Buying · Taxation
What it really costs to buy a home in Portugal in 2026
The property price is only the starting point. Between taxes, deed and registrations, anyone buying a home in Portugal should budget for an extra amount that — depending on the value and the buyer's profile — can range from practically zero to more than 8% of the price. This guide walks through every cost, with the figures in force in 2026.
1. IMT — the tax that weighs most
The Municipal Property Transfer Tax (IMT) is paid before the deed and is calculated on the higher of the purchase price and the property's tax value (VPT). Rates are progressive by bracket, and the 2026 State Budget updated the brackets by 2%, which in practice slightly reduces the tax compared to 2025 for the same price.
The essentials in 2026:
- Permanent own home: exemption up to €106,346; above that, progressive rates from 2% to 8% depending on the bracket;
- High values: a single 6% rate above roughly €1.1 million and 7.5% above €1,150,853;
- Second home or investment: a separate table — the first bracket is taxed at 1% and there is no exemption.
A concrete example: for a €300,000 permanent own home on the mainland, IMT in 2026 comes to around €10,540 — roughly €230 less than in 2025 thanks to the bracket update.
2. IMT Jovem — exemption up to age 35
Buyers aged 35 or under purchasing their first permanent own home benefit from a special regime, in force since August 2024 and reinforced in 2026:
- Full exemption from IMT and acquisition Stamp Duty on properties up to €330,539;
- Partial exemption between €330,539 and €660,982 — tax is paid only on the part exceeding the threshold, at the 8% marginal rate;
- Above €660,982, the normal tables apply, with no exemption.
The conditions matter: the buyer cannot have owned a home in the previous three years, cannot be a dependant for income tax purposes, and the property must be used as a permanent own home within the legal deadlines — as a rule, six months to move in and six years of continued use, with exceptions provided by law (sale, job relocation more than 100 km away, change in household). If two people buy together and only one meets the requirements, the exemption applies to that buyer's share.
3. Stamp Duty
In practice there are two separate stamps:
- On the acquisition: 0.8% on the purchase price (or the VPT, if higher) — paid before the deed, together with the IMT;
- On the mortgage: 0.6% on the financed amount, for loans over five years. Note: the IMT Jovem exemption covers the acquisition stamp, but not the mortgage stamp.
4. Deed, notary and registrations
Formalising the purchase typically costs between €700 and €1,500, depending on the service chosen (the Casa Pronta desk is usually cheaper than a private notary) and whether there is a mortgage, which adds its own registration. Young buyers covered by IMT Jovem also benefit from an exemption from registration fees on the first acquisition and mortgage.
5. Bank costs, if there is a mortgage
Buyers using financing should budget for the bank's property valuation (usually between €250 and €400), file or opening fees depending on the bank, and any required insurance (life and multi-risk). These amounts vary significantly between institutions — it pays to compare proposals on the rate, but also on these charges.
6. And after the purchase: the annual costs
Owning brings recurring charges that should be in the numbers from the start: IMI (the annual municipal tax, between 0.3% and 0.45% of the VPT for urban properties, depending on the municipality), condominium fees for apartments, and insurance. They are not purchase costs, but they are costs of the decision.
A practical example: how much on top of the price?
For a €500,000 permanent own home bought in 2026 on the mainland, by a buyer over 35 with a €400,000 mortgage:
- IMT: approximately €29,000 (2026 brackets);
- Acquisition Stamp Duty: €4,000;
- Mortgage Stamp Duty: €2,400;
- Deed and registrations: ≈ €1,000;
- Bank costs: ≈ €500.
Approximate total: €36,900 on top of the price — around 7.4% of the property's value. The same property bought by a young buyer eligible for IMT Jovem would save the entire IMT on the first €330,539 and the corresponding acquisition stamp — a difference of tens of thousands of euros.
The figures reflect the tables in force in 2026 (2026 State Budget and the Tax Authority's practical tables) and are for information purposes. Every purchase has its own framing — the exact amount of taxes and exemptions should be confirmed with a case-by-case simulation before the promissory contract. At Equipa Rafaella, that simulation is part of the support we give every buyer.
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