Authored by the expert who managed and guided the team behind the Portugal Property Pack
Everything you need to know before buying real estate is included in our Portugal Property Pack
Buying property in Portugal involves significant closing costs beyond the purchase price that many foreign buyers underestimate.
Total closing costs typically range from 6% to 10% of the property's value, including taxes, legal fees, notary costs, and various administrative expenses that can quickly add up to tens of thousands of euros.
If you want to go deeper, you can check our pack of documents related to the real estate market in Portugal, based on reliable facts and data, not opinions or rumors.
Property buyers in Portugal should budget 6-10% of the purchase price for closing costs, with IMT transfer tax and stamp duty being the largest expenses.
A €300,000 apartment in Lisbon typically incurs around €20,000-€25,000 in total closing costs, including taxes, legal fees, and administrative expenses.
| Cost Category | Amount (€300,000 property) | Percentage of Price |
|---|---|---|
| IMT Transfer Tax | €11,550 | 3.8% |
| Stamp Duty | €2,400 | 0.8% |
| Lawyer Fees | €3,000-€3,750 | 1.0-1.25% |
| Notary & Registration | €1,000 | 0.3% |
| Mortgage Fees (if applicable) | €3,000-€4,000 | 1.0-1.3% |
| Administrative Costs | €200-€400 | 0.1% |
| Total Closing Costs | €21,150-€26,100 | 7.0-8.7% |
Fact-checked and reviewed by our local expert
João Morais 🇵🇹
Founder | Real Estate Advisor, at Wilderness Investments
What percentage of the property price should I expect to pay in closing costs when buying in Portugal?
Property buyers in Portugal should budget between 6% and 10% of the purchase price for total closing costs.
This percentage includes all mandatory taxes, legal fees, notary costs, and administrative expenses required to complete the purchase. The exact amount depends on whether you're taking a mortgage, your residency status, and the property's value.
For a €300,000 apartment in Lisbon, you would typically pay between €21,150 and €26,100 in closing costs. Higher-value properties often fall closer to the 6% range due to the sliding scale nature of some taxes, while lower-value properties may reach closer to 10%.
As a foreign buyer, you should also factor in ongoing annual costs like fiscal representative fees (€200-€350 per year) and property tax (IMI) at 0.3-0.45% of the property's official value.
It's something we develop in our Portugal property pack.
What are the exact property transfer taxes (IMT) and how are they calculated for different property values?
IMT (Imposto Municipal sobre as Transmissões) is Portugal's property transfer tax calculated on a sliding scale based on the property's price and intended use.
For residential properties purchased as a permanent home on mainland Portugal, the IMT rates are: 0% up to €92,407, 2% from €92,407 to €126,403, 5% from €126,403 to €172,348, 7% from €172,348 to €287,213, and 8% above €287,213.
The calculation includes deductibles that reduce the final tax amount. For a €300,000 permanent residence, the IMT calculation is: (€300,000 × 8%) - €11,959.32 deductible = €11,540.68. However, properties purchased as secondary homes or for investment face higher rates, with an additional 3% surcharge.
Properties in Madeira and Azores have different, more favorable rates. The IMT must be paid within 30 days of signing the deed, and failure to pay results in penalties and interest charges.
What is the fixed stamp duty rate in Portugal and how is it applied?
Portugal applies a fixed stamp duty rate of 0.8% on all property purchases, calculated on the higher value between the purchase price and the property's fiscal value.
This means for a €300,000 property, you will pay exactly €2,400 in stamp duty regardless of whether it's your primary residence or an investment property. The stamp duty is separate from IMT and cannot be reduced or waived.
The tax is collected at the time of deed signing and must be paid before the property registration is completed. Unlike IMT, stamp duty has no sliding scale or deductibles - it's a straightforward 0.8% calculation.
Both Portuguese residents and foreign buyers pay the same stamp duty rate, making it one of the most predictable costs in the purchase process.
How much should I budget for notary and registration fees, and are these costs capped or variable?
