New Build Apartments in Portugal for Foreigners: Buyer Guide

Foreigners can buy new build apartments in Portugal with a Portuguese tax number and a lawyer. The usual off-plan path is reservation, a promissory contract that fixes payments, then the deed of sale at completion. Real estate no longer qualifies for Portugal’s golden visa, so do not buy for that reason.

Where the stock is

According to the Portugal page on Off Plan Properties, the catalogue lists 27 projects: 17 in Lisbon, five in the Algarve, two in Comporta, and one each in Funchal, Porto and Cascais. It quotes an average price range of €200,000 to €600,000, with example projects ranging from the mid six figures into the millions. These are a snapshot of one catalogue, not the whole market, so use them to orient yourself and then look at the live listings.

Area	What the catalogue shows	Questions to ask
Lisbon	Largest share of listed projects	How near is the metro; what is the completion licence status?
Algarve	Resort and coastal schemes	Is demand year-round or seasonal; what are resort fees?
Cascais	Premium coastal commuter area	How does price per square metre compare with Lisbon centre?
Comporta, Funchal, Porto	Few projects each	Is the sample large enough to judge the market?

The purchase process

The catalogue describes four steps: choose a developer, sign a reservation contract and pay a deposit, sign a promissory contract that sets the payment schedule, then at completion sign the deed of sale and make the final payment. That is consistent with how many Portuguese purchases are described, though your contract rules.

Before any of it you will typically need a tax number, called an NIF, and a bank account. Many buyers use a lawyer with a power of attorney to handle the paperwork remotely. For the general sequence, see how to buy a new build property abroad.

Key takeaway: the promissory contract is where your real protection is set. Read the delivery date, penalty clauses and payment schedule line by line before you sign.

Payments and protection

The catalogue says instalment plans are available and that a significant portion may be due only after completion. That differs from some other markets where most of the price is paid during the build. What matters for you is who holds your money. Ask your lawyer how deposits are protected, whether a bank guarantee or escrow applies, and what remedies you have if the developer is late; our guide on deposit protection abroad covers the questions.

Residency: be careful with old information

Many articles still say property in Portugal opens a golden visa for investments over €500,000, and the catalogue’s Portugal page repeats a golden visa reference. In practice, a report on the 2023 reform notes that Portugal eliminated the real estate option in October 2023 while the programme continues through other routes, such as qualifying investment funds. Rules may have changed again since, so use official Portuguese government sources before relying on any visa claim. We discuss how to verify this in property-linked residency programmes.

Costs you need to price

The Portugal page describes the tax system as transparent but does not state rates, transfer costs or fees in the content we could read. We therefore give no percentages here. Expect property transfer tax or VAT treatment depending on the sale, stamp duty, notary and registry fees, legal fees, and annual municipal property tax. Ask your lawyer for a written estimate before you reserve. Our piece on hidden costs of buying a new build abroad lists categories to request.

Rental yields and expectations

The catalogue cites rental yields of 3 to 6 percent for Portugal. As with any quoted yield, it is an unsourced indication. Short-term letting rules in Portugal have tightened in many municipalities, so check local licensing and restrictions before basing your numbers on holiday rental income. Use the rental yield calculator, enter realistic expenses and compare the result with the brochure.

A checklist for Portugal

1. Obtain an NIF and open a bank account.
2. Retain an independent lawyer, not the developer’s.
3. Verify the developer, land title and building licence.
4. Read the promissory contract for delivery date, penalties and payment schedule.
5. Confirm how your instalments are protected.
6. Budget taxes, notary and legal fees.
7. Inspect the finished apartment and agree a snag list before the final payment.

Comparing Portugal with other markets

If you are still choosing a country, note that Portugal’s off-plan structure, with a large share of payment potentially after completion, shifts risk toward the developer compared with markets where most of the price is paid in advance. On the other hand, pricing in prime Lisbon and Cascais locations can be high. Compare with the Spain notes and the Thailand notes on this site to see how structures differ.

Sources and caveats

Portuguese property, tax and immigration rules change. This is general information, not legal advice. Confirm every point with an independent Portuguese lawyer and official sources.

Understanding the promissory contract

In Portugal the promissory contract, commonly known by its Portuguese abbreviation CPCV, is the document that binds both sides before the final deed. Ask your lawyer to explain what happens if you default and what happens if the developer does. In many promissory contracts, a deposit paid as an advance can be forfeited if the buyer withdraws, and the seller may owe a multiple if the seller withdraws, but the precise rules depend on how the clause is drafted. Do not rely on a general summary; have the clause explained against your own contract.

Licences and the habitation certificate

A new apartment should be backed by a construction licence, and on completion by a utilisation licence confirming the building may be lived in. Ask for copies of both. Without the right licence, you may face problems connecting utilities, taking out a mortgage or selling later. Also confirm the technical file of the building and the energy certificate are provided at handover.

Short-term letting and local rules

Portuguese municipalities have introduced restrictions on local accommodation in some areas, and the rules have changed repeatedly. If you plan to let the apartment on holiday platforms, ask the municipality and the building’s owners’ association what is currently allowed for that address before paying a deposit. A building whose rules forbid short stays can cut your expected income substantially, regardless of the yield quoted in a brochure.