To guarantee that you have accurate information about the anticipated expenses involved in the process, we have outlined below the costs associated with the property purchase procedure.

Typically, this procedure involves the involvement of a lawyer, a valuer, and potentially a specialized tax consultant or asset management advisor. The lawyer's fee usually ranges from 1% to 2% of the property's purchase price, although this can be discussed and agreed upon between the buyer and the lawyer. The valuation cost varies based on the property's location, type, and the depth of the evaluation. A standard valuation typically falls between €400 and €850. Regarding the asset management consultant, their fees are determined by the value of the assets they are tasked to manage.

In Portugal, IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis), the Municipal Property Transfer Tax, is payable before completion by both individuals and companies. The rate depends on the type of property, its location and its intended use.

Important: since 25 May 2026, buyers who are not Portuguese tax residents pay a flat IMT rate of 7.5% on urban residential property (Decree-Law 97/2026) instead of the progressive scale. The rule follows tax residence, not nationality. It does not apply to land, rustic or commercial property, and residents also pay 7.5% above 1,150,853 euros, so on higher-value homes there is no difference.

The difference can be reclaimed if you become a Portuguese tax resident within two years, or let the property at moderate rent for at least 36 months; the claim must be filed within six months of the qualifying event.

Stamp duty is a fee that the buyer pays before signing the deed, calculated based on the higher value between the transaction value and the asset value. This fee is set at a rate of 0.8%.

The expenses associated with this process have undergone significant changes in recent years. The exact cost can fluctuate based on the specific notary office where the deed is signed and the total value of the transaction. From our experience, these costs can vary widely, starting from €200 and going up to €750 for transactions valued at less than €800,000. For higher-value purchases, the expenses can escalate significantly, reaching up to €3,500.

The Municipal Property Tax in Portugal, known as "Imposto Municipal sobre Imóveis" (IMI), is an annual tax imposed on real estate properties. It is paid by property owners and is calculated based on the rateable value of the property. The rateable value is determined by the tax authorities and takes into account factors such as the property's location, size, amenities, and construction quality.

IMI rates can vary from municipality to municipality and are set within a range defined by law. The rates generally vary between 0.3% and 0.5% for urban properties and 0.8% for rural properties. Local municipalities have the authority to set the specific IMI rates within these limits. 

 The IMI is calculated based on the rateable value assigned by tax authorities, using specific coefficients in the formula: VPT = VC x A x Ca x Cl x Cq x Cv

VPT = Taxable value
VC = Construction value per square meter established by tax authorities
A = Gross construction area
Ca = Registered use of the property (commercial or residential)
Cl = Property location, where the coefficient is fixed by the municipality every three years and can range from 0.4% to 3.5%
Cq = Indicators of quality and comfort that impact the value, such as the number of floors, presence of amenities like a swimming pool or elevator
Cv = Determines the age of the property, with newer constructions having higher coefficients.

AIMI (Additional Municipal Property Tax) It is a special tax introduced in Portugal that applies to high-value real estate properties. AIMI was implemented to target properties with a total value (the sum of the rateable values of all properties owned by the taxpayer) exceeding a certain threshold. 

AIMI is calculated based on the rateable value of the property or properties and is applied progressively. The rates are as follows:

1. **0.7%**: For the portion of the rateable value that falls between €600,000 and €1,000,000.
2. **1%**: For the portion of the rateable value that exceeds €1,000,000 in the case of individual taxpayers or €2,000,000 for married couples or those in civil partnerships.

Certain properties are exempt from AIMI, such as properties used for tourism purposes, and industrial, or agricultural properties. Additionally, taxpayers can deduct the AIMI paid from their taxable income for Personal Income Tax (IRS) purposes.