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Buying in Portugal

COSTS & TAXES

Property Purchase Costs and Taxes in Portugal

Understand the main taxes and costs to budget for when buying property in Portugal.

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  • Tax rules: 2026

QUICK ANSWER

What does it cost to buy property in Portugal?

The two main taxes on a Portuguese property purchase are IMT (property transfer tax) and Stamp Duty on the acquisition. IMT depends on the value, the property's classification, the region and the buyer's situation; Stamp Duty on the acquisition is charged at 0.8% of the same tax base.

Alongside the taxes there are completion costs, professional fees and, where financing is used, mortgage-related charges. Ongoing costs such as IMI, insurance and condominium charges start after completion.

Figures depend on the transaction. This page explains the components rather than promising a single percentage.

Quick overview

It helps to think about purchase costs in three moments rather than as one number.

Before completion

Potential:

  • Property inspection
  • Legal review
  • Valuation
  • Mortgage preparation

At purchase

Typically:

  • IMT
  • Stamp Duty
  • Completion and registration costs
  • Professional fees

After purchase

Potential:

  • IMI (annual municipal property tax)
  • Condominium charges
  • Insurance
  • Maintenance
  • Resort or management fees where applicable

Purchase taxes

Both purchase taxes are calculated on the same tax base: the higher of the purchase price and the property's taxable value (VPT). Using a lower taxable value where the price is higher is not correct.

IMT — property transfer tax

IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) is due on the acquisition. For urban residential property acquired by a Portuguese tax resident, it follows a progressive table with a marginal rate and a deduction; other classifications use flat rates.

HOW IMT IS DETERMINED

  • The tax base — the higher of price and taxable value
  • The property's classification (residential, rural, other urban)
  • Whether the property is on the mainland or in an autonomous region
  • Whether the buyer will be Portuguese tax resident at completion
  • Whether the property will be the buyer's own permanent residence
  • Whether a first-home (under-35) regime applies

Rural property is taxed at 5% and other urban property at 6.5%, without progressive brackets.

Stamp Duty on the acquisition

Stamp Duty on the transfer of immovable property is charged at 0.8% of the same tax base used for IMT, and is paid alongside it at completion.

Other completion costs

These are not taxes, but they are part of the money needed at completion.

OTHER COMPLETION COSTS

  • Legal fees for review and completion
  • Notary or authenticated instrument costs
  • Land registry and registration costs
  • Certificates and document requests
  • Power of attorney where the buyer is represented

Mortgage-related costs

Where the purchase is financed, additional costs arise on the financing itself.

MORTGAGE-RELATED COSTS

  • Bank arrangement and processing fees
  • Property valuation required by the lender
  • Stamp Duty on the loan
  • Life and property insurance required by the lender
  • Registration of the mortgage

These are not included in the purchase tax calculator.

Ongoing ownership costs

Budget for the annual cost of holding the property, not only for buying it.

ONGOING OWNERSHIP COSTS

  • IMI — annual municipal property tax
  • AIMI where the total taxable value exceeds the statutory threshold
  • Condominium charges
  • Insurance
  • Utilities and maintenance
  • Resort or rental-management fees where applicable

Are you buying as a non-resident?

Portugal introduced a specific IMT regime in 2026 for certain acquisitions of urban residential property by non-residents. Where it applies, IMT on the acquisition is determined by that rule rather than by the progressive residential table.

Planning to become Portuguese tax resident after buying?

The outcome can depend on when residence is established and on the statutory conditions and application requirements. The amount payable at acquisition is not automatically reduced by an intention to move.

Calculate as a non-residentUnderstand the assumptions

First-home regime for buyers aged 35 or under

A first-home regime can substantially reduce, and in some cases remove, IMT and acquisition Stamp Duty for qualifying buyers aged 35 or under acquiring their own permanent residence. It is subject to strict conditions.

