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What are the costs when buying in Portugal?

If you want to buy a property in Portugal, it is important to have a clear understanding of the costs you will have. What are the costs at the moment of buying? What are the returning costs after the purchase? To help you get a clear overview, we have listed the costs below for you:


The one-off costs when purchasing are: 
- Transfer tax (calculation via pricing table) 
- Stamp duty tax (0.8% of the purchase price)
- Notary and registration fees (approximately € 950)
- Attorney fees (1% + VAT of the purchase price)


We advise you to always choose a lawyer when you are purchasing a property in Portugal. The role of the lawyer is very important and comprehensive. The role of the notary in Portugal is much smaller compared to what most countries are used to, which is why the costs for the notary in Portugal are much lower than the lawyer fees.
You should take into consideration a total of 6% to 8% of additional costs.

You should approximately take into account a total of 6% to 8% of additional costs for homes with a purchase price of less than € 1,000,000. For homes with a purchase price higher than € 1,000,000, you can roughly count with 10% purchase costs, since the transfer tax for houses above € 1,000,000 has a fixed percentage of 7.5%. The purchase guidance of the real estate agent is free of charge in Portugal, it is a cost paid by the selling party.

If you need a mortgage in Portugal, there are additional costs for the bank, for a valuation, translation costs and an additional stamp duty of 0.6% on the mortgage amount.

Would you like to receive a customized calculation of the purchase costs for the price range you are looking for? Email us at and inform us in which price range you want to receive an overview of estimated purchase costs.

Periodic costs after purchase  

  • IMI Tax
  • AIMI
  • Operating costs (water, electricity, gas, TV and internet)
  • Condominium costs (= service costs for apartments and semi-detached house

IMI = Imposto Municipal sobre Imóveis  (Municipal Property Tax)
As a homeowner in Portugal, you pay an annual property tax, called IMI (Imposto Municipal Sobre Imóveis), known as the Municipal Property Tax. The amount of this tax varies per municipality between 0.3% and 0.8% of the value for which the property is registered at the tax office. This registered tax value is called "Valor Patrimonial" in Portugal and is determined by the tax authority. This value is often much lower than the sales value because the re-valuation system for tax values in Portugal is still old-fashioned and is not updated annually as in many other European countries. Payment of the IMI takes place in one, two or three payments depending on the annual amount.
AIMI = Adicional Imposto Municipal Sobre Imóveis (Additional Property Tax) 
If you own real estate in Portugal with a value over € 600,000, you will also have to deal with the annual wealth tax called AIMI. This tax was introduced in 2017 and is 0.4% for companies and 0.7% for individuals. If the value of the property has a value of more than € 1,000,000, the levy is 1% for both individuals and businesses. If you are a partner for the tax authorities, the tax-free rate is not € 600,000, but € 1,200,000. Here too, the authorities apply the registered tax value, called the "Valor Patrimonial" as the basis for the calculation of this tax. 
Operating Costs
You will of course also be faced with running costs for water, electricity and (if applicable) gas. You also have costs for an internet and TV subscription. There are various providers such as Vodafone, NOS, MEO, Sky and Canal Digital. 
Condominium Fee / Service charges 
If you are the owner of an apartment, a terraced house or a home on a resort, you will be faced with monthly condominium costs, also called service charges. This amount varies per condominium of approximately € 30 - € 150 per month. The pool is maintained and cleaned, but also the garden, elevator, public areas and for example common lighting is paid from this fee.
Owners of villas often have to deal themselves separately with the costs for garden and pool maintenance if you do not maintain them yourself of course. Costs vary and will also depend on use, especially for pool maintenance. We can always help you to obtain a quotation from a reliable company. 
If you are going to rent your property, let yourself be well informed about the application for the rental license permit and the tax to be paid.
The cost of living in Portugal are lower than the average costs for living in other European countries. Although petrol is not so cheap, dining out is really cheap and the same for insurances and medical expenses. The tax rates for residents are also attractive for those buying for a permanent residence in Portugal. 
If you would like more information, please call or email us. You can also schedule an appointment in one of our offices:
00351-289 501 664 (Albufeira),
00351-289 841 751 (São Brás de Alportel) or
00351-289 247 824 (Moncarapacho).
Best regards, 

Chantal Bruining 

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