Buying · Taxation

What it really costs to buy a home in Portugal in 2026

4 July 2026 · Rafaella Galardo

The price of the property is only the starting point. Between taxes, the deed and registrations, anyone buying a home in Portugal should budget for additional costs that, depending on the value and the buyer's profile, can range from practically zero to more than 8% of the price. This guide runs through each cost, with the figures in force in 2026.

1. IMT — the tax with the biggest impact

The Municipal Property Transfer Tax (IMT) is paid before the deed and is calculated on the higher of the purchase price and the taxable value (VPT) of the property. The rates are progressive by bracket, and the State Budget for 2026 updated the brackets by 2%, which in practice slightly reduces the tax compared to 2025 for the same price.

The key points in 2026:

Primary residence: exemption up to €106,346; above that, progressive rates of 2% to 8% depending on the bracket;
High values: a single rate of 6% above around €1.1 million and 7.5% above €1,150,853;
Second home or investment: its own rate table — the first bracket is taxed at 1% and there is no exemption.

A concrete example: on a €300,000 primary residence on the mainland, the IMT in 2026 is around €10,540 — about €230 less than in 2025 due to the update of the brackets.

2. IMT Jovem — exemption up to the age of 35

Those who are 35 or younger and buy their first primary residence benefit from a special regime, in force since August 2024 and reinforced in 2026:

Full exemption from IMT and from Stamp Duty on the acquisition for properties up to €330,539;
Partial exemption between €330,539 and €660,982 — you pay only on the part that exceeds the limit, at the marginal rate of 8%;
Above €660,982, the standard tables apply, with no exemption.

The conditions matter: the buyer must not have owned a home in the previous three years, must not be a dependant for IRS purposes, and the property must be used as a primary residence within the legal deadlines — as a rule, six months to move in and six years of continued use as such, with exceptions provided for by law (sale, a job move more than 100 km away, a change in the household). If the purchase is made by two people and only one meets the requirements, the exemption applies to that buyer's share.

3. Stamp Duty

In practice, there are two separate Stamp Duty charges:

On the acquisition: 0.8% on the purchase value (or the VPT, if higher) — paid before the deed, together with the IMT;
On the mortgage: 0.6% on the amount financed, for loans of more than five years. Note: the IMT Jovem exemption covers the acquisition Stamp Duty, but not the mortgage Stamp Duty.

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 on whether there is a mortgage, which adds its respective registration. Young people covered by the IMT Jovem also benefit from an exemption from fees on the registration of the first acquisition and the mortgage.

5. Bank costs, if there is a mortgage

Buyers using financing should budget for the bank's valuation of the property (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 is worth comparing proposals on the rate, but also on these charges.

6. And after the purchase: the annual costs

Owning a home brings recurring costs that should be factored in from the start: the IMI (annual municipal tax, between 0.3% and 0.45% of the VPT on urban buildings, depending on the municipality), the condominium fees in apartments, and insurance. They are not costs of the purchase, but they are costs of the decision.

Practical example: how much is added to the price?

For a €500,000 primary residence bought in 2026 on the mainland, by a buyer over 35 with a €400,000 mortgage:

IMT: approximately €29,000 (2026 brackets);
Stamp Duty on the acquisition: €4,000;
Stamp Duty on the mortgage: €2,400;
Deed and registrations: ≈ €1,000;
Bank costs: ≈ €500.

Approximate total: €36,900 on top of the price — about 7.4% of the value of the property. The same property bought by a young person eligible for the IMT Jovem would save all of the IMT due on the first €330,539 and the corresponding acquisition Stamp Duty, a difference of tens of thousands of euros.

The figures shown reflect the tables in force in 2026 (2026 State Budget and the Autoridade Tributária's practical tables) and are informative in nature. Each purchase has its own specific circumstances — the exact amount of taxes and exemptions should be confirmed with a case-by-case simulation before the promissory contract (CPCV). At Equipa Rafaella, that simulation is part of the support given to any buyer.

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