1. How much should I consider as the total budget to buy a property in Portugal?

In addition to the property price, you should account for an extra 7% to 10% to cover taxes, legal fees, and administrative costs. The exact amount depends on the type of property and the region.

2. What are the main additional costs besides the purchase price?

The most common costs include:

• IMT (Property Transfer Tax)

• Stamp Duty

• Lawyer’s fees

• Registration and certificates

• Bank appraisal (if financing is involved)

These amounts vary depending on the price and purpose of the property.

3. Can foreigners obtain financing in Portugal?

Yes. Many Portuguese banks offer mortgages to foreign buyers, typically financing 60%–70% of the appraised value. Conditions vary depending on the client’s profile and country of residence.

4. Is it better to buy in cash or with financing?

It depends on your strategy.

• Cash: faster process and stronger negotiation power.

• Financing: preserves liquidity and may be advantageous if interest rates are competitive.

The decision should align with your financial plan.

5. What annual taxes apply after the purchase?

The main annual tax is IMI, which ranges from 0.3% to 0.45% of the taxable property value. In some cases, AIMI may apply to high-value property portfolios.

6. Is buying property in Portugal a good investment?

Yes, especially in areas with strong residential or tourism demand. Portugal offers stability, legal security, and consistent appreciation in several regions.

7. Can I rent out the property to generate income?

Yes. You can choose traditional long‑term rentals or short‑term rentals (AL), as long as you comply with local regulations. Income potential depends on location, property type, and seasonality.

8. Which regions have the best appreciation potential?

Areas such as Lisbon, Porto, Algarve, Braga, Setúbal, and parts of the Central region have shown strong appreciation. The best choice depends on your goal: living, investing, or renting.

9. How can I avoid unexpected costs?

Always request:

• a detailed cost estimate

• tax simulations

• annual expense forecasts

• a property maintenance assessment

Good planning prevents surprises.

10. Is buying to rent a viable option for foreign investors?

Yes. Many international buyers invest for rental income. It’s important to analyze:

• local demand

• AL (short‑term rental) regulations

• management costs

• expected return

With proper analysis, it can be a solid investment.

11. Is there a risk of property devaluation?

As in any market, some risk exists. However, Portugal has shown stability and growth over recent years, especially in urban and coastal areas.

12. Do I need a company to buy property, or can I buy as an individual?

Most foreign buyers purchase as individuals. Buying through a company only makes sense for specific tax strategies, which should be evaluated with a lawyer or accountant.