Invest in Portugal Real Estate

Portugal has been one of the most talked-about European property markets of the last decade, and the rules that made it popular have changed significantly. That is the most important thing for a Canadian buyer to understand: much of the advice still circulating online describes a version of Portugal that no longer exists. Mathew Toussaint is a REALTOR® with eXp Realty of Canada and connects buyers with eXp professionals working in Portugal.

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What has changed

Two things drew international buyers to Portugal: a residency-by-investment programme that accepted residential property, and a favourable tax regime for new residents. Both have been substantially revised. Residential property purchase was removed as a qualifying route for the golden visa, and the non-habitual resident tax regime has been wound down and replaced. Short-term rental licensing in the popular urban areas has also been tightened at different points.

None of that means Portugal is a bad place to buy. It means the reason to buy has shifted from programme-driven to property-driven, and that anyone quoting you the old rules has not kept up. Verify the current position before you plan around any of it.

Nothing here is tax, legal or immigration advice. Portuguese residency, tax and rental licensing rules have changed repeatedly and continue to. Confirm the current position with a Portuguese lawyer and a tax adviser, and with a locally licensed agent, before you commit.

What you need before you can buy

You will need a NIF, the Portuguese tax identification number, which is required to buy property, open a bank account and pay tax. Non-residents generally appoint a fiscal representative in Portugal. You should also engage an independent Portuguese lawyer, who will run the searches on the property, confirm the registration and licensing position and handle the deed.

The process runs through a promissory contract with a deposit, then the deed before a notary, then registration. The deposit stage in Portugal carries real weight, so understand the consequences of withdrawal before you sign it.

Taxes and costs

On purchase you pay IMT, the property transfer tax, which is charged on a sliding scale that varies with the price and with whether the property is a primary or secondary residence, plus stamp duty and registration and notary fees. Annually you pay IMI, the municipal property tax, at a rate set by the municipality. Rental income and eventual capital gains have their own treatment for non-residents.

Budget these properly at the start. The transfer tax in particular is a meaningful number on higher-priced property and catches people who have only modelled the purchase price.

Lisbon, Porto and the Algarve

Lisbon is the deepest market and the most international. The historic centre has a large stock of older buildings, many renovated for the rental market, and renovation quality varies enormously behind similar-looking facades. A structural and legal review matters more here than the photographs do.

Porto is smaller, generally lower-priced than Lisbon for comparable property, and has been through its own wave of renovation in the historic centre. It has a substantial student and young professional rental base alongside the tourist market.

The Algarve is the resort market, running from Lagos through Albufeira and Vilamoura to Tavira, with a long-established international buyer base and a lot of purpose-built resort and villa stock. It is the most seasonal of the three, and community fees and management arrangements on resort developments deserve the same scrutiny you would give a condominium at home.

Short-term rental licensing

If letting the property to visitors is part of your plan, the licence is the asset. Portugal’s Alojamento Local regime governs short-term rental, and restrictions in the areas with the most tourist pressure have been introduced, changed and partly reversed over recent years. Establish whether a valid licence exists for the specific property, whether it transfers on sale, and what the current municipal position is, before you agree a price.

Your eXp connection in Portugal

Mathew is registered in Ontario with eXp Realty of Canada and does not practise in Portugal. He introduces you to eXp professionals working in the Portuguese market you are interested in, and stays involved so the process is clear from the Canadian side.

Tell Mathew what you are considering and he will make the introduction.

Frequently asked questions about buying property in Portugal

Can a Canadian buy property in Portugal?

Yes. There is no restriction on Canadians buying residential property in Portugal. You will need a NIF, and non-residents generally appoint a fiscal representative. Buying property does not by itself give you the right to live in Portugal, and Schengen visitor limits apply to your stays.

Does buying property in Portugal still get me a golden visa?

Residential property purchase was removed as a qualifying route for Portugal’s golden visa. If residency is your objective, take current immigration advice first and let that decide the structure, rather than assuming a property purchase will qualify.

What is a NIF and do I need one?

The NIF is the Portuguese tax identification number. You need it to buy property, open a bank account and meet Portuguese tax obligations. Arrange it early, because the timing affects your ability to complete.

What taxes do I pay when buying in Portugal?

IMT transfer tax on a sliding scale, stamp duty, and notary and registration fees on purchase; IMI municipal property tax annually thereafter. Rental income and capital gains for non-residents have their own treatment. Get the figures for your specific property and situation from a Portuguese tax adviser.

Can I rent my Portuguese property on a short-term basis?

Only with the appropriate Alojamento Local registration, and the rules differ by municipality and have changed repeatedly. If the property already has a licence, confirm whether it survives the sale. If it does not, confirm whether a new one can be obtained at that address before you rely on the income.

Does Mathew handle the Portuguese purchase himself?

No. He is registered in Ontario and does not practise in Portugal. He connects you with eXp professionals working there and stays in the conversation.

Next steps

See all international markets · Talk to Mathew about Portugal