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Real Estate Portugal – Information on Costs of Purchase – Lucas Fox

IMT (Imposto Municipal Sobre as Tranmissões) – This is the main tax payable on property in Portugal. There has been a recent change to the legislation in how the property transfer tax is now paid. The maximum rate for SISA tax was 10%. This has now been lowered to 6% on any property sold with a declared value of €500,000 and above. There are substantial deductions for properties below that value.

Below is a table showing how the new taxes will be applied:

Purchase price from (€)

To purchase price (€)

% to apply

Amount deducted

0

85.000

0

0

85.000

117.200

2

1.710

117.200

159.800

5

5.226

159.800

266.400

7

8.422

266.400

532.700

8

11.086

532.700

Above

6

0


For example:
Suppose a property costs €175,000
Multiply this figure by 7% = €12,250.
Then deduct €7,900.
Total tax to be paid: €4,350.


Notary’s & Land Registration Fees - These will have to be paid by you on completion. As a general rule these will be approximately 1 to 2% of the purchase price.


Solicitor’s Fees - Legal fees represent no more than 1% of the agreed purchase price.