Cost of buying real estate in Portugal

When buying a property in Portugal, different costs may apply

As in other countries buying real estate brings along other cost besides the actual  price. Some of these costs are obligatory, other costs are optional. We are happy to help.

 

 

 

Obligatory costs (continental Portugal):

  • Notary fees: They are between two and three percent of the purchase price and are incurred during the actual purchase
  • Real Estate Transfer Tax (IMT): The tax is staggered and a maximum of eight percent is due. For real estate under 92.407 Euro, there is no transfer tax. You can simulate the tax here
  • Property tax: This tax diffenciates depending on the region and must be paid annually. The rate is between 0.3 and 0.8% of the property value according to the land register entry. One should therefore not be surprised if the registered information on the value and size of the real estate usually deviate strongly from the reality
  • Application for a tax number (NIF) approx. 7 EUR
  • Land registry entry (about 250 EUR)
  • VAT on new real estate
  • Stamp duty: This is paid at the tax office and must be presented to the notary when signing the purchase contract. This is 0.8% of the purchase price

 

 

Optional costs:

  • Legal fees: If you hire a lawyer, the costs are between two to three percent of the purchase price
  • Brokerage commission: The ordering principle also exists in Portugal, but in contrast to other countries it is lived out in the spirit of the idea. If you look up a  Portuguese broker, you pay up to five percent of the purchase price.

 

Information provided without guarantee