Purchasing property in Portugal is both an exciting lifestyle decision and a considered investment. In a market as dynamic and internationally sought-after as the Algarve, clarity, structure and trusted guidance are essential.
This guide has been created to provide you with a clearer understanding of the aquisition process, the legal and fiscal framework, and the practical steps involved from reservation through to completion. Whether you are acquiring a primary residence, a second home or an investment asset, our role is to ensure that each decision is made with confidence supported by experience and guided by informed advice.
SUZANA BENTO MAPRO | KNIGHT FRANK
Our Story
Our Story
Our longevity in the market provides us with an intimate understanding of local planning regulations, market positioning, off-market opportunities and long-term value trends. This depth of local knowledge allows us to advise beyond the surface, identifying not only the right property, but the right investment decision.
As a partner of Knight Frank, we also draw upon one of the world’s most respected property research platforms. Access to global wealth reports, prime residential indices, capital flow analysis and forward-looking market intelligence allows us to advise buyers with a perspective that extends beyond the Algarve. Understanding how Portugal sits within the wider European and global landscape, from interest rate movements to international buyer trends, is critical when deploying capital in today’s market.
For our clients, this means decisions are informed not only by local insight, but by data-led global context.
Mapro | Knight Frank is a relationship-led advisory, built on trust, experience and research-driven perspective, guiding clients confidently through one of life’s most significant decisions. We are your partners in property.
A company’s success hinges on the excellence of its team members.
SANDRA NEVES FILIPA SILVA CHARLIE JOHNSON SUZANA BENTO SAM REMUS LIZA DOW FRED MACIEIRA
Buying Process
1 ST STEP BE INFORMED & ENGAGE PROFESSIONALS
Acquiring a privately owned property in Portugal is a structured yet straightforward process when managed correctly.
Appoint an experienced local lawyer – They will verify ownership status, taxation history and (if applicable) company structure.
Engage a qualified surveyor – Full inspection of the property.
Understand the costs involved – Taxes, legal fees, notary fees.
2 ND STEP DEFINE THE CONDITIONS OF SALE
In addition to agreeing on the purchase price, both parties should outline key terms and conditions, such as:
Payment terms;
· Included fixtures, fittings, or furnishings; Timeline for completion; Any conditions that may affect the purchase (e.g., financing approvals or due diligence findings).
A well-defined agreement helps avoid potential delays/disputes later in the process.
To proceed with the transaction, the following documents and registrations are required:
Valid identification (passport or national ID); Portuguese Fiscal Number (Número de Identificação Fiscal – NIF ) for each title holder; Proof of residency status, which impacts the amount of property transfer tax - Imposto Municipal sobre as Transmissões Onerosas de Imóveis (IMT) payable; Proof of tax residency, including proof of employment or last employment details; Know Your Client (KYC) Declaration, a mandatory compliance document under the anti-money laundering regulation.
3 RD STEP PREPARE YOUR DOCUMENTS
Buying Process
4 TH STEP PROMISSORY CONTRACT (CONTRATO DE PROMESSA DE COMPRA E VENDA – CPCV)
Once all legal due diligence is complete and terms are agreed upon, a Promissory Contract (CPCV) is drafted and signed by both parties.
A 10% deposit is typically paid upon signing.
Under Portuguese law:
If the buyer defaults, they forfeit the deposit. If the seller defaults, they must refund double the deposit to the buyer.
The CPCV legally binds both parties to complete the transaction under the agreed conditions.
5 TH STEP FINAL DEED & OWNERSHIP TRANSFER (ESCRITURA DE COMPRA E VENDA)
The final stage involves executing the Final Deed (Escritura de Compra e Venda), which formalises the property transfer.
Pre-signing requirements:
Payment of Property Transfer Tax - Imposto Municipal sobre as Transmissões Onerosas de Imóveis (IMT) must be made within 24 hours before signing; Stamp Duty (Imposto de Selo) will also be paid at this time;
Remaining balance of the purchase price is prepared, usually with a banker’s cheque.
Signing the Deed - Escritura:
Conducted before a notary or at the local Land Registry Office (Conservatória do Registo Predial); The buyer makes the final payment.
Final Registration:
Once the deed is signed; Notary fees will be paid and the new ownership must be registered in the Land Registry (Registo Predial); The property’s records are updated with the new owner’s details.
Buying Costs
PURCHASE TAX (IMT) PRIVATE PROPERTY PURCHASE
The Property Purchase Tax – Imposto Municipal sobre as Transmissões Onerosas de Imóveis (IMT) is levied on the buyer before signing the final deeds and varies based on the property type and purpose.
