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 that 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 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)
Information provided by MC&A - Attorneys at Law Av. da Liberdade, 262 - 4º Esq, 1250-149 Lisbon, Portugal Tel: +351 21 356 99 30, Fax: +351 21 356 99 39 Website / email