Property Buying Costs in Portugal — 2026 Guide
Every tax, fee, and charge involved when buying property in Portugal — broken down in plain English so you know exactly what to budget.
Updated April 2026Purchase Costs When Buying Property in Portugal
Buying property in Portugal involves a handful of taxes and fees on top of the purchase price. The good news is that the process is well-established, the costs are predictable, and — compared with many European countries — the total is reasonable.
For most buyers, total purchase costs come in at around 7–10% of the purchase price. The exact figure depends on the property value, whether it's your primary residence or a holiday home, and whether you're taking a mortgage in Portugal. Every cost varies depending on the purchase price, so it pays to understand the breakdown before you start viewing.
This guide walks through every cost involved when buying a property in Portugal in 2026 — from the two main purchase taxes through to legal fees, notary costs, and the ongoing costs after the purchase. We've included current tax rates, worked examples, and practical tips on what to budget.
IMT — Property Transfer Tax
The single biggest purchase cost, and the one most buyers want to understand first.
IMT — Imposto Municipal sobre as Transmissões Onerosas de Imóveis — is Portugal's property transfer tax. It's a one-off tax paid by the buyer before signing the deed, and it's calculated on the purchase price or the property's tax-assessed value (valor patrimonial tributário), whichever is higher.
IMT is a progressive tax, meaning the rate increases as the property value rises. The rates also differ depending on whether the property is your permanent residence or a secondary/holiday home. Non-residents buying a second home pay the highest rates.
2026 IMT Rates — Permanent Residence
If you're buying a primary home in Portugal — meaning you'll register it as your permanent residence — you benefit from lower IMT rates and an exemption on properties below the threshold.
| Purchase Price | Marginal Rate | Deduction |
|---|---|---|
| Up to €101,917 | Exempt | — |
| €101,917 – €139,412 | 2% | €2,038.34 |
| €139,412 – €190,086 | 5% | €6,220.70 |
| €190,086 – €316,772 | 7% | €10,022.42 |
| €316,772 – €633,453 | 8% | €13,190.14 |
| €633,453 – €1,102,920 | Flat 6% | — |
| Above €1,102,920 | Flat 7.5% | — |
IMT for Second Homes and Non-Residents
If you're buying a holiday home, investment property, or are a non-resident purchasing residential property, the IMT rates start from 1% (with no exemption at the lower end) and rise more steeply. The top brackets mirror the primary residence table but without the zero-rate threshold — so every purchase attracts IMT regardless of the price.
When and How to Pay IMT
IMT must be paid before signing the deed (escritura). Your lawyer will typically handle the calculation and payment at the tax office (Finanças) on the morning of completion, or in the days beforehand. You'll receive a receipt confirming payment — the notary will need this before the deed can proceed.
Worked example
Buying a €250,000 apartment as your permanent residence: IMT = €250,000 × 7% − €10,022.42 = €7,477.58. The same property as a second home would cost roughly €12,500 in IMT.
Stamp Duty (Imposto do Selo)
A flat-rate tax that applies to every property purchase, no exceptions.
Stamp duty in Portugal is charged at a flat rate of 0.8% on the purchase price or the tax-assessed value, whichever is higher. Unlike IMT, there's no sliding scale and no exemption — every buyer pays it, regardless of whether the property is a primary residence, a holiday home, or an investment.
On a €250,000 property, stamp duty comes to €2,000. On a €400,000 property, it's €3,200. Simple maths, no surprises.
If you're taking a mortgage in Portugal, there's an additional stamp duty of 0.6% charged on the mortgage amount. This is separate from the property stamp duty and covers the loan agreement itself.
IMT and stamp duty together
These two purchase taxes make up the bulk of your costs when buying property in Portugal. On a €300,000 primary residence, expect to pay roughly €11,000 in IMT and €2,400 in stamp duty — around €13,400 in taxes and fees before anything else.
Legal Fees, Notary, and Registration
The professional costs that keep your purchase safe and legal.
Choose a Lawyer (Advogado)
Hiring a lawyer is not legally required in Portugal, but it is strongly recommended — especially for a foreigner buying property for the first time. Your lawyer handles due diligence on the property, checks for debts and encumbrances, reviews the purchase contract and promissory contract (CPCV), and represents your interests at every stage.