TYPICAL CONDITIONS

  • Age 35 or younger at acquisition
  • Not considered a dependent for Portuguese IRS purposes
  • First qualifying acquisition
  • No ownership of urban residential property at the date of purchase or during the previous three years
  • Property intended exclusively as own permanent residence

Above the full-exemption threshold the relief is capped, so higher-value acquisitions are not fully exempt.

Worked examples

Four illustrative purchases of €500,000, calculated with the 2026 rules. Open one in the calculator to change the inputs.

€500,000 main home

Portuguese tax resident — Mainland

IMT
€26,236.65
Stamp Duty
€4,000
Total purchase taxes
€30,236.65
Open in the calculator

€500,000 second home

Portuguese tax resident — Mainland

IMT
€27,300.11
Stamp Duty
€4,000
Total purchase taxes
€31,300.11
Open in the calculator

€500,000 residential property

Non-resident buyer

IMT
€37,500
Stamp Duty
€4,000
Total purchase taxes
€41,500
Open in the calculator

€500,000 main home

Portuguese tax resident — Madeira

IMT
€22,795.78
Stamp Duty
€4,000
Total purchase taxes
€26,795.78
Open in the calculator

Purchase Cost Calculator

Estimate IMT and Stamp Duty for your own purchase using the 2026 rules, with a transparent breakdown of how the result was produced.

Open the calculator

OFFICIAL SOURCES

Rates and thresholds are configured from official Portuguese sources.

  • Código do IMT, Artigo 17.º — Autoridade Tributária e AduaneiraIMT rates and brackets applicable to property acquisitions.
  • Ofício-Circulado n.º 40129/2026 — Autoridade Tributária e AduaneiraPractical IMT tables applicable for the 2026 tax year.
  • Compra da casa (IMT e Imposto do Selo) — Autoridade Tributária e AduaneiraAdministrative guidance on tax due on a property purchase.
  • Código do Imposto do Selo, Tabela Geral, verba 1.1 — Autoridade Tributária e AduaneiraStamp Duty of 0.8% on the onerous transfer of immovable property.
  • Código do Imposto do Selo, Artigo 7.º-A — Autoridade Tributária e AduaneiraStamp Duty relief associated with the first-home regime.
  • Decreto-Lei n.º 97/2026, de 20 de maio — Diário da República2026 regime applicable to certain acquisitions by non-residents.

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Frequently asked questions

The main taxes on the acquisition are IMT (property transfer tax) and Stamp Duty at 0.8%. Both are calculated on the higher of the purchase price and the property's taxable value.

For urban residential property acquired by a Portuguese tax resident, IMT uses a progressive table: the tax base is multiplied by a marginal rate and a fixed deduction is subtracted. Rural and other urban property use flat rates of 5% and 6.5%.

A specific 2026 rule applies to certain acquisitions of urban residential property by buyers who are not Portuguese tax residents at completion. Where it applies, the amount payable at acquisition is determined by that rule.

The VPT is the property's taxable value in the Portuguese system. IMT and Stamp Duty are calculated on the higher of the purchase price and the VPT, so a higher VPT increases the tax.

The autonomous regions use higher thresholds in the IMT tables, which usually results in a lower amount of IMT for the same price.

Yes. IMI is charged annually by the municipality, and AIMI can apply where the total taxable value held exceeds the statutory threshold. Condominium charges and insurance are separate ongoing costs.

No. Professional fees, registration and completion costs are separate from IMT and Stamp Duty and should be budgeted in addition to them.

It can. Acquisitions by companies, funds and other entities follow different rules and are not covered by the calculator on this site.

Related guides

Where most buyers go next.

Purchase Cost Calculator

Estimate IMT and Stamp Duty for your own purchase using the 2026 rules, with a transparent breakdown of how the result was produced.

How to Buy

A clear, step-by-step overview of the Portuguese purchase process, from first search to final deed.

Legal Support

Independent legal review before you sign a reservation, pay a deposit or enter into a promissory purchase agreement.