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Buy Real Estate in Portugal - Taxes payable and Documents needed

1 May, 2020
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Description

Tax amounts are tabulated by law:

  1. IMT

The IMT is the Municipal Tax on onerous transactions of real estate. It is calculated based on the purchase price of the property.

Rates range from 2% to 8%.

For properties between €550,836 up to €1,000,000, the flat rate is 6%.

Above 1,000,000 euros, the IMT in 2020 is 7.5%.

Rustic and agricultural plots have a fixed rate of 5%

Urban lots have a flat rate of 6.5%.

  1. STAMP DUTY

Stamp duty is calculated against the sales price.

The rates are:

Property: one-time fee of 0.8% on the declared value.

Mortgage: One-time rate of 0.6% on the mortgage value.

  1. OTHER COSTS

Lawyers

Depending on the purchase price of the property, lawyers generally work with fees ranging from 0.5% to about 1%. Some lawyers may agree to a flat fee, but usually the work is calculated at a percentage based on the purchase price.

Notarial expenses, registration of ownership, various documents

The total costs of all these expenses range from €500 to €1,500.

After Purchase:

  1. IMI - City property tax

IMI is calculated based on a table issued by the Government, and the rate ranges from 0.3% to 0.8% of the taxable asset value (which is usually much lower than the value of the acquisition).

  1. More Expenses:

Insurance premiums

Condo

Other taxes and fees

Other expenses that may arise (e.g. the maintenance of the property)

 

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