The cost of buying property in Portugal in 2026: taxes and fees

The big change for foreign buyers: a flat 7.5% IMT

This is the thing most buyer guides still get wrong. Since 25 May 2026 (Decree-Law 97/2026), a buyer who is not tax-resident in Portugal pays a flat 7.5% IMT on a home, with no 0% band and no reduction. It is based on tax residency, not nationality, so EU and non-EU buyers are treated the same.

There are three ways out of the 7.5%: you were already a Portuguese tax resident; you become one within two years of buying; or you let the home as long-term affordable housing. A holiday-home buyer who stays non-resident pays the 7.5%. If you qualify for an exception later, you pay the 7.5% up front and reclaim the difference.

The flat rate applies only to housing, not to commercial or rural property.

What residents pay (the progressive IMT table)

If you are, or become, a Portuguese tax resident, IMT is charged on a sliding scale instead. For a primary, permanent home in 2026 there is no IMT up to €106,346, then rates step up through 2%, 5%, 7% and 8%, with flat rates of 6% and 7.5% on the most expensive homes. A secondary home is the same scale but starts at 1% from the first euro. These brackets rose about 2% for 2026, so any guide still showing 2025 numbers is already out of date.

A real example, non-resident vs resident

On a €400,000 home, a non-resident pays €30,000 in IMT (the flat 7.5%). A resident buying the same place as a second home pays about €19,300 on the progressive scale. That is roughly €10,700 more for the non-resident, on the transfer tax alone. The gap is widest on lower-priced homes and narrows on expensive ones, where the resident scale also approaches 7.5%.

Stamp duty, notary and legal fees

Stamp duty (Imposto do Selo) is 0.8% of the price, paid at completion. Notary and land-registry costs through the government's Casa Pronta service are a flat €375 for a straightforward purchase (€700 if you also register a mortgage). A buyer's lawyer is optional but strongly advised for a foreign buyer; legal fees are not fixed, typically around 1–2% of the price or a set fee, so always get a written quote.

Who pays the estate agent?

The seller pays the agent's commission in Portugal, normally around 5% plus VAT. As a buyer you work with a licensed agency at no direct cost. You can check any agency's AMI licence on the public IMPIC register.

Yearly costs after you buy

The main ongoing tax is IMI, the annual municipal property tax. In Lagos for 2026 it is 0.3% of the property's rateable value for urban homes, the legal minimum. On top of that, AIMI (a wealth top-up) only applies if your Portuguese property is rated above a €600,000 allowance per person, so most buyers of a single home never pay it.