The Real Cost Of Purchasing A Property In Portugal
Everything you need to know about the extra costs associated with purchasing a property in Portugal.
If your offer is accepted, you will need to have prepared financing for your purchase. Expats and foreign citizens investing in Portugal are usually offered financing up to 60-70% of the purchase price (subject to bank valuation). In order to obtain funding for your purchase you will need a Portuguese bank account and a Portuguese tax identification number (NIF). Find out how to open a Portuguese bank account and obtain your NIF here.
Associated costs
As with any other property purchase there are some associated costs with the purchase of Portuguese real estate. The total of these costs will vary depending on the purchase price:
Transfer tax (IMT) and stamp duty
The Municipal Property Transfer Tax (Imposto Municipal sobre a Transmissão Onerosa de Imóveis or IMT) is a tax on transfers of properties in Portuguese territory. The rate of IMT is variable depending on the purchase price and is calculated by central tax services based on information presented in the tax declaration.
Stamp duty is around 0.4-0.8%.
If you are sourcing a property through LPS, your dedicated concierge can calculate your IMT + stamp duty!
Legal fees
Ensuring you have a trusted and experienced solicitor safeguarding your interests throughout the buying process is key. They will make sure all your contracts are correct and that there are no issues with the title of the property. You should allow 1-2% of the purchase price for the associated legal fees.
Mortgage stamp duty
If you’re taking on a mortgage in Portugal, you will also pay a mortgage tax.
(Additional costs may apply and vary depending on your bank.)
Registration and notary fees
To be recorded as the new legal owner of the property with land registry, the registration fee including notary fees come to around 1-2% of the purchase price of your new property.
