What it costs to buy in Portugal
On Portugal’s median asking price of €750,000, that is €23k – €68k on top.
Budget 3–9% on top of the asking price — among the lowest in southern Europe. Transfer tax (IMT) is progressive and effectively flat at 6% once you pass about €634,000, and there is no VAT on a resale home.
Last checked 11 September 2026 against the sources listed at the foot of this page.
The asking price is only part of what you'll pay to buy in Portugal. On top of it come a transfer tax, stamp duty, and notary and legal fees — together usually adding somewhere around 6–8% of the purchase price, depending on the value and whether it's your main home.
This guide breaks those costs down in plain English, with a worked example, plus the taxes you'll keep paying once you own. Figures are estimates — band thresholds shift slightly each year and your exact position depends on the property and your circumstances, so confirm with your lawyer. Every Portuguese listing on Habio also has a built-in buying-cost calculator you can run against the actual price.
The lines that dominate the bill
- Transfer tax (IMT), second home
- 1–7.5% marginal
- 2026 brackets run 1% to €106,346, then 2/5/7/8%, flat 6% from €633,931 and 7.5% above €1,150,853.
- Stamp duty (Imposto do Selo)
- 0.8%
- On the same base as IMT — the higher of price or tax value — at every purchase.
Every cost, in full
| Cost | Amount | What it is |
|---|---|---|
| Transfer tax (IMT), second home | 1–7.5% marginal | 2026 brackets run 1% to €106,346, then 2/5/7/8%, flat 6% from €633,931 and 7.5% above €1,150,853. |
| Transfer tax (IMT), own permanent home | 0–7.5% marginal | Exempt to €106,346. A non-resident buyer rarely qualifies for this scale. |
| Transfer tax, other urban / rural land | 6.5% / 5% | Flat rates with no progressive bands, for non-residential and rustic property. |
| Stamp duty (Imposto do Selo) | 0.8% | On the same base as IMT — the higher of price or tax value — at every purchase. |
| Notary / Casa Pronta deed | €375–700 | €375 for the purchase alone, €700 where purchase and mortgage are registered together. |
| Land registry | €225 online / €250 in person | A flat fee to register the acquisition, plus €15–20 for a permanent certificate. |
| Legal fee | 1–2% + 23% VATunconfirmed | Optional, since the notary handles the deed, but standard for foreign buyers. No fixed scale. |
| Estate agent fee | ≈5% + 23% VATunconfirmed | Paid by the seller under the mediation contract. Market custom rather than a statutory rate. |
| Annual property tax (IMI) | 0.3–0.45% urban | Municipal rate on the tax value (VPT), set yearly by each council. 0.8% on rustic property. |
| AIMI wealth surcharge | 0.7% / 1% / 1.5% | On combined residential tax value above €600,000 per person. Couples get a €1.2m allowance. |
Who pays the estate agent
No. The seller signs the mediation contract and pays the commission; it is inside the asking price.
The number you need before you can complete
NIF (Número de Identificação Fiscal) — mandatory before the deed, and free. No representative is needed to obtain it, but a non-EU/EEA owner must appoint one, or opt into electronic notifications, within 15 days of buying.
Recently changed, or about to
IMT brackets were uprated roughly 2% for 2026. The fiscal-representative rule was softened: non-EU residents can now enrol for electronic notifications instead of appointing a representative. Non-compliance carries a €75–7,500 fine.
Sources
Tax authorities, registries and notarial bodies first. Check the figure you care about before you rely on it.
- Portal das Finanças — IMT rate tables (Article 17, CIMT)primaryOfficial 2026 IMT brackets and the 5%/6.5% flat rates.
- Portal das Finanças — fiscal representation FAQprimaryWhen a representative is mandatory, the e-notification alternative, the 15-day deadline and the penalty.
- Portal das Finanças — issuing a NIF to non-resident foreign nationalsprimaryNIF procedure for non-residents; no representative required at issuance.
- PwC Portugal — Guia Fiscal 2026: IMI and AIMIIMI 0.3–0.45% urban / 0.8% rustic; AIMI bands and allowances.
- Cost of a public deed: fees and registrationsCasa Pronta €375/€700, registry €225/€250, 0.8% stamp duty.
This is general information for a non-resident buyer of a residential property, not tax or legal advice. Rates change, reliefs depend on your circumstances, and regional variation is the rule rather than the exception — take local professional advice before you commit to anything.
