Buying Property in the Algarve: Step-by-Step Guide (2026)
Buying property in the Algarve can be an exciting feeling however it can also seem overwhelming at first. In this guide, we will go through every step, so you know how the process works and what to expect. 
The step-by-step process to buy property in the Algarve (2026)
Step 1: Check your finances
Before you start looking at listings, it is essential to understand your financial situation, plan your timeline and know your budget.
Tip: if you will require partial or full financing, get a "pre-approval" from a bank before you start viewing properties as it will enable to place an offer confidently.
Step 2: Find the right local agent
When purchasing abroad, you should work with a professional local real estate agent. At Exclusive Algarve Villas we offer:
- 3 Local offices in: Lagos, Lagoa (Carvoeiro) and Vilamoura
- Multilingual team, available 24/7 by appointment to assist you
- Personalised and focused approach, only selecting properties that match your criteria
- Experienced knowledge of the luxury market since 2006
Step 3: Make an offer & due diligence
Once you find the place you want to buy, your agent will help you place an offer based on the current market and recent sales.
Once accepted, your lawyer will do the legal verification of the property to ensure everything is in order, including:
- No debts on the property
- Correct registration at the land registry
- Up-to-date habitation license
- Check the property’s layout matches the approved plans
- Review the terms and conditions of the sale agreement
Tip: for older properties doing a survey to assess the condition of the property is an important action to take at this stage, before signing the promissory contract.
Step 4: Sign the CPCV (promissory contract)
After due diligence is successfully carried out, it is time to sign the Contrato de Promessa de Compra e Venda (promissory contract), where you pay a deposit of usually 10–20% of the purchase price.
This step is legally binding, so we highly recommend using a lawyer to review it first. We can provide contacts for professional local lawyers/solicitors.
Tip: if you live overseas or simply are not able to sign in person, leaving a power of attorney to your lawyer is essential to make sure there are no delays.
Step 5: Final deed (Escritura)
Between the promissory contract and the final deeds, most of the work is done and is typically very straightforward (mostly a matter of double-checking that everything is in order and ready to proceed).
Prior to the final deed day, it is time to transfer the remaining funds, and pay the IMT (property transfer tax) along with the Imposto do Selo (stamp duty tax).
On the big day, the remaining balance is paid, the final deed is signed and registered, and you receive the keys to your new home in the Algarve!
How much does it cost?
When buying a property in Algarve, you need to consider not only the asking price, but also the IMT (property transfer tax) 2-8%; Stamp duty (Imposto do Selo) 0.8%; Lawyer and notary fees; Mortgage setup (if applicable).
Check out our Buying Property in the Algarve: Taxes, Fees, & Other Costs guide for more detailed information.
How long does it take?
There isn’t a rule to how long the buying process takes, but for a general idea:
- Searching and viewing: 1 to 4 weeks, sometimes longer
- Due diligence and promissory contract: 1 to 3 weeks, can take longer if financing is required.
- Final deed: 2 to 6 weeks after the signing of the promissory contract, unless agreed otherwise
Cash purchases usually tend to move faster, while mortgage applications can add 2-3 weeks to the process.
Ready to start buying property in the Algarve? 
Whether you're searching for a sea view villa in Lagos, a luxury home in Carvoeiro, or a villa for sale in Vilamoura, the Exclusive Algarve Villas team is here to guide you all the way.
Contact one of our local offices, in your preferred area, to speak to one of our dedicated sales agents or book a time to come by to discuss further in person.