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Buying Costs Explained
Every tax, fee, and cost involved in buying property in Portugal in 2026 — so there are no surprises.
Whether you're an expat buying real estate in Portugal as your new home, or purchasing a property as an investment, the costs involved go beyond the purchase price. This guide breaks down every tax and fee you'll pay — from IMT and stamp duty to legal fees, notary costs, and ongoing running costs — with a worked example so you can see exactly what to budget.
How Much Does It Cost to Buy Property in Portugal?
Before you start viewing properties, you need to know what buying actually costs beyond the purchase price. In Portugal, buyers should budget roughly 7–10% on top of the agreed price to cover taxes, legal fees, and admin. Here's exactly where that money goes.
Under 35? You could pay zero. Portugal's IMT Jovem scheme means first-time buyers under 35 are fully exempt from both IMT and stamp duty on properties up to €330,539. Between €330,539 and €660,982, a reduced rate applies. This is a significant saving — on a €300,000 property, it could eliminate over €12,000 in taxes. Your lawyer can confirm whether you qualify.
How Is IMT Calculated?
IMT — Imposto Municipal sobre Transmissões Onerosas de Imóveis — is Portugal's property transfer tax and usually the biggest single cost involved in buying property. The tax is calculated on the higher of the purchase price or the property's official tax value (Valor Patrimonial Tributário), and the rate depends on whether the property will be your primary or secondary residence.
For primary residences, properties under €106,346 are fully exempt. Above that, rates are progressive — meaning you pay more as the value increases, up to a maximum of 7.5%. Second home and investment property rates are higher, with no exemption at the lower end.
Here are the 2026 rate brackets for mainland Portugal:
Buying Costs for a €300,000 Property
Let's say you're buying a €300,000 apartment as your primary residence, without a mortgage. Here's what the total cost looks like:
Additional Costs if You're Getting a Mortgage
If you're financing the purchase through a Portuguese bank, there are extra costs on top of the standard buying fees:
When Do You Pay?
Not everything is due at once. Here's when each cost hits during the buying process:
If the total tax value of all property you own in Portugal exceeds €600,000, you'll also be subject to AIMI — Adicional ao Imposto Municipal sobre Imóveis — a wealth tax charged annually at 0.7% for individuals (1% above €1M). This only applies to higher-value portfolios but is worth knowing about if you're buying in the premium segment.
Beyond taxes, budget for utilities — electricity, water, gas, and internet typically run €100–200 per month for an apartment, more for a larger villa. Home insurance is recommended and relatively affordable. If you're buying into a condominium, the monthly fees cover communal maintenance, cleaning, lifts, gardens, and pool — but check exactly what's included before you buy, as costs for water and shared services can vary significantly between buildings.
Costs After the Purchase
The purchase costs are one-off — but owning property in Portugal comes with running costs that you should factor into your monthly and annual budget. These costs vary depending on the type of property, its location, and the municipality.
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