Hidden Expenses in Portugal: Buying Property With No Surprises
July 15, 2020
It's never enough to simply pay for a flat, when you buy it. You also need to pay taxes and fees. And sometimes they are bigger than you expect. Brace yourself and read about additional extras in Portuguese real estate market.
Associated costs
Stamp duty (Imposto de Selo) is 0.8% of the property contract price. If the transaction is carried out with the involvement of a mortgage, then the fee is increased by another 0.04-0.6%.
The amount of property transfer tax (Imposto Municipal Sobre as Transaccoes/Transmissoes Onerosas, or IMT) depends on the type, value, destination (for permanent or temporary residence) and location of the property (mainland Portugal or islands). IMT tax rates are reviewed annually. For 2019, the following values are set for non-residents:
Permanent housing
Value
Tax Amount
Medium Rate
Up to €92,407
0
0
From €92,407 to €126,403
2%
0,5379
From €126,403 to €172,348
5%
17,274
From €172,348 to €287,213
7%
38,361
From €287,213 to €574,323
8%
From €574,323
6% (single rate)
Non-permanent housing
Value
Tax Amount
Medium Rate
Up to €92,407
1%
1
From €92,407 to €126,403
2%
12,689
From €126,403 to €172,348
5%
22,636
From €172,348 to €287213
7%
41,578
From €287,213 to €550,836
8%
-
From €550,836
6% (sing rate)
In addition, the property owner must pay the municipal tax IMI (Imposto Municipal de Imoveis) annually. The tax rate varies from 0.3% to 0.8% of the assessed value of the property. If the IMI tax does not exceed €250, it is paid in April of each year. If the tax amount is higher, it is paid in equal parts 2 or 3 times a year, in April and November or April, July and November, respectively.
The agency's commission is 3-5% of the transaction amount, plus 23% VAT (IVA) is added to this amount (paid by the seller). A lawyer will cost you 1-1. 5% of the transaction amount, and notarization starts from 1%. Registration of the NIF tax number costs €7.5. you will need to pay €250 for registration of ownership, and change the utility bill - from €100 to €200. When buying a mortgage, the property must be evaluated by a professional appraiser. The cost of its services is from €300.
Stamp duty 0.8% of the property value specified in the contract (+0.6% when using a mortgage)
Property transfer tax From 1% to 6%, depending on the type, value and location of the property
Agency Commission 3-5% of the transaction amount (+VAT 23%, paid by the seller)
Lawyer services 1-1. 5% of the transaction amount
Notary services €250-270 (usually 1% of the transaction amount)
Registration of a tax number €7.5
Registration of ownership rights €250 (when paying in cash), €200+200 (when making a loan)
Change of utility bill €100-200
Services of a fiscal guarantor €250 per year
Specific example
Apartment with two bedrooms 100 sq. m with garage. Large common area, guarded. Two swimming pools. City Of Albufeira, Portugal. 500 meters from the ocean.
Property price - €170,000
Notary services (approximately) - €250
Registers - €270
Connecting communications (approximately) - €20-40
Property transfer tax - €4,000
Stamp duty - €1,400 Total price of the property with all expenses and taxes - €175,950
Residential Property For Sale
1 180 000 €
Villa in Mafra, Portugal
323 m²444
Contemporary villa built in 2019, located in a peaceful area of Santo Estêvão das Galés, Mafra, set on a 4,510 m² plot with a total built area of 323.9 m² and excellent sun exposure.
Surrounded by nature, the property offers complete privacy and beautiful mountain views, just 30 minutes from Lisbon and Sintra, and...
Ola Estate
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Hotel in Coimbra, Portugal
188 m²
Residence
Portugal. Coimbra. Guesthouse. Building area: 188 m² Building: 2-story, 4 studios with en-suite bathrooms Location: Less than 100 meters from the Ocean & Carvoeiro center Management: Fully furnished, turnkey rental business Profitability: High rental income from day one Sales terms: Debt-free transfer of the company with potential tax...
Europe Gmbh
95 000 €
Land in Lagoa, Portugal
5910 m²
For river lovers unique opportunity ! Ideal for leisure use - direct access to the Rio Arade with river front!
Rustic plot with total area of 5910m2 with urban part " Casa com um compartimento com 24m2 e forno de fabricação de telha tijolo com 48m2 " . In Caderneta predial Urban part is 48m2 ( Um forno de telha junto ao rio ) and 24m2 ( Um...
Maija Software
39 000 000 €
Hotel in Cascais, Portugal
100 m²
Portugal. Cascais. 100-room hotel.
3 stars
Price: €39,000,000
Information available upon receipt of LOI and NDA
We will sell your apartment or house.
We have a selection of apartments and houses for various budgets, including commercial properties.
Europe Gmbh
45 000 000 €
Hotel in Lisbon, Portugal
1600 m²
Residence
Portugal. Lisbon. 5-star hotel. 19 rooms. No hotel operator. Information available after signing an NDA. Price: €45,000,000. We will sell your apartment or house. We have a selection of apartments and houses for various budgets, including commercial properties.
