When purchasing your second home you must bear in mind that the total costs will be between 6% and 10% of your purchase price.
- Transfer tax = IMT: is payable on the transfer of real estate in Portugal. The buyer is liable for the correct payment of the transfer tax to the tax authorities. The IMT-rates vary depending on the nature and the value of the object.
- Stamp tax: is paid by the buyer during the transfer and amounts to 0.8% of the purchase price.
- Lawyer costs: Most lawyers charge between 1% and 1.5% of the purchase price as reimbursement. A lawyer conducts all necessary investigations in preparation for the provisional purchase agreement. Your lawyer also draws up the provisional deed of purchase which is signed by both parties.
- Notary and registration costs: amounts to approximately € 750. However, this amount varies per notary's office and becomes higher if, for example, you purchase a house with a mortgage.
- Municipal taxes = IMI: This tax is paid to the town hall of the area where your real estate is located. The rate is calculated based on a percentage of the value of the object. This percentage can vary per municipality and per type. It is possible that the value on which the IMI is calculated is much lower than the current market value of the property, because this register was usually only updated when a transfer of ownership had taken place.
Please note: this information is indicative and we cannot be held responsible for any errors or incorrect information. We recommend that you be properly informed about the legal and tax consequences of every purchase and sale of real estate in Portugal as the laws in Portugal are constantly changing.