How to Buy an Apartment in Portugal in 2026: The Complete Guide for French Buyers

Published on June 2, 2026 and written by Cyril Jarnias

Year-round sunshine, a lower cost of living than in France, still competitive taxes despite reforms, a dynamic real estate market: for many French people, the idea of buying an apartment in Portugal has never been more appealing. But 2026 also marks a major regulatory turning point, with new taxes on non‑resident buyers, a gradual tightening of tax rules, and a market that is much more structured than it was ten years ago.

Understanding the Portuguese market in 2026

Before discussing procedures, you need to grasp the reality of the market. Portugal is no longer the “bargain” of 2015: prices have risen sharply, but on average remain lower than in many Western European countries, especially France.

In 2025, the national average residential price was around €3,019 per m², nearly three times higher than about a decade ago. The country has seen double‑digit growth over several years: +16.8% overall in 2025 compared to 2024, with a price index that has more than doubled in ten years.

Very pronounced price variations by region

The first reflex for a French person browsing Portuguese listings is often to focus on Lisbon or the Algarve. However, price differences across areas are substantial.

Here is an overview of some recent benchmarks by region:

For a French buyer, this means that expectations regarding quality, price, and service can vary compared to other markets.

– an apartment in downtown Lisbon can cost as much as in a large French city, or even more in prime neighborhoods;

– a two‑bedroom in a small inland town can remain affordable around €80,000 to €120,000, or even less if renovations are needed;

– the Algarve is no longer a “low‑cost” destination, but it is still often cheaper than the French Riviera, with attractive rental yields.

Purchase price vs. cost of living: an advantage for French retirees

Even though real estate prices have soared, the daily cost of living remains a strong argument. Recent data show that:

This explains why many French retirees live comfortably with an overall budget of around €1,400 to €1,900 per month in a small town, including housing. In larger cities (Lisbon, Porto, Algarve), you should plan for €1,900 to €3,200 per month for a couple, depending on neighborhood standards and consumption levels.

For buying an apartment intended for retirement, these figures are essential because they help size your borrowing capacity by factoring in a lower cost of living than in France.

Step 1: clarify your project and choose your area

Before thinking about administrative steps, the priority is to define precisely why you are buying:

– primary residence (moving to Portugal);

– second home for family vacations;

– rental investment (long‑term, short‑term, or a mix of both);

– preparation for retirement, with a move planned a few years down the line.

This choice will have a direct impact on: the future of the project, customer satisfaction, and financial performance.

– purchase taxes (IMT and stamp duty);

– your tax status (resident or non‑resident);

– the monthly budget to plan for (utilities, taxes, cost of living);

– the profitability if you rent out the property.

Big cities, coastline, or interior: what are the consequences?

We can outline three main area profiles for a French buyer.

1. The metropolises: Lisbon and Porto

These are the most expensive markets, but also the most liquid and dynamic, with strong potential for long‑term or furnished rental.

– in Lisbon, the average rent is around €23/m² in 2025, i.e., nearly €1,850/month for 80 m²;

– nationally, the average rent is closer to €19/m², i.e., €1,548/month for 80 m².

On the purchase side, within Lisbon itself, averages are around €6,000/m², well above certain French areas outside Paris.

Advantage: safe market, strong rental demand, long‑term appreciation. Disadvantage: high entry price, new 7.5% tax on non‑residents starting in 2026, stronger competition.

2. The tourist coastline: Algarve, Silver Coast

The Algarve remains the favorite region for international retirees. For a couple, the average monthly budget, including housing, is often between €1,600 and €2,400. Rents for a modern two‑bedroom can range from €700 to €1,100 depending on the town (Faro, Lagos, smaller municipalities).

Advantage: climate, comfortable standard of living, potential seasonal rental yield. Disadvantage: rising prices, growing regulatory pressure on tourist rentals in tight areas.

3. Small towns and interior

This is where Portugal remains truly inexpensive. In cities like Coimbra, Braga, Évora or many small inland municipalities:

– a one‑bedroom for rent can be found between €500 and €800/month;

– a purchase of an apartment can be around €700 to €1,400/m², or even less for properties that need renovation.

