Taxes

The A to Z for buying taxes in Portugal

As you might have seen, there are a considerably numbers of taxes that need to be taken into account during the buying process of an investment property in Portugal.

With that in mind, our guide specifically focuses on the costs of buying a home in Portugal. There are some aspects that you need to consider youself, like government costs, legal fees and if you choose to live overseas, fiscal representation services, which you can find as part of the services that Portugal Homes provides.

If you're still having some doubts or questions on the matter, be sure to watch the video further down on this page, where Portugal Homes’ Co-Founder and CEO, David Poston, elaborates on the costs of buying a home in Portugal.

Government Fees

1. IMT

The biggest tax here in Portugal when you buy a property is called IMT (Imposto Municipal Sobre Transações) and it is calculated as a percentage of your purchase price; there is a variable discount against your percentage that is also dependant on your purchase price.

The range is from 2% to 6% on residential purchases, and 6.5% for commercial properties. Properties under €92.000 are exempt. The IMT can be paid moments before the deed.

2. Stamp duty

0.8% of the agreed Purchase Price, to be payed during the deed.

3. Registration Fees

These are also payable at or just after the deeds and usually total around 1000€.

As the taxes you have to pay depend on your purchase price; it is difficult for us to put a number on it until you have chosen a property of interest. However, expect 8% of your purchase to cover all stamps fees and taxes.

If you would like a full breakdown of all your taxes when buying and renting a property in Portugal then please download our Guide to Portugal which includes everything you need to know when buying a house in Portugal.

Legal Fees

You’ll normally need a solicitor or licensed conveyancer to carry out all the legal work when buying and selling your home. With that in mind, legal fees are typically from 5.000 € to 7.000 €, depending on the negotiation itself, meaning that it can achieve 1% to 1.25% of the purchase price.

Other type of costs

4. IMI

In order to start renting, the property needs to have a short-term renting license associated with it. To do so, the application needs to be submitted to the City Hall, with the right documentation, including a specific communication to the Portuguese Finance department declaring the short-term renting business. Usually, this process can take one to two weeks to be put in place and successfully receive an AL Code.

During the process of this application, there's a few steps the After Sales has to follow:

5. Utilities

In order to start renting, the property needs to have a short-term renting license associated with it. To do so, the application needs to be submitted to the City Hall, with the right documentation, including a specific communication to the Portuguese Finance department declaring the short-term renting business. Usually, this process can take one to two weeks to be put in place and successfully receive an AL Code.

During the process of this application, there's a few steps the After Sales has to follow:

6. Condominium

In order to start renting, the property needs to have a short-term renting license associated with it. To do so, the application needs to be submitted to the City Hall, with the right documentation, including a specific communication to the Portuguese Finance department declaring the short-term renting business. Usually, this process can take one to two weeks to be put in place and successfully receive an AL Code.

During the process of this application, there's a few steps the After Sales has to follow:

7. Fiscal Representation

In order to start renting, the property needs to have a short-term renting license associated with it. To do so, the application needs to be submitted to the City Hall, with the right documentation, including a specific communication to the Portuguese Finance department declaring the short-term renting business. Usually, this process can take one to two weeks to be put in place and successfully receive an AL Code.

During the process of this application, there's a few steps the After Sales has to follow:

Advantages of the Non-Habitual Resident Programme, with Gary Harland - Co-founder & CEO

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