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Property Taxes - In Portugal

The following taxes are directly related to the acquisition of Real Estate in Portugal:

1. IMT - Municipal Tax on Onerous transfers of Real Estate - This tax is paid by the buyer at the time of the transaction. The tax is applicable to all real estate transactions, with the applicable rate by the Portuguese State, varying according to the value of the purchase. For properties worth more than 550,000 Euros, the applicable rate is 6%. For rustic buildings or other types of buildings the rates are 5% and 6.5%, respectively.

2. IS - Stamp Tax - There are two types of stamp duty related to the purchase of a property:

• Stamp tax on the transaction (purchase and sale), corresponding to a rate of 0.8% on the acquisition value of the property as set forth in the Deed;
• Stamp duty on the loan, if you use a Mortgage to buy the property, which corresponds to a rate of 0.6% on the loan amount.

3. IMI - Municipal Property Tax - Annual tax, with reference to the previous year based on the calculation of the Tax Asset Value (VPT) - value of the property attributed by the Finance. It may vary from 0.3% to 0.5%, a limit that is annually taxed by the Municipal Assembly where the property is located (Ex. Cascais - 0.39%, Oeiras - 0.34%, Sintra - 0.39% , Lisbon - 0.30%). The IMI for rustic buildings remains at 0.8%.

4. Notary Fees and Registration Fees - Amounts to be paid by the buyer after granting a notarial deed, together with the registration fees. The cost of registration is 250 Euros and online is 225 Euros.

5. Inheritance Tax - In Portugal, this tax is not currently applicable to inheritances or donations that occur between parents and children or between spouses, although a stamp duty is charged, which amounts to 0.8% of the property's value. Other inheritance or donation situations are subject to stamp duty at the rate of 10% of the VPT.

6. Capital Income Tax (Capital Gains) - Following the transaction of a property, the seller is required to declare the sale and eventually pay a capital income tax, which corresponds to an average of 28% for individuals and 25% for legal entities (non-residents). This tax is calculated based on the difference between the sale price and the purchase price, and the tax payment can be deducted.

7. Wealth Tax - Adicional Imposto Municipal Sobre Imveis (AIMI) - is an annual tax, charged on the Valor Patrimonial Tributrio (VPT) of higher-value properties, regardless of where the owner resides. Under the new wealth tax, the owner is liable if his/her property (or share of a property) is worth over 600,000 Euros, and the current tax rate is 0.7% for properties up to 1 million Euros, and the tax rate is 1.0% on the value of the holding in excess of 1 million Euros.

Portuguese Lawyer Assistance

VisaConnect's Consultants and our Portugal Lawyers can advise and assist you with your Golden Visa application and Property purchase. Our service includes the following assistance:

• Proof of legal entry - and permanence in national territory
• Translation - of all documents into the Portuguese language
• Schengen Visitor visa - to visit Portugal
• Power of Attorney - is signed with the Portuguese lawyers
• Portugal Bank Account - assistance in opening bank account
• Legalizing of Documents - All documents should be legalized in the nearest Portuguese consulate or apostilled in case you belong to an apostille country
• Biometrics at Portugal Immigration Department - On the applicant's 2nd visit to Portugal, they must visit the Immigration Department with the Portugal lawyers to complete formalities and biometrics
• Declaration proving the absence of debts - issued by the Inland Revenue and Customs Authority and by the Social Security
• Property Documentation - Updated property documents showing ownership of property or Signed Promissory Contract with payment of a deposit above 500,000 Euros, or Declaration from a bank in Portugal confirming the transfer of the funds
• Absence of notice - from the Portuguese Immigration Authorities or Schengen Services
• Declaration from the Investor - confirming compliance with the investment requirements for 5 years
• Portuguese Residence Cards - application and renewal of Residence Permit and Residence Cards

Funds Investment for Portugal Golden Visa

For information about the Portugal Golden Visa (Portugal Residence Permit), and how our Immigration Consultants and Lawyers can assist you, click on the following VisaConnect website page:

• Portugal Golden Visa Funds Investment

Office Address and Telephone - VisaConnect Portugal

Contact VisaConnect's Consultants at our Lisbon, Portugal office below:

VisaConnect Portugal
Avenida do Atlântico, Nº 16, escritório 5.07,
1990-019, Parque das Nações
Lisboa Portugal

Telephone: (+351) 304 501 939

Useful Links - Purchase of Portugal Property

• EPortugal - Puchase and Sale of Real Estate in Portugal
• Property Purchase Tax - IMT (Imposto Municipal sobre Transamissoes) Calculator (
• Visit Portugal - Tourist Information
• Property Purchase Costs in Portugal