For a retired couple who become owners, a monthly budget of €1,400 to €1,900 allows a comfortable life, including utilities, food, transportation, a few outings, and private health insurance.

Advantage: low prices, quieter life, easier integration into the local community. Disadvantage: sometimes narrower rental market, specialized services (private clinics, international schools) more distant.

Step 2: prepare on the French side – overall budget and financing

A common mistake is to look only at the listed price of the property. In Portugal, as in France, you will need to add a set of non‑negligible ancillary costs.

How much to budget in addition to the purchase price?

In 2026, for a standard apartment purchase, you should expect between 6% and 10% of the purchase price in fees and taxes, sometimes up to 12% in special cases (large loan, high‑end second home, non‑resident status).

The typical breakdown of fees is as follows:

For an apartment worth €300,000, this represents, in practice:

– minimum: €6,000 to €12,000 in fees (very favorable scenario, no loan, primary residence at the bottom of the IMT scale);

– usual scenario: €18,000 to €27,000 (around 7–9% of the price);

– high end: €27,000 to €42,000 (large loan, non‑resident status, second home or investment).

For most French non‑resident buyers, it is reasonable to budget 8 to 10% of the property price on top, especially given the new 2026 IMT rules.

The key 2026 rule: 7.5% IMT for non‑residents

In 2026, Portugal introduces a major change: a flat IMT rate of 7.5% for non‑resident buyers of residential properties. Previously, IMT was calculated on a progressive scale, as for residents (with rates from 0% to 8% depending on price and property type).

– purchase of an apartment intended for housing (second home or investment);

– direct application of the 7.5% rate on the acquisition value (or on the tax value VPT if higher).

Only a few exceptions allow you to escape this flat rate:

– becoming a Portuguese tax resident within two years of the purchase, making it your primary residence;

– renting the property long‑term at a moderate rent (capped at around €2,300/month) under strict conditions;

– being in very specific cases (Portuguese civil service, controlled housing programs, etc.).

Concretely, for a French person buying an apartment worth €300,000 as a non‑resident, the IMT could therefore be:

– 7.5% of €300,000 = €22,500, to be paid before the signing of the deed.

In addition:

– stamp duty of 0.8% on €300,000 = €2,400;

– notary, lawyer, registration fees…

Hence the importance of properly factoring in this new reality in your financing plan.

Should you finance with a Portuguese mortgage?

Portuguese banks continue to finance non‑residents, but with more cautious conditions than for residents:

– typical loan for a non‑resident: 60 to 70% of the property value, meaning a down payment of 30 to 40%;

– term: often limited so that the loan is repaid before age 75–80;

– rate: variable or fixed, often around 3–4.5% for a foreigner, linked to Euribor (stabilized around 2% in 2026);

– banks apply a prudent debt‑to‑income ratio, with total loan payments below about 35–50% of net income.

For a French person, the logical approach is therefore:

1. calculate your minimum down payment (30 to 40% of the price + 8 to 10% in fees); 2. request a preliminary financing study from a Portuguese bank; 3. get a clear figure on the rate, term and maximum amount you can borrow.

An example: for an apartment at €250,000 with 70% financing for a non‑resident, you should plan for:

– down payment for the price: €75,000;

– acquisition costs (8–10%): €20,000 to €25,000;

– i.e., between €95,000 and €100,000 in cash, and a mortgage of around €175,000.

Step 3: preliminary procedures in Portugal – NIF and bank account

Two steps are indispensable for any real estate purchase in Portugal, even if you do not plan to reside there: obtaining a NIF and opening a local bank account.

Getting a NIF (Portuguese tax number)

The NIF (Número de Identificação Fiscal) is the equivalent of your French tax number. It is essential for:

– signing a purchase agreement or deed;

– paying IMT, stamp duty, and property tax (IMI);

– opening a Portuguese bank account.