Cite this page
Habio, “Cost of buying property in Portugal”. https://habio.ai/guides/cost-of-buying-property-in-portugal
https://habio.ai/guides/cost-of-buying-property-in-portugal
Free to quote with attribution to Habio. Every figure links to its source.
What you would actually be paying for
See what property in Portugal is actually asking, by region.
The process in more detail
The upfront costs at a glance
When you buy a home in mainland Portugal, budget for four main one-off costs on top of the price:
- IMT — property transfer tax, the biggest single cost, charged on a sliding scale.
- Stamp duty (Imposto do Selo) — a flat 0.8% of the price.
- Notary & land registration — typically around €1,000 to formalise and register the deed.
- Legal fees — a conveyancing lawyer usually charges around 1–1.5% of the price, plus 23% VAT.
IMT: the transfer tax
IMT (Imposto Municipal sobre as Transmissões) is the tax you pay to transfer ownership, and it's the cost that varies most. It's charged on a marginal sliding scale: lower portions of the price are taxed at lower rates, higher portions at higher rates, up to a maximum marginal rate of 8%.
The rate also depends on use. A property that will be your permanent main residence gets a more generous lower band (the first slice can be tax-free), while a second home or holiday property pays from the first euro. Above roughly €645,000 the marginal scale gives way to a flat 6%, and above about €1.12m a flat 7.5% applies to the whole price.
Because the bands are marginal, IMT on a modest home is a few percent, but it climbs steadily on higher-value property — which is why the transfer tax dominates the budget at the top end.
Stamp duty, notary and legal fees
Stamp duty (Imposto do Selo) is straightforward: 0.8% of the purchase price, paid at completion.
The notary and land registry formalise and record the deed — usually around €1,000 in total, though it varies. Most foreign buyers also use an independent lawyer to run due diligence, check the title and the property register, and handle completion; budget roughly 1–1.5% plus VAT. It's money well spent on a cross-border purchase.
A worked example
Take a €350,000 apartment bought as a second home. IMT on the second-home scale comes to roughly €17,000–18,000; stamp duty at 0.8% is €2,800; notary and registration around €1,000; legal fees at ~1.25% plus VAT around €5,400.
That's roughly €26,000–27,000 in costs — about 7.5% on top of the price. The same property as your main residence would cost a little less, because the primary-residence IMT bands are lower. Run the exact numbers on any listing's buying-cost calculator.
Costs you keep paying once you own
Ownership brings a few recurring costs worth planning for:
- IMI — the annual municipal property tax, typically 0.3%–0.45% of the property's rateable (tax) value for urban homes, set by each council.
- AIMI — an additional annual tax that only applies to higher-value property portfolios (above a per-owner threshold), so most single-home buyers won't pay it.
- Condominium fees — if you buy an apartment or a property on a managed development, monthly charges cover shared maintenance, pools and gardens.
- Utilities, insurance and, if you let the property, income tax on rental earnings.
If you're using a mortgage
Borrowing adds its own costs: a bank arrangement/valuation fee, plus a small additional stamp duty on the loan itself. Non-residents can typically borrow up to around 70% of the value, so you'll need a larger deposit than a resident would. Factor financing costs in early if a mortgage is part of your plan.
Frequently asked questions
How much are the costs of buying property in Portugal?
Beyond the price, budget for roughly 6–8% in one-off costs: IMT transfer tax (the largest, on a sliding scale up to 8%), stamp duty at 0.8%, notary and registration of about €1,000, and legal fees of around 1–1.5% plus VAT. The exact total depends on the price and whether it's your main home.
What is IMT in Portugal?
IMT (Imposto Municipal sobre as Transmissões) is the property transfer tax paid when you buy. It's charged on a marginal sliding scale — lower portions of the price at lower rates, up to a maximum 8% — with more generous bands for a permanent main residence than for a second home. Above roughly €645,000 a flat 6% applies, and above about €1.12m a flat 7.5%.
Do you pay property tax every year in Portugal?
Yes — IMI, the annual municipal property tax, is typically 0.3%–0.45% of the property's rateable value for urban homes, set by each council. Higher-value portfolios may also pay AIMI, but most single-home owners won't. Apartments and managed developments also carry condominium fees.
Should I use a lawyer to buy in Portugal?
It's strongly recommended for foreign buyers. An independent lawyer runs due diligence, checks the title and property register, confirms there are no debts attached to the property, and handles completion. Budget around 1–1.5% of the price plus VAT.
This guide is general information, not legal, tax or immigration advice. Rules change — verify the current position with official sources and a qualified professional before acting. Last reviewed June 2026.