Can a US citizen buy a house in Portugal?

What you need before you can buy

• A NIF (número de identificação fiscal) — the Portuguese tax number. Your lawyer can obtain it for you in a day, in person or by power of attorney.
• A fiscal representative in Portugal, which is mandatory for non-EU residents. Your lawyer or accountant usually acts as one.
• A Portuguese bank account. Not legally required, but the deed is paid by bank cheque or transfer from a Portuguese account in practice, and it makes utilities and taxes far easier.
• A lawyer who acts only for you. Portugal does not have the buyer-protection role of a US title company; independent legal due diligence is what protects you.

The buying process, step by step

Once you have agreed a price, the sequence is the same across the country and typically takes four to eight weeks:

• Reservation (optional): a small deposit to take the property off the market while the lawyer checks documents.
• Due diligence: your lawyer checks the land registry (certidão permanente), the tax registration (caderneta predial), the habitation licence (licença de utilização), the energy certificate and any condominium debts.
• Promissory contract (CPCV): both parties sign, and the buyer pays a deposit — usually 10% to 30%. If the buyer withdraws they lose the deposit; if the seller withdraws they owe double.
• Deed (escritura) at a notary: the balance is paid, the deed is signed and the property is registered in your name the same day.

You do not need to be in Portugal for any of this. Most of our US clients sign a power of attorney at a Portuguese consulate or with an apostilled US notarisation, and their lawyer signs on their behalf.

Taxes and costs when you buy

• IMT (property transfer tax): progressive, up to 7.5% on the price of a home. Rates and bands are updated each year; your lawyer will calculate the exact figure.
• Stamp duty: 0.8% of the price.
• Notary and registration: roughly €1,000–2,000.
• Legal fees: typically 1% to 1.5% of the price plus VAT.
• Annual property tax (IMI): 0.3% to 0.45% of the taxable value, which is usually well below the market price. An additional annual tax (AIMI) applies to holdings above €600,000 per person.

Financing

Portuguese banks lend to non-resident buyers, typically up to 60–70% of the valuation, on terms that depend on your income and age. Most buyers in the €700,000-plus segment buy in cash and use a mortgage, if at all, for flexibility rather than necessity.

Does buying property give me residency?

No. As a US citizen you can visit for 90 days in any 180-day period without a visa, whether or not you own property. To live in Portugal you apply for a residence visa — most commonly the D7 (passive income) or D8 (remote work) — and property ownership simply serves as proof of accommodation in that application. The Golden Visa no longer accepts real estate investment (since October 2023); it continues through qualifying investment funds and other routes.

Common pitfalls

• Buying without an independent lawyer, or using one recommended by the seller.
• Extensions or pools built without a licence: they cannot be legalised retroactively in many coastal zones.
• Properties in protected coastal or agricultural zones (REN/RAN) where rebuilding is restricted.
• Unpaid condominium fees, which pass to the buyer.
• Currency timing: agreeing a price in euros months before completion without a plan for the exchange rate.