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What Are the Legal Requirements for Foreign Buyers Purchasing Property in Portugal

An rising number of international purchasers looking to invest in Portugal's gorgeous Algarve area are coming from outside. However, it is crucial for prospective foreign purchasers to be informed of the legal restrictions they must meet when buying property in Portugal before becoming involved in the real estate market. We'll discuss the legal issues international purchasers should consider before purchasing Algarve villas in this article.

Acquiring a Fiscal Number

To purchase real estate in Portugal, a foreign buyer must first get a fiscal number, sometimes known as an NIF (Number of Identification Fiscal). In Portugal, particularly when buying real estate, practically all financial and legal operations need for the use of this particular identification number. You may get it directly from the local tax office or through a power of attorney-holder.

Hiring a Lawyer

It is strongly advised that you use a Portuguese attorney with experience in real estate transactions. A lawyer can help international purchasers every step of the way, analyze contracts, and guarantee that everything is done in accordance with the law. It will help prevent any misunderstandings and language problems to have a lawyer that is proficient in both Portuguese and the buyer's native tongue.

Observing the Golden Visa Program (if relevant)

Portugal's Golden Visa Program, which grants residence and the possibility of citizenship to investors who achieve certain investment conditions, may make non-EU nationals eligible. Foreign investors may be qualified for this program by making investments in certain kinds of properties in Portugal, particularly those in the Algarve. For individuals pursuing long-term residence or citizenship via real estate investment, understanding the laws and restrictions of the Golden Visa Program is essential.

Due Diligence on the Property

To guarantee a seamless and safe sale, extensive due diligence on the property is essential. Verifying the ownership, borders, and any potential liens or encumbrances are all part of the procedure. To make sure that the property fits the planned use, it is also crucial to examine the planning and zoning status.

Promissory Contract and Down Payment

The buyer must sign a promissory contract (contrato-promessa de compra e venda) after choosing a property. This contract specifies the purchase's terms and conditions and calls for a down payment, which is typically equal to roughly 10% of the property's worth. It is crucial to make sure that this contract fully outlines all pertinent information, including payment conditions and deadlines.

Escritura (Deed) and Final Payment

The escritura, or public document of sale, must be signed in front of a notary as the last stage in the purchase procedure. At this point, the remaining balance of the purchase price is paid, and the buyer now owns the property. Both parties or their agents must be present for the deed signing, and the buyer must provide identity and their fiscal number.

Make sure to abide by these legal requirements if you're searching for appealing properties for sale in Portugal Algarve in order to guarantee a smooth and secure investment.


For international purchasers, buying real estate in Portugal's Algarve region may be a thrilling and gratifying experience. To achieve a successful transaction, it is crucial to carefully navigate the legal requirements. Foreign purchasers might realize their aspirations of purchasing a home in Portugal's breathtaking Algarve area by abiding by certain regulatory criteria.