Buying property in Portugal as a UK citizen – is it hard?

According to recent reports, foreign investors bought 3.9 billion euros of real estate in Portugal in 2025 – a 10% increase on the year before. There are significant expat populations in Portugal and it’s an enduringly popular location to live, work, study and retire.

So – can UK citizens buy property in Portugal? The good news is that buying a place in Portugal is relatively straightforward. However, it won’t guarantee you a visa or confer residency rights. This guide explores all you need to know and also touches on Wise which can help with paying for overseas expenses when buying a new home.

Can UK citizens buy property in Portugal?

Yes. UK citizens can buy property in Portugal with no specific restrictions.

This guide walks through how to buy a property in Portugal from the UK, including a look at Wise as a great way to pay for your new home with low transfer fees and mid-market exchange rates from GBP to EUR.

How difficult is buying property in Portugal as a UK citizen?

Buying a property in Portugal isn’t enormously complicated – but having support to navigate the process is essential and can ultimately save a lot of hassle. At the very least you need a lawyer or notary to complete the legal side of the transaction, and you’ll likely also need an estate agent who can help you identify the right place for your needs.

The UK government offers tools for people who need to find an English-speaking lawyer who may be able to help with your purchase. When choosing a lawyer, make sure they are members of the Portuguese law society, Ordem dos Advogados.

There’s also a helpful EU level notary directory, which can help you find an independent advisor.

Generally, looking for a service called Casa Simples, Casa Segura in Portuguese can help you narrow down the options and find a suitable support team. Here are a few of the documents you’ll need to think about getting arranged:

Your own ID and financial documents

Be prepared in advance to show your proof of ID and address, and to show the source of the funds you’ll be using to buy your new home. Having a papertrail to show where your money is coming from is required to prevent money laundering and financial crime.

NIF (Número de Identificação Fiscal)

Before you start to buy your Portuguese property you’ll need to get a NIF (Número de Identificação Fiscal), which is a tax identifier used for registering your property and dealing with the government on things like tax payments.

Property conveyancing documents

Your notary or lawyer will help with the documents needed for conveyancing. You’ll first need to arrange a Contrato-Promessa – a sales agreement, which also requires you to pay a deposit, often of 10%. Once all due diligence checks are completed you’ll finalize the Property Deed (Escritura), complete the payment and take ownership.

Typical timelines

The timeline for buying a home in Portugal can vary depending on the property type and the seller’s needs. As with buying a place in the UK, you may find that the end to end process can take several months – so plan ahead and be as flexible as possible with your timings.

Transferring money to Portugal for the purchase

When you’re planning your property purchase you’ll need to decide how to move your money from GBP to EUR. Wise offers competitive fees for international transfers.

Wise uses the mid-market exchange rate for conversion and transfers, and has low variable fees with automatic discount when sending 20,000 GBP or more over the course of a month. You can use Wise to pay the seller directly when you close on the purchase, or if you’ve already set up a Portuguese bank account, use Wise to move money between your UK and Portuguese bank accounts, to get a great rate and a fast payment ready for closing.

What are the tax implications?

Buying a property in Portugal – much like buying a new place in the UK – is likely to mean paying some taxes. There are one off costs when you buy a home, but there may also be costs which apply on an ongoing basis.

This guide is for information only. Get professional tax advice to navigate the tax implications of your new Portuguese home both in Portugal and in the UK.

In Portugal

It’s important to understand the property transfer tax – Imposto Municipal sobre Transmissões (IMT) – you’ll pay when you buy a home in Portugal. This tax varies based on the property type and location, and is high if you are not considered a resident of Portugal.

Urban properties usually have different tax levels based on the value of the home, while rural residential properties may be taxed at a flat rate of 5%. However, if you’re not a resident your bill may rise to 10% of the property price.

Aside from this there’s also a stamp duty – Imposto de Selo – which is usually a much smaller 0.8% of the purchase price, payable at the time you finalise your new home.

Get advice about the tax you need to pay on purchase, from the notary or solicitor you chose. They may also be able to advise you about ongoing costs which can include Imposto Municipal sobre Imóveis (IMI) – billed and paid annually, online or in person. You’ll be notified of what you owe yearly by the end of April.

In the UK

Bear in mind that there may also be tax to pay in the UK depending on your situation and how you use your Portuguese property.

For example, if you rent out your Portuguese place you may need to complete a self assessment for HMRC and pay UK tax on foreign rental income if you’re a UK resident for tax purposes.

There may also be capital gains tax when selling property overseas. UK tax when you sell a foreign property depends on your tax residency.