Europe Gmbh
4 500 000 €
Hotel in Lagos, Portugal
1500 m²
Residence
Portugal. Lagos. Boutique hotel with 25 rooms. Information available after signing an NDA. Price: €4,500,000. We'll sell your apartment or house. We have a selection of apartments and houses for various budgets, including commercial properties.
Europe Gmbh
345 000 €
Apartment in Faro, Portugal
99 m²322
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
4 500 000 €
Hotel in Nazare, Portugal
1300 m²
Residence
Portugal. Nazaré. 25-room hotel. Information available after signing NDA. Price: €4,500,000. We'll sell your apartment or house. We have a selection of apartments and houses for various budgets, including commercial properties.
Europe Gmbh
1 400 000 €
Hotel in Ericeira, Portugal
1516 m²
Residence
Portugal. Ericeira. New Boutique Hotel Project. €1.4 Million. Boutique Hotel Project - Ericeira, Portugal Total Land Area: 11,398 m2. Approved Construction Area: 1,516 m2. Stories: 2.5. Approved Project: Boutique Hotel in the exclusive Sao Lourenço area of Ericeira. 17 luxurious rooms designed for privacy, with ocean views....
Europe Gmbh
995 000 €
Flat in Estoril, Portugal
137 m²223
3D Tour
2-Bedroom Apartment in Estoril with 80 m2 Terrace, Pool and Sea-View Gym
Privileged location in Estoril
2 bedrooms and 3 bathrooms
80 m2 terrace
700 metres from the coastline
2 parking spacs with EV chargrs
Ocean-view gym and swimming pool
Gated community
This residential property is located within the Essence development in...
Ola Estate
3 900 000 €
Hotel in Porto, Portugal
1864 m²
Residence
Portugal. Porto. Ermesinde. 4-star hotel
4-star hotel in Ermesinde with 21 rooms, 5 suites, and 1 accessible room.
- Total land area: 1,025.3 m²;
- Building area: 340.35 m²;
- Total building area: 1,864.83 m²;
- Total area of adjoining premises: 744.83 m²;
- Total area of adjoining premises: 1,120 m²;...
Europe Gmbh
395 000 €
Apartment in Lisbon, Portugal
65 m²111
Rental property
Attention! Investment project for living and receiving passive income.
Welcome to Ando Living Alfama Club!
Ando Living creates cozy neighborhoods throughout Europe where everyone can find their "home away from home." Our Club social centers add a special charm to the neighborhoods, providing residents with opportunities to...
Glacier Location LDA
11 500 000 €
Hotel in Porto, Portugal
5800 m²
Residence
Portugal. Porto. 95-room hotel. 5-star. €11,500,000. City center Total plot area: 2,000 m² Approved development area: 5,800 m² 5-star hotel in the center of Porto with 95 rooms Excellent city location, near Praca da República Just 100 meters from the metro, market, and main amenities Tax incentives available to investors We...
Europe Gmbh
60 000 000 €
Hotel in Algarve, Portugal
25000 m²
Residence
Portugal. Algarve. Monte Gordo. 4-star hotel. 375 rooms. No hotel operator. Information available after signing an NDA. Price: €60,000,000. We'll sell your apartment or house. We have a selection of apartments and houses for various budgets, including commercial properties.
Europe Gmbh
498 700 €
Apartment in Lisbon, Portugal
51 m²111
New apartments in Lisbon within walking distance to the metro. The restored house is close to museums, parks, hospital and all necessary city infrastructure. The favorable location of the apartments provides a good potential yield of 5% per annum.
There are several types of apartments in the house: from studios 1+1 with an area from 51 sq.m....
Intermark Global
310 000 €
House in Evora, Portugal
246 m²221
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
450 000 €
Flat in Lisbon, Portugal
49 m²211
Online ViewingRental property
Prata Riverside Village — Real Estate with a View of Current Opportunities
The South Building in the Prata Riverside Village residential complex is located in the Marvila district — Lisbon's new hotspot, renowned for its urban projects, galleries, and art spaces.
Available Options:
Studios (T0): Perfect for singles or...
Glacier Location LDA
395 000 €
Apartment in Lisbon, Portugal
56 m²111
Remote TransactionRental property
Welcome to Ando Living Alfama Club!
Ando Living creates cozy neighborhoods throughout Europe where everyone can find their "home away from home." Our Club social centers add a special charm to the neighborhoods, providing residents with opportunities to socialize, make friends, and enjoy unique travel experiences.
Who is the...
Glacier Location LDA
9 000 000 €
Hotel in Porto, Portugal
3000 m²
Residence
Portugal. Hotel in Porto.
3-star, 40 rooms.
This 3-star hotel features 40 rooms, an elevator, keyless entry, parquet floors, soundproof windows, air conditioning, heating, accessible rooms, a Jacuzzi, a garden, and parking.
Sale price: €9,000,000
We will sell your apartment or house.
We have a selection of apartments and houses...
Europe Gmbh
25 000 000 €
Hotel in Lisbon, Portugal
2800 m²
Residence
Portugal. Lisbon. 4-star hotel. 61 rooms. No hotel operator. Information available after signing an NDA. Price: €25,000,000. We will sell your apartment or house. We have a selection of apartments and houses for various budgets, including commercial properties.
