Costs of buying property in Portugal
IMT Tax 2023: Understanding Property Purchase Taxes in Portugal
When purchasing real estate in Portugal, it's essential to be aware of the applicable purchase taxes, namely the IMT tax and stamp duty, which are standard costs associated with property acquisition.
The IMT tax is calculated based on the property's purchase price, with two distinct tax tables in place. The first table is applicable to properties intended for 'permanent' residence in Portugal, while the second table is used for purchasing secondary homes, such as holiday properties.
STAMP DUTY
The stamp duty is calculated in relation to the sales price and paid before completion, when the IMT (transfer tax) is due. The rates are:
- Property: single rate of 0,8% on the declared value.
- Mortgage: Single rate of 0,6% on the value of the mortgage.
Lawyers
Depending on the property purchase price generally lawyers will work on roughly about 1%. Some lawyers might agree on a fixed fee but generally the work is calculated in a percentage based on the purchase price.
