Buy Property in Portugal | American Guide
Last month, an American client called me panicking because they'd just signed a contract in Portugal and suddenly realized they couldn't back out without losing €50,000.
This happens more than you'd think.
I'm an American woman living in Lisbon, working in real estate here, and I help Americans buy property in Portugal every week. I've been through the process myself—the confusion, the paperwork, the moments where you realize things work very differently here than back home.
Here's what you actually need to know before you buy.
The Portugal Property Market Isn't Like the U.S. (And That's the First Surprise)
If you're coming from American real estate, Portugal will feel backwards.
There's no MLS. Listings scatter across dozens of websites—Idealista, Imovirtual, individual agency sites—sometimes showing different prices for the same property. Many properties never even get listed publicly. Agents don't share listings like they do in the States.
Last week I had a client find a T2 apartment listed at €520k on one site and €540k on another. Same exact property. Two different agencies.
Most agents represent the seller, not you. That friendly agent showing you around? They work for the person selling the house. Their job is to get the highest price and close the deal, not to protect you or negotiate on your behalf.
This is why Americans get blindsided here. You need someone who understands both systems—and actually has your back.
What Buying Property in Portugal Actually Costs
The listing price is just the beginning.
When you buy property in Portugal, you're paying 6–10% more in taxes and fees that Americans aren't used to:
- IMT (property transfer tax) – varies based on price and whether it's urban or rural
- Stamp duty – usually 0.8% of the purchase price
- Notary and registry fees
- Attorney fees (which you absolutely need)
So that €400k apartment? Budget another €30k–€40k on top.
Then there are the ongoing costs most Americans underestimate:
IMI (annual property tax), condo fees, utilities that cost way more than in the U.S., insurance, and—this is the big one—maintenance.
Older Portuguese buildings are gorgeous, but they often need electrical upgrades, new plumbing, or insulation work that wasn't on anyone's radar. I've seen Americans fall in love with a 1920s Lisbon apartment, then discover the building needs €300k in shared facade repairs.
You Can't Buy Without a NIF and Portuguese Bank Account
You need a NIF (tax identification number) and a local bank account before you can purchase property.
The bank process shocks most Americans. They want:
- Your passport
- Proof of income
- U.S. tax returns (sometimes multiple years)
- Employment verification
- Source-of-funds documentation
And they move slowly. We're talking weeks, not days. Some banks are better than others at working with Americans—I point clients toward the ones that actually respond to emails.
Getting a Mortgage in Portugal as a Non-Resident
Yes, you can get financing here. But it's different.
Down payments: Expect 20–30% for non-residents. Sometimes more.
Appraisals come in low. A client in Cascais just got a €650k appraisal on a property they agreed to pay €695k for. That meant finding an extra €45k for the down payment. This is normal in Portugal.
The underwriting takes longer, requires more documentation, and the rate structure doesn't look like what you're used to at home. Budget extra time and have more cash ready than you think you'll need.
Finding the Right Property (Without Getting Burned)
This is where Americans get into trouble.
Because there's no MLS and no standardized buyer protection, people fall into traps they never saw coming:
- Foreigner pricing – yes, it's real
- Renovation surprises – what looked like a quick cosmetic update turns into a multi-year structural project
- Illegal additions – that extra room? Not permitted
- Condo regulations no one explained
- Staged photos that hide actual problems
I preview homes for my clients before they fly over. I flag the red flags you can't see in photos. I explain what you're actually looking at—the realistic renovation timeline, the neighborhood dynamics, what that "needs some updates" really means.
You get clear communication in English, U.S.-style transparency, and Portugal-level local knowledge. That combination matters more than anything.
The CPCV: The Contract That Surprises Every American
Portugal has a two-step closing process.
Step 1: CPCV (Promissory Contract)
This is the binding contract. You typically put down 10–20% here.
If you back out → you lose your deposit.
If the seller backs out → they owe you double.
This is not a contingency period like in the U.S. Once you sign, you're committed.
Step 2: Escritura (Final Deed)
This is where the rest of the money transfers, the property officially becomes yours, and you get the keys.
You need an attorney for this. Not just any attorney—one who knows real estate and works with foreigners regularly. We coordinate with lawyers we trust to make sure nothing gets lost in translation.
Due Diligence Isn't Optional
Portugal has beautiful old homes. They also have surprises.
Your due diligence should include:
- Structural inspection
- Legal boundary confirmation
- Licensing review (especially for renovations)
- Energy certificate
- Condo association meeting minutes
- Utility capacity check
That last one matters more than you'd think. Some older Lisbon buildings can't handle modern electrical loads. Imagine buying your dream apartment and realizing you can't run AC and an oven at the same time.
Due diligence saved that Cascais client I mentioned—and it's saved dozens of others from expensive mistakes they couldn't undo.
After You Close: What Actually Happens
Owning property here is wonderful. But the work doesn't stop at closing.
You'll need to:
- Register utilities in your name
- Update tax records
- Set up insurance
- Arrange for ongoing maintenance
- Possibly handle renovation permits
My team helps clients with all of this because support shouldn't disappear the moment you get the keys.
Why Americans Work With Us
Your biggest challenges here aren't just bureaucratic—they're cultural.
You want someone who explains things clearly, communicates like you're used to, tells you the truth even when it's not what you want to hear, and actually advocates for you.
We've lived here. We've bought property here. We've renovated here. We know exactly where Americans get stuck, confused, or overpay—and how to avoid all of it.
You don't have to figure this out alone.
Ready to start your Portugal property search the right way?
If you want guidance from someone who's already walked this path—and now helps Americans buy safely every week—let's talk. We'll help you avoid the common pitfalls, understand real pricing, and find a home that actually fits your life here.
Contact Us:
Email: info@PortugalDreamRealEstate.com
WhatsApp or Phone: +351 916 674 780
We genuinely look forward to helping you find the perfect place to call home in Portugal.
