Costs of Buying Property in Portugal: IMT, Taxes & Fees

Buying a property in Portugal involves much more than the advertised price tag. Between taxes, fees, and bank commissions, the additional costs can range from 5% to 10% of the property's total price.

These charges include IMT (Transfer Tax), Stamp Duty, notary fees, land registration, insurance, and bank commissions. If you are purchasing with a mortgage, you will also face appraisal and documentation fees.

In this comprehensive guide, we explain all the costs associated with buying a house in Portugal, complete with practical examples, real values, and essential tips for international buyers.

At RE/MAX Cidadela, with over 20 years of experience, 4,800 families assisted, and the best-rated agency on the Cascais Line on Google, we help buyers every day to plan their budget with accuracy and transparency.

Buyer Summary — Buying Costs in Portugal

• Total buying costs in Portugal usually range from 5% to 10% of the property price, depending on the property value, buyer profile, mortgage use and intended purpose.
• If you are buying with a mortgage, you should normally budget 8% to 10% for taxes and closing costs, excluding the down payment.
• IMT is usually the largest upfront tax and must be paid before the deed. Banks do not finance IMT, so this amount must come from your own funds.
• Stamp Duty applies twice when there is a mortgage: 0.8% on the property purchase and 0.6% on the mortgage amount.
• Non-resident buyers need a larger cash reserve. In addition to a typical 30%–40% down payment, they must also cover taxes, deed, registration, legal costs and bank fees.
• Important 2026 update: non-resident buyers purchasing residential property in Portugal may be subject to a flat 7.5% IMT rate, unless an exception applies.
• Location changes the real budget. Buying in Cascais, Lisbon, Oeiras or premium coastal areas usually means higher absolute taxes and closing costs because property prices are higher.
• Before signing the CPCV, calculate the full acquisition cost, not just the price of the property. A €500,000 home can easily require tens of thousands of euros in taxes and costs before completion.

Main Costs When Buying a House in Portugal

1. IMT (Municipal Property Transfer Tax) — the heaviest cost (and can be €0 for eligible young buyers)
2. Stamp Duty — 0.8% on the purchase and 0.6% on the mortgage amount
3. Deed (Escritura) + Registration — €400 to €1,000
4. Bank Fees (if mortgaged) — ± €1,500 to €3,000
5. Complementary Costs — renovations, condominium fees, insurance, moving

Rules that impact the budget the most:

• Property Location: Zones like Cascais, Oeiras, Lisbon, and Sintra often have higher costs and prices.
• Purpose: HPP (Primary Residence) vs. Investment (higher tax rate).
• Use of Mortgage: Increases initial costs due to bank fees and Stamp Duty on the loan.

Practical Tip: Set aside 8% to 10% of the property value to avoid surprises.

 Which Costs Should I Consider Beyond the Purchase Price?

Beyond the purchase price, there are fiscal, legal, and banking costs. Ignoring them is the most common mistake among buyers.

Main Categories:

• IMT – Municipal Property Transfer Tax
• Stamp Duty
• Deed and Registration
• Bank Commissions and Mortgage Costs
• Complementary Costs (insurance, renovations, services)

How Do Buying Costs in Portugal Compare to Other Countries?

One of the most common questions among international buyers is whether Portugal is an expensive country in terms of acquisition costs. The short answer: Portugal sits in the middle range compared to other European and Anglo-Saxon markets.

Key Insight:
Portugal’s main cost driver is the IMT, which is paid upfront before the deed. Unlike Spain or France, Portugal does not charge notarial fees based on a percentage of the price, and real estate agent commissions are typically paid by the seller — a significant advantage for buyers.

2026 Update: 7.5% IMT for Non-Resident Buyers in Portugal

From 2026, one of the most important changes for international buyers is the new IMT rule for non-residents. Buyers who are not tax residents in Portugal may be subject to a flat 7.5% IMT rate when acquiring residential property in Portugal.

This is a major difference compared with the standard progressive IMT tables, where the effective tax rate depends on the property value, purpose of purchase and applicable deductions.

