The real cost of buying property in Portugal
The asking price is not what you pay. Here is every line item, and a calculator that applies them to your figure.
The problem with most published guidance on Portuguese purchase costs is that each page covers one line item and none of them gives the total. A buyer working to a €400,000 budget arrives at completion facing a noticeably larger number.
Below are the items separately, then together. Figures are as at August 2026 and legislation changes; for any actual purchase the applicable rate has to be confirmed for your completion date.
For this arithmetic to mean anything, the property's documents have to be clean too: What to check before buying property in Portugal
The largest item: IMT
IMT (Imposto Municipal sobre Transmissões) is the property transfer tax and the biggest single component of acquisition cost. It changed substantially for non-resident buyers in 2026.
Non-residents previously paid the same progressive scale as residents. Under the new rules, residential property bought by someone who is not a Portuguese tax resident is charged a flat 7.5% from the first euro, with no bands and no reductions. The test is tax residency, not nationality.
The 7.5% is not always final. The difference can be reclaimed in two cases: becoming a Portuguese tax resident within two years of the purchase, or letting the property as long-term housing at a rent no higher than €2,300 a month. The second requires the lease to be signed within 6 months of purchase and maintained for at least 36 months within the first 5 years. The claim must be filed within 6 months of the qualifying event, or it lapses.
The other items
| Item | Amount | Note |
|---|---|---|
| IMT | 7.5% | Non-resident buyer, residential. See the caveat above. |
| Stamp duty (Imposto do Selo) | 0.8% | On the purchase price. |
| Stamp duty, if borrowing | +0.6% | On the loan amount only. |
| Notary and land registry | roughly €1,000 – 1,500 | Varies with complexity. |
| Legal fees | 0.5% – 1% | Some lawyers work to a fixed fee instead. |
| IMI (annual property tax) | 0.3% – 0.45% | On the taxable value (VPT), every year. |
| Condomínio charges | variable | Depends on the building and its services. |
Rates as at August 2026. IMI is set by the municipality and differs between urban and rural property.
Added together, acquisition costs for a non-resident buyer come to roughly 9-10% on top of the asking price. That excludes renovation, furnishing and first-year running costs.
Work out your figure
The tool below applies the items above to the price you enter. It is an estimate, not a quotation.
- IMT (7.5%)
- €30,000
- Stamp duty (0.8%)
- €3,200
- Notary and registry
- €1,250
- Legal fees (0.75%)
- €3,000
- Acquisition costs
- €37,450
- Total payable
- €437,450
Above the asking price: +9.4%·Annually, estimated: IMI (0.375%) €1,500
An estimate. Notary and registry are taken at €1,250, legal fees at 0.75% and IMI at 0.375% as mid-points. IMI is charged on the taxable value (VPT), not the asking price, and VPT is usually below market value, so this line most likely overstates it.
What comes after
Acquisition cost is half the story. What decides the investment is what reaches you after annual costs.
- ·IMI is payable every year whether or not you use the property.
- ·Condomínio charges and major works voted by the building bind you too.
- ·If you let it, management fees, vacant months and income tax cut materially into gross yield.
- ·Insurance is mandatory in most buildings.
Read next
The other side of the same question:
Let's go through this list for your opportunity.
We examine the documents on the property you are looking at and put what we find in writing.