strategy, and personalized support. Here, I'll explain everything you need to know, step by step.

1. Can a foreigner buy property in Portugal?

Yes. Portugal is one of the most open countries in Europe in this regard.

You don't need to be a resident or have Portuguese nationality to buy a property. Both individuals and foreign companies can purchase real estate without restrictions.

This has strongly boosted international investment in cities like Porto.

2. Basic requirements for buying in Porto

Although the process is relatively simple, there are some essential elements:

✔️ Tax Identification Number (NIF)

• It is mandatory for any economic transaction in Portugal.

• It is requested from the Portuguese Tax Authority

• You can get it as a non-resident

• A tax representative is required (in some cases)

✔️ Bank account in Portugal

It is not required by law, but it is highly recommended for:

• Manage payments

• Set up direct debit for taxes

• Apply for financing

✔️ Valid identity document

• Passport or ID card (depending on country of origin)

3. Step-by-step purchase process

The process in Portugal is faster than in other European countries, but it requires precision at each stage.

1. Search and selection of the property

• Here it is key to work with an advisor who understands both the market and your objectives (residential, investment, lifestyle).

2. Proposal and negotiation

• A formal offer is presented to the seller.

3. Purchase and Sale Agreement (PSA)

• It is the equivalent of a deposit contract in Spain.

• A deposit is paid (usually between 10% and 30%).

• Conditions and deadlines are set

• It has a binding character

4. Due diligence

• Legal and technical review of the property:

• Property Registry

• Licenses

• Urban planning situation

• Charges or debts

5. Public deed (Deed of purchase and sale)

• It is signed before a notary.

• At this point the remainder of the price is paid and the transfer is formalized.

4. Approximate deadlines

One of Portugal's strengths is the speed of the process.

• Without financing: 3 to 6 weeks

• With financing: 6 to 10 weeks

This will depend primarily on:

• The legal complexity of the property

• Banking speed

5. Taxes and associated costs

Buying in Portugal involves several costs that should be taken into account from the start:

Main taxes

• IMT (Transfer Tax): variable depending on price and use

• Stamp Tax (Imposto do Selo): approx. 0.8%

• IMI (Annual Municipal Tax): between 0.3% and 0.45%

Other costs

• Notary and Registry

• Legal fees

• Real estate consulting

In total, the costs usually range between 6% and 8% of the purchase price.

6. Can a foreigner obtain financing in Portugal?

Yes, and that's one of the great advantages of the Portuguese market.

Standard conditions:

• Financing up to 60%–70% for non-residents

• Up to 80%–90% for residents

• Terms of up to 30 years

• Fixed or variable rate

  
  

What the bank will evaluate:

• Income and job stability

• Level of indebtedness

• Global financial profile

It is advisable to obtain bank pre-approval before starting the search.

7. Residence and taxation

Buying a home does not automatically mean obtaining residency, but it can be a strategic first step.

Portugal has historically been attractive because of its tax incentives (such as the non-habitual resident regime, which is currently evolving).

The key here is to analyze each case individually.

Taxation in 2026: what you really need to know

This is one of the most important points — and where the most misinformation exists.

The Non-Habitual Resident (NHR) regime, which for years made Portugal a very attractive tax destination, has been eliminated for new applicants since 2024. It is only maintained by those who already had it granted.

What exists now? → New regime (NHR 2.0 / IFICI)

Portugal has evolved towards a more selective model.

New system: IFICI (Tax Incentive for Scientific Research and Innovation)

Who can benefit in 2026?

Unlike the previous model, simply moving is no longer enough.

It is now geared towards profiles that contribute economic value:

• Qualified professionals

• Technological profiles

• Entrepreneurs

• Researchers

• Executives in international companies

  
  

In other words: a much more strategic profile.

What advantages does it offer?

• A fixed rate of 20% on qualified employment income

• Potential advantages over international rents (depending on structure)

• Duration: up to 10 years

  
  

What has changed?

❌ There are no longer widespread benefits for pensioners

❌ This regime is not accessible to everyone.

❌ Simply buying a property is not enough

Strategic key

Portugal has gone from being:

• An affordable tax haven poised to become a strategic destination for talent and skilled investment

What does this mean if you're thinking of moving?

Portugal remains very attractive if:

• You have international professional activity

• Are you an entrepreneur or an executive?

• You can structure your tax situation

Further analysis is required if:

• Are you looking for a move with no economic activity?

• You are retired

• Your goal is solely lifestyle

  
  

Professional recommendation

Before buying, it's key to analyze:

• Your current tax residence

• Your revenue structure

• The real fiscal impact of the change

  
  

A good purchase always starts with good planning.

8. Keys to buying safely (and wisely)

Buying in another country is not just a real estate transaction: it's a strategic decision.

From our experience, these are the key factors:

✔️ Understand the different areas well (not all of Porto is the same)

✔️ Analyze the market beyond the price per m²

✔️ Validate the potential for appreciation

✔️ Have legal and tax support

✔️ Having an advisor who represents your interests

At Paula Aharonian | Signature Real Estate, we work from a different approach:

It's not just about finding a property, but about helping you make a good decision.

• Personalized analysis

• Access to on & off market opportunities

• Legal, tax and financial coordination

• Comprehensive support, even after the purchase

If you are considering buying in Porto, we can help you design a strategy tailored to your profile and your current life stage.

Because it's not just about buying a house. It's about choosing how you want to live.