Frequently Asked Questions About Buying Property in Portugal
Short answers below — buying first, then selling. For the whole process in order, read the buyer’s guide or the seller’s guide.
Can a Canadian buy property in Portugal?
Yes. Portugal does not stop foreigners from buying. You need a Portuguese tax number and a lawyer, and that is about it.
Do I need to live in Portugal to buy property there?
No. You can buy as a non-resident and look after the place from Canada. Plenty of people buy long before they think about moving.
What is a NIF number and why do I need one?
It is your Portuguese tax number. You cannot open a bank account, sign a contract or buy a home without one. A lawyer can get you one, and you do not have to be in Portugal. More in the guide.
How much are the closing costs when buying property in Portugal?
On top of the price you pay a transfer tax, stamp duty, notary and registry fees, and your lawyer. They are not a flat fee, so they go up with the price of the home. Your lawyer gives you the exact number before you sign anything. See what it costs.
Do I need a lawyer to buy property in Portugal?
Yes. Your lawyer checks who owns the place, what is owed on it, and whether the paperwork is right. Use your own lawyer, not the seller’s.
Can Canadians get a mortgage in Portugal?
Yes. Portuguese banks do lend to Canadians. Expect to put down more than a local would, and expect them to ask for proof of your income and savings. More on deposits.
Are there taxes for foreigners when buying in Portugal?
Yes. There is a transfer tax called IMT when you buy, and a yearly property tax called IMI after that. Your lawyer or accountant can work out both before you commit.
How long does it take to buy a home in Portugal?
Usually weeks, not months, once your offer is accepted. Paying cash is fastest. What slows it down is waiting on your tax number, your bank account or a mortgage. More on timing.
What are the best areas in Portugal for Canadians to buy?
It depends what you want the place for. A home you rent to vacationers needs to be where tourists go. A home you live in all year needs shops and neighbours in February. Have a look at the regions.
Can I rent out my property when I am not in Portugal?
Often yes, but the rules change from town to town and some places limit short-term rentals. If you are counting on that income, check before you buy.
What visa options are available if I want to live in Portugal?
Canadians usually look at the D7 visa, for people living on a pension or other steady income, or the digital nomad visa for remote work. Both can lead to residency.
Who can help me buy property in Portugal?
Someone who has done it with Canadians before, and who can put you in touch with a lawyer and a bank. That is what I do.
Is it safe to buy property in Portugal?
Yes. Every sale goes through a notary and gets registered at the land registry, so ownership is properly recorded. Your own lawyer checking the property first is what makes it safe for you.
Can I buy property in Portugal without being there?
Yes. You sign a power of attorney and a representative in Portugal can sign the paperwork for you. Plenty of Canadians buy without flying over.
What is IMT?
It is the property transfer tax, and the buyer pays it. What you pay depends on the price, the type of home, and whether it will be your main residence. There is also a yearly tax called IMI once you own the place. More on costs.
What is the promissory contract?
In Portuguese it is the CPCV. It is the binding agreement you sign before the final deed, and it is where you pay a deposit. If you pull out without a legal reason, you normally lose that deposit. More on the process.
Frequently Asked Questions About Selling Property in Portugal
Selling instead? The seller’s guide has the whole process. Short answers here.
Can foreigners sell property in Portugal?
Yes, with no restrictions. You do not have to be a Portuguese resident to sell your own home.
Can I sell my Portugal property if I live in Canada?
Yes, and you do not have to fly over. You sign a power of attorney so someone in Portugal can handle the deed for you. More on selling from here.
What taxes do I pay when selling property in Portugal?
Capital gains tax on your profit, not on the sale price. What you pay depends on whether you live in Portugal or somewhere else. Rates change, so get an accountant to run your numbers before you list. More on the tax.
Do Canadians pay tax in Canada as well?
Yes. Canada taxes income from anywhere in the world, so the sale gets reported here too. You usually get a credit for the tax you already paid Portugal. Your gain is worked out in Canadian dollars, so the exchange rate matters.
Who pays the real estate commission in Portugal?
The seller does. It is commonly around 5 percent plus VAT.
Can I sell a property in Portugal that still has a mortgage on it?
Yes. The mortgage gets paid off at completion out of the sale money. Your bank gives you a discharge document for the deed.
How long does it take to sell a property in Portugal?
Two to four months is normal. Pricing, location and how fast your paperwork is ready all move that number.
What happens after I accept an offer?
You both sign the promissory contract and the buyer pays a deposit. The final deed usually follows within 30 to 60 days.
Do I need a lawyer to sell?
Not legally, but you should have one, especially selling from another country or if the property has any history to it.
Still have a question? Ask me, or tell me what you are looking for and I will find it — help me find a property.