Notary and property registration fees in Portugal typically range from €500 to €1,200 per transaction, with most buyers paying around €1,000.
These fees are not legally capped but follow standard market rates set by professional associations. The notary fee covers the deed preparation and signing ceremony, while registration fees cover recording the property transfer with the land registry office.
More complex transactions involving multiple parties, companies, or unusual property types may incur higher fees, potentially reaching €1,500. However, for standard residential purchases, the costs rarely exceed €1,200.
You must use a Portuguese notary for the deed signing, and the registration must be completed with the local conservatória (registry office) within the required timeframes.
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What are the standard lawyer fees in Portugal for handling a property purchase, and is a lawyer mandatory?
Lawyer fees in Portugal typically range from 1% to 1.25% of the property price, with most lawyers charging a minimum fee of €3,000 plus VAT.
While hiring a lawyer is not legally mandatory for property purchases in Portugal, it is highly recommended for foreign buyers due to language barriers and complex legal procedures. Most mortgage lenders also require lawyer involvement when financing is involved.
For a €300,000 property, expect to pay between €3,000 and €3,750 plus 23% VAT (€690-€863), bringing the total lawyer cost to approximately €3,690-€4,613. Some lawyers offer fixed-fee packages for standard transactions.
The lawyer handles due diligence checks, contract reviews, liaison with the notary, and ensures all legal requirements are met throughout the purchase process.
It's something we develop in our Portugal property pack.
Do I need to pay for a fiscal representative as a foreign buyer, and how much does this typically cost per year?
Foreign buyers who are not EU residents are required to appoint a fiscal representative in Portugal for tax purposes, costing between €200 and €350 per year for most buyers.
The fiscal representative acts as your tax liaison with Portuguese authorities, handling annual tax declarations, IMI property tax payments, and any tax-related correspondence. EU citizens do not need a fiscal representative.
Costs vary based on the service provider and level of support offered, ranging from €50 for basic services to €1,000 annually for comprehensive tax and legal support packages. Most property buyers choose mid-range services around €250-€300 per year.
This is an ongoing annual cost that continues as long as you own the property and remain a non-EU resident, so factor this into your long-term ownership budget.
What bank-related costs apply if I take a mortgage in Portugal, such as arrangement fees, valuation fees, or deed preparation?
Portuguese mortgage applications involve several bank-related fees that typically add €3,000 to €4,000 to your closing costs.
| Bank Fee Type | Typical Cost | Description |
|---|---|---|
| Arrangement Fee | €300-€1,000 | Bank processing and setup costs |
| Property Valuation | €150-€600 | Independent appraisal required by bank |
| Deed Preparation | €1,000-€1,500 | Legal documentation and notary coordination |
| Mortgage Stamp Duty | 0.6% of loan amount | Government tax on mortgage documents |
| Life Insurance (optional) | €200-€500 annually | Often required by banks for loan approval |
| Property Insurance | €150-€400 annually | Mandatory building insurance coverage |
| Bank Guarantee (rare) | 1-2% of loan amount | Additional security for certain loan types |
Are real estate agent fees paid by the buyer or only by the seller in Portugal?
Real estate agent commissions in Portugal are typically paid entirely by the seller, not the buyer.
Standard agent commissions range from 5% to 6% plus VAT of the sale price, which the seller pays upon completion. This means as a buyer, you should not expect to pay any commission to the selling agent.
However, if you hire your own buyer's agent to help you search for properties, you would pay their fees separately, typically 2-3% of the purchase price. Some international buyers choose this option for language support and local expertise.
Always clarify fee arrangements upfront, as some unscrupulous agents may try to charge buyers illegal fees or administrative costs that should be included in the seller's commission.
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.
What are the ongoing annual costs after purchase, such as property tax (IMI) and how is it calculated?
The main ongoing annual cost is IMI (Imposto Municipal sobre Imóveis), Portugal's property tax calculated at 0.3% to 0.45% of the property's VPT (official taxable value).
