Authored by the expert who managed and guided the team behind the Portugal Property Pack
Yes, the analysis of Lisbon's property market is included in our pack
If you're a foreigner looking to buy property in Lisbon, you're probably wondering how much extra money you'll actually need beyond the purchase price.
This guide breaks down every cost, tax, and fee you'll face as a buyer in Lisbon in 2026, from the mandatory government taxes to the optional professional services that can save you from costly mistakes.
We constantly update this blog post to reflect the latest changes in Portuguese tax law and Lisbon's property market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Lisbon.
Overall, how much extra should I budget on top of the purchase price in Lisbon in 2026?
How much are total buyer closing costs in Lisbon in 2026?
As of early 2026, most foreign buyers purchasing residential property in Lisbon should expect total closing costs between 6% and 9% of the purchase price, which on a €400,000 apartment would mean roughly €24,000 to €36,000 (about $26,000 to $39,000 USD or €24,000 to €36,000 EUR).
The minimum extra budget possible in Lisbon is around 1% to 1.5% of the purchase price plus €375 (about $410 USD), but this only applies when your purchase falls into a 0% IMT bracket and you skip optional services like hiring a lawyer.
The maximum extra budget you should realistically plan for in Lisbon is 9.5% to 12% or more, which covers high-value properties hitting the top 7.5% IMT rate plus comprehensive legal representation, valuations, and mortgage-related fees.
Whether your closing costs in Lisbon fall at the low end or high end depends mainly on three things: your purchase price (which determines your IMT bracket), whether you're buying a primary residence or a second home, and how many professional services you choose to use.
What's the usual total % of fees and taxes over the purchase price in Lisbon?
The usual total percentage of fees and taxes for a foreign buyer in Lisbon is around 6% to 9% of the purchase price, which reflects the reality that most properties in neighborhoods like Chiado, Principe Real, or Avenida da Liberdade push buyers into meaningful IMT brackets.
The realistic low-to-high range covering most standard residential transactions in Lisbon runs from about 2% for buyers qualifying for exemptions up to 12% or more for high-value secondary homes with full professional support.
Of this total, government taxes (IMT plus stamp duty) typically account for 5% to 8%, while professional service fees like lawyers, valuations, and translations make up the remaining 1% to 3%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Lisbon.
What costs are always mandatory when buying in Lisbon in 2026?
As of early 2026, the mandatory costs when buying property in Lisbon include IMT (property transfer tax, unless you qualify for the 0% bracket), stamp duty at 0.8% of the purchase price, and deed plus registration fees of €375 to €700 through Casa Pronta.
Optional but highly recommended costs for foreign buyers in Lisbon include hiring an independent lawyer (especially for older buildings in Alfama, Mouraria, or Bairro Alto), getting a property survey, and paying for professional translation services if you don't speak Portuguese.
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What taxes do I pay when buying a property in Lisbon in 2026?
What is the property transfer tax rate in Lisbon in 2026?
As of early 2026, the property transfer tax (IMT) in Lisbon uses a bracket system with marginal rates ranging from 0% up to 7.5% depending on the purchase price and whether the property is your primary residence or a secondary home.
There are no extra transfer taxes specifically for foreigners buying property in Lisbon because Portugal's IMT rates are based on property value and intended use, not on the buyer's nationality.
Buyers in Lisbon generally do not pay VAT on residential property purchases because real estate transfers are usually VAT-exempt under Portuguese law, with IMT and stamp duty applying instead.
Stamp duty in Lisbon is paid at closing and is calculated as a flat 0.8% of the purchase price, making it a straightforward cost to budget for regardless of property type.
Are there tax exemptions or reduced rates for first-time buyers in Lisbon?
Portugal offers a special IMT table for young buyers aged 35 or under purchasing a primary residence in Lisbon, which provides higher exemption thresholds and can significantly reduce the tax you pay.
Buying property through a company in Lisbon changes the tax picture because it can affect IMT calculations, create ongoing corporate tax obligations, and open up different VAT structuring options that require professional advice.
There is generally no major tax difference between buying a new-build versus a resale property in Lisbon since IMT and stamp duty apply in both cases, though VAT can appear in specific structured developer transactions.