Primary Residence IMT Rates
Up to € 660.982 � Taxed on a progressive scale (2% to 8%), with a deductible amount applied
€ 660.982 – € 1.150.853 � Flat rate of 6%
Over € 1.150.853 � Flat rate of 7.5%
Urban building plots � 6.5% Rustic plots � 5%
Property with a touristic habitation license � 6.5%
IMT is calculated on the higher value between the purchase price and the rateable value.
Secondary Residence IMT Rates
Up to € 633.931 � Taxed on a progressive scale (2% to 8%), with a deductible amount applied
€ 633.931 – € 1.150.853 � Flat rate of 6%
Over € 1.150.853 � Flat rate of 7.5%
IMT is calculated on the higher value between the purchase price and the rateable value
Primary Residence for Buyers Under 35
Up to € 330.539 � IMT Exempt
€ 330.539 – € 660.982 � 8% tax minus a deductible amount of €25.924.64
€ 660.982 – € 1.150.853 � Flat tax of 6%
Over € 1.128.287 � Flat tax of 7.5%
STAMP DUTY (IMPOSTO DE SELO)
Paid by the buyer.
Levied at 0.8% of the deed (escritura) value.
NOTARY FEES
The cost is calculated on a sliding scale depending on the property's value.
Notaries have a minimum fee set by law
Usually ranges between € 500 - € 1.500
REGISTRATION FEES
After signing the deed, the new ownership must be registered at the Land Registry Office
Cost: Around € 375
LAWYERS FEES
Lawyers typically charge between 0.5% – 1% + VAT of the agreed purchase price.
SURVEYORS FEES
Fees depend on the service requested and the size of the property.
A full property survey is advisable.
Fees generally start at € 1,500 + VAT.
Be clear on the level of detail you require in the survey.
CONTINENTAL PORTUGAL APPLICABLE IN 2026
€ 2.126,92 € 6.491,02 € 10.457,96 € 13.763,35
€ 1.063,46 € 5.427,56 € 9.394,50 € 12.699,89
26.443,12
Company Property Purchase
THE BUYING PROCESS
The acquisition of a property held within a company structure follows a broadly similar process to purchasing a privately owned property. However, in addition to the property itself, comprehensive due diligence must also be carried out on the company holding the asset.
Company-held acquisitions are commonly used for estate planning, asset management, succession structuring, and international ownership purposes, but they require enhanced legal, tax, and compliance review.
Commonly structured jurisdictions include:
Malta
Delaware
Portugal
ADDITIONAL STEPS IN THE PROCESS
Due Diligence
In addition to standard property title searches and planning verification, buyers and their advisers will typically undertake a detailed review of the company structure, including:
Company history and corporate records
Financial accounts and liabilities
Existing contractual obligations
Shareholder structure and beneficial ownership
Banking arrangements and warranties
Tax and compliance status
The scope of due diligence will depend on the jurisdiction and complexity of the structure.
Share Purchase Agreement (SPA) / Share Transfer Agreement (STA)
Where the transaction is structured as a company share acquisition rather than a direct property purchase, the process is generally completed in two stages:
Promissory Agreement
A preliminary agreement establishing the principal terms and conditions of the transaction. A deposit of approximately 10% is commonly payable at this stage, together with an agreed completion timeline.
Ownership Transfer
Following completion, the corporate management structure and shareholder records are updated to reflect the new ownership. Where applicable, the change in beneficial ownership must also be registered on the Portuguese Ultimate Beneficial Ownership platform (Registo Central do Beneficiário Efetivo – RCBE), in accordance with Portuguese anti-money laundering regulations.
Company Property Purchase
REQUIRED DOCUMENTATION
Corporate acquisitions generally require enhanced compliance documentation, including:
Identification documents for shareholders and directors
Portuguese fiscal number (NIF), where applicable
Proof of residential address
Proof of professional activity or source of funds
Corporate registration Certificate
Certificate of Incorporation
Memorandum of Articles
Certificate of Good Standing
Ultimate Beneficial Owner (UBO) declarations
Know Your Client (KYC) and Anti-Money Laundering (AML) compliance documentation
Additional certified, notarised, apostilled, or translated documentation may also be required depending on the jurisdiction of the company.
BUYING COSTS
Legal & Professional Fees
Legal, accounting, and due diligence costs are generally higher than in a standard private acquisition due to the additional corporate and compliance review required.
Surveyor and technical inspection costs are typically similar to those of a privately owned property purchase.
Taxes
The tax treatment of company-held property acquisitions varies significantly depending on the structure of the transaction.
Share Transfer Structures
In certain company share acquisitions, Property Transfer Tax (IMT) and Stamp Duty may not apply in the same manner as a direct asset purchase. However, this depends entirely on the specific structure, shareholder composition, and applicable legislation at the time of acquisition.
