Portugal property buying costs: IMT, stamp duty, and the fees around them.
// Short answer
The main one-off cost of buying in Portugal is IMT, the transfer tax, and since 25 May 2026 it depends on your tax residence. A non-resident buying a home pays a flat 7.5% of the whole price; a tax resident pays the 2026 bands, from 1% for a second home up to a flat 7.5% 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.
What an agent can charge, who pays it and how to check their licence: real estate agent fees in Portugal.
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.
On this page
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.
Whether you can buy at all, and the steps in order: can foreigners buy property in Portugal.
Sources
What are the IMT rates in Portugal in 2026?
For a tax resident's 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. A non-resident buying a home pays a flat 7.5% instead (below).
| Price band (2026, mainland, second home or investment) | IMT rate |
|---|---|
| Up to EUR 106,346 | 1% (marginal) |
| EUR 106,346 to 145,470 | 2% (marginal) |
| EUR 145,470 to 198,347 | 5% (marginal) |
| EUR 198,347 to 330,539 | 7% (marginal) |
| EUR 330,539 to 633,931 | 8% (marginal) |
| EUR 633,931 to 1,150,853 | 6% flat on the whole price |
| Above EUR 1,150,853 | 7.5% 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.
Sources
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.
Sources
Is there a higher IMT for foreign buyers in Portugal?
Yes, for non-residents, since 25 May 2026. Decree-Law 97/2026 added Art. 17(10) to the IMT Code: a non-resident buying a home pays a flat 7.5% of the whole price, with no exemption or reduction. It turns on tax residence, not nationality: a foreigner already tax-resident in Portugal pays the normal bands.
Who pays 7.5% and who pays the bands. The test is tax residence under Art. 16 of the IRS Code, not nationality. A buyer already tax-resident in Portugal pays the bands. A non-resident pays a flat 7.5% of the whole price on a home (Decree-Law 97/2026, IMT Code Art. 17(10), in force since 25 May 2026). If they become tax-resident within two years of buying, or within six months let the home at a moderate rent and keep it let for at least 36 months in the first five years, they can ask the tax authority to refund the difference, within six months of becoming resident or signing the lease.
Buyers resident in a listed tax haven still pay a flat 10%. This section said on 22 September 2026 that no non-resident surcharge existed; that was wrong, and it was corrected on 8 October 2026 from the decree text in the Diário da República.
Sources
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.
Sources
// Buying in Portugal?
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See the $99 report, page by pageWho pays the closing costs in Portugal, buyer or seller?
The buyer. The law makes the buyer liable for IMT and for the 0.8% stamp duty on a purchase. The seller is taxed on half of any gain at progressive rates, non-residents included since 2023, and the agent is paid by whoever signed the mediation contract.
| Cost | Rate | Who pays | Set by |
|---|---|---|---|
| IMT (transfer tax) | Banded; own home from 0% to 7.5% at the top | Buyer | Law (CIMT art. 4) |
| Stamp duty on the purchase (Imposto do Selo 1.1) | 0.8% | Buyer | Law (CIS art. 3) |
| VAT | None on a sale that pays IMT | No one | Law (CIVA art. 9) |
| Tax on the gain | 50% of the gain at progressive rates | Seller | Law (CIRS art. 43) |
| Agent commission | Negotiated, plus 23% VAT | The client who signed the mediation contract | Law (Lei 15/2013) |
Sources
Frequently Asked Questions
What is IMT in Portugal?
How much is stamp duty on a property purchase in Portugal?
Who pays the estate agent in Portugal?
Does a non-resident get the permanent-home IMT rates?
Header photo: Dronepicr, CC BY 3.0, via Wikimedia Commons. All credits: image credits.