Guides
Clear answers to the questions we hear every day, with the official figures in force and their sources.
When you sell a home in Portugal for more than it cost you, the gain is subject to Portuguese income tax (IRS). The purchase price is adjusted for inflation, and improvements from the last 12 years and buying and selling costs are deducted. Only 50% of the gain is taxed, at the progressive IRS rates, for residents and, since 2023, for non-residents too. Residents who sell their main home and reinvest in another one between 24 months before and 36 months after the sale can exclude the gain. Homes bought before 1 January 1989 are not taxed.
Read the guide → SellingYou can sell a home in Portugal before the mortgage is paid off. At completion, part of the buyer's money pays the outstanding balance to your bank, the bank issues the mortgage release (distrate) and the mortgage is removed from the land registry. You must give the bank at least 10 working days' notice. Since 1 January 2026 the early repayment fee is back: up to 0.5% of the capital on variable-rate loans and up to 2% on fixed-rate loans, plus stamp duty. The release itself is free.
Read the guide → Buying from abroadOn top of the price, buyers in Portugal pay IMT transfer tax, 0.8% stamp duty and the deed and registration costs. For purchases from 25 May 2026, buyers who have never been tax resident in Portugal pay a flat 7.5% IMT on homes, with some exceptions. For a 500,000 € second home bought by a resident, taxes and registration come to about 31,700 €; for a non-resident, about 41,900 €.
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