The real cost of buying property in Portugal in 2026
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The purchase price is rarely the full number. Between property transfer tax, stamp duty, notary and registration, a buyer should budget meaningfully above the sticker price, and in 2026, that budget changed in a way most foreign buyers haven't caught up with yet.
The big 2026 change: a flat rate for non-residents
Since May 25, 2026, an individual buyer who is not a Portuguese tax resident pays a single 7.5% IMT rate (Imposto Municipal sobre Transmissões, the property transfer tax) on an urban property or unit bought exclusively for housing, with no exemptions or reductions. The tax is charged on the purchase price or the property's tax value, whichever is higher. The rule comes from article 6.º of Decreto-Lei n.º 97/2026, which added n.º 10 to 12 to article 17.º of the IMT code (CIMT), and the Tax Authority set out how it applies in Ofício-circulado n.º 40131/2026 of September 4, 2026. The separate 10% rate for buyers based in a listed tax haven applies only to companies and other entities, not to individuals.
The rate does not apply if the buyer was a Portuguese tax resident at any earlier time. For a couple married under community of property, it applies only if both spouses are non-resident and neither has ever been resident. Everyone else pays 7.5% when buying, and there are two ways to get part of it back. A buyer who becomes tax resident within two years, or who lets the home within six months of the purchase at a moderate rent (at most 2.5 times the minimum wage, €2,300 a month in 2026) for at least 36 months within the first five years, can ask the Tax Authority to cancel the difference. The request must be filed within six months of becoming resident or signing the lease. For budgeting, 7.5% is the number to plan around.
For contrast: a Portuguese tax resident buying a €300,000 home on the mainland as a primary residence pays €10,542 in IMT under the 2026 table (€300,000 × 7% minus €10,457.96). A non-resident buying the same property pays €22,500. That gap, almost €12,000 on a mid-range purchase, is the single most important number in this article. Resident buyers aged 35 or under may pay no IMT at all on a first home up to €330,539.
What else you'll pay
- Stamp duty (Imposto do Selo): 0.8% of the price or tax value, whichever is higher. This applies to every buyer, resident or not. A mortgage of five years or more adds 0.6% of the loan amount, and stamp duty of 4% is also charged on the interest.
- Notary and land registry: the government's "Casa Pronta" one-stop service charges €375 for a purchase with a single registration, or €700 when a mortgage is registered too, plus €50 for each extra property. Taxes are paid on top.
- Legal fees: not fixed by law, and they vary from lawyer to lawyer. Ask for a written quote that says what is included and whether VAT is added.
What you won't pay
A common misconception: in Portugal, the agency's commission is paid by the client who signed the mediation contract, normally the seller, and the law bars an agency from being paid by both seller and buyer on the same sale. A buyer working with the seller's agency therefore doesn't pay it a commission. Budget for it as a seller-side cost, not yours.
A worked example: €300,000, cash purchase, non-resident buyer
| Cost | Amount | % of price |
|---|---|---|
| IMT (flat 7.5%, non-resident) | €22,500 | 7.5% |
| Stamp duty | €2,400 | 0.8% |
| Notary & registration (Casa Pronta) | €375 | ~0.1% |
| Total before legal fees | €25,275 | ~8.4% |
Not included above because they depend on your case or fall to the seller: legal fees, agency commission, the energy certificate, and translation or power-of-attorney costs for a buyer signing remotely. Ask your lawyer to quote these for your specific case.
Frequently asked questions
What IMT rate do non-residents pay to buy property in Portugal in 2026?
Since May 25, 2026, an individual non-resident pays a single 7.5% rate on a home, with no exemptions or reductions, applied to the purchase price or the property's tax value, whichever is higher. It does not apply to a buyer who was a Portuguese tax resident at any earlier time.
Can a non-resident pay less than 7.5%?
Only after the purchase. The buyer pays 7.5% and can ask the Tax Authority to cancel the difference if they become a Portuguese tax resident within two years, or let the home at a moderate rent for at least 36 months within the first five years. The request must be filed within six months of becoming resident or signing the lease.
How much more does a non-resident pay in IMT than a resident?
On a €300,000 home on the mainland, a resident buying a primary residence pays €10,542 in IMT under the 2026 table, while a non-resident pays €22,500, a gap of almost €12,000.
Does the buyer pay the real estate agency's commission in Portugal?
Normally not. The commission is paid by the client who signed the mediation contract, usually the seller, and Portuguese law bars an agency from being paid by both seller and buyer on the same sale.
Urbanis coordinates the full purchase process (search, vetting, legal and tax guidance) so there are no surprises at the deed table.
Talk to the real estate teamThis article is general information, not financial, tax or legal advice, and does not replace guidance from a licensed advisor on your specific case.