When purchasing property in Portugal, there are several associated costs that buyers should be aware of. These costs can include taxes, fees, and other expenses related to the transaction.

 

   Here’s a breakdown of the primary costs involved:

 

TAXES

​IMT (Imposto Municipal sobre Transmissões)

. Description

   Property Transfer Tax.

. Rate

   Variable, depending on the property’s purchase price and type (residential, rural, or commercial).

 

PRIMARY RESIDENCES

   Rates range from 0% to 6%, depending on the price bracket.

 

SECONDARY RESDIDENCES

   Rates can go up to 7.5%.

. A flat rate of 10% applies for properties purchased by companies in offshore jurisdictions.

 

STAMP DUTY (Imposto do Selo)

​. Description

   Tax on the transfer of property.

. Rate

   0.8% of the purchase price.

 

LEGAL & ADMINISTRATIVE FEES

​NOTARY FEES

. Description

   Fees for the notary who oversees the property transaction.

. Rate

   Varies, typically between €500 and €1,500.

 

REGISTRATION FEES

. Description

   Fees for registering the property in the new owner’s name with the Land Registry (Conservatória do Registo Predial).

. Rate

   Around €250 to €500.

 

PROFESSIONAL FEES

​LAWYER FEES

. Description

   Fees for legal services provided by the lawyer representing the buyer.

. Rate

   Typically 1% to 2% of the purchase price, but it can vary or a flat fee is negotiated full full service.

 

SURVEYOR FEES

. Description

   Fees for a property surveyor to inspect the property.

. Rate

   Varies, generally between €300 and €1,000, depending on the property and complexity of the survey.

 

MORTGAGE COSTS (If Applicable)

​BANK FEES

. Description

   Fees charged by the bank for processing the mortgage.

. Rate

   Varies, often a few hundred euros for administration and processing.

 

VALUATION FEES

. Description

   Fees for the property valuation required by the bank.

. Rate:

   Typically between €200 and €800.

​

MORTGAGE STAMP DUTY

. Description

   Tax on the mortgage amount.

. Rate

   0.6% of the mortgage value.

 

MISCELLLANEOUS FEES

​PROPERTY COMMISSION

. Description

   Fees charged by the real estate agent.

. Rate

   Typically paid by the seller, around 5% of the sale price, but this can sometimes be negotiated to be shared.

 

UTILITIES & CONNECTION FEES

. Description

   Fees for connecting utilities like water, electricity, and gas.

. Rate

   Varies based on the service provider.

 

   When planning a property purchase in Portugal, it’s essential to budget for these additional costs on top of the property price. Generally, buyers should expect to pay an additional 7% to 10% of the property’s purchase price to cover these expenses.