The property price is not the total cost of purchase. In Portugal, there are taxes and fees that are added to the deed and others that are paid every year. Knowing them in advance avoids surprises — and helps with rigorous budgeting.
IMT — Municipal Tax on Transfers
This is the heaviest tax on the purchase. It is paid before the deed and is calculated by progressive brackets on the purchase value or the taxable patrimonial value (the higher of the two). The rate varies depending on whether the property is for permanent and own housing, second housing, or other purposes, and depending on the value. Higher-value properties reach higher marginal rates.
Stamp Duty
When buying, Stamp Duty applies to the transaction value (a reduced rate) and, if there is credit, also to the financed amount. These are smaller values than IMT, but they count in the total.
Notary, Registration and Deed Costs
The deed has notary fees and land registration fees. If you buy with Casa Pronta, the single desk simplifies and concentrates these costs. They are fixed or tabulated values, generally modest compared to IMT.
IMI — the Annual Tax
After buying, you start paying IMI (Municipal Tax on Properties) every year, calculated on the taxable patrimonial value and at a rate defined by each municipality. It can be paid in instalments. There are temporary exemptions in certain cases of moderate-value own housing.
AIMI and Special Cases
High-value property portfolios may be subject to the Additional IMI (AIMI). And there are specific regimes — such as the reduced VAT rate on eligible new construction — that change the bill. Each situation should be confirmed with an accountant or lawyer.
Simplified Example
In a purchase of own housing, in addition to the price, mentally add the IMT by brackets, Stamp Duty, and about 1% for notary and registration. Then, in the annual budget, include IMI. Doing this calculation before signing the CPCV is what separates a smooth purchase from a surprise at the deed.
FOZ VILLA helps estimate all the acquisition costs of any property in the portfolio, so you know the real value of the investment before deciding.