Portuguese Companies
Specific exemptions or tax treatments may apply under Portuguese legislation, subject to ownership thresholds and beneficiary structure. Spouses may not always be considered separate shareholders for exemption purposes. Professional legal and tax advice should always be obtained before proceeding.
Registration & Corporate Costs
Additional costs may include: Corporate registration updates, RCBE registrations, Accounting and company maintenance fees, ongoing compliance and reporting obligations.
Mandatory Requirements
KNOW YOUR CLIENT (KYC)
The Know Your Client (KYC) process is a crucial compliance measure across various industries, particularly in banking, finance, and real estate. It is designed to verify customer identities, reducing the risk of fraud, money laundering, and terrorist financing while ensuring compliance with regulatory standards.
In an increasingly digital world where transactions often occur remotely, strong KYC protocols help safeguard financial systems and maintain the integrity of business dealings. Licensed real estate agents are required to follow KYC procedures, which involve collecting essential information from buyers and sellers. This includes official identification, proof of address, and, in some cases, additional details depending on the risk profile of the client. For instance, politically exposed persons (PEPs) may require further scrutiny.
All relevant details are compiled into a KYC form, which must be duly signed by both the buyer and the seller before proceeding with any real estate transaction
Running Costs
MUNICIPAL PROPERTY TAX | IMPOSTO MUNICIPAL SOBRE IMÓVEIS (IMI)
The Municipal Property Tax - Imposto Municipal sobre Imóveis (IMI) is an annual tax applied to all properties in Portugal. This tax is assessed based on the rateable value - Valor Patrimonial Tributário (VPT) of the property, which is determined by factors such as construction year, location, property size, and amenities.
IMI payments are made in arrears, typically in two or three installments per year, depending on the total amount due. The tax rate varies by municipality and property type:
Urban properties in Loulé council: 0.2% to 0.5% of the VPT.
Urban properties in general: 0.3% to 0.45% of the VPT.
Rural properties: 0.8% of the VPT.
In some cases, IMI exemptions are available, particularly for primary residences, subject to specific conditions set by the Portuguese authorities.
Running Costs
ADDITIONAL MUNICIPAL PROPERTY TAX | ADICIONAL AO IMPOSTO MUNICIPAL SOBRE IMÓVEIS (AIMI)
Is an additional municipal tax introduced in 2017, applicable to residential properties and urban plots in Portugal. It is levied annually on properties with a rateable value (VPT) exceeding € 600.000 per person
The tax rates are structured as follows:
0.7% on the portion of the VPT exceeding € 600.000 but less than € 1.000.000
1.0% on the portion of the VPT between € 1.000.000 and € 2.000.000
1.5% on the portion of the VPT above € 2.000.000
This tax only applies to the excess value above each threshold.
KEY CONSIDERATIONS
Exemptions may apply if the property is classified as a primary residence
Properties held in white-listed companies are taxed at a flat rate of 0.4% on the total VPT
Properties owned in blacklisted jurisdictions are subject to a significantly higher IMI rate of 7.5%
The AIMI is separate from the standard Municipal Property Tax (IMI) and is intended to target high-value properties.
Running Costs
Tax Benefits
NON HABITUAL RESIDENT (NHR) | THE IFICI TAX REGIME
The Tax Incentive for Scientific Research and Innovation (IFICI) - formerly referred to as NHR 2.0 - is a Portuguese tax regime aimed at attracting highly skilled professionals to the country.
Designed to foster innovation, digital transformation, and global competitiveness, this regime offers significant tax benefits to individuals working in qualifying professions or industries, reinforcing Portugal’s position as a hub for knowledge-driven economic growth.
Under the IFICI regime, eligible professionals benefit from a 20% flat tax rate on income derived from qualifying employment and self-employment activities for up to 10 years.
Income derived outside Portugal - excluding pensions - is tax exempt in Portugal, provided it is declared for tax progression purposes. This includes passive income such as, dividends, interest, royalties, capital gains and rental income from property or other employment income, all of which are derived outside Portugal. This is subject to applicable double taxations agreements and specific classification rules.
However, this regime is not available to individuals who have previously benefited from other special tax
Tax Benefits
THE (RETURN) REGRESSAR PROGRAMME
Portugal has strengthened its commitment to welcoming back its talent through the Programa Regressar, a government initiative designed to support the return of Portuguese citizens who lived and worked abroad and now wish to rebuild their lives in Portugal. Extended until 31st December 2026, this programme represents a unique opportunity to return home with significant financial and fiscal advantages.