Legal fees typically run between 1% and 1.5% of the purchase price, plus 23% VAT. On a €250,000 property, that's roughly €2,500–€3,750 plus VAT. Some lawyers charge a flat fee instead, particularly for straightforward transactions. Always confirm the fee structure upfront.
Notary Fees
The notary (notário) officiates signing the deed and ensures the transaction is legally recorded. Notary fees in Portugal are relatively modest — typically €250–€500, depending on the complexity. If you opt for a Casa Pronta (one-stop-shop) service at the land registry office, the combined notary and land registration fees are even lower, usually around €375 total.
Land Registry (Registo Predial)
After the deed is signed, the property must be registered in your name at the land registry. Registration costs are fixed at around €250 per property. Your lawyer will typically handle this on your behalf within a few days of completion.
Budget guide: professional fees
For a typical purchase, budget €3,000–€5,000 for legal fees, notary fees, and registration costs combined. This is a small price for the peace of mind that comes from knowing your purchase is properly handled.
Mortgage Costs in Portugal
The extra costs if you're financing your purchase with a Portuguese mortgage.
Taking a mortgage in Portugal adds several costs on top of the base purchase taxes. Portuguese banks will typically lend up to 70–80% of the property value to non-residents (and up to 90% for residents), but each bank has its own fee structure.
Bank Valuation
The bank will commission an independent property valuation before approving your mortgage. This usually costs €250–€400, though some banks absorb it as part of their processing fees.
Mortgage Stamp Duty
A separate stamp duty of 0.6% applies to the mortgage amount. On a €200,000 loan, that's €1,200. This is in addition to the 0.8% property stamp duty — the two are separate charges.
Bank Processing and Insurance
Most banks charge a processing fee (comissão de dossier) of around €500–€1,000. You'll also be required to take out life insurance and property insurance as conditions of the mortgage. Life insurance premiums vary depending on your age and the loan term; property insurance is usually modest — a few hundred euros per year.
Not taking a mortgage?
If you're buying with cash, you can skip this entire section. No bank valuation, no mortgage stamp duty, no processing fees. It's one of the reasons cash purchases are significantly simpler and faster in Portugal.
Ongoing Property Costs
The running costs after the purchase — what you'll pay each year as a property owner in Portugal.
IMI — Municipal Property Tax
IMI (Imposto Municipal sobre Imóveis) is Portugal's annual property tax, similar to council tax in the UK. It's levied on the tax-assessed value of the property — not the purchase price — and the rate is set by each municipality, typically between 0.3% and 0.45% for urban residential property.
In practice, IMI tends to be very reasonable compared with property taxes in other European countries. A €250,000 apartment might have a tax-assessed value of €120,000, resulting in an annual IMI bill of just €360–€540.
AIMI — Wealth Tax on Property
AIMI (Adicional ao IMI) is a supplementary wealth tax that applies to individuals whose total Portuguese property holdings exceed €600,000 in tax-assessed value. For most buyers of a single property on the south bank, AIMI won't apply. If it does, the rate is 0.7% on the portion above €600,000 (or above €1,200,000 for married couples filing jointly).
Condominium Costs
If you buy an apartment, you'll pay monthly condominium fees to cover shared building costs — maintenance, cleaning, lifts, communal insurance, and reserve funds. These costs vary widely: a modest apartment block might charge €30–€60 per month, while a development with pools, gardens, and concierge could run €100–€250 or more.
Utilities and Running Costs
Annual running costs for water, electricity, gas, and telecoms are broadly similar to other southern European countries. Budget roughly €100–€200 per month for a typical apartment, more for a larger villa.
Total Costs — What to Budget
Putting it all together: here's what you should set aside on top of the purchase price to cover all costs when buying property in Portugal.
IMT
0–7.5%Progressive transfer tax based on property value and purpose. Primary residence buyers benefit from lower rates.
Stamp Duty
0.8%Flat rate on the purchase price. Plus 0.6% on any mortgage amount.
Legal Fees
1–1.5% + VATLawyer, due diligence, and contract review. Essential for any foreigner purchasing a property in Portugal.
Notary & Registration
€500–€750Notary fees and land registry registration costs. Fixed amounts, not percentage-based.
Rule of thumb
Budget 8% of the purchase price to cover all taxes, fees, and professional costs involved when buying property in Portugal. If you're taking a mortgage, add another 1–2% for mortgage costs. That gives you a comfortable margin with no surprises.