Portugal · Buying abroad
How to Buy a House in Portugal as an American
One of the safest countries in the world, with widely spoken English, cheap healthcare, and no inheritance tax between close family. But almost everything you’ve read online is out of date: buying a house no longer gets you a Golden Visa, and the famous 10% pension tax is gone.
Last updated July 2026
Start here
Buying a house in Portugal as an American, the short version
Portugal became the darling destination for American expats and retirees — and then changed nearly every rule that made it famous. This is the country guide; for the big picture on buying overseas, see how to buy a house outside the US.
The good news is unchanged: Americans can buy freely, with no restrictions — full freehold, in your own name, no residency required, no cap on properties. Closing costs are moderate (~6–8%) and the seller pays the agent. Portugal ranks 7th safest in the world, English is very widely spoken, and there’s no inheritance tax between spouses, children, and parents.
What changed: real estate was removed from the Golden Visa in October 2023, so buying grants no residency. The NHR regime and its 10% pension tax closed to new applicants in 2024. A flat 7.5% transfer tax on non-resident buyers started in September 2026. And citizenship now takes 10 years, not five. Below: the real rules.
The big question
Can you actually own property in Portugal?
Yes — freely and fully, with no permit. Buying just doesn’t give you a visa anymore.
Portugal places no restrictions on foreign ownership. Americans buy apartments, houses, and land in their own name with full freehold rights, no residency or visa required, and no limit on how many properties they own. That applies on the mainland and in Madeira and the Azores alike. No foreign-ownership ban has been enacted — the one measure that was passed is a higher transfer tax on non-residents, not a prohibition.
You’ll need a NIF — and, as an American, a fiscal representative
Every buyer needs a NIF (Portuguese tax number) to purchase, bank, or set up utilities. It’s free and can be obtained remotely. Here’s the part most guides get wrong: while you don’t strictly need a fiscal representative (representante fiscal) just to hold a NIF, the moment you own Portuguese property you have a Portuguese tax obligation — and then a non-EU resident must have one. In practice, every American buying while still living in the US needs a fiscal representative in place before signing the deed (roughly €150–€400/year). The requirement disappears once you become a Portuguese tax resident. Your lawyer will also pull the Certidão Permanente (land registry certificate), the Caderneta Predial (tax register, showing the official VPT value), the Licença de Utilização (habitation licence), and the energy certificate.
Setting the record straight
What happened to the Golden Visa and the 10% pension tax?
Both are gone. Portugal is the most out-of-date topic in overseas property.
If you’ve researched Portugal, you’ve read that a €500,000 property buys you residency and that retirees pay just 10% on foreign pensions. Neither is true anymore. Vast amounts of online content — much of it published by firms that sold Golden Visa services — has simply never been updated. Here’s the current reality.
❌ No Golden Visa via property. ❌ No 10% pension deal. ⚠️ And two new costs.
Real estate was removed from the Golden Visa. Law 56/2023 (“Mais Habitação”) struck property — and property-linked funds — from the qualifying routes, effective 7 October 2023. The Golden Visa still exists, but only through non-property routes (a €500,000 non-real-estate fund, €500,000 in research, €250,000 in cultural support, or job creation). Buying a house grants you no residency whatsoever. The NHR regime closed to new applicants on 1 January 2024. Its replacement, IFICI (“NHR 2.0”), gives a 20% flat rate to qualifying scientists, tech workers and highly-skilled professionals — but it explicitly does not cover foreign pensions. An American retiree who becomes a Portuguese tax resident now pays ordinary progressive rates (up to 48%) on pension income. Two new costs: a flat 7.5% IMT transfer tax on non-resident buyers of residential property from 1 September 2026 (refundable if you become tax resident within two years), and citizenship now requires 10 years of residency (up from five), in force since May 2026.
★ Free expert help
Buying in Portugal? Get matched with a specialist.
From arranging your NIF and fiscal representative to checking a property actually matches its licence — and working out whether becoming a tax resident saves you the 7.5% surcharge — a specialist can help you avoid the expensive mistakes. Free, with no obligation.
Paying & financing
How do you pay for it?
