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
Portugal remains one of the most popular destinations in Europe for foreign property buyers in 2026, thanks to its sunny climate, affordable lifestyle, and welcoming real estate market.
Understanding the full costs of buying property in Portugal is essential because the listing price is only part of the story, and taxes, fees, and administrative expenses can add up quickly.
We constantly update this blog post to reflect the latest tax rates, regulations, and market practices so you can plan your purchase with confidence.
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 Portugal.
Overall, how much extra should I budget on top of the purchase price in Portugal in 2026?
How much are total buyer closing costs in Portugal in 2026?
As of early 2026, total buyer closing costs in Portugal typically range from 6% to 10% of the purchase price, which for a 300,000 euro property (approximately $315,000 USD or €300,000 EUR) means budgeting an extra 18,000 to 30,000 euros on top of the purchase price.
The minimum extra budget possible for closing costs in Portugal, when keeping expenses to the bare legal minimum with a cash purchase and favorable IMT bracket, is around 2% to 4% of the purchase price, or roughly 6,000 to 12,000 euros ($6,300 to $12,600 USD) on a 300,000 euro property.
The maximum extra budget buyers should realistically plan for in Portugal, especially when taking a mortgage and facing higher IMT brackets for second homes or investment properties, is approximately 9% to 14% of the purchase price, meaning 27,000 to 42,000 euros ($28,350 to $44,100 USD) on that same 300,000 euro property.
The main factors that determine whether your closing costs in Portugal fall at the low end or high end include whether you qualify for IMT Jovem exemptions (for buyers under 35), whether the property is your primary residence or a second home, the property value bracket affecting your IMT rate, and whether you need mortgage financing which adds bank fees and additional stamp duty.
What's the usual total % of fees and taxes over the purchase price in Portugal?
The usual total percentage of fees and taxes over the purchase price in Portugal is around 7% to 9% for most standard residential transactions in 2026.
The realistic low-to-high percentage range that covers most standard property transactions in Portugal spans from 6% for cash purchases with favorable tax treatment to 12% for mortgage-financed purchases of higher-value second homes or investment properties.
Government taxes (primarily IMT transfer tax at 0% to 7.5% plus stamp duty at 0.8%) typically account for about 70% to 80% of total closing costs in Portugal, while professional service fees such as lawyers, notaries, and registration make up the remaining 20% to 30%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Portugal.
What costs are always mandatory when buying in Portugal in 2026?
As of early 2026, the mandatory costs when buying property in Portugal include IMT (property transfer tax) paid before completion, stamp duty on the purchase deed at 0.8% of the acquisition value, and registration and notary fees to formally transfer and record ownership with the land registry.
Costs that are optional but highly recommended for buyers in Portugal include hiring an independent conveyancing lawyer (especially critical for foreigners due to language barriers and different legal practices), obtaining a property survey or technical inspection for older buildings, and getting an independent valuation even when paying cash to avoid overpaying.
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What taxes do I pay when buying a property in Portugal in 2026?
What is the property transfer tax rate in Portugal in 2026?
As of early 2026, Portugal's property transfer tax (called IMT) is progressive for residential properties and ranges from 0% for low-value primary residences up to 7.5% for high-value properties, with the exact rate depending on whether the home is your primary residence or a second home and on the property's value bracket.
For standard foreign buyers purchasing residential property in Portugal in 2026, the government has proposed a flat 7.5% IMT rate for non-residents, though exemptions exist for those who become tax residents within two years or who rent the property at controlled prices for at least 36 months.
Buyers in Portugal typically do not pay VAT on standard resale residential property purchases because the transaction is structured with IMT plus stamp duty, though VAT at 23% may apply in certain developer or new-build structures where it is usually included in the sale price.
Stamp duty in Portugal is paid at the time of the purchase deed at a rate of 0.8% on the acquisition value, and if you take out a mortgage, additional stamp duty of 0.5% to 0.6% applies on the loan amount depending on the repayment period.
