Are you considering moving to Portugal and buying a property in 2025? Whether you’re looking for a permanent home, a holiday retreat, or an investment opportunity, it’s essential to understand the full cost of buying property in Portugal — beyond just the asking price. From taxes and legal fees to mortgage conditions, this guide breaks down everything you need to know about property purchasing costs for foreigners in 2025. This is the real cost of buying property in Portugal.
Property prices in Portugal: what to expect in 2025
In 2025, Portugal continues to attract international buyers thanks to its warm climate, high quality of life, and relatively affordable real estate compared to other Western European countries. Prices vary greatly depending on the region:
- Lisbon & Cascais: €4,000–€8,000/m²
- Porto: €3,000–€5,500/m²
- The Algarve: €2,500–€6,000/m²
- Silver Coast & inland areas: €1,000–€3,000/m²
New developments and luxury villas typically command higher prices, especially in popular expat hotspots. For more on the latest house prices in Portugal, consult the idealista price report.
Taxes and fees when buying property in Portugal
IMT – Property Transfer Tax
The Imposto Municipal sobre Transmissões Onerosas de Imóveis (IMT) is a one-time tax paid by the buyer when purchasing property in Portugal. The rate varies depending on:
- The purchase price
- Whether the property is a primary residence or a second home/investment
- Whether the buyer is a resident or non-resident
As of 2025, the following IMT rates apply to urban properties intended as permanent residences:
| Property Price Range | IMT Rate | Fixed Deduction |
|---|---|---|
| Up to €101,917 | Exempt | — |
| €101,917.01 to €139,412 | 2% | €2,038.35 |
| €139,412.01 to €203,168 | 5% | €6,505.18 |
| €203,168.01 to €282,110 | 7% | €10,799.10 |
| €282,110.01 to €633,453 | 8% | €14,936.41 |
| Over €633,453 (not exceeding €1,102,920) | 7.5% (flat) | No deduction |
| Over €1,102,920 | 7.5% (flat) | Luxury rate |
Important: These rates are for permanent residences. If you're buying a second home or investment property, the same thresholds apply, but the exemption is removed, and rates are slightly higher due to the lack of deductions.
💬 Resident vs Non-Resident: Non-residents purchasing property as a second home or investment do not benefit from the exemption on properties under €101,917 and will pay higher effective rates.
Stamp Duty (Imposto do Selo)
This is a mandatory 0.8% tax on the property's declared value, payable at the time of the deed signing.
Notary and legal fees
Hiring a Portuguese lawyer or solicitor (advogado) is highly recommended for due diligence and contract verification. Legal and notary fees typically range between 1% and 2% of the property price.
Tip for expats: Ensure your lawyer is independent and not tied to the seller or agent.
Registration and administrative costs
After the purchase, the property must be registered with the Land Registry (Conservatória do Registo Predial) and Tax Office (Autoridade Tributária). These administrative fees are usually minor — expect around €500–€1,000 total.
Real estate agent fees
In Portugal, real estate agent fees are generally paid by the seller, so as a buyer, you won’t usually incur this cost. However, if you use a buyer's agent, expect to pay around 1%–2% of the purchase price.
Mortgage Costs in Portugal (2025)
If you’re financing your purchase, Portuguese banks offer mortgages to non-residents, although conditions vary. Here’s what to expect in 2025:
- Loan-to-value (LTV): Up to 80% for residents, typically 60%–70% for non-residents
- Interest rates: Around 3.5%–5.5% (variable or fixed)
- Mortgage setup fees: Typically 1%–1.5% of the loan amount
- Life insurance: Often required by banks, usually bundled with the loan
- Property valuation: Required by the bank, expect around €300–€600
Want to know more? Read our full guide to mortgages in Portugal for foreigners — including eligibility, documentation, and the best banks for expats in 2025.
Ongoing costs after the purchase
Owning property in Portugal also comes with recurring costs:
- IMI (Municipal Property Tax): 0.3%–0.45% annually, based on the property’s taxable value (VPT)
- Condominium fees: If buying an apartment, these can range from €20 to €300+ per month
- Utilities and insurance: Budget for €100–€200/month for typical expenses
Summary: estimated additional costs for buyers in 2025
| Expense Category | Estimated Cost (Typical Range) |
|---|---|
| IMT (Property Transfer Tax) | 0%–7.5% of purchase price |
| Stamp Duty | 0.8% of purchase price |
| Legal & Notary Fees | 1%–2% |
| Registration/Admin Fees | €500–€1,000 |
| Mortgage Fees (if applicable) | 1%–1.5% of loan + insurance & valuation |
| Ongoing Annual Costs | IMI + maintenance + insurance |
Buying a home in Portugal
Buying a home in Portugal as a foreigner in 2025 remains an attractive and accessible process — as long as you're prepared for the additional costs involved. From taxes and legal fees to mortgages and property maintenance, understanding the full financial picture will help you budget effectively and avoid surprises.
Thinking of buying in Portugal this year? Whether you're relocating, retiring, or investing, speak to a trusted local real estate adviser who can guide you through the process with clarity and confidence.
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