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Portugal Property Buying Costs
Buy a property in Portugal with the expertise and knowledge of Portugal's Most Active International Agency; Edison Fraser on your side.
It is so important to work with a brokerage you can trust and who will support you and guide you through the entire process. Edison Fraser will become your property buying ally.
Before deciding to purchase any property in Portugal it is essential to understand the associated costs.
With every property purchase in Portugal there are associated buying costs. The costs vary based on the price of the property and sometimes the type of development. Below we will provide below an outline of these costs and what they cover.
Transfer Tax (IMT) and Stamp Duty:
These are the taxes charged by the Portuguese Government and apply to all property transactions.
Stamp Duty
When buying a property in Portugal, you will usually pay 0.8% of the purchase price for the Portuguese equivalent of Stamp Duty.
IMT
This is payable if the property is a resale (second transfer).
Property Transfer Tax (Imposto Municipal sobre Transmissôes Onerosas de Imóveis – IMT) is paid by the buyer when there is a transfer of ownership of real estate in Portugal. The percentage of tax charged can range from 1% to 8%, depending on the purchase price, the location of the property and whether it is first or second home in Portugal. The acquisition of more than 75% of the share capital of a Portuguese company that owns real estate located in Portugal, is also subject to IMT.
Find further information on Tax here.
Lawyers Fees:
A lawyer can 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 to be signed and they will clarify any legal questions that you may have. Working with a trusted lawyer can significantly reduce the stresses involved with property purchase and as such we have established a brilliant local network of legal professionals ready for use at your disposal.
Notary Fees:
The Notary is the official department from the government that will give you the official certified documents that prove that you own the property.
Typically you can expect to pay a notary between €800 and €1000. To be on the safe side, allow around 1.5 to 2% of the total property price for notary and land registry paperwork.
Mortgage Stamp Duty:
This is an additional tax based on the amount of mortgage that you may take.
Registration Fees:
The land registry will record you as the legal owner of the property and provide the lawyers with official confirmation.
We recommend you budget 10% of the purchase price of the property although it is often less than this. When you reserve any property in Portugal with us, you are given an exact breakdown of the costs involved so you are able to plan ahead.
When you purchase an off-plan property in Portugal, one of the benefits is that only a small proportion of the buying costs are payable at the start. This is to cover the cost of the lawyers completing their preliminary checks. The rest of the buying costs are deferred until the Public Deed.
For more information please write to us or feel free to call us on +44 20 8064 2261 and a member of the Portugal Property will be happy to answer any of your questions.
We look forward to helping you find your dream Portugal property!
You will find a more detailed analysis of the buying costs for property in Portugal, through our buying internationally related pages and latest news.
