Whether you're a first-time buyer or a seasoned investor, this guide walks you through the property purchase journey – and highlights how smart currency planning can save you thousands.
Sasha Sharpley, Senior Real Estate and Investment Advisor at Ideal Homes Portugal, and Claire Wheatley, Founder and CEO of Moving Currency, team up to simplify the process of buying property in Portugal.
“This week we’re stripping the buying process down to the basics. Buying property in Portugal is not only accessible, but also secure, thanks to a transparent legal framework. I’m going to explain why Portugal is such an attractive market and walk you through the key steps to a successful purchase.”
— Sasha Sharpley, Ideal Homes Portugal
Why Buy Property in Portugal?
Tourist hotspots like the Algarve attract steady rental demand. During summer and holiday seasons, rental yields can be especially lucrative.
Cities like Lisbon, Porto, and regions such as the Algarve show sustained property value appreciation—fuelled by global interest and infrastructure investment.
Portugal offers a safe, stable environment with excellent healthcare, EU security, and strong legal protections for foreign buyers.
Sunshine, beaches, world-class golf, and vibrant expat communities make Portugal a top destination for living, retiring, or investing.
Many homes offer scope for value-adding renovations—ideal for targeting tourists, retirees, or digital nomads.
What to Look for in a Portugal Investment Property
Location: Proximity to beaches, airports, golf courses, and amenities boosts appeal and rental income.
Condition: Ensure modern plumbing, energy efficiency, and legal compliance.
Rental Potential: High in tourist-friendly zones like the Algarve. Look for short-term license eligibility (AL license).
Amenities: Pools, outdoor terraces, gyms, and parking add significant value.
Legal Health: Verify licenses, outstanding debts, and ownership status through a bilingual property lawyer.
The Property Buying Process in Portugal: Step-by-Step
Even though hiring a lawyer isn’t required by law, it is strongly recommended to ensure due diligence.
Step 1: Reservation
Pay a reservation fee (typically €6,000) to secure the property.
Your lawyer begins document checks (licenses, debts, permits).
Step 2: Promissory Contract
A Contrato de Promessa de Compra e Venda is signed.
You pay 10–30% of the property price.
If the seller backs out, they must repay double your deposit.
Step 3: Deed Signing (Escritura)
Final deed signed 1–2 months later (for completed properties).
For off-plan properties, the final payment is due on completion.
You receive the keys and are registered as the legal owner.
Costs, Financing & Taxes
NIF (Tax ID): Required for banking and property ownership.
Mortgages: Portuguese banks offer 60–70% financing to non-residents. Rates are competitive.
Closing Costs: Budget ~10% for IMT (property transfer tax), stamp duty, notary, and legal fees.
“If you're new to investing overseas, the financial side can feel overwhelming—especially currency exchange. At Moving Currency, we focus on making the process simple and transparent.”
— Claire Wheatley, Moving Currency
What Is Currency Exchange?
Currency exchange is the conversion of one country’s money into another—essential when purchasing property abroad.
Why Do Exchange Rates Matter?
Exchange rate fluctuations can affect the true cost of your property. Even small changes can lead to big savings—or unexpected costs.
Example:
At 1 GBP = 1.19 EUR, £100,000 = €119,000
If the rate drops to 1.15, you get only €115,000 — a €4,000 difference!
Top Tips for Smart Currency Planning
Choose Your Strategy:
Ready to Take the Next Step?
Ideal Homes Portugal is here to support you through the entire buying journey, from sourcing properties and financing to legal support and of course expert mortgage advice.