Retiring in Portugal? Here’s How Working with Real Estate Agents Differs from the U.S.

If you’re 55 or older and thinking about retiring abroad, Portugal has become an increasingly popular destination — especially for Americans looking to stretch their retirement dollars. With rising living costs in the U.S., including states like Florida, many retirees are exploring Portugal’s affordable lifestyle, mild climate, and welcoming culture.

But before you pack your bags, it’s important to understand how buying property in Portugal works compared to the U.S. This guide breaks down the key differences you’ll encounter working with real estate agents, navigating the home buying process, and handling legal matters — all from the perspective of a retiree making a major life transition.

1. How Real Estate Agents Operate: Portugal vs. U.S.

Portugal

In Portugal, real estate agents often represent both the buyer and seller in a transaction — a setup known as dual agency. This means your agent might also be working for the seller, so it’s wise to have independent legal advice to protect your interests. Agents rely heavily on personal connections and local market knowledge, which is crucial since the property listings are not centralized.

United States

In the U.S., including Florida, the process is more segmented. You’ll likely work with a buyer’s agent whose sole job is to represent you, while the seller’s agent represents the other party. This clear separation helps ensure your interests are prioritized, and agents operate within a highly structured system supported by extensive listing databases and legal protections.

2. Finding Your Dream Home: The Listing Landscape

Portugal

Portugal does not have a centralized Multiple Listing Service (MLS) like in the U.S. Instead, property listings are scattered across multiple websites, agencies, and often include off-market “hidden” gems accessible only through agents’ personal networks. This means you may need to work with an experienced local agent who can tap into these connections and help you discover the best opportunities.

United States

In the U.S., the MLS is your secret weapon — a comprehensive, regularly updated database that shows almost all properties available for sale in your area. Your buyer’s agent uses MLS to find homes that fit your criteria quickly and efficiently.

3. The Buying Process: What to Expect

Portugal

• Negotiation and Representation: Since agents often represent both parties, negotiations can be more informal and relationship-based. It’s important to hire an independent lawyer to review contracts and protect your interests.
• Contracts: You’ll sign a Promissory Contract (Contrato de Promessa de Compra e Venda) early on, which is legally binding and requires a deposit (usually 10-30% of the purchase price).
• Final Step: The purchase is completed at a notary’s office by signing the Escritura (final deed), where you also pay property taxes and fees.

United States

• Representation: Your buyer’s agent negotiates exclusively on your behalf.
• Contract and Due Diligence: Offers are made formally, often with contingencies for inspections and financing.
• Closing: You finalize the sale at a title company or attorney’s office, signing numerous documents and paying closing costs.

4. Legal Paperwork and Language Considerations

Portugal

All legal documents and contracts are in Portuguese — this includes your purchase agreements and the final deed. If you don’t speak Portuguese, it’s essential to hire a trusted translator or bilingual lawyer who can explain everything clearly. Only the Portuguese version is legally binding.

United States

Documents are in English, which may be easier if you’re a U.S. retiree. However, if English isn’t your first language, consider professional review or translation.

5. Legal and Financial Hurdles to Prepare For

Portugal

• You’ll need a Portuguese fiscal number (NIF) and bank account to buy property.
• Property transfer taxes (IMT), stamp duties, and notary fees can add to your costs.
• Unlike the U.S., you won’t have title insurance but will rely on your lawyer to verify clear ownership.

United States

• Closing costs and agent commissions can be substantial.
• Title insurance protects you from ownership disputes.
• Legal protections and contingencies are generally stronger and more standardized.

6. Tips for U.S. Retirees Buying in Portugal

• Work with an agent who understands retirees’ needs: Experience with international buyers and knowledge of Portuguese property laws is crucial.
• Hire an independent lawyer: Protect yourself in a dual agency market and ensure all paperwork is crystal clear.
• Start early with your NIF and bank account: These are required to complete the purchase.
• Budget for taxes and fees: Factor these into your total costs.
• Learn about healthcare and residency permits: Property purchase is just one step toward settling comfortably.
• Visit multiple times if possible: Portugal’s market can be nuanced; seeing properties and neighborhoods in person is invaluable.

Retiring abroad is a big decision, and buying a home in Portugal can be a wonderful way to start this new chapter. Understanding the differences in real estate practices between Portugal and the U.S. will help you navigate the process smoothly and confidently.

If you’re curious about Portugal and how it might fit into your retirement plans, working with the right agents and legal experts can help make that dream a reality. But if you’re not quite ready to take the leap abroad just yet, remember that Florida and other U.S. locations still offer many wonderful options for comfortable, affordable retirement living — giving you the time and space to explore all your possibilities.