๐Ÿ‡ต๐Ÿ‡น Portugal

Property Taxes and Buying Costs in Portugal

Budget 7โ€“10% on top of the price for a resale apartment. On a 60 mยฒ apartment in Lisbon (about โ‚ฌ252,000) that is roughly โ‚ฌ17,640โ€“โ‚ฌ25,200.

Costs when you buy

Property transfer tax (IMT)
Progressive up to 6% for secondary homes (from 1% at the first euro); 7.5% flat for buyers who are not and have never been Portuguese tax residents
The 7.5% non-resident rate was introduced by Decree-Law 97/2026 in 2026; a refund may be possible if you become resident within 2 years.
Stamp duty (Imposto do Selo)
0.8% of price (plus 0.6% on a mortgage)
VAT on new builds
None on residential sales; IMT applies
Notary, land registry and lawyer
approx. 1โ€“2% of price

Costs while you own

Municipal property tax (IMI)
0.3โ€“0.45% of tax value a year (higher for buyers from blacklisted tax havens)
Additional IMI (AIMI)
0.7โ€“1.5% on aggregate residential tax value above โ‚ฌ600,000 per individual

Tax on rental income

Non-residents pay a flat 25% on net rental income, or can opt for progressive rates.

Frequently Asked Questions

What taxes do you pay when buying property in Portugal?โ†“
Property transfer tax (IMT): Progressive up to 6% for secondary homes (from 1% at the first euro); 7.5% flat for buyers who are not and have never been Portuguese tax residents. Stamp duty (Imposto do Selo): 0.8% of price (plus 0.6% on a mortgage). VAT on new builds: None on residential sales; IMT applies. Notary, land registry and lawyer: approx. 1โ€“2% of price.
What are total closing costs in Portugal?โ†“
Typically 7โ€“10% of the purchase price for a resale apartment.
How is rental income taxed in Portugal for non-residents?โ†“
Non-residents pay a flat 25% on net rental income, or can opt for progressive rates.
Buying property in Portugal: step-by-step guide โ†’

Last reviewed 2026-10. General information, not tax or legal advice: rates change and often depend on region and buyer status, so confirm with a local notary, lawyer or tax adviser. Sources: idealista: Non-residents pay more IMT (Aug 2026), idealista: Having lived in Portugal can avoid the 7.5% IMT (Sep 2026).