To qualify for the young buyer exemption in Lisbon, you must be 35 or younger, declare the property as your primary and permanent residence, and complete the purchase with proper documentation proving your age and residency intentions.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Portugal versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which professional fees will I pay as a buyer in Lisbon in 2026?
How much does a notary or conveyancing lawyer cost in Lisbon in 2026?
As of early 2026, deed and registration through Casa Pronta in Lisbon costs €375 (about $410 USD) for a single act or €700 (about $765 USD) when a mortgage is involved, while hiring a conveyancing lawyer typically costs between €1,500 and €5,000 (about $1,640 to $5,460 USD).
Lawyer fees in Lisbon are typically charged as a flat rate rather than a percentage, though complex transactions involving heritage buildings or unusual title histories can push costs up to €10,000 or more.
Translation and interpreter services for foreign buyers in Lisbon typically cost between €200 and €800 (about $220 to $875 USD), with higher costs if you need sworn translations of multiple documents or a live interpreter at the deed signing.
A tax advisor in Lisbon is optional for straightforward personal purchases but recommended for non-residents or those planning short-term rentals, with fees typically ranging from €500 to €2,000 (about $545 to $2,185 USD).
We have a whole part dedicated to these topics in our our real estate pack about Lisbon.
What's the typical real estate agent fee in Lisbon in 2026?
As of early 2026, real estate agent commissions in Lisbon typically range from 4% to 7% of the sale price plus VAT, which on a €400,000 property would mean roughly €16,000 to €28,000 plus tax.
In Lisbon, the seller typically pays the real estate agent fee, so most buyers do not face this cost directly unless they hire a dedicated buyer's agent to represent their interests.
The realistic range for agent fees in Lisbon runs from about 3% for negotiated deals or less premium areas up to 7% or higher for luxury properties in prime neighborhoods like Lapa, Estrela, or Avenida da Liberdade.
How much do legal checks cost (title, liens, permits) in Lisbon?
Legal checks including title search, liens verification, and permits review in Lisbon typically cost between €200 and €800 (about $220 to $875 USD), though these fees are often bundled into your lawyer's overall charge.
Property valuation fees in Lisbon, which are required if you're taking out a mortgage, typically cost between €200 and €400 (about $220 to $435 USD) depending on the bank and property type.
The most critical legal check you should never skip in Lisbon is the registry and licensing verification, especially in historic center neighborhoods like Alfama, Mouraria, Graca, or Bairro Alto where older buildings often have complex renovation histories and undocumented changes.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Lisbon.
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What hidden or surprise costs should I watch for in Lisbon right now?
What are the most common unexpected fees buyers discover in Lisbon?
The most common unexpected fees buyers discover in Lisbon include condominium arrears or upcoming major building works (elevators, roofs, facades), historic building rehabilitation constraints in areas like Chiado or Bairro Alto, and small administrative costs like the €15 pre-emption notice through Casa Pronta.
Yes, there can be unpaid property taxes or condominium debts attached to a property in Lisbon, which is why your lawyer should verify the fiscal and registry situation before you close the deal.
Scams with fake listings or pressure to pay unverified "reservation fees" do happen in Lisbon, and you can protect yourself by keeping all deposits and payments within traceable, contract-backed steps handled by reputable professionals.
Fees that are usually not disclosed upfront by sellers or agents in Lisbon include pending condominium assessments for major repairs, costs to resolve licensing irregularities, and the full scope of building maintenance obligations in older properties.
In our property pack covering the property buying process in Lisbon, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Lisbon?
Extra fees when buying a tenanted property in Lisbon typically include €500 to €2,000 (about $545 to $2,185 USD) for legal review of the existing lease contract and tenant documentation.
When you buy a tenanted property in Lisbon, you inherit the existing lease contract with all its terms, meaning you become the new landlord with the same obligations the previous owner had.
Terminating an existing lease immediately after purchase in Lisbon is generally not possible because Portuguese law protects tenants, and you must follow legal notice periods and valid grounds for termination.
A sitting tenant in Lisbon typically reduces the property's market value by 10% to 30% because it limits your options, though this can also create a negotiating opportunity if you're comfortable being a landlord.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Lisbon.
