Here is our quick guide to taxes in Portugal when buying a property in Portugal. For the full comprehensive list of all the taxes associated not only when buying but after purchase including rentals and income tax please fill out the form at the bottom of the page to download it instantly.
In this video, Portugal Homes’ Co-Founder and CEO, David Poston, elaborates on the costs of buying a home in Portugal. There are some government costs, Legal fees and if you choose to live overseas, fiscal representation services that companies like Portugal Homes can provide.
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.
Stamp Duty
0.8% of the agreed Purchase Price, to be payed during the deed.
Lawyers’ Fees
Usually paid either in advance or 50/50, depending on the lawyer and the work involved at the beginning. Lawyers fees are broken into lots of different sectors such as Conveyancing, Fiscal Representation, Golden Visa Acquisition, and Non- Habitual Residence Application.
Notary and Land Registry 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.
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