The Real Cost of Buying Property in Portugal in 2026
The purchase price is rarely the full number. Between property transfer tax, stamp duty, notary and registration, a buyer should budget meaningfully above the sticker price — and in 2026, that budget changed in a way most foreign buyers haven't caught up with yet.
The big 2026 change: a flat rate for non-residents
As of 2026, non-tax-resident buyers purchasing an urban property for housing in mainland Portugal pay a flat 7.5% IMT (Imposto Municipal sobre Transmissões, the property transfer tax) on the purchase price or the property's tax value, whichever is higher — with no progressive brackets and no exemptions built into the rate itself. The rule was introduced by Decreto-Lei n.º 97/2026 as part of the government's wider housing tax package, and confirmed by the Tax Authority's own circular (Ofício-circulado n.º 40131/2026).
A buyer can avoid the flat rate and pay the standard, lower progressive brackets instead if they are already a Portuguese tax resident at the time of purchase, become one within 2 years, or commit the property to a long-term, moderate-rent lease for at least 36 of the following 5 years. For everyone else, 7.5% is the number to plan around.
For contrast: a Portuguese tax resident buying a €300,000 primary residence pays roughly €10,500 in IMT under the standard progressive brackets — a non-resident buying the same property pays €22,500. That gap, more than €12,000 on a mid-range purchase, is the single most important number in this article.
What else you'll pay
- Stamp duty (Imposto do Selo): 0.8% of the price or tax value, whichever is higher — this applies to every buyer, resident or not. A mortgage adds a separate 0.6% stamp duty on the loan amount.
- Notary and land registry: through the government's "Casa Pronta" one-stop counter, typically around €375 for a cash purchase with a single registration (higher if a mortgage is also being registered). The traditional notary-plus-registry route runs similarly once registry and certificate fees are added.
- Legal fees: not fixed by law, but commonly around 1–2% of the purchase price for a lawyer handling the deal end to end.
What you won't pay
A common misconception: in Portugal, the real estate agency's contract is normally with the seller, so a buyer working directly with an agency typically doesn't pay a commission at all. Budget for it as a seller-side cost, not yours.
A worked example — €300,000, cash purchase, non-resident buyer
| Cost | Amount | % of price |
|---|---|---|
| IMT (flat 7.5%, non-resident) | €22,500 | 7.5% |
| Stamp duty | €2,400 | 0.8% |
| Notary & registration | €375–750 | ~0.2% |
| Legal fees | €3,000–6,000 | 1–2% |
| Total | €28,300–31,650 | ~9.4–10.6% |
Not included above because they fall to the seller by convention, or don't have a reliable published figure yet: agency commission, the energy certificate, and translation or power-of-attorney costs for a buyer signing remotely — ask your lawyer to quote these for your specific case.
Urbanis coordinates the full purchase process — search, vetting, legal and tax guidance — so there are no surprises at the deed table.
Talk to the Real Estate TeamThis article is general information, not financial, tax or legal advice, and does not replace guidance from a licensed advisor on your specific case.