One of the programme’s most attractive features is its favourable tax regime. Eligible individuals benefit from a 50% exemption on taxable employment or business income earned in Portugal, for a period of five consecutive years, up to legally defined limits. This reduction applies to personal income tax (IRS) and can result in substantial savings, particularly during the crucial first years after returning.
Beyond tax relief, the Programa Regressar also aims to facilitate reintegration by encouraging long-term settlement, professional stability and investment in Portugal. For many returnees, this translates into greater purchasing power and improved access to housing - whether buying a family home, investing in property, or relocating to a new region with confidence and financial security.
With its strong lifestyle appeal, high quality of life and a real estate market full of diverse opportunities, Portugal stands out as an ideal destination to return to. Combined with the benefits of the Programa
by LEONOR GARGATÉ OLIVEIRA TAX LAWYER AT MARTÍNEZ ECHEVARRÍA LAWYERS leonor.oliveira@martinezechevarria.com
Residency Visas
GOLDEN VISA
The Golden Visa program continues to offer residency to investors, with the following qualifying options:
Investment Funds A minimum investment of € 500.000 in qualifying Portuguese investment funds.
Job Creation Creation of at least ten jobs in Portugal.
Research Activities A capital transfer of € 500.000 or more for research activities conducted by public or private scientific research institutions.
Commercial Company Formation Formation of a commercial company in Portugal with a capital transfer of € 500.000 or more, combined with the creation of five permanent jobs.
It is important to note that as of October 2023, real estate investments no longer qualify for the Golden Visa program.
D2 VISA – ENTREPRENEURIAL VISA
The D2 Visa is designed for entrepreneurs who wish to start or purchase a business in Portugal. Key requirements include:
Business Establishment Evidence of setting up or acquiring a company operating in Portugal.
Financial Means Proof of sufficient funds to support both the business and personal living expenses.
Accommodation Proof of accommodation in Portugal, such as a rental agreement or property deed.
Health Insurance Valid health insurance covering the duration of stay.
Clean Criminal Record No criminal record in Portugal or the country of origin.
HQA (HIGHLY QUALIFIED ACTIVITY) VISA
The HQA Visa targets highly skilled professionals and entrepreneurs. Requirements include:
Higher Education A diploma from a recognised educational institution.
Employment Contract A work contract or a written promise of employment for at least one year, with a salary 1.5 times higher than the average gross annual salary in Portugal.
Clean Criminal Record No criminal record.
Health Insurance Valid health insurance.
Residency Visas
D7 VISA – RETIREMENT OR/PASSIVE INCOME VISA
The D7 Visa caters to individuals with stable passive income. Requirements include:
Minimum Income At least € 870 per month from passive income sources.
Additional Income for Dependents An additional 50% for a spouse and 30% per dependent child.
Savings Maintaining a minimum balance of € 10.440 in a Portuguese bank account.
Accommodation Proof of long-term accommodation in Portugal.
Health Insurance Valid health insurance.
Clean Criminal Record No criminal record.
D8 VISA DIGITAL NOMAD VISA
Introduced in 2022, the D8 Visa is aimed at remote workers and freelancers. Requirements include:
Minimum Income A stable income of at least € 3.480 per month from remote work.
Proof of Remote Work Evidence of remote work or self employment, such as contracts or client agreements.
Accommodation Proof of accommodation in Portugal.
Health Insurance Valid health insurance.
Clean Criminal Record No criminal record.
by LEONOR GARGATÉ OLIVEIRA TAX LAWYER AT MARTÍNEZ ECHEVARRÍA LAWYERS leonor.oliveira@martinezechevarria.com
Testimonials
PW VALE FORMOSO
Wow! What a fantastic service we received from Sandra. A completely different level of service to what we have received when buying homes in the UK. Very knowledgeable of the house, the area, the process and just any general information we needed. Buying our 1st house in Portugal was a very important moment for my family and I, and at all times Sandra was quick to respond, helpful with all the detail she provided and was so efficient. She really did put our mind at rest and made this purchase so much easier for us. Thanks so much Sandra.
MF GOLDEN TRIANGLE
Sam was beyond amazing. He deserves more than 5 stars. It took me a year to make up my mind. He never pushed me. He was extremely honest in his description of all properties. He had endless patience, showing me so many properties. I bought a new build. This took almost 2 years. Throughout all that time he kept visiting the property, giving me updates, dealing with issues with the builder for me. Answered endless text messages. I am now in my new home and love it. Really thankful to Sam for this.
Frederico Macieira from Mapro | Knight Frank guided us wonderfully through the purchase of our home in Portugal! Step by step, he led us through the entire process. A great experience. Thank you for your help, Frederico !
MP QUINTA DO LAGO
Av. Alm. Mendes Cabeçadas · Edifício Mapro 8135-106 Almancil · Algarve · Portugal
