Which taxes do I have to pay to the State at purchase?
On purchase you pay two taxes: IMT, which varies with value, location and use, and stamp duty at 0.8% of the price. The loan itself carries stamp duty too.
In this guide
The two purchase taxes
At the moment of purchase there are two main taxes. IMT (the property transfer tax) varies with the value of the property, its location and its use (own home or investment). Stamp duty is charged on the purchase price, at 0.8%.
Stamp duty also hits the loan
On the amount borrowed, stamp duty applies at 0.04% (terms under 1 year), 0.5% (1 to 5 years) or 0.6% (terms over 5 years), plus 4% on certain bank fees.
Why they weigh on the deposit
These taxes are paid at completion and add to the deposit. You need cash to cover them, on top of the deposit itself.
Worked example
On a €200,000 purchase (example figures): stamp duty on the acquisition is €1,600 (0.8%). To that you add IMT, which can run to several thousand depending on the bracket — unless you qualify for the young-buyer exemption.
Sources
Susana Vasconcelos
- Intermediária de crédito autorizada pelo Banco de Portugal n.º 0008496
- Mais de 10 anos na banca