In practical terms, this means that a non-resident buyer purchasing a €600,000 residential property may pay significantly more IMT than a resident buyer or a buyer covered by the normal progressive regime.

There may be exceptions, including situations where the buyer becomes a Portuguese tax resident within the legally defined period or where the property is allocated to qualifying residential rental purposes. Because the rules depend on the buyer’s fiscal status and the intended use of the property, this should be checked before signing the CPCV or transferring any deposit.

Expert Tip: if you live abroad and are planning to buy in Portugal, do not calculate your budget using only the standard IMT table. First confirm whether the 7.5% non-resident rule applies to your case.

IMT – The "Heavy Weight" Tax (and the Big News for Young Buyers)

The IMT (Municipal Property Transfer Tax) is, historically, the largest single portion of the closing costs. It is paid to the State before the deed and is levied on the greater of two values: the purchase price or the VPT (Taxable Asset Value).

Note: For buyers who are not subject to the 7.5% non-resident IMT rule, the standard progressive tables below may apply, depending on the property type, purpose and buyer profile.

1. IMT Rate Table (General Application: Investment / Second Home)

If you are over 35 or buying for investment, general rates apply. The calculation follows a system of progressive tax brackets. (Note: Bracket values are updated annually in the State Budget. Always consult the table

IMT Table 2026 (Mainland – Investment / Second Home

Expert Tip: IMT must be paid (and the payment slip issued) before the deed. If you are using a mortgage, be aware: banks do not finance the IMT value. This amount must come from your own capital.

The Impact of Location and VPT on Your Wallet

The rule is clear: IMT is levied on the highest value between:

1. The transaction value (Purchase Price).
2. The Taxable Asset Value (VPT).

Stay Alert: Before making an offer, request the Caderneta Predial (Property Tax Booklet) to check the current VPT. At RE/MAX Cidadela, we perform this preliminary analysis to ensure there are no fiscal surprises on the day of closing.

Stamp Duty (Imposto do Selo - IS)

The "little brother" of the IMT, but it also adds to the bill. There are two types of Stamp Duty in a home purchase:

1. Stamp Duty on the Acquisition (0.8%):
   • Levied on the purchase value (or the VPT, whichever is higher).
2. Stamp Duty on the Mortgage (0.6%):
   • Levied on the total amount of the contracted loan.
   • Paid when the money is made available by the bank.

Stay Alert: Stamp Duty is paid at the closing and is not financed by the bank.

Deed, Registration, and Notary Fees

The deed officially finalizes the purchase, and registration inscribes the property in your name.

The final value depends on factors such as the property's price, the number of participants, and the transaction's complexity (e.g., if a mortgage, inheritance, or powers of attorney are involved).

Expert Tip: For transactions involving non-residents, international loans, or Powers of Attorney, oversight by an experienced notary and a specialized lawyer makes a critical difference for legal security.

Banking Commissions and Mortgage Costs

If you use a mortgage, the bank charges specific fees.

Your Rights: Evaluation Deadline and Binding Offer (ESIS)

Before signing, the bank must provide the ESIS (European Standardised Information Sheet), which explains all the conditions and costs of the loan. The client is entitled to a reflection period before accepting.

Expert Tip: The ESIS allows you to compare proposals from different banks. Never accept a rate without seeing this document.

Complementary Costs (The "Hidden" Ones)

After the deed, additional expenses arise that many forget:

Tip: Set aside an extra 2%–3% of the house value for post-purchase adjustments.

What is the Additional Municipal Property Tax (AIMI)?

AIMI (Adicional ao Imposto Municipal sobre Imóveis) is an additional annual tax introduced in 2017.

It applies to owners whose total Taxable Asset Value (VPT)—summing all urban properties—exceeds €600,000. This is an essential consideration for international investors and those buying multiple properties.

How AIMI Works

• It is calculated based on the sum of the VPTs of the owner's urban properties as of January 1st each year.
• Exclusions: Properties classified for commercial, industrial, or service activities are excluded.
• The tax is collected annually in September by the Tax Authority.

