Buying a House in Portugal: Guide for US & Canada

Buying a House in Portugal: Complete Guide for Foreign Buyers

Portugal remains one of the most attractive destinations for those looking to invest in real estate or enjoy retirement with quality of life. Safety, mild climate, gastronomy, and tax benefits make the country especially appealing to citizens from the United States and Canada.

📑 Real Estate Purchase Process in Portugal

• Legal support – It is essential to hire a lawyer to oversee each step, ensuring all documentation is compliant.

• Tax number (NIF) – Mandatory document for any real estate transaction.

• Seller’s documentation – Includes property registration, habitation license, energy certificate, and approved floor plans.

• Financial offer – Foreign buyers can apply for mortgage loans from Portuguese banks.

• Registration of purchase – Can be done in your own name or through a company, depending on tax strategy.

⚖️ Associated Costs and Taxes

• IMT (Property Transfer Tax) – Variable rate depending on property type.

• Stamp Duty – Charged on the purchase value.

• IMI (Municipal Property Tax) – Annual tax calculated on the taxable value of the property.

• AIMI (Additional Property Tax) – Applies to aggregated property values above a certain threshold.

• Lawyer’s fees – Usually calculated as a percentage of the transaction value.

📜 Transaction Steps

• Reservation Agreement – Defines price, conditions, and deed date.

• Promissory Contract (CPCV) – Formalizes the deal, ensuring property legitimacy and payment terms.

• Deed (Escritura) – Signed before a notary, officially transfers and registers the property in the buyer’s name.

💡 Benefits for US and Canadian Citizens

• Residency and retirement – Portugal is recognized as one of the safest and most welcoming countries in Europe.

• Tax advantages – Non-Habitual Resident (NHR) regime and double taxation agreements with several countries.

• Quality of life – Mediterranean climate, award-winning gastronomy, and access to high-quality healthcare services.

• Strategic location – Close to the rest of Europe with easy air connections to the US and Canada.

✅ Conclusion Buying a house in Portugal is more than an investment: it is securing safety, stability, and quality of life. For citizens of the US and Canada, the country offers unique advantages, both fiscally and in lifestyle.