Guides › Buying from abroad
How much does it cost to buy a home in Portugal in 2026
On 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 €.
When you buy a home in Portugal you pay three compulsory costs on top of the price: IMT (the property transfer tax), stamp duty of 0.8%, and the deed and land registry fees. With a mortgage, there is also stamp duty on the loan and the bank’s own fees.
This guide uses the official tax tables in force since 1 January 2026, updated by the 2026 State Budget (Law 73-A/2025), and the non-resident rules of Decree-Law 97/2026.
Summary of costs
| Cost | How much | When |
|---|---|---|
| IMT | Depends on price, use and tax residence (see below) | Before the deed |
| Stamp duty on the purchase | 0.8% of the price | Before the deed |
| Deed and registration (Casa Pronta) | 375 € without a mortgage, 700 € with one | On completion |
| Stamp duty on the mortgage | 0.6% of the loan | On completion, through the bank |
| Stamp duty on interest and bank fees | 4% | With each instalment |
| Bank valuation and fees | Vary by bank | During the mortgage process |
IMT and stamp duty are charged on whichever is higher: the price in the deed or the property’s tax value (VPT), shown on the property tax record (caderneta predial).
Non-resident buyers: flat 7.5% IMT
For purchases from 25 May 2026, Decree-Law 97/2026 applies a single 7.5% IMT rate when someone who is not tax resident in Portugal buys a building or unit used exclusively as a home. There are no brackets and no exemptions, including the young buyers’ exemption. The rule depends on tax residence, not nationality.
The 7.5% does not stick in three cases:
- You were tax resident in Portugal at any time before. You pay the normal resident rates from the start.
- You become tax resident within two years of buying. You can ask the tax office to cancel the difference.
- You let the home as a residence within 6 months, at a moderate rent, and keep it let for at least 36 months in the first 5 years. You can also ask for the difference to be cancelled.
The request is a formal claim (reclamação graciosa) to the tax office, within 6 months of becoming resident or of signing the lease. For a married couple in community of property, the 7.5% applies only if both spouses are non-resident and neither was ever resident. Co-buyers are assessed separately.
IMT for a main home (tax residents)
Applies when the home will be the buyer’s permanent residence. Multiply the price by the rate for its band and subtract the deduction.
| Price | Rate | Deduction |
|---|---|---|
| Up to 106,346 € | 0% | 0 € |
| 106,346 € to 145,470 € | 2% | 2,126.92 € |
| 145,470 € to 198,347 € | 5% | 6,491.02 € |
| 198,347 € to 330,539 € | 7% | 10,457.96 € |
| 330,539 € to 660,982 € | 8% | 13,763.35 € |
| 660,982 € to 1,150,853 € | 6% of the full price | |
| Over 1,150,853 € | 7.5% of the full price |
IMT for a second home or buy-to-let (tax residents)
| Price | Rate | Deduction |
|---|---|---|
| Up to 106,346 € | 1% | 0 € |
| 106,346 € to 145,470 € | 2% | 1,063.46 € |
| 145,470 € to 198,347 € | 5% | 5,427.56 € |
| 198,347 € to 330,539 € | 7% | 9,394.50 € |
| 330,539 € to 633,931 € | 8% | 12,699.89 € |
| 633,931 € to 1,150,853 € | 6% of the full price | |
| Over 1,150,853 € | 7.5% of the full price |
These are the mainland tables. In the Azores and Madeira the bands are 25% higher. Other property types have flat rates: 5% for rural land, 6.5% for other urban property such as shops, offices and building plots.
Worked examples
Second home, 500,000 €, tax resident, no mortgage
- IMT: 500,000 × 8% − 12,699.89 = 27,300.11 €
- Stamp duty: 500,000 × 0.8% = 4,000 €
- Deed and registration (Casa Pronta): 375 €
- Total: 31,675.11 €
Same home, buyer who was never resident in Portugal
- IMT: 500,000 × 7.5% = 37,500 €
- Stamp duty: 4,000 €
- Deed and registration: 375 €
- Total: 41,875 €
When IMT is paid
IMT is assessed before the deed and must be paid on the day of the assessment or within the following 30 days. The notary or the Casa Pronta office will only complete the deed with proof that IMT and stamp duty have been paid.
Mortgages: how much a bank will lend
Since August 2026, Portuguese banks follow Banco de Portugal’s Macroprudential Recommendation 1/2026:
| Rule | Limit |
|---|---|
| Loan to value, main home | Up to 90% |
| Loan to value, other purposes (second home, investment) | Up to 80% |
| Value used | The lower of the price and the bank’s valuation |
| Debt service to net income | Up to 45%, with limited exceptions |
| Maximum term | 40 years up to age 35, 35 years above |
The same limits apply to non-residents, depending on the purpose of the loan. A second home bought with a mortgage needs at least 20% of the value in your own funds, plus the taxes and costs above.
After you buy: IMI
Every year the owner pays IMI, the municipal property tax. For urban property, each municipality sets the rate between 0.3% and 0.45% of the tax value; rural land pays 0.8%. The tax for a year is due from whoever owns the property on 31 December.
How we help
As buyer’s agents we run the numbers with you before you commit, check the property’s tax value and paperwork, and guide you through to completion, in English. This guide is general information: for your specific case, always confirm with the tax office, the notary or an accountant.