When buying a property in Portugal, there are various costs, Taxes, and other expenses to be aware of. 

  • IMT - "Imposto Municipal sobre Transmissões" - Municipal Property Transfer Tax 
    IMT is payable on the transfer property in Portugal. IMT is payable at the tax department before the completion. The buyer or his/her lawyer is liable to y pay the IMT before the completion. The IMT rates varies with the nature and value of the property, your lawyer will provide you with the correct IMT amount payable
  • Table below Provides further information

                             IMT TAX for Residents

Value of the property Transaction

 %

Below € 92.407

0%

 

€ 92.407 -- € 126.403

2%

 1.848,14

€ 126.403 -- € 172.348

5%

 5.640,23

€ 172.348 -- € 287.213

7%

 9.087,19

€ 287.213 -- € 574.323

8%

 11.959.32

Over € 574.323  

6%

 0€

IMT TAX for Non Residents

Value of the property Transaction

%

 Below € 92.407

1%

 

 € 92.407 -- € 126.403

2%

 924.07

 € 126.403 -- € 172.348

5%

 4.716,16

 € 172.348 -- € 287.213

7%

 8.163,12

 € 287.213 --l € 550.836

8%

 11.035,25

 Over € 550.836

6%

 0€

 

 

Stamp Duty - Imposto de Selo
The "Imposto de Selo" -Stamp Duty is 0,8% from the purchase price. When buying with a mortgage another 0,8% has to be paid over the value of the mortgage. 

  • Lawyer's Costs
    Most lawyers will charge between 1% and 1,5% plus VAT on the purchase price. They will carry out all the necessary searches and prepare the documentation needed for both the promissory contract and the Final Deed.
     
  • Notary and registration fees
    These will have to be paid by the purchaser after signing the final deed of conveyance, costs are around € 750
  • Real Estate Agency fee
    The seller pays the agency  

The total costs associated with the purchase of a property  are approximately between 6% to 10%, depending on the value price:

  • 1% to 1,5% lawyers
  • 1% to 3% Notary, Registration and Stamp Duty.
  • 0% to 6% (IMT) - Property Purchase Tax.  

ANNUAL COSTS: 

If you own property in Portugal you have a council tax to pay each year. 

  • IMI - Imposto Municipal sobre Imóveis  - Council Tax

This tax is paid to the "Câmra Municipal" Local Council, the rate is calculated based on a percentage of the value of the property.

This Payment could also be made through your lawyer, if you are not going to be a resident