Portuguese banks (Millennium BCP, Caixa Geral de Depósitos, Novo Banco, Santander Totta, BPI) do lend to non-residents. Expect 60–70% loan-to-value — so a 30–40% deposit — against up to 80–90% for residents, with rates around 3.4–4.5% variable in 2026 as Euribor eased. Most Portuguese mortgages are Euribor-linked. A US mortgage can’t be used for Portuguese property. Some smaller banks avoid American clients because of FATCA paperwork, but the big banks approve well-documented US buyers routinely.
Costs are lower than Spain or Italy — and the seller pays the agent
Total closing costs run about 6–8% for residents (budget 8–10% as a non-resident, given the new 7.5% IMT). That’s meaningfully cheaper than Spain (10–15%) or Italy (7–15%), and unlike Italy, the agent’s commission is paid entirely by the seller. You’ll also owe 0.8% stamp duty on the purchase and 0.6% on any mortgage, plus notary/registration (about €700 via the government’s “Casa Pronta” one-stop service) and a lawyer at ~1–1.5%. Portugal uses the euro, so factor exchange-rate risk on the purchase, the mortgage, and your ongoing costs. Life insurance is generally required to secure a loan.
The process & your lawyer
Do you need a lawyer? The buying process
Yes — the notary is neutral and doesn’t represent you or check the property for you.
-
01
NIF, fiscal rep, bank account, lawyer
Get your NIF, appoint a fiscal representative, and open a Portuguese bank account. Then hire an independent advogado — your own, not the agent’s or seller’s. Fees run ~1–1.5%, or a flat €1,000–€4,000.
-
02
Due diligence
Your lawyer verifies the Certidão Permanente (ownership, mortgages, charges), the Caderneta Predial, the Licença de Utilização, the technical housing file for post-2004 builds, the energy certificate, debts, and condo status — and that the physical property matches its licensed description.
-
03
The CPCV — and the “double” rule
Sign the promissory contract (CPCV) with a deposit (sinal) of typically 10–30%. The protection cuts both ways: if you default you forfeit the deposit; if the seller defaults, they must pay you double (“em dobro”). It can be registered for extra security.
-
04
Escritura, then register it
Pay IMT and stamp duty, then sign the escritura pública before a notário — or at a Casa Pronta desk, which combines deed and registration in one cheaper step. Register at the Conservatória do Registo Predial. Buy remotely with a procuração. Budget 2–3 months.
Check the building matches its licence
Portugal’s most common due-diligence trap is a property whose physical reality doesn’t match its registered and licensed description — illegal extensions, unlicensed pools, and unregistered rural buildings are a real and frequent problem, especially in the Algarve and the countryside. These can block a sale, complicate financing, and land the cost of regularization on you. Make your offer and CPCV conditional on your lawyer’s due diligence clearing, and walk away from unlicensed works unless the cost of fixing them is fully quantified and priced into your offer.
Taxes & fees
What taxes and fees will you pay?
The main purchase tax is IMT, historically progressive (0% up to about €106,000 on a primary residence, rising to 7.5% at the top). Add 0.8% stamp duty. Annually you’ll pay IMI (0.3–0.45% of the property’s official VPT value for urban homes), and — only if your Portuguese property portfolio exceeds €600,000 in VPT (€1.2M for a couple) — the AIMI wealth surcharge at 0.7% and up. Most single-home owners never reach it.
⚠️ The new 7.5% non-resident transfer tax — and how to avoid it
From 1 September 2026, buyers who are not Portuguese tax residents pay a flat 7.5% IMT on residential property — no progressive brackets, no primary-residence relief. On a €400,000 home that’s €30,000. But there are two escape routes: you can reclaim the difference if you become a Portuguese tax resident within two years, or if you place the property on the long-term “moderate rent” market (≤€2,300/month) within six months and keep it let. This one rule should shape your whole plan — if you intend to move to Portugal anyway, timing your tax residency can save you tens of thousands. (Lawyers expect EU free-movement-of-capital challenges to the surcharge, so watch this space.)