Are there tax exemptions or reduced rates for first-time buyers in Portugal?
Portugal's IMT Jovem program offers full exemption from IMT and stamp duty for buyers under 35 purchasing their first primary residence (habitação própria e permanente) for properties valued up to 324,058 euros, with reduced rates applying to properties up to 648,022 euros.
If you buy property through a company instead of as an individual in Portugal, the transaction may be structured differently with potential corporate tax implications on gains later, and you may face a flat 6.5% IMT rate plus ongoing corporate compliance and accounting costs.
There is generally no significant tax difference between buying a new-build versus a resale property in Portugal in terms of IMT rates, though new-builds may have VAT included in the price in some developer structures and may qualify for certain rehabilitation exemptions if located in designated urban rehabilitation areas.
To qualify for IMT Jovem exemptions in Portugal, first-time buyers must be under 35 years old on the purchase date, must not have owned property previously in Portugal or elsewhere, and the property must be used as their primary permanent residence, with documentation including proof of age and a declaration of intended use.
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 Portugal in 2026?
How much does a notary or conveyancing lawyer cost in Portugal in 2026?
As of early 2026, lawyer fees for conveyancing in Portugal typically range from 1% to 1.5% of the purchase price plus 23% VAT, which for a 300,000 euro property means approximately 3,700 to 5,500 euros ($3,885 to $5,775 USD), with a common minimum fee of around 3,000 euros for simpler transactions.
Notary and land registry fees in Portugal are typically charged as a combined amount rather than as a percentage, usually ranging from 1,000 to 1,500 euros ($1,050 to $1,575 USD) for standard residential transactions regardless of property price.
Translation and interpreter services for foreign buyers in Portugal typically cost between 150 and 400 euros ($160 to $420 USD) for straightforward appointment assistance, rising to 500 to 1,200 euros ($525 to $1,260 USD) if you need certified translations of multiple documents such as powers of attorney or corporate documentation.
A tax advisor in Portugal is not mandatory but is highly recommended for foreign buyers planning to rent, sell later, or manage cross-border tax situations, with one-off consultation fees typically ranging from 200 to 500 euros ($210 to $525 USD) or 500 to 1,500 euros ($525 to $1,575 USD) for comprehensive tax planning and filing setup.
We have a whole part dedicated to these topics in our our real estate pack about Portugal.
What's the typical real estate agent fee in Portugal in 2026?
As of early 2026, the typical real estate agent commission in Portugal ranges from 3% to 6% of the sale price plus VAT (23%), meaning fees of 9,000 to 18,000 euros ($9,450 to $18,900 USD) on a 300,000 euro property.
In Portugal, the seller typically pays the real estate agent fee, so buyers usually pay nothing directly to the agent unless they have signed a specific buyer-broker agreement, which is relatively uncommon in the Portuguese market.
The realistic low-to-high range for agent fees in Portugal spans from around 3% plus VAT for properties in high-demand areas like Lisbon and the Algarve where agents have strong bargaining power, up to 6% plus VAT in slower markets or for properties requiring more marketing effort.
How much do legal checks cost (title, liens, permits) in Portugal?
Legal checks in Portugal, including title search, liens verification, and permits review, typically cost between 100 and 400 euros ($105 to $420 USD) as pass-through administrative costs on top of your lawyer's main fee, with complex files involving inheritance issues or multiple owners potentially costing more.
The property valuation fee in Portugal, which is common when financing with a Portuguese bank, typically costs between 250 and 600 euros ($265 to $630 USD), with unique or remote properties sometimes requiring higher fees from specialized valuers.
The most critical legal check that should never be skipped in Portugal is verifying that the property has no unpaid charges, liens, or unregularized building works, since under Portuguese law the buyer can inherit responsibility for illegal structures or outstanding debts attached to the property.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Portugal.
