Buying property in Portugal comes with several taxes and fees. Here’s a quick overview to help you.

Understanding your tax exposure is easier with the right legal advice, especially for those using corporate structures or buying through offshore entities, which can attract higher rates.

Professional guidance is key when navigating property purchases and visas in Portugal. For more information or tailored advice, speak to a member of our team.  

Property Transfer Tax

The Property Transfer Tax (IMT) is a one-time payment due before the final deed is signed. It is calculated based on the higher amount between the property's purchase price and its tax value (VPT), with rates generally ranging from 6% to 7.5% for urban properties. Construction plots, rural land, and properties held by offshore entities may face different rates. 

Stamp Duty

Stamp Duty is another upfront cost that should be considered when buying a property in Portugal, charged at 0.8% of the sale price or VPT.

Legal Fees

Buyers should also budget for legal fees, usually 1-2% of the property value, plus notary and registration costs around €2,000 to €2,500. Once you own a property, you’ll pay IMI, the annual municipal tax based on the property’s VPT, ranging from 0.3% to 0.45% for urban homes. High-value properties might also incur AIMI, an additional annual tax on properties valued over €600,000.

Capital Gains Tax

Capital Gains Tax applies when selling, with non-residents taxed at 28% on profits, while residents are taxed on 50% of the gain as part of their income tax. There’s no inheritance tax for immediate family, but a stamp duty of 0.8% applies.

Visas

Portugal’s visa options are equally diverse. The Golden Visa no longer applies to real estate but remains for investments in job creation, research, or culture. The D2 Visa suits entrepreneurs looking to start or invest in businesses, while the D7 Visa is ideal for retirees or those with passive income, requiring a minimum monthly income of €870 from 2025. For remote workers, the D8 Digital Nomad Visa provides residency with proof of stable income, currently around €3,480 per month.

For more information please contact a member of our team, or read more here.