The asking price is not the whole cost. On top of it, a buyer in Portugal pays a transfer tax, stamp duty, and fees for the deed, the registry, and legal work. In 2026 the maths changed for non-residents, so the total is higher than many older guides suggest.
This is a line-by-line breakdown with current figures, plus worked examples for a resident and a non-resident buying the same home.
Key takeaways
The headline numbers, before the detail.
- Budget on top of the price. Total closing costs run roughly 6% to 8% for residents and about 9% to 12% for non-residents in 2026.
- IMT is the big one. Residents pay progressive rates, with a main home exempt up to €106,346. Non-residents now pay a flat 7.5% on residential property.
- Add stamp duty. 0.8% on the purchase, plus 0.6% on the loan if you take a Portuguese mortgage.
- Add fees. Notary, land registry, and legal fees come to roughly 1% to 2% of the price combined.
- Watch the base and the timing. IMT and stamp duty are charged on the higher of the price or the tax value (VPT), and both are paid before the deed.
- Model it before you offer. A buyer’s agent such as Ola Estate can work these costs into your budget before you make an offer, so there are no surprises at the notary.
The one-off taxes you pay when buying
IMT: the property transfer tax
IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) is the single biggest cost after the price. It is a one-off tax the buyer pays, and the payment is made at the point of purchase, before the final deed. It is charged on whichever is higher: the declared purchase price or the property’s tax-registered value (Valor Patrimonial Tributário, or VPT). The VPT is usually well below the market price, so for most purchases the tax is based on the price you pay.
Residents and main homes. A main home is taxed on a progressive scale and is exempt from IMT up to €106,346 in 2026, with rates rising through the brackets above that. A second home uses a similar scale but without the initial zero band, so it costs a little more. As an example, a resident buying a €300,000 main home pays roughly €10,500 in IMT.
Non-residents (the 2026 change). Under Decreto-Lei n.º 97/2026, published in the Diário da República, non-resident buyers of urban residential property now pay a flat 7.5% IMT, with no default exemptions or reductions. The progressive brackets no longer apply to this group. On a €300,000 property that is €22,500, against roughly €10,500 for a resident main home. At €500,000 it is €37,500, and at €1,000,000 it is €75,000.
Three ways out of the flat rate. According to PwC Portugal’s summary of the package, the 7.5% rate does not stick if the buyer was already a Portuguese tax resident at the time of purchase, becomes a tax resident within two years, or lets the property as housing at a rent not exceeding €2,300 per month, signed within six months of purchase and kept for at least 36 months over the first five years. In the last two cases you pay the 7.5% upfront and reclaim the difference, requesting it within six months of meeting the condition.
Two other rates are worth knowing. Agricultural land is taxed at a flat 5%, and other urban property such as commercial units, building plots, and homes with a tourist licence at 6.5%. Buyers under 35 purchasing their first main home can qualify for a full IMT and stamp duty exemption up to a price cap that is updated each year (around €324,000 in 2025), with partial relief above it.
Stamp duty (Imposto do Selo)
Stamp duty is the smaller purchase tax, and it applies to almost every transaction. Buyers pay a flat 0.8% on the higher of the price or the VPT, at the deed. It is separate from IMT, and like IMT it is paid before signing.
If you finance the purchase with a Portuguese mortgage, there is an extra stamp duty on the loan itself: 0.6% of the loan amount for terms of five years or more, or 0.5% for shorter terms. The under-35 first-home exemption above also covers stamp duty on the purchase.
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The fees you pay to complete
Notary and land registry
Completing the purchase means signing the deed and registering the new ownership, either through a notary or the state’s Casa Pronta one-stop service. Administrative fees for the deed and registration usually total around €500 to €1,000, though a notary-led completion or a mortgage can push the figure toward the top of that range or a little above.
Legal fees
An independent lawyer handles the due diligence and the contracts. Fees typically run 1% to 2% of the purchase price. Make sure the lawyer is independent, with no link to the seller, the agent, or the developer, and appoint them before you make an offer or pay any deposit.
Estate agent commission
In a standard sale the seller pays the agent, usually around 5% plus VAT, so as a buyer you normally pay nothing directly to the listing agent. That cost is real, but it is built into the asking price. If you hire a buyer’s agent to act for you, that is a separate buyer-side fee, typically 1% to 3% of the price.
What about VAT on a new-build?
This is a common source of confusion. Property sales in Portugal are generally exempt from VAT, and IMT applies instead, to both new-builds and resales, calculated the same way. So a buyer does not pay 23% VAT on top of the price of a new home. A reduced 6% VAT introduced for 2026 applies to qualifying construction and renovation work on the developer’s side, not as a tax the buyer adds at purchase.
Worked example: resident versus non-resident
The same €300,000 apartment, bought without a mortgage, in 2026. Figures are approximate and use the current rates.
The gap is almost entirely the IMT rate. If the non-resident buyer later becomes a Portuguese tax resident within two years, or lets the property under the moderate-rent rules, the difference in IMT can be reclaimed, which brings the two columns much closer together.
Frequently asked questions
How much are closing costs when buying property in Portugal?
Roughly 6% to 8% of the price for residents and about 9% to 12% for non-residents in 2026. Most of that is IMT, with stamp duty, notary, registry, and legal fees making up the rest.
Who pays IMT, the buyer or the seller?
The buyer pays IMT, and it is paid before the final deed. The seller does not pay it. The notary or registrar will ask for proof of payment before completing the transfer.
How is IMT calculated in Portugal?
IMT is charged on whichever is higher: the declared purchase price or the property’s tax value (VPT). For residents it follows a progressive scale; for non-residents it is a flat 7.5% on residential property from 2026.
How much is IMT for non-residents in 2026?
A flat 7.5% of the property value on urban residential property, under Decreto-Lei n.º 97/2026. On a €300,000 home that is €22,500. Refunds are possible if you become a tax resident within two years or let the property under the moderate-rent rules.
What is stamp duty when buying property in Portugal?
A flat 0.8% on the higher of the price or the VPT, paid by the buyer at the deed. If you take a Portuguese mortgage, an extra 0.6% applies to the loan amount for terms of five years or more, or 0.5% for shorter terms.
Do I pay VAT when buying a new-build in Portugal?
No. Property sales are generally exempt from VAT, and IMT applies instead, to both new-builds and resales. You do not add 23% VAT on top of a new home’s price.
When do I pay the property taxes, before or after the deed?
Before. Both IMT and stamp duty must be settled ahead of the deed, and the assessment must be issued first. Most buyers pay a couple of days early to avoid any last-minute delay at completion.
Are there any IMT exemptions?
Yes. A main home is exempt up to €106,346 in 2026. Buyers under 35 can get a full IMT and stamp duty exemption up to an annually updated price cap. Properties in urban rehabilitation areas and certain resale-for-trade purchases can also qualify.
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To Sum Up
Budget for the taxes and fees, not just the price. For a resident the total is usually 6% to 8%; for a non-resident buying residential property in 2026, plan for about 9% to 12%, driven by the flat 7.5% IMT. The refund routes are real but conditional, so model your own numbers before you offer.
If you want the full cost worked into your budget before you make an offer, talk to Ola Estate about your purchase.
