The 26-year-old joins for a fee believed to be around £11 million as the summer transfer window opens.
Costinha arrives after establishing himself as a regular starter in Greece, where he impressed with his defensive reliability, energy down the right flank and growing influence in possession.
"Costinha is a player we have followed closely for some time. He has the defensive capabilities, intensity and understanding of what we value and we feel he will be an excellent addition to the squad,” said Fabian Hurzeler.
"He is also comfortable in and out of possession of the ball and will add competition at right-back, alongside our existing options. I am delighted he has chosen to continue his development with us in the Premier League.”