For most residential properties, the IMI rate is 0.3% to 0.4% annually. Using a property with a VPT of €250,000, your annual IMI would be €750 to €1,000. The VPT is typically 10-20% lower than the purchase price.
Properties valued above €600,000 may also incur AIMI (Additional IMI), an extra tax ranging from 0.7% to 1.5% on the portion exceeding the threshold. Luxury properties can face combined property taxes exceeding 2% annually.
Other annual costs include building insurance (€150-€400), condominium fees for apartments (€30-€200 monthly), and fiscal representative fees for non-EU owners (€200-€350). Municipal waste collection fees add another €50-€150 annually.
Are there any hidden administrative costs such as certificates, translations, or document authentication I should plan for?
Administrative costs for documents, translations, and certifications typically add €200 to €400 to your closing costs, though complex cases may cost more.
- Certified translations of foreign documents cost €30-€50 per page, with full document sets often reaching €150-€300
- Apostille certifications for international documents range from €40-€100 per document depending on your home country
- Criminal background checks required for residency applications cost €20-€50 plus processing time
- Bank certificate copies for mortgage applications cost €10-€50 per certified copy
- Power of attorney documents if buying remotely cost €100-€200 including notarization and translation
Non-EU buyers face higher administrative costs due to additional documentation requirements for tax numbers, residency permits, and banking relationships. Plan for extra time and costs if your documents require consular authentication.
How much should I expect to pay upfront in deposits or reservation fees before the final deed is signed?
Property purchases in Portugal typically require a reservation deposit of €5,000 to secure the property before signing the promissory contract.
After the reservation, you'll sign a promissory contract (CPCV) requiring a deposit of 10% to 30% of the purchase price, with 10-15% being most common. For a €300,000 property, this means paying €30,000 to €45,000 at the promissory contract stage.
The reservation deposit is usually deducted from the promissory contract deposit, which in turn is deducted from the final purchase price at deed signing. These deposits secure your purchase but are not additional closing costs.
If you withdraw from the purchase after signing the promissory contract, you typically forfeit your deposit. If the seller withdraws, they must return double the deposit amount to you.
It's something we develop in our Portugal property pack.
Can I get a clear breakdown example of all costs for, say, a €300,000 apartment in Lisbon, including each line item?
| Cost Item | Amount (€) | Notes |
|---|---|---|
| IMT Transfer Tax | 11,550 | 3.8% for permanent residence |
| Stamp Duty | 2,400 | Fixed 0.8% of purchase price |
| Lawyer Fees + VAT | 3,690-4,613 | 1-1.25% + 23% VAT |
| Notary & Registration | 1,000 | Standard transaction fees |
| Mortgage Arrangement Fee | 800 | If taking 70% mortgage |
| Property Valuation | 400 | Required for mortgage approval |
| Mortgage Stamp Duty | 1,260 | 0.6% of €210,000 loan amount |
| Administrative Costs | 300 | Translations, certificates, etc. |
| Reservation Fee (upfront) | 5,000 | Deducted from final price |
| Total Closing Costs | 21,400-22,323 | 7.1-7.4% of purchase price |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding Portugal's closing costs is essential for successful property investment in this attractive European market.
With proper budgeting for the 6-10% in closing costs, foreign buyers can confidently navigate Portugal's property purchase process and avoid unexpected expenses.
Sources
- A Place in the Sun - Property Purchase Costs in Portugal
- Olive Homes - Buying and Ownership Costs
- Divine Home - IMT Portuguese Property Transfer Tax 2025
- Spencer Becks - IMT and Stamp Duty Portugal
- Ocean Horizon - Additional Purchase Costs Portugal
- Idealista - Stamp Duty Portugal Guide
- Judicare Group - Portugal Purchase Pricing
- ImmoAbroad - Notary Fees Portugal
- Green Acres - Property Lawyers Portugal
- Ideal Homes Portugal - True Costs of Buying