AIMI Rates in Force 

Expert Tip (Joint Taxation): For couples with high-value assets, opting for joint taxation (tributação conjunta) can double the exemption limit (to €1.2 million) and significantly reduce the amount payable.

How Location (Municipality) Influences the Annual IMI Rate

The IMI (Imposto Municipal sobre Imóveis) is an annual charge levied on the property's VPT. Although it is not a direct purchase cost, it is a recurring ownership cost and must be factored into financial planning.

Rates are set by each municipality within legal limits (0.3% to 0.45%).

See the common averages in the Lisbon Metropolitan Area, according to the most recent municipal deliberations:

Expert Tip: The IMI is calculated on the VPT, which does not always match the market price. In newly built or rehabilitated properties, the VPT tends to rise after reevaluation, slightly increasing the tax in subsequent years.

Crucial Information for International Buyers

The process of buying property in Portugal requires specific steps for non-residents. Ignoring these can cause significant delays.

1.  Specific Fiscal and Legal Requirements

2.  Mortgage Costs for Non-Residents

3.  Terminology and Comparison

CPCV: The Promissory Contract Before Completion

The CPCV — Contrato de Promessa de Compra e Venda — is the promissory contract usually signed before the final deed. It defines the price, payment schedule, deposit, deadlines, conditions and consequences if one party fails to complete the transaction.

For international buyers, the CPCV is especially important because it should protect the buyer while mortgage approval, legal checks, tax planning, fund transfers and powers of attorney are being completed.

Before signing, buyers should confirm:

• the property documents are valid;
• the IMT treatment is clear;
• mortgage approval is realistic;
• the deposit amount and deadlines are manageable;
• any conditions for cancellation are written into the contract.

How Long Does It Take to Buy Property in Portugal?

Most property purchases in Portugal take between 30 and 90 days from offer acceptance to deed. The timeline depends on mortgage approval, document validation, legal checks, bank valuation and the availability of the notary or Casa Pronta service.

For cash buyers, the process can be faster. For international buyers using a mortgage, powers of attorney, foreign income documentation or currency transfers, the process usually takes longer.

A typical timeline is:

The most common delays come from incomplete property documents, late mortgage approval, missing NIF, delayed bank account opening, powers of attorney, or international fund transfers.

Practical Examples by Region and Value

These values are indicative averages and vary according to the type of property and purpose (primary home vs. investment).

3 Real Examples — Updated Values for Lisbon and the Cascais Line

1. The Non-Resident Buyer

Apartment on the Cascais Line — €500,000

Property Value: €500,000
Profile: Non-resident buyer purchasing a second home or investment property
Financing: 70% mortgage / 30% down payment

Total initial cash needed: around €197,500–€199,500, including down payment and acquisition costs.

2. The Relocating Family

T3 in Carcavelos, Oeiras or Cascais — €650,000

Property Value: €650,000
Profile: Family relocating to Portugal, buying with a mortgage
Financing: 70% mortgage / 30% down payment

Total initial cash needed: around €261,000–€268,000, including the down payment and acquisition costs.

Important note: if the buyer becomes Portuguese tax resident within the legally defined conditions, or if another exception applies, the final IMT treatment may be different. This should be checked before signing the CPCV.

3. The International Investor

Villa in Cascais — €1,800,000

Property Value: €1,800,000
Profile: International investor, premium buyer or non-resident family
Purpose: Investment, second home or future relocation
Financing: Cash purchase or low leverage

For acquisitions at this level, it is essential to analyse not only the upfront acquisition costs, but also the annual ownership costs, especially IMI and AIMI. In premium areas such as Cascais, Estoril, Quinta da Marinha, Birre, Oeiras and Lisbon, the annual tax impact can become relevant, particularly when the buyer already owns other property in Portugal.

 FAQ – Frequently Asked Questions

How much does it cost to buy a house in Portugal?

Buying a house in Portugal usually involves additional costs of around 5% to 10% of the property price, depending on the value of the property, whether you use a mortgage, your buyer profile and the purpose of the purchase.

