FAQ
FAQ – Buying property in the Algarve
Here you will find answers to the most frequently asked questions about buying a property in Portugal – from legal aspects to practical tips and insider knowledge.
1. General information about buying property in Portugal
Do I have to contact several agents to find the right property?
No. We have access to almost all properties on the market – thanks to our network with other agencies and platforms.
Is buying property in Portugal allowed for foreigners?
Yes. Both EU and non-EU citizens are allowed to purchase property in Portugal without any problems.
How safe is buying property in Portugal?
Very secure – if all documents are checked correctly. We accompany you every step of the way together with experienced lawyers and notaries.
How does the notary appointment work in Portugal?
At the notary appointment, the purchase contract is signed and notarized. This is followed by an entry in the land register.
Legal & Documents
What documents do I need to buy a property in Portugal?
- Portuguese Tax Number (NIF)
- Valid ID or passport
- Proof of source of financing (in the case of a mortgage)
- Valid ID or passport
- Proof of source of financing (in the case of a mortgage)
What is the NIF and how do I get it?
The NIF is your Portuguese tax identification number. Your lawyer will usually apply for this from the tax authorities for you at the start of the purchase process. Alternatively, we will be happy to assist you with the application.
Do I need a lawyer when buying real estate?
Yes, we recommend legal support to check all documents and contracts.
What happens if I withdraw from the purchase?
Depending on the status of the contract, the deposit may be forfeited. The preliminary contract regulates the conditions of withdrawal. Learn more: Preliminary purchase agreement in Portugal
Finance & Taxes
Do I have to pay a brokerage commission as a buyer?
No. In Portugal, the commission is usually borne by the seller.
What are the incidental purchase costs?
Approx. 7–10% of the purchase price (e.g. real estate transfer tax, notary and lawyer's fees). Learn more: Incidental purchase costs
What is IMI (property tax) and how much is it?
The IMI is between 0.3% and 0.8% of the cadastral value and is due annually.
What other taxes do I have to pay as an owner?
Possible taxes:
- Property Tax (IMI)
- Wealth tax (AIMI) on higher-value properties
- Income tax on rentals
Can I transfer the purchase price from abroad?
Yes, the purchase price is normally transferred to an escrow account held by your lawyer. The lawyer then pays the purchase price to the seller during the notary appointment.
Do I need a Portuguese bank account?
It is no longer mandatory for the purchase, but a portuguese bank account is helpful for recurring payments such as electricity or internet. We help you open an account.
4. Purchase Process & Duration
How long does it take to buy property in Portugal?
Depending on the property and requirements, between 1 and 3 months. In the case of new buildings, the notary appointment depends on the progress of construction. Learn more: The buying process
Can I reserve a property?
In most cases - yes. With a reservation agreement and deposit, the property is secured for you.
Financing & Purchase Through Company
Can I finance a property in Portugal?
Yes. We support you in contacting Portuguese banks and credit institutions.
What documents are required for financing?
Usually: proof of income, bank statements, NIF and copy of ID.
Can I buy a property through a company?
Yes. Many investors buy through companies, e.g. for tax or inheritance law reasons. We recommend an individual consultation with a lawyer / tax advisor.
6. After the purchase
Can I rent out my property?
Yes – as a long-term rental or tourist rental (with AL license). Learn more: Rental & AL licenses
What is an AL (Alojamento Local) license?
The AL licence allows short-term tourist rentals. We will support you with the application.
Does Ocean Horizon help with property management or furnishing?
Yes. We work with reliable partners for property management, cleaning, furnishing and more.
Special Cases & Right of Residence
Do I need a visa to buy property in Portugal?
No. No visa is required for the purchase itself. For longer stays of citizens outside the EU, a D7 or other visa may be required.
Is the Golden Visa still valid for properties in the Algarve?
No. The Golden Visa for investing in real estate in Portugal is no longer available as of 2023. However, it is still possible to obtain a Golden Visa by investing in other sectors, such as research, technology or entrepreneurship.
