Can Americans Buy Property in Portugal in 2025? A Complete Guide for US Citizens

Introduction

Portugal is now considered one of the most desirable European destinations for American real estate investors. With its warm climate, strong expat community, and favorable mortgage conditions, buying property here is more accessible than many expect.

The good news: US citizens can buy property in Portugal without restrictions. You can even finance the purchase with a local mortgage, often at rates lower than in the US, and complete most of the process remotely.

This guide walks you through the essentials—from obtaining a NIF (tax number) to securing financing and understanding property prices in Portugal.

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Can US Citizens Buy Real Estate in Portugal?

Yes. Portugal places no restrictions on foreign ownership of property. Americans can buy apartments, houses, or investment properties just like EU citizens. You don’t need to hold residency before purchasing, although owning property can support residency applications, including through the D7 visa or other programs.

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Do Americans Qualify for Mortgages in Portugal?

Yes, US citizens are eligible for mortgages in Portugal. In fact, local banks regularly approve financing for international buyers. The process is straightforward, provided you meet income requirements and can supply the right documents.

Key Mortgage Facts for Americans

- Loan-to-Value (LTV): Typically 70–80% of the property price.

- Income Verification: Banks accept foreign income. Your US salary, pension, or investment income count toward eligibility.

- Debt-to-Income Ratio (DTI): Monthly mortgage payments cannot exceed 35% of your income.

- Interest Rates: Right now, in mid-2025, average rate is 3.3%, with some customers being offered 2.7% much lower than the US mortgage rates of 6.64%. With the EURIBOR declining, conditions are becoming more and more favourable.

👉 You don’t need to be in Portugal to apply. The entire process—including mortgage approval—can be managed remotely with the support of an advisor.

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Step-by-Step Process for Americans Buying Property in Portugal

1. Obtain a NIF (Portuguese Tax Number)

The NIF (Número de Identificação Fiscal) is required for any property transaction.

- Can be obtained remotely in just a few days.

Consulty can assist with obtaining your NIF quickly and securely.

2. Mortgage Pre-Approval

Before you pick a property, make sure to get pre-approved by a bank in Portugal.

- No local bank account is required at this stage.

- You’ll need to provide proof of income, recent tax returns, and bank statements.

You can use tailored mortgage services to help you find the best offer on the market.

3. Property Search

You can search for real estate remotely:

- Advisors like Consulty arrange online property viewings.

- A shortlist can be prepared based on your budget and lifestyle goals.

- In-person visits can be arranged later, but many international clients choose properties remotely.

4. Promissory Contract (CPCV)

Once you choose a property, the next step is signing a Contrato-Promessa de Compra e Venda (CPCV), the preliminary contract.

- Usually accompanied by a deposit (commonly 10%).

- Defines the purchase terms, deadlines, and obligations for both buyer and seller.

5. Mortgage Approval and Escritura

- Bank finalizes the loan approval.

- The final deed of purchase (escritura) is signed before a notary.

- At this point, you officially become the property owner.

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How Much Does Property Cost in Portugal?

Property prices vary significantly by region. On average:

- Lisbon: Around €4,600 per m²

- Porto: Around €3,000 per m²

- Algarve: Popular coastal towns command premium pricing, often comparable to Lisbon.

- Smaller Cities & Inland Portugal: Prices can be substantially lower, making them attractive for investment or retirement.

For example:

- T1 (one-bedroom apartments) in Lisbon: from €XXX,XXX to €XXX,XXX

- T2 (two-bedroom apartments) in Porto: from €XXX,XXX to €XXX,XXX

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Questions US Buyers Often Ask

Do I Need to Be in Portugal to Buy?

No. The process can be managed remotely, including mortgage applications, signing contracts (via power of attorney), and property selection.

Do I Need a Residency Permit?

No. Residency is not required to purchase property. However, owning property may support future residency applications.

Are There Taxes When Buying?

Yes. Buyers pay IMT (property transfer tax), Stamp Duty, and notary fees. However, there are exemptions for young buyers and certain cases (link this section to your *Tax Benefits in Portugal** article)*.

Can I Rent Out My Property?

Yes. Many Americans purchase property both for personal use and as a rental investment. Regulations differ depending on whether it’s a long-term rental or a licensed short-term rental (Alojamento Local).

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Conclusion

For Americans, buying property in Portugal is both possible and increasingly attractive. You can secure financing, benefit from lower interest rates compared to the US, and even manage the entire process remotely.

Whether you’re looking for a vacation home, an investment, or a permanent move, Portugal offers a stable real estate market with strong long-term potential.

Next step: If you’re considering buying property in Portugal, reach out to Consulty Real Estate. We can help you obtain your NIF, secure a mortgage, and guide you through the entire process—from property selection to closing.