Selling, renting, and what you still owe the IRS
Good news on capital gains: since 2023, following EU court rulings, non-residents are taxed the same as residents — only 50% of the gain is taxable, at progressive rates, replacing the old flat 28% on the full gain. Rental income: non-residents pay a flat 25% on net residential rent; short-term (Alojamento Local) rentals are taxed on just 35% of gross under the simplified regime. On the US side: there’s a US–Portugal tax treaty, so report rental income (Schedule E) and gains, claiming the Foreign Tax Credit; the Section 121 exclusion can apply to a main home. The property isn’t an FBAR item, but your Portuguese bank account is, once foreign accounts top $10,000. Use a cross-border tax professional.
Visas & residency
Does buying property get you residency?
No — not since October 2023. Americans get 90 days in any 180 visa-free in Schengen (note the EU’s new biometric entry system launched in 2026, and ETIAS pre-authorization is expected late 2026). To live in Portugal you need an actual visa, and owning a home helps only insofar as it proves you have accommodation. Portugal permits dual citizenship.
The D7 is what Americans actually use
D7 visa (passive income): the real retiree and second-home route. You show stable passive income — pensions, dividends, rents — of at least the Portuguese minimum wage, €920/month in 2026 (about €11,040/year), plus 50% for a spouse and 30% per child, along with accommodation, a NIF, a bank account, and health insurance. The trade-off: it requires you to actually live there (183 days a year), which makes you a Portuguese tax resident — and, since NHR ended, means ordinary tax rates on your pension. D8 (digital nomad): for remote workers earning €3,680/month. Golden Visa: still exists, but only via a €500,000 non-property fund or similar, needing just ~7 days a year in Portugal. ⚠️ Citizenship now takes 10 years (7 for EU/Portuguese-speaking nationals), with the clock starting when your residence permit is issued, plus a language and civics test.
The practical questions
What else do you need to know?
Portugal’s real advantages are the everyday ones. It ranked 7th of 163 countries in the 2025 Global Peace Index (the US ranked 122nd). English is very widely spoken — Portugal ranks 6th in the world for English proficiency, a genuine edge over Spain, Italy, or France. The public health service (SNS) is good and cheap once you’re a resident, and private insurance runs just €40–100/month — though US Medicare doesn’t cover Portugal. And there’s no inheritance tax between spouses, children, and parents.
Three honest cautions: AIMA, the housing crisis, and who inherits
The AIMA immigration backlog is a serious problem. The agency that replaced SEF inherited hundreds of thousands of pending cases; while most have now been decided, appointment delays and card-delivery lags persist, and court injunctions are a common tool just to get an appointment. Budget patience. The housing crisis is real, and so is the resentment. Lisbon and Porto have seen major protests over affordability — foreign buyers pay a median premium of roughly 35% over Portuguese buyers nationally, and 49% in greater Lisbon. That’s precisely what drove the new 7.5% surcharge and the short-term-rental clampdown, so expect more measures. On inheritance: Portugal has forced heirship — a spouse, children, and parents are entitled to a reserved share of up to two-thirds — but the EU’s Brussels IV rules let you elect your US state’s law in a Portuguese will, overriding it. Do that, and remember the consolation: zero inheritance tax for close family.
The market
Where do Americans buy, and what does it cost?
Prices rose 17.6% in 2025 — among the fastest in the EU. Portugal is no longer cheap.
A structural supply shortage has driven some of Europe’s steepest price growth, and early 2026 showed only modest cooling. Foreign buyers pay well above the local average — Americans especially, with the average US transaction value up sharply. Curiously, total non-resident purchases have fallen for three straight years, which analysts attribute partly to the Golden Visa and NHR changes. Prices are in euros. Rough context:
Where Americans buy (rough prices)
Lisbon is the priciest (~€5,200/m²), with Cascais (~€4,650/m²) and Oeiras close behind; Sintra and Estoril are the classic commuter-belt alternatives. Porto (~€3,000–3,850/m²) offers a similar city life for meaningfully less, with the strongest rental yields (~6.6%). The Algarve (Lagos, Tavira, Vilamoura, Faro) runs ~€3,000+/m² on the coast and remains the retiree heartland — and, unlike Lisbon and Porto, is still broadly open to new short-term-rental licences. The Silver Coast (Peniche, Nazaré, Óbidos, Caldas da Rainha), the Alentejo, and the interior are dramatically cheaper — parts of the deep interior go for around €730/m². Madeira (Funchal) is a nomad favourite; Comporta is the luxury outlier. Gross yields nationally run ~5–6.6%.