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What hidden or surprise costs should I watch for in Portugal right now?
What are the most common unexpected fees buyers discover in Portugal?
The most common unexpected fees buyers discover in Portugal include condominium arrears (unpaid fees from previous owners), costs related to unregularized building works that need legalization, document and legalization expenses for foreigners such as powers of attorney, apostilles, and certified translations, and small bank account or administrative fees when setting up Portuguese banking.
Unpaid property taxes (IMI) or condominium debts can potentially transfer to the new buyer in Portugal if not properly cleared before completion, which is why your lawyer should obtain written confirmation from the condominium administrator and verify the property's tax status before signing.
Buyers in Portugal can fall victim to scams involving fake listings or fake reservation fees, so the golden rule is that no significant money should transfer until your lawyer has independently verified the seller's identity and confirmed clear title through official registry checks.
Fees that are usually not disclosed upfront in Portugal include fiscal representative costs for non-EU buyers (200 to 350 euros per year), energy performance certificate fees if a new one is needed (100 to 250 euros), and small courier or document certification costs that can add up to a few hundred euros.
In our property pack covering the property buying process in Portugal, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Portugal?
Extra costs when buying a tenanted property in Portugal typically include 300 to 800 euros ($315 to $840 USD) for legal review of the existing lease agreement and potentially additional fees for coordination with the tenant and property management handover.
When purchasing a tenanted property in Portugal, the buyer inherits all obligations under the existing lease contract, including the duty to honor the lease term, maintain the property according to landlord responsibilities, and follow proper legal procedures for any rent increases or lease modifications.
Terminating an existing lease immediately after purchase in Portugal is generally not possible because Portuguese tenant protection laws are strong, and you must respect the lease term and follow strict legal grounds and notice periods (often 6 to 24 months) for non-renewal or termination.
A sitting tenant in Portugal typically reduces the property's market value by 10% to 30% because buyers face restrictions on immediate use, but this can work in your favor as a negotiating tool if you're an investor who wants rental income and the lease terms are favorable.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Portugal.
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 Portugal?
Which closing costs are negotiable in Portugal right now?
The closing costs that are negotiable in Portugal include lawyer fees (which depend on scope of services), property inspection fees (you can shop around for competitive quotes), some bank fees when taking a mortgage, and occasionally who covers specific document or administrative costs.
Closing costs that are fixed by law and cannot be negotiated in Portugal include IMT (property transfer tax), stamp duty on the purchase deed (0.8%), and official land registry and notary fees which are set by the state.
The typical discount or reduction buyers can realistically achieve on negotiable fees in Portugal is around 10% to 20% on lawyer fees by comparing quotes and negotiating scope, and sometimes banks will waive or reduce certain mortgage-related fees to compete for your business.
Can I ask the seller to cover some closing costs in Portugal?
The likelihood that a seller will agree to cover some closing costs in Portugal is moderate, depending on market conditions and how motivated the seller is to complete the sale quickly.
The specific closing costs sellers are most commonly willing to cover in Portugal include small administrative expenses, energy performance certificate costs, or a price reduction equivalent to known repair needs rather than directly paying buyer taxes.
Sellers in Portugal are more likely to accept covering closing costs or reducing the price during slower market conditions, when the property has been listed for a long time, when it needs renovation, or when the seller is highly motivated due to relocation, inheritance, or financial pressure.
Is price bargaining common in Portugal in 2026?
As of early 2026, price bargaining is common in Portugal, with most sellers expecting some negotiation and buyers typically making initial offers below the asking price unless the property is in extremely high demand.
Buyers in Portugal typically negotiate 3% to 8% below the asking price in normal market conditions, with discounts of 10% or more achievable when a property is overpriced, needs significant work, or is located in a slower-moving area outside Lisbon, Porto, or prime Algarve locations.
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What monthly, quarterly or annual costs will I pay as an owner in Portugal?
What's the realistic monthly owner budget in Portugal right now?
