The Costs of Buying a Property

Understand the costs involved when buying a property in Portugal...

Whether considering a cash purchase or financing a property through a loan (registering a mortgage), there are several costs which have to be met by the purchaser:

• The deposit (entrada) – usually between 10 percent and 20 percent of the purchase price
• The property transfer tax (Imposto Municipal sobre as Transmissões - IMT). Generally speaking, the government will take 5 percent of the value for a property in the countryside, 6.5 percent for an urban property (where an urban property is designated exclusively for the residence of the buyer the local taxes varies at a rate up to 6 percent according to the property value), and 8 percent for a property purchased using an offshore account
• The purchaser will also be liable to pay notary fees and land and property registration fees, which vary according to the purchase price of the property. A lawyer acting on the purchaser's behalf will usually sort this out but a list can be obtained from the local municipal or town council (Câmara Municipal)
  • A useful place for information and advice on notaries are the Citizens' Shops (Lojas do Cidadão)
• Stamp Duty (Imposto de Selo) – generally 0.8 percent of the purchase price
• Estate agency fees – these are normally around 5 percent and are included in the sale price
• The costs of the mortgage (Credito Habitação)

• Costs
• Mortgages
• Purchasing Guide
• Property Taxes
• Property Terms
• Selling Property
• The Sale