Besides knowing the Process of buying a property in Portugal, it´s important to understand which costs you will be charged so you never get any unexpected surprises. Our WESTMARK professionals will always inform you what will apply for you. But here is a small recap.
Agency fees
When you work with a Estate Agents who acts as your Property Consultant, please be very careful! Some agencies claim to work for you FREE of charge. But we all know that nobody works for free. These agencies are getting paid by the selling estate agents. Some selling agencies are not sharing their commissions with other agencies, and this may cause problems. Your Property Consultant will not show you these properties because they are not making any money on them, so they are not working for your best interest. We advise to always work with a Property Consultant who charges you for his services, to be completely sure that your best interest is covered.
Stamp Duty
Portugal is one of the few countries in Europa that applies a stamp duty (Imposto do selo) on several occasions. The purchase of a property is such an occasion. This is a fixed tax of 0.8% off the purchase price. This amount needs to be paid upon the Deed at the Notary.
Property transfer tax
Transfer Tax (Imposto Municipal sobre Transmissoes) is also a percentage off the total purchase price, but the value depends on a number of requirements. It depends for example if you are a Portuguese resident buying your residential property or a non-resident buying a second home. The second most important requirement is the property value, the higher the purchase price in general the higher the tax.
is payable at the tax department before the property transfer. The buyer or his lawyer (when having the power of attorney to purchase) is liable to correctly pay the IMT before the final deed.
Notary and registration fees
In Portugal it´s the buyer who can choose the Notary to perform the title Deed. The rates of Notaries can differ a bit but in general the costs are around € 1.000.