The taxes and costs to buy a property in Portugal are usually below 10% of the property price. When you find a property that you are interested in, the real estate agent will give you an exact breakdown of the costs involved. However, here is a table presenting the main taxes and costs linked to your acquisition of a real estate property in Portugal:
| Taxes and Costs | % of property price |
| IMT (Imposto Municipal Transações) | 2% to 8% |
| IMI (Imposto Municipal Imóveis) AFTER buying | 0.3% to 0.5% (per year) |
| IS (Imposto de Selo) | 0.8% |
| Lawyer fees | 1% |
| Notary and registration fees | 1% to 2% |
Taxes for residents and non-residents are not the same
If you buy a house to live in Portugal, you are buying a permanent home and are a resident, but if you do not live in Portugal then it will count as a second home. Why does it matters? Because this will affect the property taxes you’ll have to pay. This is also true for rental income taxes, which will affect all those who plan to make a rental investment, or to rent out their property during certain months of the year. In short, rental income tax is 25% for residents, and 28% for non-residents.
Who pays the real estate agent fees?
In most cases, real estate agent fees are paid by the seller! Count 3% to 6% (+23%VAT) for real estate agent fees when selling.
For more information on taxes and costs when buying in Portugal, go to GlobalPropertyGuide (blog) and Idealista.pt (leading property portal in Portugal).