The buying costs

When you decide to buy a property you need to take in consideration the additional costs involved - the buying costs. At Lago Real we will always ask if the budget you give us to work with is inclusive of the buying costs or not, this ensures that we are showing you the right properties at the right prices. Below are all the buying costs you will need to pay when purchasing a property in Portugal.


Property Purchase Tax - IMT (Imposto Municipal sobre Transamissões)

IMT is the property purchase tax. This is calculated at the higher value of either the value on the deeds or the rateable value of the property. The rate is variable, the cost depends on the type and value of the property.

Table showing the IMT for private property purchase used as a primary residence

# Purchase price (in €)
Percentage applied
Amount deducted from %
1 Up to €92,407
0% €0.00
2 €92,407 to €126,403
2% €1,848.14
3 €126,403 to €172,348
5% €5,640.23
4 €172,348 to €287,213
7% €9,087.19
5 €287,213 to €574,323
8% €11,959.32
6 Above €574,323
6% €0.00

Table showing the IMT for private property purchase used as a rental or holiday home

#
Purchase price (in €)

Percentage applied

Amount deducted from %
1 Up to €92,407
1%
€0.00
2 €92,407 to €126,403 2% €924.07
3 €126,403 to €172,348 5% €4,716.16
4 €172,348 to €287,213 7% €8,163.12
5 €287,213 to €550,836 8% €11,035.25
6 Above €550,836 6% €0.00


Stamp Duty

The rate of Stamp Duty varies according to the type and value of the property. The rate is between 0.4% and 0.8%. 

Corporate property ownership transactions pay no Stamp Duty.


Lawyers fees

We recommend that you employ the services of a lawyer when purchasing a property. They will take care of all the legal issues involved in purchasing a property in Portugal. They will look after your interests at all stages of the transaction, making sure that all licenses are in place, that the contracts are in order and they will clarify any legal questions that you may have. Generally speaking lawyers will charge between 1% and 1.25% of the purchase price. You can choose any lawyer you wish, however if you would like to see more about the law firm we recommend please click here.


Notary and registration fees

The Notary is the official department from the government that will give you the official certified documents that prove you own the property. 

The land registry will record you as the legal owner of the property and provide the lawyers with official confirmation. 

Combined, their costs are approximately €1,500.


Mortgage Stamp Duty

This is an additional tax based on the amount of mortgage that you may take. If you would like more information about mortgage and the bank we work with please click here.