Buying a home in Portugal is an exciting step — but before signing the deed, it’s essential to understand the full range of taxes and fees involved. Whether you're purchasing a primary residence, a holiday home, or an investment property, Portugal’s tax system includes both one‑time purchase taxes and ongoing annual obligations.

This guide breaks down all major costs buyers should expect in 2026 and beyond.

1. IMT – Property Transfer Tax (One‑Time Tax)

IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis) is the most significant tax due at the time of purchase.

Key Points

• IMT is paid before the deed signing, along with stamp duty.
• Rates vary according to:
  • Property value
  • Whether it is a primary residence or second home
  • Whether you are resident or non‑resident
• IMT typically ranges from 0% to 10% depending on the category.

IMT Rates in 2026

According to Idealista’s latest 2026 rate table:

• Primary residences range from 0% to 8%, depending on the price bracket.
• For non‑resident buyers, a flat 7.5% IMT applies for most residential properties starting in 2026.

This makes IMT the largest upfront cost for most buyers.

2. Stamp Duty (One‑Time Tax)

Every buyer must pay 0.8% stamp duty on the declared purchase price.

If you take out a mortgage, there is an additional 0.6% stamp duty on the loan amount.

Both taxes are settled at the notary before the deed is signed.

3. IMI – Annual Municipal Property Tax (Ongoing Tax)

IMI (Imposto Municipal sobre Imóveis) is the annual property tax paid every year by homeowners.

Rates

• Urban properties: 0.3%–0.45% of the property’s taxable value (VPT).
• Rural land: 0.8%.

Municipal councils set the exact rates within these ranges, and IMI is payable in one, two, or three instalments depending on the amount owed.

4. AIMI – Additional Property Tax for High‑Value Assets (Annual)

AIMI (Adicional ao IMI) applies to luxury properties or portfolios exceeding €600,000.

• Rates start at 0.7% and increase depending on the total value and ownership structure.

AIMI applies to individuals and companies owning high‑value real estate.

5. Notary, Registration & Legal Fees (One‑Time Fees)

These fees cover the official registration and legal validation of the property.

What to Expect

• Notary and registration fees vary depending on the property value.
• Legal representation is strongly recommended — especially as the CPCV promissory contract requires a 10%–30% deposit upfront, which is forfeited if the buyer withdraws without a legal clause.

Most foreign buyers rely on a lawyer to handle document checks, deposits, and due‑diligence.

6. Mortgage Costs and Bank Fees

If financing the purchase, expect additional costs:

• Bank valuation fees
• Loan application fees
• Mortgage stamp duty (0.6% for loans ≥ 5 years)

Mortgage interest rates have stabilized around mid‑2025 levels, making financing conditions clearer for 2026 buyers.

7. Other Possible Taxes: Capital Gains & Rental Income

Capital Gains Tax (When Selling)

• Gains are taxed at 50% of profit for residents, applied to IRS progressive rates (12.5%–48%).
• Non‑residents pay different tax treatments.

Rental Income Tax (For Investors)

• Flat 28% rate for most rental income.
• Residential long‑term rentals may be taxed at 25%.
• Residents may opt for progressive taxation.

Final Thoughts

Understanding Portugal’s property taxes and fees is essential for smart budgeting and avoiding surprises. While the list may seem long, most charges are predictable — and with proper planning, buying a home in Portugal is a smooth and transparent process.

Whether you're seeking a beachfront villa, a city apartment, or an investment property, Portugal Dream Home can guide you through every step.

Contact us today to begin your property journey with confidence.