Skip to content

Property Purchase Taxes Portugal: What Buyers Need to Know

When buying property in Portugal, there are a few additional taxes and administrative costs to consider alongside the purchase price. Nothing unexpected – but it’s important to understand the property purchase taxes Portugal early so you know exactly where you stand. If you are new to the purchase process, you may also want to read the Buyer’s Guide to Buying Property in Lagos Portugal, which explains the full step-by-step process from reservation to completion.

 

How Much Tax Do You Pay When Buying Property in Portugal?

One of the most common questions buyers have is: “How much tax will I actually pay?” The answer depends on a few key factors, including the purchase price, whether the property will be your main residence or a second home and the applicable IMT tax bracket.

As a general guide, most buyers should expect total purchase taxes and costs to fall within a predictable range, but the exact figures will always be confirmed by your lawyer before you proceed. In this blog, you will find a simple overview of the main property purchase taxes and costs buyers typically encounter when getting acquainted with property purchase taxes Portugal.

IMT - Transfer Tax - Property Purchase Taxes Portugal

The main tax when buying property in Portugal is IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis), which translates to Property Transfer Tax. This tax is paid once, at the time of purchase, and the amount depends on:

For most international buyers purchasing a second home or investment property, the following IMT table on the right-hand side applies.

These brackets come from the official Portuguese tax tables for 2026 for housing that is not the buyer’s primary residence. Download the official document through the button below:

IMT Tax rates

 

 

Your lawyer will calculate the exact IMT amount during the due diligence stage. 

IMT Rates - Second Home (Portugal Mainland)

Property Value (EUR) Marginal Rate Deduction
Up to 106,346
1%
106,346 – 145,470
2%
1,063.46
145,470 – 198,347
5%
5,427.56
198,347 – 330,539
7%
9,394.50
330,539 – 633,931
8%
12,699.89
633,931 – 1,150,853
6% (flat rate)
Above 1,150,853
7.5% (flat rate

Lower IMT for Main Residence

If the property is purchased as your primary residence, the IMT rates are slightly lower and there are larger tax-free thresholds.

This means buyers who move permanently to Portugal and register the property as their main home will usually pay less IMT tax compared to second-home purchases.

Your lawyer will determine which table applies to your situation.

IMT Benefits for Buyers Under 35

Portugal has recently introduced additional incentives for younger buyers.

If the buyer is 35 years old or younger and purchasing their first property, there may be significant reductions in IMT tax.

However, there are some important conditions:

If the property is sold within that six-year period, the buyer may be required to repay the IMT amount that was originally saved. Because these rules can change and depend on individual circumstances, your lawyer and/or mortgage advisor will normally confirm whether this tax benefit applies to you.

Property Purchase Taxes Portugal

Other Property Purchase Costs in Portugal

In addition to IMT property purchase taxes Portugal, there are several other purchase costs involved when buying property in Portugal.

These costs are generally quite predictable.

Legal Fees

Lawyers typically charge around 1% of the property price, plus 23% VAT. Your lawyer will handle:

Having an experienced property lawyer is essential when buying in Portugal.

Stamp Duty

Stamp duty is 0.8% of the purchase price.

This tax is paid at the time of completion.

Notary Fees

Notary and registration costs are typically around €1,000 – €1,200.

Small administrative Costs

Additional administrative expenses are usually between €250 and €500.

These typically include utility contract fees.

Total Estimated Purchase Costs

As a general guideline, buyers should expect total purchase costs of approximately: 7% to 10% of the property price. To give you a rough idea of what this looks like in practice, on a €500,000 property, total purchase costs would typically fall somewhere around €35,000, depending on the exact structure of the purchase. We can calculate the property purchase taxes Portugal for you and your lawyer can confirm the figures during the due diligence stage – always providing you with a precise breakdown before you proceed, so everything is clear from the outset.

If you’d like to understand how the purchase process works step-by-step, you can read the A Practical 4-Step Buyer’s Guide to Buying Property in Portugal.

Property Purchase Taxes Portugal, IMT tax portugal property, buying property portugal taxes, property transfer tax portugal, costs buying property portugal

Planning Your Property Viewing Trip

Many buyers begin their property search with speaking to a qualified and experienced estate agent and planning ahead for their buying trip. The majority of my international clients actually contract me as their Buyer’s Agent (more info on this here)

If you’re considering a viewing trip, you may find this article helpful:

How to Plan the Perfect Property Buying Trip to Lagos (coming soon)

This guide explains how to efficiently organise property viewings, obtain your Portuguese tax number and prepare for purchasing property in Portugal.

Thinking About Buying Property in Lagos?

Whether you’re still exploring the idea, already planning a viewing trip or even in the midst of understanding property purchase taxes Portugal, I’m always happy to help.

You can browse available opportunities on the Lagos Property Listings page, or reach out through the Contact page to start the conversation.

Let’s see if we can match you with the right property.


Testimonials from Buyers

Related Articles

Buying property in Lagos Portugal Trip
Buying Guides
Natascha Hunt

Top Tips for the Perfect Buying Trip

Buying Property in Lagos Portugal: Top Tips for the Perfect Property Viewing Trip For many buyers, the journey to buying property in Lagos Portugal starts with a visit. Photos and listings can tell you a lot, but nothing replaces actually being here – walking through neighbourhoods, seeing properties in person, and getting a feel for the lifestyle. Over the years I’ve helped many international buyers plan their property viewing trips to Lagos, and with a

Read More »
How to buy property in Portugal 4 step-guide
Buying Guides
Natascha Hunt

How to Buy Property in Portugal: 4-Step Buyer’s Guide

How to Buy Property in Portugal – A Practical 4-step Buyer’s Guide Buying property in another country can feel like a big step – but the process on how to buy property in Portugal is actually very clear and secure when you have the right people guiding you. Over the past 25+ years working in real estate here in Lagos, I’ve helped buyers from all over the world navigate the journey from their first viewing

Read More »
Buying Property in Portugal - 5 Things Every Foreigner Should Know
Buying Guides
Natascha Hunt

5 Things Every Foreigner Should Know Before Buying in Portugal

What to Know Before Buying Property in Portugal Buying property in Portugal can feel exciting, inspiring… and just a little overwhelming. Portugal ticks all the boxes — sunshine, safety, lifestyle, value — but before you dive in, here are 5 things I always share with my international clients (the kind of stuff you won’t always find in glossy brochures). 1. ✅ Yes, You Can Buy as a Foreigner — And It’s Pretty Straightforward You don’t

Read More »

Get in touch

I’ll walk you through the property purchase taxes Portugal personally.
Quick questions welcome –  no pressure, no obligation

Helpful Pages across the Lagos Real Estate Specialists website

Specialists for buying, selling and everything in between!

Popular Properties

Copyright © 2025 Lagos Real Estate Specialists