Over the weekend, I was reading through the comments under my latest YouTube video on Portugal’s real estate market (you can watch it here) when one question caught my eye—one I get all the time from readers and investors alike…
Hello Ronan, would I have to become a Portuguese tax citizen to purchase a home there? I am a U.S. citizen but U have been looking for my ideal place to buy in Portugal and I think Northern Portugal looks very appealing.
It’s a great question. And the short answer, for Portugal and the other countries on my beat, is no, you don’t need to be a resident or citizen to buy real estate.
Let’s take Portugal as the example.
There are no restrictions on foreigners buying real estate in Portugal. But there are a few things to know.
Whether you’re a resident or not, you’ll need to get a Número de Identificação Fiscal (NIF), a Portuguese tax identification number, for any financial transaction, from opening a bank account to signing a property deed. It’s simple to get through a tax office (Finanças) or via your lawyer.
That’s it. You can buy outright, whether you’re here part-time or full-time.
Residency is not required for buying real estate in Portugal…but if you want to stay for more than 90 days at a time, it’s a good idea to look into residency options.
If you don’t have residency, you’ll just need to follow the Schengen Zone rules when visiting. You can stay up to 90 days in any 180-day period. (You’ll find a good explainer of how the Schengen Zone works here.) But if you want to spend longer in your home each year, it’s worth looking at the residency options available. There are several accessible pathways to residency in Portugal.
Across my scouting beat—from Mexico to Panama and Costa Rica—the same pattern appears: non-residents can buy easily, but residency can open even more advantages.
In Mexico, foreigners can buy property outright, except within 50 kilometers of the coast or 100 kilometers of the borders. However, foreigners can still purchase property in these areas through a fideicomiso, or bank trust. This trust allows you to control the property as if you owned it outright, including the ability to sell, lease, or pass it on to heirs. (To learn more about how a fideicomiso works, check out this video from my attorney in Mexico, Ivan Castillo…click here to watch.)
If you become a resident, the benefits extend to capital gains: sell your primary home as a resident and you can qualify for a full capital gains exemption once every three years.
I own more real estate in Cabo than anywhere else in the world…and I didn’t need to be a resident to do so.
In Panama, residency means foreign income is tax-free, there’s no inheritance or wealth tax, and capital gains on Panamanian property are taxed at just 10%.
Plus, Panama offers one of the world’s most attractive retirement residency options with its Pensionado Program. Participants get discounts on public transport, airline tickets, restaurant meals, utility bills and much more. And all you need to qualify is a pension of at least $1,000 a month.
And in Costa Rica, the story’s similar: residents only pay tax on local income. All foreign income—pensions, investments, or overseas rentals—is 100% tax-free in Costa Rica.
There’s also no wealth or capital gains tax, and property taxes are low (around 0.25%).
You can even qualify for residency simply by buying property worth $150,000 — through the Inversionista visa.
Not only does Costa Rica offer favourable tax and residency options, it’s also a place where spending time is laidback, easy, and affordable.
Across my international real estate beat, you don’t need residency to buy. But if you plan to spend serious time abroad, it can pay…both in lifestyle and tax savings. (Be aware that American citizens will still have tax obligations to Uncle Sam, no matter where in the world you are resident. So always consult with a tax expert about your specific situation.)
For me, having homes in Mexico, Portugal, and beyond isn’t just about investment. It’s about living in sunshine, near the sea, in places where my money—and my quality of life—go further.
If you’re looking for your dream home overseas, whether it’s for investment, lifestyle or a mix of the two, the good news is: you can start that journey today, residency or not.
Wishing you good real estate investing,
P.S. The next deal I’ll be bringing to my Real Estate Trend Alert (RETA) readers will be in San José del Cabo.
Set at the base of the Baja California peninsula, San José del Cabo is a place of spellbinding natural beauty and supreme luxury where cactus-studded hills roll down to glorious golden-sand beaches…where mountains soar over glistening blue waters teeming with incredible marine life…and where the ultra-rich come to stay in dazzling resorts that rival the finest on the planet…
RETA members will get the chance to own stunning, ocean-view condos in a best-in-class, amenity-rich community.
All the details are coming soon. This is a RETA members-only deal, so if you’re not yet a RETA member but are interested in buying in San José del Cabo, there’s still time to join RETA and get in on this mind-blowing deal. Membership details are here.
