# Costs of buying property in Portugal



## Jamesie (Sep 17, 2009)

I have noticed a very worrying "trend" on many internet sites and forums which state the cost of buying a property in Portugal could be "upwards of 15% of the sale price".
In my experience this is completely false and I have asked many websites and forums where they get their information (no replies as yet !) as I believe the figure to be nearer 7% or less.

I spoke with an English couple recently who told me they were "put off" buying in Portugal by a Portuguese lawyer based in London because they were told "you need to add 15-17% to the price to cover the costs" !

Has anybody else found similar misinformation ?

Is there a scam going on whereby "advisers" are creaming off a nice percentage for themselves ?


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## PETERFC (Apr 3, 2009)

Hi Jamesie and all

Derek posted a reply with a breakdown of taxes etc and i have included a link below and also the text from his reply. Members on here and other Forums are not experts and it's only the like of Derek and other legal agents who may have more up to date facts.

I am sure Derek may reply here or keep the other post at the top of the page up to date. 

Peterfc 666? 

http://www.expatforum.com/expats/po...s-living-portugal/17054-tips-home-buyers.html

When buying a property in Portugal you have to pay purchase taxes for properties over 89,700€. These are calculated on a per cent basis, which are on a sliding scale relating to the value of the property you wish to purchase.



Resales properties - including ruins, land, old houses - are subject to Imposto Municipal Sobre as Transmissões (IMT) tax. This must be paid up to three days prior to Escritura. The level of tax levied is on a sliding scale and is a percentage of the purchase price.



If the property is your sole residence then the taxes are levied as follows:

under 89,700€ 0%
89,700€ - 122,700€ 2% minus 1,794€
122.700€ - 167,300€ 5% minus 5,475€
167,300€ - 278,800€ 7% minus 8,821€
278,800€ - 557,500 € 8% minus 11,609€
Over 557,500€ 6%
If the property you are purchasing is a second property such as a holiday home then the taxes are calculated as follows:
under 89,700€ 1%
89,700€ - 122,700€ 2% minus 897€
122.700€ - 167,300€ 5% minus 4,578€
167,300€ - 278,800€ 7% minus 7,924€
278,800€ - 557,500 € 8% minus 10.712€
Over 557,500€ 6%
Agricultural and building land is charged at the flat rate of 5%.

If you are unsure how much the IVA or IMT will be, it is advisable to check with the local Financas before you enter into a Promessa Contract.

The above figures were current as of January 2009.


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## PETERFC (Apr 3, 2009)

*Reply*

Hi Jamesie

Forgive me if i am wrong but on the Forum i am banned from you also post and reply on there. If i am correct then you are an agent or have something to do with an agent. This machines IP is banned but when i get to another machine i will check.

What worries me is how many new members who know no better will see the figures you have posted and take them as fact. 

I have just enquired from a legal agent i know and the figure for the house i am buying is a total of less than 600 Euro as the property is only 40,000 Euro.

Peterfc 666?


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## Jamesie (Sep 17, 2009)

PETERFC said:


> Hi Jamesie
> 
> Forgive me if i am wrong but on the Forum i am banned from you also post and reply on there. If i am correct then you are an agent or have something to do with an agent. This machines IP is banned but when i get to another machine i will check.
> 
> ...


Hi Peterfc

We are not agents but advertise for agents and owners and think agents and owners are getting a bum deal because of the misinformation out there.
The figure I quoted of "7% or less" I think is about right in most cases.
The point is many people are seeing the figure of 15% and taking that as fact and it's putting them off buying in Portugal.

This is an example of (what I believe to be) the more accurate costs :

Purchase price: 200,000 euros (house 180,000, land 20,000)

IMT House 3,995 (purchase tax)

IMT Land 1,200 (purchase tax)

Stamp (0.8%) 1,600

Local Lawyer 1,000 (est.)

Notary 350 (approx.)

Registration 355 (approx.)

TOTAL EXTRAS 8,500 = 4.25%

Please correct me if I'm wrong here.


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## Jamesie (Sep 17, 2009)

PETERFC said:


> Hi Jamesie and all
> 
> Derek posted a reply with a breakdown of taxes etc and i have included a link below and also the text from his reply. Members on here and other Forums are not experts and it's only the like of Derek and other legal agents who may have more up to date facts.
> 
> ...



Hi Peterfc,

The latest figures I have are :

Permanent Residents
Up to €87,500 0% Nil

€87,500 - €119,7002% €1,750

€119,700 - €163,200 5% €5,341

€163,200 - €272,000 7% €8,605

€272,000 - €543,900 8% €11,325

Over €543,900 6% Nil

Holiday Home
Value of Property Rate to apply Deduction Up to €87,500 1% Nil €87,500 - €119,700 2% €875 €119,700 - €163,200 5% €4,466 €163,200 - €272,000 7% €7,730 €272,000 - €521,700 8% €10,450 Over €521,700 6% Nil


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