Calculation: How Much Does It Cost to Purchase and Maintain an Oceanfront Apartment in Portugal

What to Buy in Portugal

Market and Prices

The global crisis of 2008-2009 has touched the real estate market of Portugal. Until after 2014, square meters continued to fall in price. But since then, recovery of the market has begun and it continues so far. At the end of the first quarter of 2020, real estate in Portugal has risen in price by 16.3% on year to year basis.

In the capital and in the popular resorts of Portugal, real estate in the price range of € 50-200 thousand is considered to be inexpensive.

For €200,000-300,000 you can count to purchase apartments in the sleeping areas of Lisbon, but not in new developments. New housing in the capital is available with a budget of  €300,000-350,000 - one-bedroom apartments, €350,000-400,000 - with two bedrooms.

Properties in the capital with good location and roomage  starting from 100 sq. m cost at least € 500,000.

Secondary Market Oceanfront Apartment

Let's calculate the cost of buying and maintaining housing in Portugal using the example of spacious apartments in the  Albufeira outskirts with a swimming pool and ocean view.

Given: 
Area - 126 sq.m
Plot area -106 sq.m
Bedrooms - 3
Bathrooms - 3
Year Built - 2009
Type - secondary market 

The apartments are located in a two-storey townhouse away from the Praia dos Arrifes beach.  The journey by car takes no more than ten minutes.

The apartment was built in 2009, it is fully furnished and is located in a building with a closed territory. There are three bedrooms, an equipped kitchen, a hall with access to a terrace with a barbecue - all this is at the disposal of the new owner. There is a solarium on the roof of the building and another terrace and garden surround the apartment.

How Much Will You Pay at the Purchase Stage

Price of the apartment : €420 000

Purchasing procedure happens in three stages:

• А €5,000 deposit is made when agreeing the cost of the property.
• Another 10-25% deposit is made цhen signing the letter of  intent (within 15 days after agreeing on the cost).
• The remaining amount is paid upon completion of the purchase and sale transaction.

 All payments go through a Portuguese bank account, which can also be opened by non-residents. In order to open and maintain an account, it is necessary to keep a minimum deposit  (from €150) on the balance.

When purchasing with a mortgage, it is important to keep in mind that there is a mortgage tax, which depends on the amount of financing and the conditions of a particular bank.

Lawyer's fee: €4,200

Real estate agencies help with all issues, but you can hire your own lawyer. In Portugal, legal support of the transaction is paid at a rate of 1% of the value of the property (sometimes more expensive).

Notary services: about €480

The Portuguese notary will request from € 250 to € 1500 for his services. Often an agency or a lawyer of one of the parties proposes a candidate for a specialist.

The cost of supporting the transaction by a notary depends on the price of the object (usually the fee is about 1% of the transaction amount plus VAT). In our case, the buyer will pay around € 480.

Translation services: €0

Realtor's Fee: €0

In Portugal, the realtor is not paid by the buyer, but by the seller. Usually the agent receives 5% of the property value for each transaction.

Fiscal Agen’s Fee: €0

To perform any legally significant activity in Portugal, including purchasing real estate, you will need a taxpayer identification number (Numero de identificação Fiscal, NIF). The local TIN can be obtained in 1 day by contacting the tax office (Finanças). A small fee is charged for its manufacture - less than €10.

But in order to issue a local TIN for a non-resident (foreigner not from the EU), it is necessary to involve a fiscal agent - a guarantor to the Portuguese tax authorities. This service usually costs from €150 euros per year.

Property transfer tax: €21,640

The tax rate on the transfer of ownership depends on the value of the object, its location and purpose of use (you can find out the amount of payment in the table).

For example, the tax rate for residential accommodation intended solely for  permanent residence of the owner ranges from 0 to 8% (depending on value). If the property is purchased for less than € 92,407, then the property is not taxed. The payment is made when signing the sales contract.

Stamp duty: €3,360

Stamp duty (Imposto do Selo, IS) for  purchasing  real estate is fixed and is 0.8% of the transaction amount. It is also paid in other situations: inheritance, execution of a long-term lease agreement, winning the lottery, etc.

Recording  the real estate in the Register: €225

Property registration costs starting from €225 euros. If you need urgent registration in the Register,  you will have to pay €450 per one object.

During the meeting with the notary, the client pays the tax bills and signs the sales contract. The notary only has to record the transaction into the Register.

Utility Connection : €0

Once the new owner has submitted the sales contract to the utility providers, all contracts are reissued to the owner’s name. 

Check out residential real estate in Portugal:

205 000 €

Flat in Coimbra, Portugal

72 m² 3 3 1

A bright and modern three-bedroom flat in the quiet residential neighbourhood of Figueira da Foch This excellent three-bedroom flat, situated in the quiet residential neighbourhood of Figueira da Foch, is ideal both as a home and as a rental investment. The property is situated on the ground floor of a three-storey building, in a quiet...

