Buying Property in Portugal: Step-by-Step Guide and Taxes Explained
- Natasha Santric
- Jul 1
- 3 min read
Updated: 3 days ago

Buying Property in Portugal (2025) | Step-by-Step Guide & Taxes Explained
Portugal continues to attract buyers from around the world — whether for lifestyle, investment, or relocation. But navigating the purchase process and understanding the taxes involved is essential before signing any contract. Here’s a clear overview of how it works.
Buying a house in Portugal? This 2025 guide explains every step — reservation, CPCV, deed, and taxes (IMT, Stamp Duty, IMI) — with examples and expert tips for expats.
1. The Buying Process Step by Step
1. Reservation & CPCV (Contrato de Promessa de Compra e Venda)
After choosing your property, you typically sign a reservation agreement and then a CPCV (promissory contract).
At this stage, a deposit of 10%–30% is usually paid.
The buyer is protected. If the seller backs out they have to repay you double the deposit amount.
2. Legal Checks (Due Diligence)
Your lawyer verifies the property title, land registry, debts, and zoning.
This step ensures the seller is the rightful owner and the property is free of encumbrances.
Your lawyer prepares the deed.
3. Final Deed (Escritura de Compra e Venda)
Signed before a notary or lawyer.
At this stage, the balance of the purchase price and all taxes are paid.
The deed is then registered at the Conservatória do Registo Predial (Land Registry Office).
2. Main Taxes When Buying Property in Portugal
When buying, you will encounter three main costs:
IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis)
Portugal’s property transfer tax.
Paid before the final deed.
Calculated on the higher of the purchase price or the official tax value.
Rates vary depending on the type (primary residence, second home, rental/investment) and value.
Some properties (e.g. under €97,064 for primary residence in 2025) may be exempt.
TIP: Use the official IMT & Stamp Duty Calculator here: Portal das Finanças Calculator
Imposto de Selo (Stamp Duty)
Flat 0.8% of the purchase price.
Paid on signing the final deed.
IMI (Imposto Municipal sobre Imóveis)
Annual municipal property tax.
Calculated on the VPT (Valor Patrimonial Tributário), not the purchase price.
Rates vary by municipality: typically 0.3%–0.45% for urban properties, 0.8% for rural.
Some municipalities grant temporary exemptions for new builds or low-value primary residences.
3. Other Costs to Consider
Notary and Registration Fees: usually €1,000–€2,000.
Legal Fees: around 1%–2% of purchase price, depending on complexity.
Mortgage Costs: bank fees, life and home insurance (if financing the purchase).
4. Example: Buying a €350,000 Property in Mafra (2025)
IMT: approx. €9,315 (if second home; less if primary residence).
Stamp Duty: €2,800.
IMI (annual): ~€1,050 (assuming 0.3%).
Total upfront taxes & fees: ~€12,115 + notary/legal.
Note: Exact figures depend on residency status, property use, and municipal rates. Always confirm with your lawyer or accountant.
5. Final Tips for Buyers
Always work with a trusted lawyer — never rely only on the seller’s side.
Budget for at least 6–8% on top of the purchase price to cover taxes and fees.
Check whether the property qualifies for exemptions or reduced rates (primary residence, rehabilitation, energy efficiency programs).
Use the official IMT & Stamp Duty calculator before signing.
Conclusion
Buying in Portugal is straightforward with the right preparation. By understanding IMT, Stamp Duty, and IMI, you can avoid surprises and plan your budget properly. Whether you’re looking in Lisbon, Porto, or coastal towns like Ericeira, being informed is the first step toward a smooth transaction.
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