One of the first questions buyers ask us is: how much does it actually cost to buy property in Portugal? The honest answer is that on top of the purchase price, you should budget for roughly 6–8% in taxes and fees. Here is exactly where that money goes.
The main costs at a glance
| Cost | Who pays | Typical amount |
|---|---|---|
| IMT (transfer tax) | Buyer | 0–7.5% of purchase price |
| Stamp duty (IS) | Buyer | 0.8% of purchase price |
| Notary and land registry | Buyer | ~€1,000–€2,000 |
| Lawyer | Buyer | 1–2% (min. ~€2,000) |
| Buyer’s agent | Seller | €0 to the buyer |
| Mortgage arrangement (if applicable) | Buyer | 1–2% of loan value |
IMT — Property transfer tax
IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis) is Portugal’s equivalent of stamp duty land tax or transfer tax. It is paid by the buyer on completion.
The rate is calculated on a tiered scale based on the purchase price and the intended use of the property:
IMT for primary residence (Habitação Própria e Permanente)
| Purchase price | Rate |
|---|---|
| Up to €97,064 | 0% |
| €97,064 – €132,774 | 2% |
| €132,774 – €181,034 | 5% |
| €181,034 – €301,688 | 7% |
| €301,688 – €578,598 | 8% |
| Above €578,598 | Flat 6% |
| Above €1,050,400 | Flat 7.5% |
These thresholds are updated annually. Figures shown are for 2025.
IMT for secondary residences and investment properties
If the property is not your primary residence — which is common for international buyers — a flat 7.5% rate applies to the full purchase price. This is an important distinction to discuss with your lawyer early.
Worked example: Buying a €500,000 T2 in Chiado as a secondary residence:
- IMT: €500,000 × 7.5% = €37,500
Stamp duty (Imposto de Selo)
Stamp duty in Portugal is a flat 0.8% of the purchase price, paid by the buyer at the notary.
On a €500,000 property: €4,000.
Notary and land registry fees
The notary presides over the final deed signing (escritura) and the sale must also be registered with the land registry (Conservatória do Registo Predial). Together these typically cost €1,000–€2,000, depending on the value of the property and the complexity of the transaction.
Legal fees
You should always use an independent lawyer when buying property in Portugal. Your lawyer will:
- Check title, planning status and any liens or encumbrances
- Obtain and review the building permit, habitation licence and energy certificate
- Draft and review the CPCV (promissory contract)
- Represent you at the notary
- Register the sale on your behalf
Typical fee: 1–2% of the purchase price, with most lawyers setting a minimum of around €2,000–€3,000 for straightforward transactions. We work with a number of trusted independent lawyers and can make introductions.
Buyer’s agent fee — what you pay us
Nothing. Our fee is paid by the seller’s side, not by you. This is standard practice in Portugal, where the selling agent splits their commission with the buyer’s agent. You receive full independent representation at no cost to you.
Mortgage costs (if applicable)
If you are financing the purchase, add:
- Bank valuation fee: €300–€600
- Mortgage arrangement fee: typically 1–2% of the loan value (or a flat fee, depending on the bank)
- Life insurance and buildings insurance (required by the bank as conditions of the mortgage)
Ongoing costs after purchase
Once you own the property, there are annual running costs to factor in:
IMI (annual property tax): Typically 0.3–0.45% of the valor patrimonial tributário (VPT — the tax rateable value). The VPT is almost always significantly lower than the market price, so your IMI bill is usually modest. A €500,000 apartment might have a VPT of €150,000, making IMI around €500–€675 per year.
Condominium fees (condomínio): If the apartment is in a building with shared areas, you will pay a monthly or quarterly condomínio fee covering cleaning, lift maintenance, building insurance and any sinking fund contributions. Typical range: €50–€300/month depending on the building.
Buildings insurance: Required if you have a mortgage; advisable regardless.
A realistic budget for a €500,000 purchase
| Item | Amount |
|---|---|
| Purchase price | €500,000 |
| IMT (secondary residence, 7.5%) | €37,500 |
| Stamp duty (0.8%) | €4,000 |
| Notary + land registry | €1,500 |
| Legal fees (1.5%) | €7,500 |
| Total | €550,500 |
Budget for 6–8% on top of the purchase price and you will not be caught short.
What we recommend
Get your cost breakdown sorted before you start viewing properties. Know your total budget — purchase price plus costs — and work backwards from there. Your lawyer and your buyer’s agent (us) should both be engaged before you make any offer, not after.
Book a free call and we will walk you through the numbers for your specific situation.