Purchase costs

A variety of fees are payable when you buy a property in Portugal. We recommend budgeting 10% of the agreed purchase price to cover them, although in most cases the total comes in below that.

Costs vary depending on the purchase price, the type of property, and whether it will be your primary or secondary residence in Portugal.

• Transfer tax — IMT
• Stamp duty
• Notary fees
• Lawyer fees
• Land registry
• Mortgage fees — if applicable
• Surveyor fees — optional

Transfer tax — IMT

IMT is based on the purchase price or the assessed patrimonial value of the property — whichever is higher. It is payable at the local tax office just before the final deed.

Rural land attracts a flat rate of 5%. Commercial property and building plots attract a flat rate of 6.5%.

Stamp duty

Stamp duty is calculated at 0.8% of the purchase price and must be paid at the local tax office before signing the final deed. Unlike in many countries, it is one of the smallest taxes you will pay. Corporate property transactions do not pay stamp duty.

Notary and land registry

You cannot become the lawful owner of a property without engaging a notary: the title deed must be signed in their presence and legalised with their signature and stamp. Their fees are regulated and, together with land registry fees, are typically €1,000 – €1,500.

Registration at the land registry records the change of ownership and makes it binding on third parties — meaning others must respect your right over the property. Your lawyer handles this on your behalf.

Lawyer's fees

Choose a lawyer who specialises in property law, and ask them to confirm their services and costs in writing before you instruct them. Legal costs are usually 1% – 1.25% of the purchase price. We strongly recommend instructing your lawyer to cover all bases. Fees are normally paid in two parts: half at promissory contract, half on completion.

Surveyor's fees

We recommend obtaining a building survey. It covers the standard and quality of build, structural appraisal, faults and defects, built areas, a damp survey and an appraisal of the services — and helps your lawyer identify any planning illegalities.

A survey for an apartment, small villa or townhouse is approximately €300; for a larger villa, around €500.