Ola Estate

235 000 €

Apartment in Lisbon, Portugal

42 m² 1 1 1

A new residential complex The Upper Case born in the Dafundo area, near Algés (Lisbon). The yield from renting apartments in this area is 4%-6%. The annual increase in the price per square meter of residential real estate in Lisbon ranges from 10% to 13%. Consisting of 3 different buildings with apartments of typology that range from...

Glacier Location LDA

250 000 €

Apartment in Canico, Portugal

102 m² 1

A gated community located in the prestigious Caniso de Baixo, severalminutes from the beaches, the city center and the highway exit, just a few minutes fromFunchal.“Paradisius” has large surrounding gardens, a swimming pool and a large solarium, withseveral walking paths surrounding the condominium.Furnished, decorated and equipped apartment,...

Intermark Global

250 000 €

Apartment in Lisbon, Portugal

58 m² 2 1 1

Luma Light Living which is located in Lumiar, a privileged area of Lisbon, aims to achieve a harmonious combination of functionality, comfort, and sustainable living. The Lumiar area is known for its desirable location, offering a high quality of life and convenient access to various amenities and services. Real estate in this area...

Glacier Location LDA

280 000 €

Flat in Sintra, Portugal

107 m² 2 1 1

Online Viewing

Glacier Location LDA

295 000 €

Flat in Lisbon, Portugal

50 m² 2 1 1

Online Viewing Rental property

Introducing the new private condominium Quinta do Alverde, the latest residential complex located in the municipality of Oeiras, in Carnaxide. A symbol of stability and comfort, nestled between Lisbon and Oeiras, Quinta do Alverde is surrounded by nature and green areas, occupying a central and strategic location that allows easy access to any...

Glacier Location LDA

299 000 €

Flat in Lisbon, Portugal

47 m² 2 2 2

3D Tour

T1+1 Apartment in Graça | Attic Space | Between Graça and Santa Apolónia Extra living space in one of Lisbon's most authentic neighborhoods. We present this cozy 1+1 bedroom apartment, located on the 2nd floor of a traditional-style building on Rua Tenente Viriato Correia de Lacerda, situated between Graça and...

Ola Estate

300 000 €

Apartment in Funchal, Portugal

83 m² 1

Gated complex with swimming pool and solarium, children's playground and concierge,located a few meters from the Forum Madeira Shopping center, the waterfront,swimming pools, gyms, in one of the best residential areas of Funchal.The apartment is very well furnished and equipped, with good interior areas,with a balcony opposite, overlooking the...

Intermark Global

310 000 €

House in Evora, Portugal

246 m² 2 2 1

T2 House with Swimming Pool, 1,032 m² Plot and Additional Buildings — Perolivas, Reguengos de Monsaraz, Évora The house is located in Perolivas, in the municipality of Reguengos de Monsaraz. The property has a total plot area of 1,032 m² and a total built area of 246 m², comprising 105 m² of main living area...

Ola Estate

310 000 €

Apartment on Madeira, Portugal

86 m² 2 1 2

Rental property

Funchal Centrum: Modern Living in the Heart of Funchal Discover the epitome of urban living in the heart of Funchal with this apartment situated in the unique residential condominium, Funchal Centrum. Nestled in one of the most exemplary areas of the city center, this residence offers unparalleled access to all the city's amenities without...

Glacier Location LDA

315 000 €

Flat in Barreiro, Portugal

101 m² 2 1 2

Online Viewing Rental property

Explore the Luxurious Nooba Complex in the Heart of Barreiro! Prime Location: Nestled along the scenic banks of the Tejo River, Nooba offers a rare fusion of urban sophistication and natural tranquility, mere moments away from Lisbon. Convenient Access: Nooba provides seamless access to Lisbon's dynamic city center, the airport, and...

Glacier Location LDA

320 000 €

Cottage in Portimao, Portugal

33 m² 1 1

Located in the charming city of Portimão, this beautiful property is waiting for its new owner. This property offers a unique opportunity to own a piece of Algarve, it has an allowence to enlarge the existing house to a villa up to 300m2 or if you wish to create your own business with rural tourism allows up to 2000m2 building. Stunning views of...

Maija Software

330 000 €

Apartment in Alvor, Portugal

52 m² 2 1 1

Ready to move into in 2025, this is a fabulous, rare opportunity to purchase a brand new apartment in the heart of Alvor. Built using top quality materials with luxurious fittings & finishings, this ground floor, 1 bed apartment is in the centre of this modern & stylish, private condominium, with 3 buildings & a communal rooftop pool. The...

