How to Buy Property in Portugal: A Step-by-Step Guide for Algarve & Vilamoura Homes

Your Complete Companion to Buying a Luxury Home in Portugal

Spring has arrived, and with it comes sunshine, longer days, and a perfect excuse to start your dream home search in Portugal. If you’re ready to trade cloudy skies for golden beaches, you’re not alone.

Portugal is one of Europe’s top destinations for international buyers—especially for those looking for luxury homes, holiday properties, or sound investments. The Algarve, with its stunning coastline and Vilamoura’s award-winning marina, remains a favourite spot for buyers from the UK, USA, and across Europe.

But how do you actually buy a property in Portugal? What are the steps, the legal hoops, and the timelines?

We’re breaking it all down—plain and simple—in this updated, easy-to-follow guide for first-time and overseas buyers.

Step 1: Prepare Your Finances 💰

Before anything else, get your paperwork and finances ready. If you’re an international buyer, you’ll need:

• A Portuguese bank account

• A NIF number (Número de Identificação Fiscal) – Portugal’s version of a taxpayer ID. It’s required for any property transaction.

You can get a NIF remotely through a lawyer or fiscal rep. This is usually the first box we help our clients tick off.

👉 Learn more: https://www.portugal.gov.pt/en/gc22/government/ministries/justice

If financing with a mortgage, Portuguese banks offer up to 70% loan-to-value for non-residents. Pre-approval helps you shop with confidence.

Step 2: Best Places to Buy Property in the Algarve and Vilamoura 📍

Portugal has something for everyone—but for lifestyle, sun, and resale value, the Algarve is top of the list.

Some of the most sought-after areas include:

• Vilamoura: Modern marina living with golf, nightlife, and high-end property options.

• Loulé: A charming inland town with markets and local character.

• Lagos: A laid-back coastal city with stunning beaches.

• Albufeira: Known for holiday rentals and family-friendly attractions.

Still deciding? Download our free Algarve relocation guide to explore the region in detail.

Step 3: Work with a Trusted Algarve Real Estate Agent 🕵️‍♀️

This is not the market to DIY. A licensed, bilingual real estate agent (like us!) gives you access to:

• Curated listings not found online

• Market insight and pricing strategies

• Trusted legal and financial contacts

• Negotiation support tailored to international buyers

With Private Luxury Collection, you’re not just finding a home—you’re gaining a local advocate.

Step 4: Appoint a Property Lawyer in Portugal 👩‍⚖️

Legal representation is a must. Your independent lawyer will:

• Verify property title (Caderneta Predial)

• Confirm legal use and building licences

• Check for outstanding debts or taxes

• Handle contracts and paperwork

Fees are typically 1–2% of the purchase price, and worth every cent to protect your investment.

Step 5: Make an Offer and Sign a Promissory Contract ✍️

Once you’ve found “the one,” it’s time to make a formal offer. If accepted, you’ll sign a Promissory Contract (Contrato de Promessa de Compra e Venda) and pay a deposit—usually around 10%.

• If the seller cancels, they owe you double the deposit.

• If you cancel, the deposit is forfeited.

This contract gives both parties protection before the final deed.

Step 6: Sign the Deed and Transfer Ownership 🗝

Roughly 30 to 60 days later, you’ll meet at the notary’s office to sign the Deed of Purchase (Escritura de Compra e Venda). This is the legal transfer of ownership.

🎉 Congratulations—you now officially own a property in Portugal!

Step 7: Pay Property Taxes and Register the Home 🧾

Final steps after signing include:

• Paying IMT (Property Transfer Tax) – varies based on value and residency

• Paying Stamp Duty (Imposto do Selo) – typically 0.8%

• Registering the property in your name

Use this IMT calculator to estimate costs:

https://www.doutorfinancas.pt/simulador-imt/

How Long Does It All Take? ⏳

From offer to ownership, expect 2–3 months if all runs smoothly. Some cases close even faster, especially with new builds or vacant homes.

FAQs for International Property Buyers in Portugal 🗨️

Can foreigners buy property in Portugal?
Yes! There are no restrictions on foreign buyers.

Is the Golden Visa still available?
Not for residential real estate in popular areas like Lisbon, Porto, or the Algarve. But the D7 Visa and Digital Nomad Visa are strong alternatives.
Learn more here: https://imigrante.sef.pt/en/solicitar/residir/art77-1/

Can I rent out my property?
Yes—with a Local Accommodation (Alojamento Local) license. We’ll help you check local rules for your area.

Ready to Find Your Dream Home in Portugal? 🌞

Whether you're relocating, investing, or planning your perfect getaway, buying a property in Portugal is more achievable than you might think. And spring—when the Algarve is in full bloom—is the perfect time to start.

Let us help you navigate every step.

Book a free consultation with our expert team at Private Luxury Collection, and let’s turn your dream into your new address.