Taxes and Costs for Buying Property in Portugal
Taxes and Costs When Buying Property in Portugal for Expats
Buying property in Portugal as an expat involves several taxes and associated costs. Understanding them upfront can help you plan your budget accurately.
1. IMT – Property Transfer Tax
A one-time tax paid when purchasing a property. Calculated on the purchase price or the tax-assessed value (VPT), whichever is higher.
Progressive rates (2025) for urban residential properties, main residence:
| Property Value (€) | IMT Rate |
|---|---|
| Up to 92,407 | 0% |
| 92,407.01 – 126,403 | 2% on the amount above 92,407 |
| 126,403.01 – 172,348 | 5% on the amount above 126,403 |
| 172,348.01 – 287,213 | 7% on the amount above 172,348 |
| 287,213.01 – 574,323 | 8% on the amount above 287,213 plus fixed sum |
| Above 574,323 | Check current table for residents/non-residents |
⚠️ Note: IMT is slightly higher for secondary homes or non-residents. Check official rates here.
2. Stamp Duty (Imposto de Selo)
A flat 0.8% of the property price or declared value. Applies to all buyers, residents or non-residents.
3. VAT (IVA)
Only applies to new properties sold by developers. Rate: 23% (mainland Portugal); slightly lower in autonomous regions (22% / 18%). IMT does not apply to new-build properties; VAT replaces it.
4. IMI – Annual Property Tax
Calculated on the tax-assessed value (VPT) of the property. Rates vary by municipality: typically 0.3% – 0.8% for urban properties. Paid annually, usually in 1–3 installments (April, July, November).
5. Notary and Deed Costs
Public deed (escritura) is mandatory to register the property. Typical cost: €1,000 – €2,000, depending on property value and complexity.
6. Land Registry
Registration at the Conservatória do Registo Predial. Typical cost: €250 – €500.
7. Mortgage Costs (if applicable)
- Mortgage registration fee: 0.5% of the loan amount
- Property appraisal: €150 – €500
- Mandatory insurance: home insurance + life insurance linked to mortgage
- Bank commissions: loan opening and maintenance fees
8. Additional Costs
- Certificates and documentation (property tax, registry, licenses): €50 – €150
- Certified translations (for expats): €50 – €200 per document
- Lawyer or solicitor fees: €500 – €1,500 depending on service
9. Practical Example
For an expat buying a T3 in Braga for €350,000 (main residence):
| Cost Type | Estimated (€) |
|---|---|
| IMT | 11,000 |
| Stamp Duty | 2,800 |
| Notary / Deed | 1,500 |
| Land Registry | 350 |
| Appraisal & Mortgage Registration | 700 |
| Total Approx. | 16,350 € |
Annual IMI estimate: €350 – €700 (municipality dependent).
Key Notes for Expats
- Non-residents may face slightly higher IMT rates on secondary homes.
- VAT vs IMT: If buying a new property from a developer, check if VAT applies instead of IMT.
- Always consult a solicitor familiar with Portuguese real estate law to avoid surprises.
- Keep in mind additional banking or currency transfer costs if funding from abroad.
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