What is IMT tax in Portugal?

IMT (Imposto Municipal sobre Transmissões) is the property transfer tax in Portugal. The rate ranges from 0% to 8%, depending on the property value, type, and whether it's your primary residence. For properties over €1,000,000, the rate is typically 7.5% for residential properties.

Can non-residents get mortgages in Portugal?

Yes, non-residents can obtain mortgages from Portuguese banks, although terms are usually less favorable than for residents. Typically, non-residents can borrow up to 70% of the property value, with loan terms of 25-30 years and competitive interest rates.

Are there any tax benefits for foreign property buyers in Portugal?

Portugal offers the Non-Habitual Resident (NHR) tax regime, which provides tax benefits for new residents for up to 10 years. This includes a flat 20% tax rate on Portuguese-sourced income and potential exemptions on foreign income. However, eligibility criteria and benefits are subject to change.

Financial & Tax Concerns | Buying Property in Lisbon

Buying property in Portugal involves various taxes and fees that can significantly impact your budget. Being aware of these costs upfront will help you plan your investment more effectively.

Property Taxes in Portugal

When purchasing property, you'll need to pay Property Transfer Tax (IMT), Stamp Duty, and annual Property Tax (IMI). IMT rates vary depending on the property value and type, while IMI is calculated based on the tax registration value of the property.

Visual representation of property taxes in portugal

Mortgage Options for Foreign Buyers

Portuguese banks offer mortgages to non-residents, but typically with stricter conditions. Generally, non-residents can borrow up to 70% of the property value, compared to 80-90% for residents. Interest rates and terms vary between banks, so it's worth shopping around.

Hidden Costs and Budget Planning

Beyond the purchase price, budget for legal fees (1-2%), notary and registration fees (0.2-0.8%), real estate agent commission (typically paid by the seller but may affect the price), and potential renovation costs.

Key Takeaways

Property Taxes in Portugal: When purchasing property, you'll need to pay Property Transf...
Mortgage Options for Foreign Buyers: Portuguese banks offer mortgages to non-residents, but typic...
Hidden Costs and Budget Planning: Beyond the purchase price, budget for legal fees (1-2%), not...

Common Concerns

High property taxes (IMT, IMI) and unexpected fees
Mortgage challenges for foreign buyers
Tax regime changes affecting expatriates
Capital gains tax implications
Currency exchange risks and market overvaluation

Expert Tips

"When dealing with financial & tax concerns in Portugal, always ensure you have documented evidence of all agreements. The Portuguese system relies heavily on proper documentation and verification."

E

Eduardo Silva

Real Estate Specialist, Lisbon