What buying property in Portugal really costs
2 min read · Updated in
In short
Budget roughly €9,417.04 on top of a €250,000 price for a main home on the mainland. Transfer tax, stamp duty, the deed and registration.
None of it is financed by the mortgage, which is why the 10% deposit is never the whole story. Buying as a non-resident, or buying something that will not be your main home, raises it considerably.
What are the taxes called, and what do they do?
IMT is the transfer tax, paid by the buyer before the deed. It is progressive, on the higher of the price and the tax value, and a main home on the mainland pays nothing up to €106,346.
Imposto do Selo is stamp duty: 0.8% on the same base, plus 0.6% on the capital if you borrow for five years or more.
What does each price band cost?
Transfer tax has brackets, so the cost does not rise smoothly with the price: crossing a threshold is where it jumps.
| Price | Transfer tax | Stamp duty 0.8% | Deed and registration | Total |
|---|---|---|---|---|
| €150,000 | €1,008.98 | €1,200.00 | €375 | €2,583.98 |
| €250,000 | €7,042.04 | €2,000.00 | €375 | €9,417.04 |
| €350,000 | €14,236.65 | €2,800.00 | €375 | €17,411.65 |
| €500,000 | €26,236.65 | €4,000.00 | €375 | €30,611.65 |
What does a mortgage add?
A valuation of about €250, arrangement fees near €300 with 4% stamp duty on them, and 0.6% stamp duty on the capital. €1,200.00 on a €200,000 loan, due on the day.
Who pays the agent?
The seller, in the overwhelming majority of Portuguese transactions. If you are asked to pay a buyer's commission, that is unusual and worth questioning.
What is the tax value, and why does it matter?
The VPT is the value the tax office assigns to a property, and it is typically 40% to 70% of market value. Transfer tax and stamp duty are charged on whichever is higher, price or VPT, so on a bargain, on an inheritance settlement or on a sale between relatives, the tax can exceed what the price suggests.
Worked example
A €250,000 main home with a €200,000 mortgage
- Transfer tax
- €7,042.04
- Stamp duty on the purchase
- €2,000.00
- Stamp duty on the loan
- €1,200.00
- Casa Pronta: purchase and mortgage
- €700
- Valuation and bank fees
- €550
- Deposit at 10%
- €25,000
- Cash needed on completion day
- €36,492.04
Source and date
- Portuguese transfer tax code, articles 12 and 17
- General Stamp Duty Table
Updated in . This page describes the rule in force and is not a substitute for tax or legal advice on a specific case.
Frequently asked questions
About €9,417.04 on a €250,000 main home, before mortgage costs. None of it is financed.
Yes, 0.8% of the purchase base, plus 0.6% of the loan capital if you borrow.
Normally no. The seller pays the agency commission.