For a French non‑resident:

Opening a Portuguese bank account

Next, it is highly recommended – and often necessary – to open a bank account in Portugal for:

– paying deposits, IMT, stamp duty;

– handling local bills (water, electricity, condo fees, IMI).

Opening an account:

– requires your NIF, a proof of identity, and a proof of residence;

– usually takes one to two weeks, sometimes faster depending on the bank;

– can be done remotely with some banks, but it is often simpler during a stay in Portugal.

Many foreign buyers entrust this step to their lawyer via a notarized power of attorney.

Step 4: search for your apartment and select the right opportunity

Once your budget and administrative tools are in place, the most exciting phase begins: searching for the apartment.

Where to look?

The Portuguese market is very fragmented: a multitude of agencies, classified ads, and private sellers. Some reliable tools:

– major portals such as Idealista, Imovirtual, Casa Sapo;

– large generalist agencies (international franchises like REMAX, JLL, etc.);

– French‑Portuguese agencies specialized in French clientele;

– property finders or independent consultants.

The ideal approach for a distant French buyer is to combine:

Don’t neglect the technical inspection

In a tight market, the temptation to decide quickly is strong. Yet, the Portuguese housing stock is often old, with specific issues:

– humidity, leaks, rising damp;

– limited thermal insulation;

– aging electrical installations.

It is therefore strongly advisable to request an independent technical inspection before signing the purchase agreement (CPCV), especially if you are buying remotely or if the property is old. Inspection reports can cost €400 to €800 for a standard apartment, and more for a detailed structural assessment, but they can save you tens of thousands of euros in unpleasant surprises.

Step 5: the Portuguese purchase agreement (CPCV)

Once you have found the apartment that suits you, the process proceeds in two main contractual stages:

1. the offer and/or reservation contract (optional but common); 2. the promise of purchase agreement (CPCV – Contrato de Promessa de Compra e Venda), equivalent to our preliminary contract.

The offer and reservation

You make an offer through the agent or directly to the seller, often accompanied by: a deposit or a letter of intent.

– a written document detailing proposed price, timeline, possible conditions precedent;

– sometimes a reservation amount (a few thousand euros) to temporarily remove the property from the market.

Your lawyer will then verify:

– the compliance of property titles (Certidão de Registo Predial, Caderneta Predial);

– the absence of undisclosed mortgages or charges;

– the occupation license (Licença de Utilização);

– the mandatory energy certificate;

– any condo debt.

The CPCV: a firm commitment from both parties

Once the preliminary checks are satisfactory and the financing is clear, you sign the CPCV. This contract:

The Portuguese particularity is the penalty mechanism:

– if you, the buyer, back out without a reason provided for in the contract, you lose the deposit;

– if the seller withdraws, he must refund double the deposit.

Hence the importance of: education, awareness, collaboration.

– having your lawyer properly include the essential conditions precedent (obtaining financing, absence of serious defects revealed by an inspection, etc.);

– not signing the CPCV until you have a clear picture of your financing and technical risks.

Step 6: calculate and pay the IMT and stamp duty

Between the purchase agreement and the final deed, your lawyer will organize the payment of the main acquisition taxes, which must be settled before signing the deed at the notary.

How does IMT work for a French buyer?

IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis) is the Portuguese equivalent of transfer taxes. It is:

– calculated on the higher of the purchase price and the tax value (VPT);

– paid by the buyer;

– due before the signing of the deed (Escritura).

For Portuguese residents buying their primary residence, the scale remains progressive in 2026:

– 0% up to €106,346;

– then 2%, 5%, 7%, 8% depending on successive brackets;

– 7.5% above €1,150,853 for primary residences.

For a French non‑resident in 2026, the general rule is now:

French non‑resident in 2026

– flat rate of 7.5% on the entire amount for a residential property, unless you commit to becoming a tax resident within two years or to renting at a moderate rate, which after steps allows you to return to the progressive scale.

Stamp duty (Imposto do Selo)

In addition to the IMT, you must pay stamp duty:

– 0.8% of the price (or VPT if higher) on the acquisition;

– 0.5 to 0.6% of the amount borrowed if you take out a Portuguese mortgage.

