The Real Cost of Buying Property in Portugal in 2026
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
As of 2026, non-tax-resident buyers purchasing an urban property for housing in mainland Portugal pay a flat 7.5% IMT (Imposto Municipal sobre Transmissões, the property transfer tax) on the purchase price or the property's tax value, whichever is higher, with no progressive brackets and no exemptions built into the rate itself. The rule was introduced by Decreto-Lei n.º 97/2026 as part of the government's wider housing tax package, and confirmed by the Tax Authority's own circular (Ofício-circulado n.º 40131/2026).
A buyer can avoid the flat rate and pay the standard, lower progressive brackets instead if they are already a Portuguese tax resident at the time of purchase, become one within 2 years, or commit the property to a long-term, moderate-rent lease for at least 36 of the following 5 years. For everyone else, 7.5% is the number to plan around.
For contrast: a Portuguese tax resident buying a €300,000 primary residence pays roughly €10,500 in IMT under the standard progressive brackets. A non-resident buying the same property pays €22,500. That gap, more than €12,000 on a mid-range purchase, is the single most important number in this article.
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 adds a separate 0.6% stamp duty on the loan amount.
- Notary and land registry: through the government's "Casa Pronta" one-stop counter, typically around €375 for a cash purchase with a single registration (higher if a mortgage is also being registered). The traditional notary-plus-registry route runs similarly once registry and certificate fees are added.
- Legal fees: not fixed by law, but commonly around 1–2% of the purchase price for a lawyer handling the deal end to end.
What you won't pay
A common misconception: in Portugal, the real estate agency's contract is normally with the seller, so a buyer working directly with an agency typically doesn't pay a commission at all. 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 | €375–750 | ~0.2% |
| Legal fees | €3,000–6,000 | 1–2% |
| Total | €28,300–31,650 | ~9.4–10.6% |
Not included above because they fall to the seller by convention, or don't have a reliable published figure yet: 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?
A flat 7.5%, with no progressive brackets and no exemptions built into the rate itself, applied to the purchase price or the property's tax value, whichever is higher.
Can a non-resident avoid the flat 7.5% rate?
Yes, by becoming a Portuguese tax resident at the time of purchase or within 2 years, or by committing the property to a long-term, moderate-rent lease for at least 36 of the following 5 years. Otherwise, the standard progressive brackets don't apply.
How much more does a non-resident pay in IMT than a resident?
On a €300,000 primary residence, a resident pays roughly €10,500 in IMT under the standard progressive brackets, while a non-resident pays €22,500, a gap of more than €12,000.
Does the buyer pay the real estate agency's commission in Portugal?
No. The agency's contract is normally with the seller, so a buyer working directly with an agency typically doesn't pay a commission at all.
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.