What Does It Really Cost to Buy a Property in Portugal?
The purchase price on an estate agent's listing is only the starting point. In Portugal, a buyer purchasing a €350,000 home should budget roughly 6–9% on top for transaction taxes, stamp duty, legal fees, and notary costs. Knowing these costs upfront — before you make an offer — prevents the most common first-time buyer mistake: bidding at the limit of your budget and then discovering the total bill is €25,000 higher.
The Full List of Closing Costs
1. IMT (Imposto Municipal sobre Transmissões Onerosas)
IMT is the property transfer tax. For a primary residence, it is zero up to €101,917; above that it is progressive. For a €350,000 primary residence on the mainland: €350,000 × 8% − €13,191.14 = €14,808.86 IMT. For a secondary home, the same property generates €350,000 × 8% − €12,170.97 = €15,829.03. See our full IMT calculator for all scenarios.
2. Stamp Duty (Imposto do Selo)
Two stamp duties apply:
- 0.8% on the purchase price — always due.
- 0.6% on the mortgage loan amount — only if you finance with a mortgage.
On a €350,000 purchase with a €245,000 mortgage: stamp duty = €2,800 (purchase) + €1,470 (mortgage) = €4,270.
3. Lawyer / Solicitor Fees
You are not legally required to use a lawyer in Portugal, but it is strongly advised — particularly for foreigners who do not speak Portuguese or are unfamiliar with Portuguese property law. A good solicitor conducts title searches, reviews the promissory contract (CPCV), checks for encumbrances and debts, and represents you at the deed.
Typical fee: 1% of the purchase price + 23% VAT. For €350,000 that is €350,000 × 1% × 1.23 = €4,305. Some firms charge a fixed fee (€1,500–€3,000) for simpler transactions; others charge 1.5–2%. Always agree the fee in writing before instructing.
4. Notary and Land Registry
Two options exist for completing the purchase deed:
- Casa Pronta: the government's one-stop-shop service, available at participating notary offices and Registos offices. Fixed fee of approximately €700 for a standard residential purchase. Faster and cheaper than the traditional route.
- Traditional route: private notary (€800–€1,350 depending on complexity) plus separate land registry fee (~€225). Total: approx. €1,025–€1,575.
5. Bank Valuation Fee
If you are using a mortgage, the bank will commission an independent property valuation (avaliação bancária). The lender typically charges €250–€450 and the report takes 3–10 working days. Note that the mortgage offer is made on the lower of the purchase price and the valuation — if the bank values the property below the agreed price, your loan-to-value ratio and maximum borrowing drop accordingly.
6. Mortgage Arrangement and Broker Fees
Not included in this calculator. Arrangement fees vary from zero (many Portuguese banks) to 1% of the loan. Mortgage brokers may charge 0.5–1% of the loan amount if acting for you. Always confirm the total cost of credit (TAEG) provided by the bank.
Typical All-In Percentage
| Price range | Primary residence (mainland) | Secondary |
|---|---|---|
| Under €101,917 | ~3–4% (stamp + legal) | ~4–5% |
| €150,000 | ~4.5% | ~5.5% |
| €300,000 | ~7.5% | ~8.5% |
| €500,000 | ~9% | ~10% |
| €1,000,000+ | ~9–10% | ~10–11% |
Timeline: When Do You Pay Each Cost?
Understanding the payment timeline prevents cash-flow surprises:
- CPCV signature (promissory contract): 10–30% deposit paid to the seller (not a closing cost, but cash you need available). Lawyer fee usually due or agreed here.
- Day before / morning of deed: IMT paid at Finanças or online. Stamp duty on purchase also due. You bring the receipts.
- Deed day (escritura): remaining purchase price transferred. Casa Pronta / notary fee paid. Bank releases mortgage funds. Stamp duty on mortgage deducted from proceeds.
- Shortly after deed: land registry formally updated. Bank registers mortgage charge. You receive Caderneta Predial.
How Casa Keeps You Informed
When you save a property on Casa, the dashboard shows the all-in cost estimate alongside the listing price. Set a budget and the tracker warns you when the total cost would exceed it — before you make an offer. You can adjust assumptions (loan amount, buyer type, region) in real time.