Portugal Property Purchase Costs 2025 — IMT, IS, Notary Fees

The previous description on this page gave IMT as running "0%–12%" — the actual ceiling is 7.5%, reached only by the highest-value properties. Here is the corrected, complete picture of what buying property in Portugal actually costs on top of the price.

IMT — progressive, not flat

IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) is Portugal's property transfer tax, charged on whichever is higher: the price in the deed, or the property's official Valor Patrimonial Tributário (VPT). For a primary residence (habitação própria permanente) in mainland Portugal, IMT is progressive across several brackets, updated by 2% for 2026:

• No IMT at all on the value of a primary residence up to €106,346 for 2026.
• Rates then rise through the brackets, up to a single flat rate of 6% for the portion of value between roughly €633,453 and €1,102,920.
• Above €1,102,920, a single flat rate of 7.5% applies to the whole value — this is the actual ceiling, not 12%.

Young buyers aged 35 or under get a specific relief: full IMT exemption on a primary residence up to €330,539 for 2026, with partial exemption (7.5% charged only on the excess) for properties priced up to €660,982.

Second homes get no equivalent exemption — there is no IMT-free allowance for a non-primary residence purchase the way there is for a first home.

A significant change arriving 1 September 2026

Decreto-Lei n.º 97/2026 introduces a flat 7.5% IMT rate specifically for buyers who are not tax-resident in Portugal, purchasing residential urban property, effective from 1 September 2026 — replacing the ordinary progressive bracket calculation for that buyer, not adding on top of it. A buyer can apply to have the difference refunded if they become a Portuguese tax resident within two years of the purchase, or if they commit the property to affordable rental (rent capped, and let for at least 36 months within the first five years). Deeds signed before 1 September 2026 follow the ordinary rules regardless of the buyer's residency.

Stamp Duty (Imposto do Selo) on the purchase itself

Separately from IMT, Imposto do Selo applies at a flat 0.8% of the purchase price on every property transaction. If the purchase is financed with a mortgage, a further 0.6% of Stamp Duty applies to the loan amount itself — a cost distinct from, and additional to, the 0.8% on the property price.

Notary, registration, and the one-stop-shop option

A notarised deed (escritura) typically costs somewhere in the €600–€1,500 range depending on the property's value and the notary chosen, and registering the transfer at the Conservatória do Registo Predial typically costs €250–€500 separately. Portugal's Casa Pronta service lets a buyer complete the deed, the registration, and the IMT settlement in a single visit, for a fixed fee of around €375 — usually the cheapest route for a straightforward purchase, since it bundles costs that would otherwise be paid separately.

Worked example

A Portuguese tax-resident buyer, aged 40, purchases a primary residence for €400,000 — above the young-buyer exemption thresholds (which do not apply at this buyer's age), and falling in a mid-range IMT bracket that this example treats at an illustrative 5% marginal rate for the portion above the tax-free floor, for simplicity.

• IMT (illustrative, on the taxable portion): a mid-bracket calculation gives roughly €15,000–€18,000 depending on exactly which bracket cutoffs the €400,000 price crosses — check the current official IMT table for the exact figure, since the bracket structure itself changes most years.
• Stamp Duty on the price: €400,000 × 0.8% = €3,200
• If financed with a €320,000 mortgage, Stamp Duty on the loan: €320,000 × 0.6% = €1,920
• Using the Casa Pronta service for the deed, registration and IMT settlement: ≈€375

The IMT figure is deliberately given as a range rather than a single number here — unlike Stamp Duty, which is a simple flat percentage, IMT depends on exactly where the price falls across a multi-bracket table that is updated most years, so a single confidently-stated euro figure would be more precise than the underlying law actually supports without you plugging in the current official table for the exact purchase date.

FAQ

Q: Is IMT ever as high as 12%? A: No — 7.5% is the ceiling for the highest-value ordinary purchases, and it is also the flat rate that will apply to non-resident buyers of residential property from 1 September 2026 under Decreto-Lei n.º 97/2026.

Q: Do I pay Stamp Duty on my mortgage as well as on the property? A: Yes, if you finance the purchase — 0.8% on the purchase price, plus a separate 0.6% on the loan amount itself.

Q: Does the young-buyer IMT exemption apply to a second home? A: No — it is specific to a primary residence (habitação própria permanente) purchase, not to second homes or investment property.

Sources

Figures verified as of 30 July 2026:

• Código do IMT and the 2026 IMT bracket update (OE2026, +2% to thresholds) (0% floor to €106,346, 6% flat band, 7.5% ceiling above €1,102,920; young-buyer exemption to €330,539 and partial exemption to €660,982)
• Decreto-Lei n.º 97/2026 (flat 7.5% IMT for non-resident buyers of residential property from 1 September 2026, with residency and affordable-rental refund routes), as reported by multiple Portuguese tax advisories (assis.partners, Doutor Finanças, Space Lovers)
• Código do Imposto do Selo (0.8% Stamp Duty on purchase price; 0.6% on mortgage loan amount)
• Notary and Conservatória do Registo Predial fee ranges, and the Casa Pronta one-stop-shop service (approximate cost ranges as reported by Portuguese property-transaction guides)