Purchase costs when buying Property in Portugal
We made a list for you of the expenses involved when buying a property in in Portugal. Please keep in mind that laws and rates are subject to change over time. Always ask us for a detailed quotation of all costs involved before starting the buying process to know exactly what to expect.
- Transmission Tax (IMT)
For a living house this will be 0 or 1% of the purchase value (until € 92,000) and any value above that is charged with 2%. If you buy a house for your permanent living in Portugal, you are exempt of this tax and 0% will be applied.
Rural land is charged with 5% of the purchase value. Urban registered buildings that are used for storage are charged with 6,5% of the purchase value.
Example: when you buy a house of € 90,000 the IMT will be 1%: € 900
When you buy a piece of land of € 25,000 the IMT will be 5%: € 1,250
If you buy a mixed property (both with registered house and land) the notary will assign a value to the house and the land and charge the accompanying taxes.
- Stamp Duty Tax (Imposto de selo)
This tax is 0,8% of the purchase value.
Your property need to be registered on your name after the deed. Costs of this registration depends on the number of articles the property exists of.
For properties with 1 article sold with a value under € 10,000 the registration cost € 100
For all other properties, the first articles registration is € 250 and all the other articles are € 50 each.
- Solicitor / Notary Costs
The solicitor / notary assembles all paper work and makes the promissory contract (if needed) and final purchase contract. She executes the official process of signing the deed with the seller and buyer. The costs per deed are between € 400 and € 500,-
In all cases it is advised to ask a lawyer to help you with your property purchase. Ask him to find out if there is a mortgage on the property, if there are any issues with registration/owners, unpaid property taxes, illegal buildings, etc. Make sure the lawyer speaks and writes in good English so he can translate the contracts and all other important documents for you.