This website uses cookies to ensure you get the best experience on our website   More info

Property Search

Understanding all the costs associated with property acquisition

Now that you have decided to purchase a property, it is crucial to consider all the costs, documentation and taxes associated with the process. Therefore, here is all the necessary information, with practical examples, keeping in mind that Casas do Barlavento will be happy to assist you in calculating the expenses associated with the purchase of the property.

In the case of the purchase of property with equity, you must pay the following taxes (which are set by Portuguese law):

IMT - Municipal Tax on Real Estate Transactions varies according to the type of property (urban or rural), location (Continent or Autonomous Regions) and the purpose (permanent or secondary housing/leasing)

The formula to find the value of the IMT:

IMT = (Property Value * x Applicable Rate) - amount to be deducted (varies by property value - see below)


* Property Tax Value or Taxable Equity Value - whichever is higher.


Acquisition tax of permanent housing:


Collectable Income


The amount  to be deducted

Up to 92.407,00 €


0,00 €

From 92.407,00 € to 126.403,00 €


1.848,14 €

From 126.403,00 € to 172.348,00 €


5.640,23 €

From 172.348,00 €  to 287.213,00 €


9.087,22 €

From 287.213,00 €  to 574.323,00 €


11.959,26 €

More than 574.323,00 €


0,00 €












 Acquisition tax for secondary housing or lease:


Collectable Income


The amount to be deducted

Up to   92.407,00 €


0,00 €

From 92.407,00 to €  126.403,00 €


924,07 €

from 126.403,00 € to 172.348,00 €


4.716,22 €

From  172.348,00 € to 287.213,00 €


8.163,09 €

from 287.213,00 € to 550.836,00 €


11.035,35 €

More than  550.836,00 €


0,00 €












Tax for the purchase of rural buildings is 5% | Purchase of other urban buildings and other acquisitions is 6.5%

IMT exemption:  Buyers can benefit from the exemption when the housing is exclusively intended for permanent and private housing, for properties up to € 92,407 (in the Continent). 

For your convenience,  please see the following link where APEMIP has a free IMT simulator:


Municipal Property Tax (IMI)

IMI is a tax that is calculated on the Property Tax Value and is payable annually from the deed date.

The formula to find the IMI:

IMI = Tax Asset Value (VPT) x Applicable rate


The tax to be applied is defined by each municipality in Portugal and is present in the Municipal Property Tax Code (CIMI). However, here you can see the rates of the municipalities inwhich Casas do Barlavento operates:

Lagos – 0,35%

Portimão – 0,45%

Lagoa – 0,36%

Vila do Bispo – 0,4%

Aljezur – 0,35%

This tax is paid in April, and the payment can be split if it exceeds € 250.

Now you can also use the Deco Proteste's IMI Simulator for free (Portuguese only):


IMI exemption: A temporary exemption (3 years) can benefit the household that receives less than €15,295/year, if the property is intended for permanent private housing and if the value of the property does not exceed €125,000. This also applies to establishments of historical, cultural and social interest that are part of the national inventory.

 The exemption needs to be requested within 60 days of the assignment.


Stamp Duty

A fee of 0.8% is applied on the value of the property for buyers that are not resorting to bank credit.


DS = Property Value x 0,08


Registration and Deed

The deed of a property can be carried out in Land Registry Offices, Notary Offices or through the one-stop service of the State - Casa Pronta. Only the last one has set costs. For a single registration, i.e. purchase of a house with equity - the cost is €375. However, it should be noted that the total cost of the deed is variable depending on the price of the property, the purpose of it (if it is first or second habitation), among others; keeping in mind that the more expensive the property, the higher the costs of the deed. In the deed the following expenses are associated: Stamp Duty - 0.8%; Deed Registration; IMT.


Check the following practical example of a couple buying for a second home for renting purposes that costs €250,000, with equity:

• Stamp Duty: €2,000

• Registration and Deed: €650 (approximately)

• IMT: (€ 250,000.00 x 0.07%) - €8,163.09 = €9,336.91

Therefore, in this case on the deed day, this couple will pay € 11.986,91


In the case of the purchase of property with the use of a bank loan, there are a few more costs than those mentioned above:

Bank Commissions: such as appraisal commissions, house valuation, etc. which vary depending on the bank, but on average total around €1,000.

Stamp Duty on the loan: whenever a mortgage is used for the purchase of the house, corresponding to a rate 0.6% on the loan amount.

Registration: In the Casa Pronta service, to purchase a property with loans the cost is €700 instead of €375.

Life Insurance and Multi-Risk Insurance: Compulsory in all financial institutions to cover the payment in case of death of the holder of the contract; and multi-risk insurance that varies according to the value of the property.

Here is a practical example of a couple buying a permanent home that costs €170,000, with 80% of housing loan - which means a loan value of €136,000:

• Stamp duty on the purchase: €1,360

• Stamp duty on bank credit: €816

• Registration and Deed: €650 (approximately)

• IMT: (€ 170,000.00 x 0.05%) - €4,716.22 = €3,783.78

• Commissions and bank charges: €1,000

Therefore, in this case, this couple will pay €7,609.78

We, at Casas do Barlavento, hope you find this information useful. Furthermore please note that our team is always available to clarify any doubt or help with the process.