You’ll normally have to pay some UK capital gains tax on a foreign property if you’re a UK tax resident, and in some cases if you sell your overseas home and then move back to the UK in the next five years. However, there may be tax reliefs available based on double taxation treaties in some cases.

As tax can be complicated, particularly when dealing with the authorities in more than one country, getting professional advice is essential to make sure you fulfil your duties in the UK and in Portugal.

Local laws and regional variations

There’s no specific rule about where foreigners can buy a property in Portugal. You’ll be free to buy most places, subject to a small number of specific rules for sensitive locations and properties.

UK government advice does highlight that owners of coastal, river or lakeside properties must be familiar with the 2005 water resources law which is designed to prevent pollution and support the health of natural environments. Similarly, anyone considering a rural property must learn about and abide by the law on preventing forest fires, for their own safety and the safety of others.

What buying property gets you

Buying a property in Portugal might be a great idea if you need a home to live in or as a holiday place for you and your family. Or you may be more interested in treating it as an investment, to rent out or sell in future.

Another common reason UK citizens used to buy Portuguese property was as part of an application for the Portugal Golden Visa – a residency visa which used to be offered in some cases on the basis of investing in an appropriate property in Portugal.

In recent years, the real estate route to a residency visa has been removed and this visa is only available through different investment types.

What buying property does not get you

It’s important to note that buying a home in Portugal does not automatically confer a visa or residency rights – you’ll still need to apply for the right visa, fulfil all the other requirements, and pay the application fees.

To legally reside in Portugal for a longer term stay you need to apply for your Portuguese visa and then register for a residency permit with AIMA – Agência para a Integração, Migrações e Asilo – on arrival.

To follow this route you must apply for a residency visa which may be issued for study, work, training, retirement or for people living from passive income. You can then convert your visa to a permit and complete your registrations in the town or city you’ve chosen to live in.

To get started from the UK you’ll need to work through VFS which is the Portuguese government’s agent for visa services. You can get all the details you need about the visa type that best suits your needs – usually a D9 residency visa – and the application process, through the VFS website. You can also work with visa agents in the UK who can help you complete the paperwork and navigate the application process smoothly.

Renting out your property: is it allowed?

Foreign nationals can be landlords in Portugal, so you would be able to rent out your property subject to meeting all other rules such as registering for and paying tax on your income.

Tax on rental income in Portugal is 25% – 28%. You’ll need to get appropriate advice about how to pay your taxes in Portugal based on whether or not you’re a resident there. You may find you need to call on double taxation agreements to avoid being taxed in both Portugal and the UK on the same income.

Buying land in Portugal

UK citizens can buy land in Portugal with no specific restrictions. The process works very similarly to buying a property.

Getting a mortgage: should I get one in Portugal or the UK?

If you’re planning to finance your property in Portugal using a mortgage you’ll be able to look at both UK banks and banks in Portugal. As there are a lot of expat home owners in Portugal, banks can often provide mortgage services for non-residents, although the deposit needed as a non-resident buyer may be higher than for a resident.

Both options can be attractive, so comparing the offers available based on the value loan needed is important. Remember also that there may be some currency risk involved – for example if you take out a EUR mortgage but earn in GBP, you’ll need to work around currency conversion from GBP – EUR to pay your monthly bills.

Having a low cost currency service like Wise can help you minimize the fees you pay for international transfers, and bring down your bills in the end.

The verdict: should you buy a house in Portugal as a UK citizen?

Buying a place in Portugal is very attractive as an option for many UK citizens looking for a new place to live, work, study or retire. Even without the option of using a real estate investment to get a Golden Visa, many Brits still buy Portuguese places thanks to the great climate, friendly people and relatively affordable prices.

If you’re thinking about investing in a new place abroad, use Wise to send money from GBP to EUR with low costs and secure, fast payments whenever you need them.

Pros	Cons
✅Great place to live and work ✅Large and established expat communities in many areas ✅Well connected to the UK with frequent cheap flights ✅Relatively low housing costs ✅Many English speaking agents and legal advisors available to support	❌Property prices may go down as well as up ❌Curency rate fluctuation can mean your mortgage costs more than you expected ❌Taxes on your purchase can be relatively high as a non resident

Useful resources

Real estate agents

• Portugal Homes – popular expat-specific estate agents with support for visa holders
• Re/Max – estate agents with specific agents which are experienced in working with expats (search for agents based on location)
• Idealista – umbrella website with good search tools to find property in Portugal

Main expat areas in Portugal

Learn more about top expat areas in Portugal such as:

• Lisbon – bustling city with history, culture and work opportunities for expat arrivals
• Porto – well connected city and a UNESCO World Heritage Site with a large expat community
• The Algarve – If beaches and golf are your thing, this may be the place – particularly popular with retirees