Costs Associated with buying a Portuguese property

August 28, 2021

So you’ve been through the process of finding your dream home in Portugal, what are the costs associated with the transaction?

Assuming you’ve appointed a lawyer, you should expect to pay 50% of their fees at the start of the process and the remaining 50% at the end. A survey is optional in Portugal and should you wish to have one done, this will vary between 300€ and 500€. At the escritura or final deed stage you will be expected to pay the following fees:

Notary fees – these vary so it is best you check the legal fees you will be charged before you commit.

Property Transfer Tax (IMT) – This is a percentage of the property purchase price that is payable by the buyer and is calculated depending on whether the property is a primary residence, a secondary one, a holiday home or a rental property. The tax rate varies from 1% to 8% so it can be quite significant – it’s best that you ask your lawyer or the agent to calculate this for you.

Mortgage Stamp Duty – If you are taking out a mortgage, you will at this stage also have to pay this tax which is based on the value of the mortgage. In general, it is advisable for you to budget for around 10% of the purchase price as a guide for the costs involved – though it is often less than this. It is worth noting that the IMT, as well as some other fees, are not applicable when buying a property which is held offshore.

The tax regime for non-habitual residents in Portugal also has some benefits during property acquisition – that level of tax advice is way above our pay grade but we can introduce you to a local expert who can guide you through the system. If you haven’t already filled in a contact form to start a conversation with us, please do so now and we look forward to talking to you. 

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