Before putting in an offer on a house, be aware of the aggregate costs: buying Property in Portugal costs plainly explained.
Aggregate costs can ruin a good plan; Buying property in Portugal costs need to be well covered from the purchaser side; read from the experts about these costs behind the corner.
Before putting in an offer on a house, it is important to be aware of the aggregate costs of buying a property in Portugal. The costs associated vary based on the price, location and type of the property. The taxes are as follows:
IMT – A rate is applied whenever there is a change in the title to the property. This rate can be found in the Portuguese revenue website (Finanças) and there are online simulators for this tax.
The calculation is levied on the greater of the two values: the patrimonial tax value of the property or the value declared in the deed of purchase and sale. For instance, a property in mainland Portugal to be used as the owner’s permanent residence, for the price of €200.000 euros is assessed at €4,912.78. It is important to note that this tax needs to be paid before the deed of purchase and sale is signed.
STAMP DUTY – This is levied at a flat rate of 0.8% of the selling price of the property.
IMI – Annual property tax, calculated based on the rateable value of the property, set by the revenue, to which a rate is applied. Please note the possibility of exemption from IMI, which applies to properties for personal and permanent habitation.
REGISTRATION COSTS – You can choose a notary or a lawyer to legally sign and register the deed (Escritura) of the purchase of the house. There is a cost involved to set up and registration of the final deed which varies between €400 to €800.
Being assisted by a local, expert lawyer in English is a certain way to ensure a better landing for your conveyance plans in Portugal. Get in touch and make your way easier.