Property taxes when buying real estate in Portugal

 

IMT TAX

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 550.836  upto euro 1.000.000 the flat fee is 6%.

Above euro 1.000.000, the IMT in 2020 is 7,5%.
 

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

 Property purchase price (in euros) Taxes
Applicable Tax Deductible rebate
​(in euros)
 0 –  € 92.407 0% 0
 > € 92.407 to € 126.403 2% 1.848,14
 > € 126.403 to  € 172.348 5% 5.640,23
 > € 172.348 to € 287.213 7% 9.087,19
 > € 287.213 to € 574.323 8% 11.959,32
 > € 574.323 6% (flat rate)

 

Second homes or holiday property:

 Property purchase price (in euros) Taxes
Applicable Tax Deductible rebate
​(in euros)
 0 –  € 92.407 1% 0
 > € 92.407 to € 126.403 2% 924,07
 > € 126.403 to  € 172.348 5% 4.716,16
 > € 172.348 to € 287.213 7% 8.163,12
 > € 287.213 to € 550.836 8% 11.035,25
 > € 550.836 6% (flat rate)

 

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.

As a rule of thumb calculate around euro 1500,- for the various documents as well the deeds done by an official registered notary office.