These costs normally include IMT, Stamp Duty, deed and registration fees, bank commissions, legal support, insurance and other administrative expenses.

Who pays the IMT in Portugal?

The buyer pays the IMT. This tax must be paid before the deed, and the payment proof is normally required before the purchase can be completed.

IMT is not usually financed by the bank, so the buyer must have this amount available from their own funds.

What is Stamp Duty when buying property in Portugal?

Stamp Duty is a tax paid by the buyer. In a property purchase, it normally applies at 0.8% on the purchase price or on the VPT, if higher.

If the buyer uses a mortgage, there is also Stamp Duty on the loan amount, usually 0.6% for mortgage contracts over five years.

Do non-residents pay more IMT when buying property in Portugal?

From 2026, non-resident buyers may be subject to a flat 7.5% IMT rate when acquiring residential property in Portugal.

This can make the upfront cost significantly higher than under the standard progressive IMT tables, especially in areas such as Cascais, Lisbon, Oeiras and premium coastal locations.

Does the 7.5% IMT rate apply to all foreign buyers?

Not necessarily. The key factor is usually tax residency, not nationality.

A foreign buyer who is tax resident in Portugal may be treated differently from a buyer who lives abroad and is not tax resident in Portugal. Before signing the CPCV, the buyer should confirm whether the 7.5% non-resident rule applies to their specific case.

Can a non-resident avoid the 7.5% IMT rate?

There may be exceptions, depending on the buyer’s fiscal status and the intended use of the property.

For example, the treatment may be different if the buyer becomes tax resident in Portugal within the legally defined conditions, or if the property is allocated to qualifying residential rental purposes. This should always be checked with legal and tax support before making a binding commitment.

Can I include closing costs in the mortgage?

In most cases, no. IMT and Stamp Duty must be paid separately and are not usually financed by the bank.

This is especially important for non-resident buyers, because Portuguese banks often finance a lower percentage of the property value, meaning the buyer may need a larger down payment plus all acquisition costs.

Is IMI part of the buying costs?

No. IMI is not a closing cost. It is an annual property tax paid by the owner after the purchase.

However, it should still be considered when planning the total cost of owning a property in Portugal, especially in high-value areas or when the buyer owns several properties.

Do international buyers need a NIF to buy property in Portugal?

Yes. All buyers need a NIF — Número de Identificação Fiscal — to buy property in Portugal.

For international buyers, the NIF is usually one of the first steps, because it is needed to open a bank account, sign contracts, pay taxes and complete the deed.

How much cash does a non-resident buyer need to buy in Portugal?

A non-resident buyer usually needs enough cash for the down payment, taxes and closing costs.

In many cases, Portuguese banks finance only around 60% to 70% of the property value for non-residents. This means the buyer may need a 30% to 40% down payment, plus IMT, Stamp Duty, deed, registration, legal costs and bank fees.

 Conclusion – Plan Well and Buy with Confidence

Buying a home is one of life's most important decisions. Knowing all the costs prevents surprises and allows for confident decisions.

Practical Summary:

• Calculate 8%–10% for additional closing costs.
• Non-residents: Be ready for a larger down payment (30%–40% LTV).
• Verify your need for a Fiscal Representative and obtain your NIF immediately.
• Compare bank and insurance proposals.

At RE/MAX Cidadela, we assist buyers in Cascais, Oeiras, Lisbon, and Sintra in planning every step of the purchase with clarity and confidence. We provide lawyers, consultants, and mortgage specialists, all in one location.

Trust the Local Experts in Cascais and Lisbon

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By Pedro Pettermann
Pedro Pettermann is Broker at RE/MAX Cidadela in Cascais, with over 20 years of experience in the real estate markets of Cascais, Lisbon, Oeiras, and Sintra. MBA from IE Business School, he combines strategic vision with deep local knowledge. Recognized as a specialist in luxury real estate, mortgage credit, and digital marketing, he helps owners and buyers make safe and profitable decisions.

At RE/MAX Cidadela, we have already helped over 4,800 families buy or sell their dream homes.