Buying property in Portugal as a foreigner usually costs about 5–9% on top of the price. The main costs are IMT (property transfer tax), stamp duty of 0.8%, the deed and land registry, and a lawyer. Foreign buyers pay the same taxes as Portuguese buyers of a second home, but you'll need a Portuguese tax number (NIF) before you can buy.
Key points
- IMT for a holiday or investment home is banded: 1% at the bottom, up to a flat 7.5% on homes over €1,150,853 (2026 table).
- Stamp duty (Imposto do Selo) is 0.8% of the price, on top of IMT.
- Both taxes are charged on the higher of the price and the property's tax value (VPT).
- You need a NIF. A fiscal representative is usually optional if you sign up to electronic notifications.
- Buying a home no longer gets you a golden visa: the property route ended in 2023.
What it costs to buy property in Portugal
| Cost | Who sets it | Typical size |
|---|---|---|
| IMT (transfer tax) | Government, IMT tables | 1% to 7.5% |
| Stamp duty (IS) | Government | 0.8% of the price |
| Deed, land registry and lawyer | Notary/registry fees plus your lawyer | Often a few thousand euros |
| Mortgage stamp duty (if you borrow) | Government | 0.6% of loans of five years or more, plus bank fees |
Estate agents' fees are normally paid by the seller.
Every cost for your price and situation in Portugal, including taxes for buyers from abroad.
IMT: Portugal's property transfer tax
IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) is paid by the buyer before the deed is signed. There are separate tables for a home that will be your own permanent residence and for any other home. If you live abroad and are buying a holiday home, a home to rent out or a home you'll use part of the year, the second-home table applies.
Mainland second-home IMT table, 2026
| Value of the home | Rate | Deduct |
|---|---|---|
| Up to €106,346 | 1% | – |
| €106,346 to €145,470 | 2% | €1,063.46 |
| €145,470 to €198,347 | 5% | €5,427.56 |
| €198,347 to €330,539 | 7% | €9,394.50 |
| €330,539 to €633,931 | 8% | €12,699.89 |
| €633,931 to €1,150,853 | 6% flat on the whole value | – |
| Over €1,150,853 | 7.5% flat on the whole value | – |
To use the progressive bands, multiply the whole value by the rate for its band and take off the deduction. For example, on a €150,000 home: 5% of €150,000 is €7,500, minus €5,427.56, so IMT is €2,072.44.
The bands rose by about 2% for 2026. The Azores and Madeira have their own, slightly different thresholds.
Value used: IMT and stamp duty are charged on the higher of the price in the deed and the VPT (valor patrimonial tributário) shown on the property's tax record (caderneta predial). Ask for the caderneta early.
Tax-haven buyers: a flat 10% IMT applies, with no exemptions, where the buyer is based in a territory on Portugal's tax-haven list or is a company controlled from one. If you plan to buy through a company or trust, take advice first.
Main-home relief: a lower table applies if the home will be your own permanent residence in Portugal, and buyers aged 35 or under can pay no IMT on a first permanent home up to €330,539. These need you to live there, so they rarely help buyers from abroad.
Worked examples
A €300,000 flat in Lisbon or the Algarve (second home)
| Cost | Amount |
|---|---|
| IMT: 7% of €300,000, minus €9,394.50 | €11,606 |
| Stamp duty (IS) | €2,400 |
| Notary, registry & lawyer (typical) | €3,500 |
That comes to about €17,506 on top of the price.
A €750,000 villa (second home)
This falls in the flat 6% band, so IMT is 6% of the whole price.
| Cost | Amount |
|---|---|
| Transfer tax (IMT) | €45,000 |
| Stamp duty (IS) | €6,000 |
| Notary, registry & lawyer (typical) | €3,500 |
| Total buying costs | €54,500 |
A €1.5m home
Above €1,150,853 a flat 7.5% applies: IMT is €112,500 and stamp duty €12,000, so total buying costs come to about €128,000.
Stamp duty of 0.8%
Imposto do Selo of 0.8% applies to every purchase of property, on the same value as IMT. If you take out a Portuguese mortgage of five years or more, there's a further 0.6% stamp duty on the loan amount, plus stamp duty on the interest and the bank's own fees.
Your NIF, bank account and fiscal representative
NIF (Número de Identificação Fiscal). You need a Portuguese tax number to make an offer formally, sign the promissory contract, pay IMT and open a bank account. Non-residents can apply in person at a tax office (Serviço de Finanças), or online through the Portal das Finanças e-balcão using a representative with your power of attorney. You'll need your passport and proof of your address abroad.
Fiscal representative. Non-residents have traditionally had to appoint a fiscal representative in Portugal to receive tax letters. Since a 2022 change to the General Tax Law, you can usually skip this by signing up to the tax authority's electronic notification system instead. Check the current requirements when you apply for your NIF.
Bank account. Not a legal must, but in practice you'll want one for IMT, utilities and the yearly property tax. Expect checks on where your money comes from.
How the purchase works
- Offer and checks. Your lawyer checks the land registry certificate (certidão permanente), the caderneta predial, the habitation licence and any debts on the home.
- Promissory contract (CPCV). You sign a contrato-promessa de compra e venda and pay a deposit, commonly 10–30%. If you pull out you usually lose the deposit; if the seller pulls out they typically repay double.
- Pay IMT and stamp duty before completion.
- Deed (escritura). Signed in front of a notary, lawyer or at a registry office's Casa Pronta desk. The home is then registered in your name.
Costs after you buy
- IMI – a yearly municipal property tax on the VPT. Rates for urban property are set by each council within a national range.
- AIMI – an extra yearly tax if the VPT of your Portuguese homes is over €600,000 per person.
- Condominium fees for flats, and income tax on any rent.
Common mistakes
- Using the main-home table. Unless you'll live in Portugal permanently, budget on the second-home table.
- Ignoring the VPT. If the tax value is above your price, you pay IMT on the higher figure.
- Signing a CPCV without checks. Debts and unlicensed extensions can stay with the property.
- Counting on a golden visa. Property purchases stopped qualifying in October 2023.
Tax back home
Buying abroad can create tax to pay and forms to file where you live, not just where you buy.
- UK residents are generally taxed on their worldwide income and gains. Rent from a home abroad goes on your Self Assessment return, and when you sell you may owe UK Capital Gains Tax. You can usually claim Foreign Tax Credit Relief for tax already paid in the other country, so the same income isn't fully taxed twice.
- US citizens and green-card holders are taxed on worldwide income wherever they live. Report foreign rental income on your US return. If your foreign bank accounts together go over $10,000 at any time in the year, file an FBAR (FinCEN Form 114), and you may also need Form 8938 (FATCA) if your foreign financial assets pass its thresholds. A home you own directly isn't reported on Form 8938, but the foreign account you pay through may be.
- Everyone else: check how your country taxes foreign rent and gains, and whether it has a tax treaty with the country you're buying in.
Plan this before you buy, ideally with a tax adviser who knows both countries.
Work out your own figures
Enter the price and the calculator works out IMT, stamp duty and typical deed, registry and legal costs for a mainland second home, so you can see the full amount you'll need on top of the price.
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