★ Ready for the next step?
Don’t buy in Portugal without the right team.
Tell us what you’re after — an Algarve retirement, a Lisbon apartment, or the D7 visa — and we’ll connect you with people who can help: independent Portuguese lawyers, cross-border US tax advisors, and non-resident mortgage brokers. It’s free, with no obligation.
Quick answers
Buying a house in Portugal: common questions
Can Americans buy property in Portugal?
Yes, freely. Portugal places no restrictions on foreign ownership: you get full freehold in your own name, with no residency or visa required and no limit on the number of properties, across the mainland, Madeira and the Azores. You need a NIF (tax number), and as a non-EU resident who owns property, a fiscal representative.
Can I still get a Golden Visa by buying a house in Portugal?
No. Real estate was removed as a qualifying route by the “Mais Habitação” law, effective 7 October 2023. The Golden Visa still exists, but only via non-property routes such as a €500,000 investment in a qualifying non-real-estate fund. Buying a house grants you no residency at all — many websites, especially those run by golden-visa firms, have never updated this.
Is the Portugal 10% pension tax still available?
No. The NHR regime that taxed foreign pensions at 10% closed to new applicants on 1 January 2024. Its replacement, IFICI or “NHR 2.0,” offers a 20% flat rate to qualifying scientists, tech workers and highly-skilled professionals — but explicitly does not cover pensions. American retirees who become Portuguese tax residents now pay ordinary progressive rates, up to 48%.
What is the new 7.5% tax on non-resident buyers?
From 1 September 2026, buyers who aren’t Portuguese tax residents pay a flat 7.5% IMT transfer tax on residential property, with no progressive brackets or relief. You can reclaim the difference if you become a Portuguese tax resident within two years, or if you put the property on the long-term moderate-rent market within six months. Lawyers expect EU legal challenges to it.
What are closing costs in Portugal?
About 6–8% for residents, or 8–10% for non-residents given the new 7.5% IMT. That’s cheaper than Spain (10–15%) or Italy (7–15%). It covers IMT, 0.8% stamp duty, notary and registration (~€700 via the Casa Pronta service), and a lawyer at ~1–1.5%. Importantly, the agent’s commission is paid entirely by the seller.
What visa do American retirees use for Portugal?
The D7 passive-income visa. You show stable passive income — pension, dividends, rent — of at least the Portuguese minimum wage, €920/month in 2026, plus 50% for a spouse and 30% per child, along with accommodation, a NIF, a bank account and health insurance. The catch: it requires you to live there 183 days a year, making you a Portuguese tax resident.
How long does it take to get Portuguese citizenship now?
Ten years for Americans, up from five. The 2026 nationality reform extended the residency requirement to 10 years for most non-EU nationals (7 for EU and Portuguese-speaking countries), with the clock starting when your residence permit is issued, plus an A2 language test and a civics test. Permanent residency after 5 years is unchanged, and Portugal allows dual citizenship.
Can I rent my Portuguese property on Airbnb?
It depends where. The 2023 national freeze on new short-term rental (Alojamento Local) licences was largely reversed in late 2024 — licences are permanent and transferable again, and the extraordinary contribution was abolished. But municipalities can now designate “containment zones,” and Lisbon and Porto have closed much of their historic centres to new registrations. The Algarve and Silver Coast remain broadly open.
Does Portugal have inheritance tax?
Not between close family — spouses, children, parents and grandchildren are fully exempt. Other heirs pay only a 10% stamp duty. That’s a major advantage. But Portugal does have forced heirship, reserving up to two-thirds of your estate for family, so use the EU’s Brussels IV rules to elect your US state’s law in a Portuguese will.
Other countries
Buying somewhere else?
The rules change completely at every border. Compare another country, or see the full guide.