Example for an apartment worth €300,000 without a mortgage, bought as a non‑resident:

– IMT (7.5%): €22,500

– Stamp duty (0.8%): €2,400

– Total IMT + stamp duty: €24,900 (excluding notary, lawyer, etc.)

Your lawyer will handle: all the necessary legal steps to defend your interests.

– the exact calculation using the tax administration’s tools;

– online or counter payment;

– collecting the receipts, which are essential for the notary to sign the deed.

Step 7: signing the deed (Escritura) and transfer of ownership

The final step of the transaction is the signing of the authentic deed, the famous Escritura Pública de Compra e Venda. It can take place:

– at a notary’s office;

– at certain registry offices (Casa Pronta) authorized for this type of deed.

On the day, the following must be present:

– identification documents of the parties (or their representatives);

– NIFs;

– proof of payment of IMT and stamp duty;

– updated property titles and legal/technical certificates;

– details of the financing, if applicable.

The deed:

At the time of signing:

– you pay the balance of the price (total price minus the deposit already paid at the CPCV);

– you pay the notary and registration fees, which typically amount to around €1,000 to €1,500 in total.

Once the deed is signed, you receive a copy and become, legally, the owner. But one last formality remains.

Step 8: registration and annual taxation

The signed deed must be registered at the Registo Predial (land registry).

Registration at the land registry and tax office

Your lawyer or notary usually handles the formalities:

– registration of the transfer at the land registry (Conservatória do Registo Predial);

– updating data with the tax authority (Finanças) for property tax (IMI).

Registration fees are around €250 to €500 depending on the number of deeds (purchase alone, or purchase plus mortgage).

Only once the registration is completed do you appear as the official owner in the authorities’ databases.

Annual property tax (IMI)

Each year, you will have to pay IMI (Imposto Municipal sobre Imóveis), the equivalent of property tax:

In the vast majority of municipalities, the rate tends toward the minimum 0.3% to avoid increasing the local tax burden. Lisbon, for example, applies 0.3%.

For estates above a certain threshold (over €600,000 per person), a surtax (AIMI) may apply, with rates of 0.7% and 1% on the highest brackets, but this situation mainly concerns large real estate fortunes.

Step 9: anticipate the local cost of living after the purchase

Buying an apartment is only the first part of the equation. You also need to plan for:

– regular property expenses;

– the cost of living in your town or village;

– health coverage and insurance.

Housing expenses

In addition to IMI, budget for:

Example of a monthly budget for an owner‑occupier couple

In a small provincial town, for a French retired couple who already own their apartment, typical monthly expenses could look like this:

These figures confirm that a French couple can live comfortably in Portugal with a budget of around €1,500 to €2,000 per month in a small town, with the housing already paid for. In a large city like Lisbon or Porto, you should add:

– an overall higher spending level, on the order of 25 to 35% (restaurants, transport, leisure);

– or, if renting, a rent that can represent 50% of the overall budget.

2026: a more regulated environment, but still favorable if you prepare your case well

For a French person considering buying an apartment in Portugal, 2026 changes several parameters:

– the end of the most spectacular tax advantages (former non‑habitual resident regime, golden visa real estate ended);

– the introduction of a 7.5% IMT for non‑residents, which significantly increases the entry ticket;

– real estate prices now high in the most sought‑after markets (Lisbon, Porto, Algarve), even though they are often still more affordable than in comparable French cities.

On the flip side, the country still offers: elements of cooperation, economic support, and development opportunities.

For a French buyer, the key in 2026 is therefore to:

By following this step‑by‑step approach – clarifying the project, calculating the budget accurately, completing basic tax procedures (NIF, bank account), conducting a serious property search, securing the purchase agreement, paying the IMT and stamp duty properly, signing the deed, and registering – buying an apartment in Portugal in 2026 remains a feasible, serious, and often financially sound project for a French person, provided you no longer see it as a casual adventure but as an investment to prepare for with the same rigor as a purchase in France.

Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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