Buying Property in the U.S. vs. Portugal: What You Need to Know
- Infinite Solutions
- 12 de set.
- 3 min de leitura
Thinking about buying a home in Portugal? Whether you’re relocating, investing, or simply looking for your dream lifestyle abroad, it’s important to understand that the process here is very different from what you may be used to in the United States.
Here are some of the biggest differences:
1. The Role of the REALTOR® / Agent
United States: Buyers typically work with a REALTOR® who represents their interests exclusively, while sellers have their own agent. Although compensation may be paid by the seller, there are situations where the buyer will be responsible for it when hiring a buyer agent, in such cases as FSBO (For Sale By Owner) | off-market properties or additionally pocket listings.
Portugal: Agency representation is less clearly defined. Some agents represent both sides of the transaction. This makes it critical to work with a trusted advisor like Infinite Solutions, who truly puts your interests first.
2. Financing and Mortgages
United States: Mortgages are widely available, with 15–30 year terms being standard. Pre-approvals are common before house hunting.
Portugal: Mortgages are available to foreigners, but terms are usually shorter (20–30 years max, often less depending on age). Approval can be more paperwork-heavy, and you’ll need a Portuguese tax number (NIF) and local bank account.
3. The Purchase Process
United States: Offers are made quickly, often with contingencies (inspection, financing, appraisal). Escrow is common.
Portugal: Once the buyer and seller agree, a Promissory Contract - Contrato-Promessa de Compra e Venda is signed, usually with a 10–20% deposit. If the buyer backs out, they lose the deposit; if the seller backs out, they must pay back double. This adds real commitment early in the process.
4. Closing Costs & Taxes
United States: Closing costs vary but often include title fees, escrow, lender charges, and state taxes. Property taxes are recurring annually and can be significant.
Portugal: Buyers pay a one-time property transfer tax (IMT) and stamp duty. Notary and registration fees also apply. But the big difference? Annual property taxes (IMI) are generally much lower than in the U.S.
5. Legal & Due Diligence
United States: Title companies and escrow agents play a central role in ensuring clear ownership.
Portugal: Buyers should always hire an independent solicitor/lawyer to check for debts, licenses, and property records. This step is critical — it ensures peace of mind that what you’re buying is legally sound.
6. Lifestyle Factor
United States: Buyers often prioritize school districts, commuting distance, or resale value.
Portugal: While those matter too, many buyers here are driven by lifestyle: ocean views, walkability, quality of life, sunshine, culture, and access to healthcare. In short: it’s not just a home, it’s a lifestyle upgrade.
Final Thoughts
Buying in Portugal isn’t harder than in the U.S. — it’s just different. With the right guidance, the process can be smooth, transparent, and even exciting.
At Infinite Solutions, we specialize in bridging these differences for our international clients, making sure every step is clear and every dream is achievable.
Because at the end of the day, we don’t just sell homes. We fulfill lifestyle dreams.
I’ll be more than happy to share my experience with you, after almost 23 years living in Portugal.
I’ll also walk you through Portugal using Google Maps, show you the best Cities or communities and neighborhoods that match your ideal lifestyle and budget, and go over the moving and buying process as well as the best Visa process to establish residency and ultimately Citizenship.
If you have not made up your mind that Portugal is the home for you, and want to learn all about Portugal’s rich culture, tantalizing gastronomy, exquisite wine culture, real estate opportunities, and the latest updates in the ever-evolving real estate landscape, then visit the Infinite Solutions BLOG, register and be the first to receive by e-mail any new posts. Join us on this exciting journey to discover your future home sweet home!!!
As a seasoned realtor with 23 years of firsthand experience living in Portugal, I am here to guide you through every step. From virtual tours using Google Maps to identifying the ideal cities, communities, and neighborhoods that match your lifestyle and budget, I’ll make your transition smooth and informed
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