The Algarve has always been a dream destination. With its sunny climate, golden beaches, and lifestyle balancing authenticity and modernity, it is one of Europe’s most sought-after regions.
For new international residents, buying a villa in the Algarve is often more than an investment — it’s a life project. But between the variety of markets, administrative procedures, and cultural differences, preparation is key.
In this guide, Hardy & Hardy shares the essential steps, best practices, and common pitfalls to avoid for a smooth real estate purchase in Portugal.
Why buy a villa in the Algarve in 2026?
The Algarve remains a safe bet in a changing European market. With steady demand, a favorable tax environment, and strong international appeal, the region attracts both families and investors.
The Algarve real estate market continues to grow steadily. High-quality properties — especially villas with pools and sea views — hold excellent long-term value. The arrival of new buyer profiles such as international professionals, remote workers, and young retirees reinforces this trend.
If you are considering buying a home in Portugal, our guide Buying in the Algarve: The Complete Guide will help you understand local dynamics, key areas, and the steps to take before purchasing.
Define your project before buying
Buying a villa in the Algarve is more than a lifestyle choice — it’s a strategic decision. The success of your purchase depends first on the clarity of your goals.
Do you want to live in Portugal year-round? Own a vacation home? Or make a rental investment?
Each option involves a different approach — in terms of location, taxation, property type, budget, and financing.
💡 Hardy & Hardy Tip: Before starting your search, define three essentials — your total budget (including notary and tax fees), your holding period, and how involved you want to be in managing the property.
Key steps to buying a villa in Portugal
- Obtain your NIF (Portuguese tax number)
This is the first mandatory step for any transaction. You can get it through a fiscal representative or lawyer if you’re not a resident. - Choose the right area
Lagos and Albufeira attract buyers for their coastal energy, Tavira for its quiet charm, and Loulé or Almancil for their proximity to golf courses and Faro Airport. Your choice depends on your lifestyle — beach, golf, tranquility, or rental return. - Sign the preliminary sale agreement (Contrato de Promessa)
This official document binds buyer and seller, usually with a 10% deposit, and secures the property until final signature. - Finalize the purchase with a notary
The sale is completed before a notary, who registers the transaction and hands over the keys. Signing by proxy is possible for non-residents.
Hardy & Hardy supports you at every stage — from negotiation to notarial completion — with bilingual assistance and trusted partners (lawyers, tax experts, banks).
Common pitfalls to avoid
- Skipping legal verification: Always ensure the property complies fully with local regulations. Engage a qualified lawyer.
- Underestimating additional costs: Transfer tax (IMT), stamp duty, notary fees, and maintenance can total 8–10% of the purchase price.
- Overestimating rental yields: Some areas require an AL (Alojamento Local) license for short-term rentals. Check before investing.
- Buying without local guidance: Differences in procedure and language can slow things down. A locally based agency anticipates these challenges.
Optimize your purchase with the NHR status
For qualified professionals or entrepreneurs planning long-term relocation, Portugal’s Non-Habitual Resident (NHR) regime remains a strong advantage. It offers favorable tax benefits on certain types of income for 10 years.
Our article Relocating to the Algarve with NHR Status explains eligibility, professions covered, and long-term tax advantages — essential reading before structuring your investment.
Work with a trusted local agency
Buying a villa in the Algarve is also a human experience. Choosing Hardy & Hardy means benefiting from:
- Bilingual, personalized support.
- Deep knowledge of the local market.
- Secure handling of all legal and notarial steps.
Based in Lagos, our team has assisted international buyers for years. From the first visit to final signing, we make your purchase a smooth and stress-free journey.
Conclusion: buying a villa in the Algarve — a lifestyle investment
Buying a villa in the Algarve means investing in more than real estate — it’s a commitment to a lifestyle, a climate, and a secure, exceptional setting.
With solid preparation, expert guidance, and a trusted local agency, this dream can become a reality.
👉 Ready to take the next step?Contact Hardy & Hardy today for a personalized consultation and discover the best villa opportunities in the Algarve.