We have made this infographic to give you a quick and clear snapshot of the property market in Portugal. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Lisbon?
Which closing costs are negotiable in Lisbon right now?
Negotiable closing costs in Lisbon include lawyer fees (both scope and pricing), translation and interpreter services, and certain bank administrative fees if you have a strong financial profile.
Closing costs that are fixed by law and cannot be negotiated in Lisbon include the IMT tax brackets, the 0.8% stamp duty rate, and Casa Pronta's published deed and registration fees of €375 or €700.
On negotiable fees in Lisbon, buyers can typically achieve discounts of 10% to 25% by shopping around for lawyers and translators, or by bundling services with a single provider.
Can I ask the seller to cover some closing costs in Lisbon?
The likelihood of a seller agreeing to cover closing costs in Lisbon is generally low for taxes like IMT and stamp duty, but more realistic for resolving property issues or making small price adjustments instead.
Sellers in Lisbon are most commonly willing to cover costs related to fixing paperwork problems, resolving licensing issues, or handling minor repairs that would otherwise become your responsibility after purchase.
Sellers in Lisbon are more likely to accept covering closing costs when the property has been listed for a long time, when there's high inventory in the area, or when the property needs work that makes it harder to sell.
Is price bargaining common in Lisbon in 2026?
As of early 2026, price bargaining is common in Lisbon but the discount you can achieve varies significantly depending on the neighborhood and how long the property has been on the market.
Buyers in Lisbon typically negotiate 3% to 7% below the asking price on fairly priced properties, while stale listings or properties needing work can see discounts of 8% to 12% or more, which on a €500,000 property means potential savings of €15,000 to €60,000 (about $16,400 to $65,500 USD).
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What monthly, quarterly or annual costs will I pay as an owner in Lisbon?
What's the realistic monthly owner budget in Lisbon right now?
A realistic monthly owner budget in Lisbon, excluding your mortgage payment, is around €150 to €400 (about $165 to $435 USD), which covers condominium fees, insurance, and a maintenance reserve.
The main recurring expense categories in Lisbon include condominium fees (typically €50 to €200 per month), home insurance (€15 to €40 per month equivalent), and a maintenance reserve (€50 to €150 per month, higher for older buildings).
The realistic range for monthly owner costs in Lisbon runs from about €100 per month for a simple apartment in a newer building up to €500 or more for larger units in luxury buildings with amenities like pools or concierge services.
The monthly cost that varies most in Lisbon is the condominium fee, which depends heavily on building age, size, available services, and whether there are upcoming major works like elevator replacement or facade renovation in neighborhoods like Alfama or Graca.
You can see how this budget affect your gross and rental yields in Lisbon here.
What is the annual property tax amount in Lisbon in 2026?
As of early 2026, the annual property tax (IMI) rate in Lisbon is 0.3% of the property's taxable value, which on a property with a €200,000 taxable value would mean €600 per year (about $655 USD).
The realistic range for annual property taxes in Lisbon runs from around €200 to €300 for smaller apartments up to €2,000 or more for high-value properties, depending on the taxable value assigned by the tax authority.
Property tax in Lisbon is calculated based on the property's "Valor Patrimonial Tributario" (VPT or taxable value), which is determined by the tax authority using formulas that consider location, size, age, and quality, and is often lower than the actual market price.
Some exemptions and reductions are available in Lisbon, including temporary IMI exemptions for primary residences and reductions for properties with energy efficiency certifications or for families with lower incomes.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Portugal. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Lisbon in 2026?
What tax rate applies to rental income in Lisbon in 2026?
As of early 2026, the baseline tax rate for rental income in Lisbon is 28% for non-residents under the special rate regime, though residents may face progressive rates or qualify for reduced rates under certain programs.
Landlords in Lisbon can generally deduct certain expenses from rental income, including maintenance costs, insurance, condominium fees, and IMI property tax, which reduces the taxable amount.
The realistic effective tax rate after deductions for typical landlords in Lisbon ranges from about 15% to 25% of gross rental income, depending on how many deductible expenses you can document.