Maija Software

332 000 €

Flat in Porto, Portugal

71 m² 3 2 2

Remote Transaction

LIFESTYLE IN THE GARDENS OF ARRABIDA The world is at your door. A new development by Jardins da Arrábida. The developer offers a sustainable, familiar, exclusive and dynamic environment. The residential complex has studios, apartments with one T1, two T2, three T3, four T4 bedrooms. There are 94 apartments in three blocks and two areas...

EG Realty

335 000 €

Apartment in Lisbon, Portugal

41 m² 2 1 1

Rental property

Barão 65: A Unique Project in the Heart of Lisbon Welcome to Barão 65 — an exclusive residential project by Spark Capital that harmoniously combines history, modern comfort, and attractive investment opportunities. Nestled in the very center of Lisbon, this development offers a unique lifestyle with stunning city views, a...

Glacier Location LDA

345 000 €

Apartment in Faro, Portugal

99 m² 3 2 2

Located in ALGARVE. PALÁCIO BR AVENIDA is located in the heart of the “Avenida Calouste Gulbenkian”, a highly sought-after area to live in the city of Faro. Faro is a unique place to live. It is located in the center of the famous Algarve region, internationally known as the beautiful southern coastline of Portugal. The...

Glacier Location LDA

350 000 €

Apartment on Madeira, Portugal

93 m² 2 1 2

Remote Transaction Rental property

Luxury Living in Madeira's Heart - The Place Condominium Nestled in the charming Virtudes area of Funchal, Madeira, this condominium promises a lifestyle defined by opulence and surrounded by nature's beauty. Condominium Highlights: Expansive Living: Encompassing a sprawling 6,000 m², the condominium boasts two residential...

Glacier Location LDA

359 000 €

Flat in Barreiro, Portugal

109 m² 3 2 2

Rental property

The NOOBA Enterprise project is a new approach to building in Barreiro. The NOOBA HORIZONTE building consists of 62 apartments, their typologies range from T1 to T5 Duplex. The infrastructure has a swimming pool, an athletic track overlooking the river. At NOOBA, everything is thought out to the smallest detail. There is an opportunity to...

EG Realty

380 000 €

Apartment in Portimao, Portugal

101 m² 3 2 2

Located in ALGARVE, Portimão. Olivie is a luxury condominium located in one of the quietest and most accessible areas of Portimão, just 5 minutes away from both the city center and Alvor. The project features modern architecture, high-quality standards, excellent finishes, and superior materials. Construction has already begun,...

Glacier Location LDA

385 000 €

Flat in Faro, Portugal

134 m² 3 2 2

Online Viewing Remote Transaction Rental property

We offer you a modern 2-bedroom apartment on the ground floor of a luxury condominium in Cabanas de Tavira. The complex, which was completed in September 2024, is located just 150 meters from the pier with access to the famous Kabanas Beach and within walking distance of shops, restaurants and basic services. Apartment features: Total area...

EG Realty

See more 85 similar properties

How Expensive is It to Maintain an Apartment in Portugal

The cost of utilities depends on how many months the owners spend in the new apartment. Let's make a calculation for a situation where a family of two lives in a new Portuguese apartment all year round.

Expenses

Property tax: € 660 per year

The owner of an apartment in Portugal is obliged to pay an annual municipal property tax (IMI - Imposto municipal sobre os imoveis). The rate is progressive, ranging from 0.3% to 0.8% of the cadastral value of the property. It is usually paid at the tax office at the place of residence  or online.

In our case, the cadastral value of the apartments is €220,000, and the rate is 0.3%. In total, the owner will pay €660 per year (€220,000 * 0.0003).

Condominium Fee: € 2,040 per year

This includes: maintenance of the complex, garden, swimming pool, cleaning of stairwells. The payment, as a rule, goes through the bank to the account of the managing company. The annual fee is usually split into parts and is paid four times a year, which makes each payment about  € 510, and it will be € 170 per month. 

Insurance: €150 per year

It is drawn up at the request of the owner. An insurance certificate in Portugal will cost at least € 150 per year.

Utility bills: € 2,160 per year

On average, utility bills cost € 180-200 per month. In our case, the amount consists not only of electricity, water and gas, but also includes a landline phone and the Internet.

Itemized expenses

Electricity: от €50
Water supply: от €25
Gas: от €50
Phone: от €25
Internet: от €30

You have three ways to pay your bills:

1. via a bank deposit (you need to enable automatic debiting of funds from the account);
2. after receiving a receipt;
3. via online banking.

Table of Costs for the Purchasing and Caintenance of an Apartment in Portugal

The article was prepared jointly with the company PORTUGALITY.
Photo: pixabay.com

Quoting conditions of Prianproperty.com materials