The asking price is only part of what you will pay when you buy a home in Portugal. Transfer tax, stamp duty, notary and land registry fees, legal support and, if you borrow, bank charges all sit on top. For most buyers these extras add between 6% and 10% to the purchase price, and in 2026 the figure can be noticeably higher for buyers who are not tax resident in Portugal. This guide breaks down the costs of buying property in Portugal so you can budget with confidence before you make an offer.
IMT: the property transfer tax
IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) is the largest one-off cost for most buyers. It is paid before the deed is signed and is calculated on the higher of the purchase price or the property’s taxable value (VPT).
For a home that will be your permanent residence on the mainland, IMT works on progressive brackets that were updated by 2% for 2026, as published by the Tax Authority in Ofício Circulado 40129/2026:
| Value of the property | Marginal rate | Amount to deduct |
|---|---|---|
| Up to €106,346 | 0% | – |
| €106,346 – €145,470 | 2% | €2,126.92 |
| €145,470 – €198,347 | 5% | €6,491.02 |
| €198,347 – €330,539 | 7% | €10,457.96 |
| €330,539 – €660,982 | 8% | €13,763.35 |
| €660,982 – €1,150,853 | 6% flat | – |
| Above €1,150,853 | 7.5% flat | – |
To calculate it, multiply the value by the marginal rate and subtract the deduction. Second homes and properties bought to let follow a separate, slightly less favourable table.
The 2026 rule for non-resident buyers
Since 25 May 2026, Decree-Law 97/2026 applies a flat 7.5% IMT rate, with no exemptions or reductions, when the buyer of residential property is not tax resident in Portugal. There are exceptions, most importantly for buyers who become tax resident in Portugal within two years of the purchase and for properties placed on the long-term rental market at moderate rents. If you are relocating, plan your residency timeline with your lawyer before signing, because it can change your tax bill by thousands of euros.
IMT Jovem: relief for buyers aged 35 or under
Buyers aged 35 or under who are buying their first permanent home pay no IMT and no stamp duty on purchases up to €330,539, with partial relief up to €660,982. There is no nationality requirement, but you must be tax resident and the exemption must be requested before the deed.
Stamp duty (Imposto do Selo)
Stamp duty on the purchase is 0.8% of the price (or the taxable value, if higher). If you take out a mortgage, there is an additional 0.6% stamp duty on the loan amount, plus 4% stamp duty on the interest you pay over the life of the loan.
Notary, deed and land registry
The deed (escritura) can be signed at a notary, at a Casa Pronta office or with a lawyer or solicitor. Registering the property in your name at the Land Registry is mandatory. Together, deed and registration fees typically come to €700 to €1,500, depending on where the deed is signed and whether a mortgage also needs to be registered.
Legal fees
A lawyer is not legally required, but for international buyers it is strongly recommended. Your lawyer checks the land registry certificate, the tax record (caderneta predial), the habitation licence, any debts or charges on the property, and reviews the promissory contract and deed. Fees are usually a fixed amount or around 1% to 2% of the price. Make sure the quote states clearly what is included.
Mortgage-related costs
If you finance the purchase, budget for the bank’s valuation fee, an arrangement or processing fee, compulsory life and home insurance and the stamp duty on the loan mentioned above. Our guide to the mortgage in Portugal for non-residents explains loan-to-value limits and what banks ask for.
Ongoing costs after you buy
- IMI (annual property tax): between 0.3% and 0.45% of the taxable value for urban properties, set by each municipality.
- AIMI: an additional property tax that only applies when the total taxable value of your residential property exceeds €600,000 per person.
- Condominium fees: for apartments, covering building maintenance, cleaning and insurance of common areas.
- Utilities and insurance: electricity, water, gas, internet and home insurance.
A worked example: a €350,000 apartment
Imagine you buy a €350,000 apartment on the mainland as your permanent home.
| Cost | Tax resident buyer | Non-resident buyer (7.5% IMT) |
|---|---|---|
| IMT | €14,237 | €26,250 |
| Stamp duty (0.8%) | €2,800 | €2,800 |
| Deed and registration (estimate) | €1,000 | €1,000 |
| Legal fees (estimate, 1%) | €3,500 | €3,500 |
| Total on top of the price | ≈ €21,500 (6.1%) | ≈ €33,550 (9.6%) |
These figures are illustrative. Your actual costs depend on the taxable value, the location, your residency status and whether you use a mortgage.
Who pays the agent’s commission?
In Portugal the real estate agent’s commission is normally paid by the seller. At TMP, buyers do not pay agency fees: you can read more about how we work as a real estate agency in Portugal for international buyers.
Frequently asked questions about the costs of buying property in Portugal
How much should I budget on top of the purchase price?
As a rule of thumb, set aside 6% to 8% of the price if you are tax resident, and closer to 10% if you are a non-resident buyer paying the flat 7.5% IMT rate.
When do I pay IMT and stamp duty?
Both are paid before the deed is signed. The notary or lawyer will not complete the deed without proof of payment.
Can I avoid the 7.5% IMT rate as a foreigner?
The flat rate depends on tax residency, not nationality. Buyers who become tax resident in Portugal within two years, or who rent the property at moderate rents, may qualify for the standard rates. Get legal advice before signing.
Are there costs if I buy a new-build?
The same taxes apply. VAT is normally already included in the price of residential new-builds, so it is not an extra cost for the buyer.
Knowing your numbers early makes every other decision easier. If you are planning a purchase, talk to our team or explore our support to buy property in Portugal.
