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FRProperty Purchase Costs: Taxes and Fees
A property acquisition and financing in Portugal will involve costs. Whether it's bank fees, various commissions or taxes, discover what these costs are and how much you should include in your budget.
Prepare Your Budget
Any acquisition in Portugal requires an additional margin between 5% and 8% of the property value to cover expenses and taxes.
Taxes
Mandatory taxes on property purchase
IMT – Municipal Property Transfer Tax
Depending on whether the acquisition is for a primary or secondary residence, there is a different amount to be deducted from the purchase price bracket.
- Primary residence0-8%
- Secondary residence1-8%
- Exempt up to€101,917 (primary residence)
Stamp Duty – Transfer Tax
Flat tax of 0.8% of the purchase price.
- Applied rate0.8%
Stamp Duty on Credit Use
Additional tax related to financing. The tax amount is 0.6% of the credit value.
- Applied rate0.6%
Notarial and Financing Costs
Administrative and service costs
Notarial Costs
€600 to €1,500Between €600 and €1,500, depending on the notary where the deed is performed, the purchase value and the complexity of the process, including registration costs.
Other costs may be included, such as lawyer or real estate agent fees, for example. These are not mandatory, unlike those mentioned above.
- Purchase and sale deed
- Registry office registration
- Certificates and documents
Bank fees and commissions
€500 to €1,200Banks charge between €500 and €1,200 to process the financing application.
- Application analysis commission
- Property valuation commission
- Account maintenance costs
- Bank cheque issuance fees, among others
Practical Example
Approximate values for a primary residence property. Actual costs may vary.
We Work With the Best Banks
What documents are required?
Passport or Identity Card, Portuguese Tax Identification Number (NIF), latest tax declaration, proof of savings, bank statements, employment contract and payslips or any document that can justify your professional activity.
What are the deed costs in Portugal?
Notarial costs range between 5% and 10% of the purchase price in Portugal. They include IMT (Municipal Property Transfer Tax), IS (Stamp Duty, 0.8% of the purchase price), ISUC (Stamp Duty on Credit Use, 0.6% of the financed amount) and bank and notary costs of approximately €1,500 to €2,000.
What down payment is needed to buy in Portugal?
Buying in Portugal requires a minimum of 10% down payment in addition to acquisition costs.
I don't speak Portuguese, is that a problem?
Absolutely not, CAFIMO has teams of intermediaries who speak French, English, Portuguese, Spanish.
I live abroad, can I still buy?
Absolutely, living abroad is not a restriction. CAFIMO has financed over 1,000 projects in 5 years, including more than 400 for foreign clients.
Which bank to choose to buy in Portugal?
Each bank has its own characteristics. We work notably with: Crédito Agrícola, Novo Banco, CGD – Caixa Geral de Depósitos, Banco BPI, Bankinter, Eurobic, Santander, BancoCTT, Abanca, UCI, among others.
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