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. In this post, you will find a simple overview of the main taxes and costs when buying in Portugal.

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.

IMT- Property Transfer Tax

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:

Lagos Real Estate Specialists can help you determine which of the below applies to your situation.

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.

IMT for Second Homes (Portugal Mainland) for Residents

For residents of Portugal purchasing a second home or investment property (or housing that is not the buyer’s primary residence), the following IMT table applies.

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 – 660 982	8%	12,699.89
660 982 – 1,150,853	6% (flat rate)	–
Above 1,150,853	7.5% (flat rate)	–

These brackets come from the official Portuguese tax tables for 2026, which you can download here: IMT Tax Rates Official Document

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

IMT for Second Homes (Portugal Mainland) for Non-Residents

For non-residents of Portugal purchasing a second home or investment property, a flat rate of 7.5% is applied across all price ranges.

This applies to urban residential properties (prédios urbanos destinados a habitação). It does not apply to commercial, land and rural properties, which continue to follow standard IMT rates for all buyers.

IMT Benefits for Buyers Under 35

Portugal has 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.

Other Purchase Costs in Portugal

In addition to 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 Buying Costs

As a general guideline, buyers who are residents of Portugal should expect total purchase costs of approximately 8% of the property price, which means that the approximate total cost on a property of €500,000, a typical mid-range Algarve property price for example, would be about €40,000, depending on the exact structure of the purchase.

Whilst non-residents can expect the flat 7.5% purchase tax. So for a €500,000 property, total purchase costs would typically fall somewhere around €37,500.

Lagos Real Estate Specialists 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.

Frequently Asked Questions: Property Purchase Taxes Portugal

How much is IMT tax in Portugal?
IMT is charged on a sliding scale depending on the property price, residency status and whether it is your main residence. Rates range from 1% on lower value properties up to 8% on higher value second homes, with a flat 7.5% applying to non-residents purchasing urban residential property.

Do non-residents pay more tax buying property in Portugal?
Yes. Non-residents purchasing a second home or investment property pay a flat IMT rate of 7.5% across all price brackets, rather than the sliding scale available to residents.

What is the total cost of buying a house in Portugal?
As a general guide, residents should budget around 8% of the purchase price for total buying costs, including IMT, stamp duty, legal fees and notary fees, and non-residents should expect approx. 10% in total on top of the purchase price.

Is stamp duty separate from IMT in Portugal?
Yes. Stamp duty (Imposto do Selo) is a separate tax charged at 0.8% of the purchase price, paid at completion, in addition to IMT.

Can first-time buyers get a tax reduction in Portugal?
Buyers aged 35 or under purchasing their first property as their main residence may qualify for reduced IMT. Conditions apply, including a six-year restriction on selling or using the property for short-term rentals.

Do I need a lawyer to calculate property purchase taxes in Portugal?
While not legally required, it is strongly recommended. A property lawyer will confirm your exact IMT bracket, handle due diligence and provide a precise cost breakdown before completion, which protects you from unexpected charges.

Are property purchase taxes different in the Algarve compared to the rest of Portugal?
No. IMT, stamp duty and notary fees are set nationally and apply the same way in the Algarve as anywhere else in mainland Portugal. Regional differences come down to property values rather than tax rates.

Planning Your Property Viewing Trip

Many buyers begin their Algarve property search with speaking to a qualified and experienced estate agent and planning ahead. The majority of my international clients actually contract me as their Buyer’s Agent.

If you’re considering a viewing trip, you may find this article helpful: How to Plan the Perfect Property Buying Trip to Lagos. 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 or already planning a viewing trip to Lagos, 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.

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Property Purchase Taxes Portugal: What Buyers Need to Know

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

IMT- Property Transfer Tax

Lower IMT for Main Residence

IMT for Second Homes (Portugal Mainland) for Residents

IMT for Second Homes (Portugal Mainland) for Non-Residents

IMT Benefits for Buyers Under 35

Other Purchase Costs in Portugal

Legal Fees

Stamp Duty

Notary Fees

Small administrative Costs

Total Estimated Buying Costs

Frequently Asked Questions: Property Purchase Taxes Portugal

Planning Your Property Viewing Trip

Thinking About Buying Property in Lagos?

Luxury 2 Bedroom Apartment for Sale in Lagos, Garage, Rooftop Pool + Ocean & Mountain Views

Luxury Sea View Villa with Heated Pool for Sale in Lagos Algarve

Iconic Lagos Sea View Apartment 2 Bedroom with Garage

Exclusive Luxury 2-Bedroom Apartment for Sale in Lagos, Algarve | 596,000€

Generous Building Plot for Sale in Praia da Luz | Ocean Views

Luxury 3-Bedroom Penthouse for Sale in Central Lagos | Rooftop Jacuzzi Terrace | Marina Views | Algarve, Portugal

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Top Tips for the Perfect Buying Trip

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

5 Things Every Foreigner Should Know Before Buying in Portugal

Get in touch

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Luxury 2 Bedroom Apartment for Sale in Lagos, Garage, Rooftop Pool + Ocean & Mountain Views

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