Every cost on top of the purchase price.
Most buyers underestimate this, and some underestimate it badly. Work the figure out before you make an offer. The table below lists each item and what makes it move.
| Item | How much | What it depends on |
|---|---|---|
| IMT, the property transfer tax | Progressive, up to 6 % or 7.5 % | Much the largest of these costs. It is worked out on brackets that vary with the price and with whether the house will be your permanent home or a second one. The whole table is reset each year in the state budget, so any figure you read online may already be out of date. |
| Stamp duty (Imposto do Selo) | 0.8 % | A flat rate on the purchase price, paid when the deed is signed. No brackets and no exemptions to go looking for. |
| Notary and land registry | A few hundred euros | The deed itself plus registering the property in your name. It comes out higher if you take a mortgage, since the charge has to be registered too. |
| Your lawyer | Commonly around 1 % of the price | Some charge a fixed fee instead. Agree the amount in writing before you instruct anyone, and choose a lawyer with no connection to the seller. |
| Mortgage costs, if you borrow | Varies by bank | Valuation, an arrangement fee and further stamp duty on the loan. Portuguese banks tend to lend non-residents around 60 to 70 per cent of the value, where a resident might get 90. |
And then every year: IMI
The municipal property tax falls due annually and is calculated on the property's rateable value, a figure the tax office assigns, which is usually well below the price you paid. Every council picks its own rate inside a national band that runs from roughly 0.3 to 0.45 per cent for urban property. If the total rateable value of everything you own in Portugal passes a national threshold, an additional tax called AIMI applies to the excess.
Rates and brackets change with every state budget. Take this page as orientation rather than tax advice, and have your lawyer or your accountant confirm the current figures before you sign anything.
What people ask about the money
How much should I budget above the purchase price?
Between 6 and 10 per cent of the price in most cases, covering the transfer tax, stamp duty at 0.8 per cent, the notary and registry, and your lawyer. Almost all of that spread comes from the transfer tax, which moves with the price and with whether the house will be your main home.
Is the transfer tax lower if I move in permanently?
Yes. Portugal applies one bracket table to a permanent main residence and a different one to a second home, and at the upper end the gap is substantial. Your lawyer will confirm which table applies to you before the deed.
Can a non-resident get a mortgage from a Portuguese bank?
Yes, and it is common. Expect to be offered around 60 to 70 per cent of the property value rather than the 90 a resident might see, so plan for a larger deposit. Terms differ from bank to bank and depend a good deal on where your income comes from.
Ask for the numbers on a specific house.
Tell us which house you are looking at and we will apply the current transfer tax bracket to the actual price and send you the total in writing. There is no charge for it and it usually takes us a day.