Faro's old town and marina in the Algarve, for the 2026 IMT and stamp duty on a Portuguese purchase

Portugal property buying costs: IMT, stamp duty, and the fees around them.

Portugal buying costs. IMT bands. 0.8% stamp duty. Brinkman Data brand card.

// Short answer

The main one-off cost of buying in Portugal is IMT, the transfer tax. For a second home or investment in 2026 it runs from 1% in the lowest band to a flat 7.5% on the whole price above EUR 1,150,853. Add 0.8% stamp duty. A home bought subject to IMT carries no VAT. Legal and notary fees come on top.

Rules and rates as of September 2026. Short-term letting rules are set by each municipality and change often, so check the dated items again before you sign. Every figure links to its source.

What are the one-off costs of buying property in Portugal?

IMT at the band rate, 0.8% stamp duty, and legal and notary or registration fees. There is no VAT on a home bought subject to IMT. One market source reports legal fees of 1.25% to 2.00% and notary fees of 0.90% to 1.20% for the buyer, with the agent's 3% to 6% normally paid by the seller.

Those fee ranges come from a single commercial source. The official IRN fee schedule was not found for this research, so ask the notary or Casa Pronta for a quote.

What are the IMT rates in Portugal in 2026?

For a second home or investment on the mainland: marginal rates of 1%, 2%, 5%, 7% and 8% up to EUR 633,931, then a flat 6% on the whole price up to EUR 1,150,853 and a flat 7.5% above that. The bands were raised 2% for 2026.

Price band (2026, mainland, second home or investment)IMT rate
Up to EUR 106,3461% (marginal)
EUR 106,346 to 145,4702% (marginal)
EUR 145,470 to 198,3475% (marginal)
EUR 198,347 to 330,5397% (marginal)
EUR 330,539 to 633,9318% (marginal)
EUR 633,931 to 1,150,8536% flat on the whole price
Above EUR 1,150,8537.5% flat on the whole price

Other urban property, such as commercial, pays 6.5%, and rural land 5%. Buyers resident in a listed tax haven pay a flat 10%, with no exemption or reduction.

Is IMT lower if the home is my permanent residence?

Yes. A home bought as the buyer's own permanent residence pays 0% up to EUR 106,346, then marginal bands of 2% to 8%. Buyers aged 35 or under buying a first own permanent home are reported as exempt up to EUR 330,539. Both conditions generally exclude a non-resident investor.

The own-permanent-home rates and the IMT Jovem relief exist for people who will live in the property. A second home or investment property pays the table above.

Is there a higher IMT for foreign buyers in Portugal?

Not in the statute as of 22 September 2026. The AT text of IMT Code Art. 17 viewed that day has no foreign-buyer or non-resident surcharge. The only buyer-based surcharge is the flat 10% for buyers resident in a listed tax haven.

A market source reported that the government announced higher IMT for foreign buyers of second homes in September 2025, with no rates given. Nothing of that kind appears in the statute text. Check the AT page again before you sign.

Is there VAT on property in Portugal?

Not on a home bought subject to IMT. The VAT Code exempts property sales that are subject to IMT, so a resale or new-build home is bought without VAT, and IMT and stamp duty apply instead.

Residential leases are also VAT-exempt, but hotel-type accommodation is excluded from that exemption.

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Frequently Asked Questions

What is IMT in Portugal?
The municipal property transfer tax, paid by the buyer. For a second home in 2026 it runs from 1% to a flat 7.5% on the whole price above EUR 1,150,853.
How much is stamp duty on a property purchase in Portugal?
0.8%, reported to be charged on the higher of the declared price and the tax value.
Who pays the estate agent in Portugal?
Normally the seller, per a market source that puts the fee at 3% to 6%.
Does a non-resident get the permanent-home IMT rates?
Generally not. Those rates are for a home bought as the buyer's own permanent residence.

Header photo: Dronepicr, CC BY 3.0, via Wikimedia Commons. All credits: image credits.

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Disclaimer

Brinkman Data Analytics is an independent research service. Not financial, investment, tax, or legal advice. All yield figures are estimates based on historical research data and are not guaranteed. International real estate carries risk of partial or total loss of capital.