The realistic monthly owner budget in Portugal for a typical residential property ranges from 100 to 400 euros ($105 to $420 USD) per month, depending on property type, location, and whether you have a mortgage.
The main recurring expense categories that make up this monthly budget in Portugal include condominium fees (if applicable), home insurance, utilities reserve, and a maintenance provision for repairs and upkeep.
The realistic low-to-high range for monthly owner costs in Portugal spans from around 70 euros ($75 USD) per month for a small apartment with low condominium fees up to 500 euros ($525 USD) or more per month for a larger villa or property in a full-service condominium building with pools and gardens.
The monthly cost that tends to vary the most in Portugal is condominium fees, which can range from 30 euros per month for a basic building with few common areas to 300 euros or more per month for luxury developments with extensive amenities, security, and professional management.
You can see how this budget affect your gross and rental yields in Portugal here.
What is the annual property tax amount in Portugal in 2026?
As of early 2026, the annual property tax (IMI) in Portugal is calculated by multiplying your property's official taxable value (VPT) by the municipal rate, which ranges from 0.3% to 0.45% for urban properties and is fixed at 0.8% for rural properties.
The realistic low-to-high range for annual property taxes in Portugal spans from around 200 to 500 euros ($210 to $525 USD) per year for a modest apartment with a low VPT, up to 1,500 to 3,000 euros ($1,575 to $3,150 USD) or more per year for higher-value properties in municipalities using the upper rate band.
Property tax in Portugal is calculated based on the VPT (Valor Patrimonial Tributário), which is an official tax value assessed by the Portuguese Tax Authority and is typically significantly lower than the market value, often three to four times less.
Exemptions and reductions available for certain property owners in Portugal include a temporary IMI exemption for up to three years for properties used as a primary residence or placed on the rental market (for properties with VPT up to 125,000 euros), and a permanent exemption is possible for low-income households with taxable income below 15,295 euros.
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 Portugal in 2026?
What tax rate applies to rental income in Portugal in 2026?
As of early 2026, the tax rate on rental income in Portugal for non-residents is generally 25% for residential leases, while tax residents face progressive rates from 13% to 48% on rental income aggregated with their other income.
Landlords in Portugal can deduct certain expenses from their rental income taxes, including IMI property tax, condominium fees, mandatory insurance, maintenance and repair costs supported by invoices, and property management expenses.
The realistic effective tax rate range after deductions for typical landlords in Portugal is approximately 15% to 22% for non-residents after deducting eligible expenses, while residents in lower income brackets may achieve effective rates below 15%.
Foreign property owners in Portugal pay a flat 25% rate on residential rental income (or 28% for commercial properties), whereas Portuguese tax residents pay progressive rates that could be lower or higher depending on their total worldwide income.
Do I pay tax on short-term rentals in Portugal in 2026?
As of early 2026, short-term rental income through Alojamento Local (licensed tourist accommodation) in Portugal is taxed as business income (Category B), with a simplified regime applying a 35% coefficient to your gross revenue, meaning only 35% of your income is taxed at your applicable rate.
Short-term rental income in Portugal is taxed differently than long-term rental income because it is classified as a service activity rather than simple rental, which means for non-residents the effective rate after the 35% coefficient is approximately 8.75% (35% x 25%), significantly lower than the 25% flat rate on standard long-term rents.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Portugal.
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If I sell later, what taxes and fees will I pay in Portugal in 2026?
What's the total cost of selling as a % of price in Portugal in 2026?
As of early 2026, the total cost of selling a property in Portugal (excluding capital gains tax) typically ranges from 5% to 8% of the sale price, with most sellers budgeting around 6% to 7% for a standard transaction.
The realistic low-to-high percentage range for total selling costs in Portugal spans from around 4% when selling privately without an agent up to 10% or more when including high agent commissions, legal fees, energy certificate costs, and any early mortgage repayment penalties.