Foreign property owners in Lisbon typically face the 28% special rate on rental income, while Portuguese residents may benefit from progressive rates that could be lower or higher depending on their total income.
Do I pay tax on short-term rentals in Lisbon in 2026?
As of early 2026, short-term rental income through Alojamento Local (AL) in Lisbon is taxed as business income under Category B, typically using a simplified regime with a 0.35 coefficient that means you're taxed on 35% of your gross receipts rather than the full amount.
Short-term rental income in Lisbon is taxed differently than long-term rental income because AL is treated as a commercial activity with its own tax rules, potential VAT obligations above certain thresholds, and additional municipal licensing requirements.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Lisbon.
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If I sell later, what taxes and fees will I pay in Lisbon in 2026?
What's the total cost of selling as a % of price in Lisbon in 2026?
As of early 2026, the total cost of selling a property in Lisbon typically ranges from 5% to 12% of the sale price, depending on whether you use an agent and whether you owe capital gains tax.
The realistic low-to-high range for total selling costs in Lisbon runs from about 3% if you sell privately with minimal capital gains up to 15% or more if you use a premium agent and face full capital gains taxation.
The main cost categories when selling in Lisbon include real estate agent commission (4% to 7% plus VAT), capital gains tax (if applicable), legal fees for the transaction, and any early mortgage repayment penalties.
The single largest contributor to selling expenses in Lisbon is typically the real estate agent commission, which at 5% plus VAT on a €500,000 sale would cost around €30,000.
What capital gains tax applies when selling in Lisbon in 2026?
As of early 2026, capital gains tax on property sales in Lisbon varies by residency status, with residents typically taxed on 50% of the gain at progressive rates while non-residents face rules that have been aligned more closely with resident treatment in recent reforms.
Exemptions to capital gains tax in Lisbon include selling your primary residence and reinvesting the proceeds in another primary residence within certain timeframes, which can eliminate the tax entirely for qualifying sellers.
Foreigners do not pay extra capital gains tax in Lisbon just for being foreign, but non-resident status changes how the gain is calculated and reported, making professional tax advice worthwhile before selling.
Capital gains in Lisbon are calculated as the sale price minus the original purchase price, with adjustments allowed for documented improvements, inflation coefficients for properties held over time, and certain acquisition costs like stamp duty and notary fees.
We made this infographic to show you how property prices in Portugal compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Lisbon, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Portuguese Tax Authority (Portal das Finanças) | Official government body that sets and publishes all Portuguese tax rates. | We used it to get the exact 2026 IMT brackets, stamp duty rates, and rental income tax rules. We also sourced the special rates for non-residents from their IRS code pages. |
| Ministry of Justice Casa Pronta | Government service that publishes official deed and registration fees. | We used it to anchor the fixed administrative costs of buying (€375 or €700). We treated these as the most reliable baseline for notary and registry expenses. |
| City of Lisbon Municipal Taxes Page | The municipality's own page publishing Lisbon's IMI rate decisions. | We used it to confirm Lisbon's 0.3% IMI rate for 2026 billing. We also highlighted that IMI is a Lisbon-specific rate, not Portugal-wide. |
| PwC Worldwide Tax Summaries | Big 4 reference updated frequently with legal citations. | We used it to cross-check rental income and capital gains treatment for residents vs non-residents. We also verified Portuguese tax changes that caused confusion in other sources. |
| DLA Piper REALWORLD | Major international law firm with consistent country-by-country methodology. | We used it to confirm VAT exemption rules on property transfers. We translated that into practical guidance that most home buyers won't pay VAT. |
| IRN (Institute of Registries and Notary) | Public body responsible for registries and notary services in Portugal. | We used it to confirm that registry and notary fees are regulated by law. We referenced Casa Pronta's published schedule for the actual euro amounts. |
| Casa Pronta Official Site | Government program's own site explaining the one-stop service. | We used it to confirm small process costs like the €15 pre-emption notice. We flagged these as easy-to-miss fees foreigners often overlook. |
| PwC Portugal | Big 4 local office providing Portugal-specific tax guidance. | We used it as a sanity check on IMT structure and common applications. We relied on official AT tables for numbers but used PwC to validate our interpretation. |
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