Property taxes when buying real estate in Portugal

IMT TAX 2023

When buying real estate in Portugal, there are purchase taxes to be paid. You have the IMT tax and stamp duty as general costs.

IMT tax is calculated based on the purchase price of the property. Furthermore, there are 2 different tax tables. The first one for properties bought for ‘permanent’ living in Portugal and the second table which applies to buying a 2nd home such as a holiday property.

For properties, as a second home/holiday property between euro 578.598  upto euro 1.050.400 the flat fee is 6%.

Above euro 1.050.400, the IMT is 7,5%.
 

For property being purchased exclusively for the purpose of a permanent residence:

Second homes or holiday property:

Other applicable values not listed in the chart above:

• Rustic and agricultural plots – 5%
• Other property and urban plots – 6,5%

STAMP DUTY

The stamp duty is calculated in relation to the sales price and paid before completion, when the IMT (transfer tax) is due. The rates are:

• Property: single rate of 0,8% on the declared value.
• Mortgage: Single rate of 0,6% on the value of the mortgage.

OTHER COSTS

Lawyers

Depending on the property purchase price generally lawyers will work on fees ranging from 0.5% to roughly about 1%. Some lawyers might agree on a fixed fee but generally the work is calculated in a percentage based on the purchase price.

Notary fees, property registration, various documents.