The specific cost categories that typically make up total selling costs in Portugal include real estate agent commission (3% to 6% plus VAT), legal fees (1% to 2%), energy performance certificate if needed (100 to 250 euros), notary-related costs, and potentially early mortgage repayment fees if you have an outstanding loan.
The single largest contributor to selling expenses in Portugal is usually the real estate agent commission, which at 5% plus VAT (23%) on a 300,000 euro property amounts to approximately 18,450 euros, dwarfing all other selling costs combined.
What capital gains tax applies when selling in Portugal in 2026?
As of early 2026, capital gains tax on property sales in Portugal applies to 50% of the profit (sale price minus purchase price and eligible expenses), with that taxable amount then subject to progressive rates ranging from 13% to 48% depending on your total income.
Exemptions to capital gains tax in Portugal include reinvestment relief for primary residences (if you reinvest the proceeds in another primary home within the EU/EEA within 36 months), exemption for properties acquired before January 1, 1989, and special relief for residents aged 65 or over who reinvest in qualifying pension or insurance products.
Foreigners in Portugal do not pay an extra capital gains tax rate but are subject to the same rules as residents since 2023, with 50% of the gain taxed at progressive rates determined by considering worldwide income (even if not taxed in Portugal), which replaced the previous discriminatory 28% flat rate on the full gain.
The capital gain in Portugal is calculated as the sale price minus the original purchase price, acquisition costs (IMT, stamp duty, legal fees), documented improvement costs, and an inflation adjustment factor for properties held more than 24 months, with only 50% of the resulting net gain subject to taxation.
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 Portugal, 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 Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Portal das Finanças (CIRS Art. 72) | Official Portuguese Tax Authority's up-to-date tax code portal | We used it to anchor the flat and special IRS rates that apply to non-residents. We translated those rates into practical "what rate might I pay" guidance for foreign buyers. |
| Diário da República (CIMI/CIMT codes) | Official government gazette where consolidated Portuguese laws are published | We used it to ground the legal framework for IMT and IMI property taxation. We cross-checked practical explanations against this official legal baseline. |
| gov.pt IMT Jovem Service Page | Official Portuguese public services portal for citizen benefits | We used it to capture the IMT Jovem exemption thresholds and partial exemption rules. We cross-referenced it with Tax Authority pages to ensure accuracy. |
| IRN Casa Pronta | Official registry and notary authority's one-stop conveyancing service | We used it to anchor the official process for deed and registration in Portugal. We estimated typical fee ranges based on this official service structure. |
| Ordem dos Advogados (Stamp Duty Table) | Portuguese Bar Association's official stamp duty table used by practitioners | We used it to confirm which transactions trigger stamp duty and the applicable rates. We translated this into the buyer's most common stamp duty costs. |
| PwC Portugal Tax Guide 2025 | Major global tax firm's comprehensive guide tied to Portuguese law | We used it to cross-check stamp duty and IMT application rules. We validated our "what is usually taxed" explanations against this professional tax summary. |
| Caixa Geral de Depósitos IMI Explainer | Major Portuguese bank's guidance reflecting statutory IMI rate ranges | We used it to cite statutory IMI rate bands (0.3% to 0.45% urban, 0.8% rural). We cross-checked those bands against consolidated law references. |
| Garrigues Law Firm | Top-tier international law firm tracking specific Portuguese legislative changes | We used it to explain the post-2023 approach to non-resident capital gains taxation. We cross-referenced their analysis with official circular references. |
| OCC (Ordem dos Contabilistas Certificados) | Professional body for certified accountants publishing technical guidance | We used it to support how Alojamento Local income is taxed under Category B. We used it as a reliable check against informal blog explanations. |
| Idealista Portugal | Leading Portuguese property portal with market data and news coverage | We used it to track current market practices, agent commission norms, and policy changes. We referenced their coverage of the 2026 State Budget proposals. |
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