Buying property in Portugal or Spain as a foreigner

Portugal and Spain are among the most popular places in Europe for overseas buyers, and both welcome non-residents to purchase property without restriction. The process, though, looks different from buying in the US or UK. A tax number is required before you can do almost anything, a notary plays a central role and the buyer’s taxes and costs add roughly seven to fifteen per cent to the price depending on the region.

This guide sets out the practical order of events in each country. It is general information, laws and thresholds change, and you should always take advice from an independent lawyer who is licensed in the country where you are buying.

Step one: get your tax number

In Portugal, every buyer needs a Número de Identificação Fiscal (NIF). Non-residents outside the EU must appoint a fiscal representative resident in Portugal, which a lawyer or accountant can arrange. In Spain, you need a Número de Identidad de Extranjero (NIE), which you can apply for at a Spanish consulate in your home country or at a police station in Spain. Allow a few days in Portugal and two to six weeks for an NIE if applying by post.

You will use these numbers to open a bank account, sign the purchase contract, pay taxes and connect utilities. Apply as early as possible: sellers take offers more seriously when buyers already have their paperwork in place.

Step two: choose a lawyer and agree the contract

Appoint an independent lawyer who acts only for you. They will verify the property’s registration, check for mortgages or debts attached to the property (in Spain, charges stay with the property, not the seller), confirm planning permissions and obtain energy certificates. In Portugal they will ask for the caderneta predial and certidão permanente; in Spain, the nota simple from the Property Registry.

The first binding document is usually a reservation or a promissory contract. In Portugal this is the contrato-promessa de compra e venda, with a deposit of around ten to thirty per cent; in Spain it is the contrato de arras, with a deposit of around ten per cent. Read the penalty clauses: in Spain, a buyer who withdraws typically forfeits the deposit, while a seller who withdraws returns double.

Step three: completion at the notary

Both countries complete the sale before a notary or equivalent public official. In Spain, the escritura pública is signed before a notary, and payment is made by bank cheque or transfer on the day. In Portugal, the deed (escritura) is signed at a notary or through the faster “Casa Pronta” service, after the buyer has paid IMT and stamp duty.

Bring your passport, your tax number and proof of address. If you cannot attend, you can grant a power of attorney to your lawyer, which a notary or consulate in your country must certify.

• Portugal: IMT transfer tax (progressive, up to around 8% for a second home), stamp duty of 0.8%, notary and registration fees
• Spain: ITP of 6% to 10% on resale homes depending on the region, or 10% VAT plus 1.5% stamp duty on new builds, plus notary and registry fees
• Legal fees: commonly around 1% to 1.5% of the price
• Annual taxes: IMI in Portugal and IBI in Spain, plus non-resident income tax on notional rental income

After you buy

Open local utility accounts, arrange buildings and contents insurance, and appoint a fiscal representative if you are non-resident. Non-resident owners in Spain file an annual tax return for the property, even if it is not rented. Rental income is taxed separately and short-term lets require a local registration number, covered in our guide to short-term rental rules.

Residence is a separate question from ownership. Portugal’s golden visa no longer accepts direct property purchases, and Spain closed its property-based golden visa in 2025. Do not buy in expectation of a visa without current legal advice.

Our Lisbon and Barcelona teams work with trusted lawyers in both countries and can introduce you to one on a no-obligation basis. Start from the contact page and tell us which city you are considering.