Can You Buy Property Abroad? A U.S. Citizen’s Guide to Global Real Estate

With its beautiful landscapes, more affordable cost of living, and enviable quality of life, Portugal has become one of the favorite destinations for American citizens looking to invest, retire, or simply start a new life in Europe. However, despite its growing popularity, many still have questions about how the property buying process works for foreigners.

The good news is that buying property in Portugal as an American is completely legal and relatively straightforward—provided you follow the right steps. Whether you want to purchase a vacation home in the Algarve, an apartment in Lisbon, or a property in the countryside, this practical guide will show you each stage of the process clearly and up-to-date for 2025.

Below, you will find a complete step-by-step guide with everything you need to know—from obtaining the NIF to signing the deed. Let’s get started!

Step-by-Step Guide for an American Citizen to Buy Property in Portugal

1. Obtain a NIF (Tax Identification Number)

   • The NIF is mandatory for any financial transaction in Portugal, including property purchases.

   • It can be obtained in person at a Portuguese Tax Office or through a fiscal representative (usually a lawyer or accountant).

   • Required documents: Passport and proof of address in the USA.

     
     

2. Open a Bank Account in Portugal

   • Necessary to transfer funds and pay costs related to the property.

   • Banks may require: passport, NIF, proof of residence, proof of income, and proof of fund origin.

     
     

3. Choose the Property

   • Use reliable real estate agencies.

   • It is recommended to visit the property or hire a local professional for inspection.

     
     

4. Hire a Real Estate Consultant

   • Essential to ensure there are no debts on the property (such as mortgages, liens, etc.).

   • The consultant performs due diligence and oversees the purchase process.

     
     

5. Sign the Preliminary Purchase Agreement (CPCV)

   • A preliminary contract between buyer and seller.

   • The buyer usually pays a deposit of 10% to 30% of the property value.

   • It establishes deadlines and conditions for the sale.

     
     

6. Transfer Funds and Pay Taxes

   • Send the property amount to the Portuguese bank account.

   • Pay the following taxes/costs:

     • IMT (Municipal Property Transfer Tax): varies from 0% to 8%.

     • IS (Stamp Duty): 0.8% of the property value.

     • Notary and Registration Fees: approximately €500 to €1,200.

       
       

7. Public Deed of Purchase and Sale

   • Signed at the notary office with all parties present.

   • After signing, you become the legal owner.

     
     

8. Property Registration

   • The property must be registered in your name at the Land Registry Office.

   
   
   
   

🛂 And what about Visa or Residency?

You do not need a visa or residency to buy property in Portugal.

But if you want to live in the country, you can apply for:

• D7 Visa (passive income): for retirees or those with stable income.

• Golden Visa (minimum investment of €500,000 in properties in certain regions—with recent restrictions).

• Digital Nomad Visa: for remote workers with minimum monthly income.

💡 Final Tips

Be cautious of properties without a habitation license or with legal issues.

Use specialized currency exchange services to save on international transfers.

Check if the region has restrictions on foreign buyers (e.g., in local accommodation containment zones).

Disclaimer: This content is for informational purposes only. Our disclosure policy is available for review. Due to the time-sensitive nature of the information, we recommend verifying the data’s accuracy before making any decisions based on this post.

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