Buyer guide · 2026 edition · Updated 2026-06-25
How Much It Really Costs to Buy Property in Portugal as a Foreigner (2026)
By Emanuel Tamir, Real Estate Advisor
Since 25 May 2026, a non-resident buying residential property in Portugal pays a flat 7.5% IMT transfer tax, which brings the all-in cost to roughly 9% to 10% of the price in taxes and fees, before the currency-exchange spread. The new flat rate comes from Decreto-Lei n.º 97/2026 (the Build Portugal housing package) and replaces the progressive scale that residents still use. The rest of the bill is 0.8% Imposto do Selo stamp duty, combined notary and land-registry fees, and an independent lawyer. On a €500,000 home a non-resident now pays about €37,500 in IMT alone, where a resident on the old scale would pay closer to €27,000.
What does it cost to buy in each region?
For a non-resident buyer the all-in percentage barely moves between regions, because the flat 7.5% IMT, stamp duty and the structure of fees are national. What changes is the price, so the euro total rises and falls while the percentage stays inside a roughly 9% to 10% band. The table uses the flat 7.5% non-resident IMT in force since 25 May 2026 and a representative price per region from the Portugal Foreign Buyer Cost Index. The last column shows what a resident would pay in IMT on the progressive scale, for contrast.
| Region | Typical price | IMT (non-resident 7.5%) | Stamp 0.8% | Notary + lawyer | All-in* | IMT if resident |
|---|---|---|---|---|---|---|
| Lisbon | €650,000 | €48,750 | €5,200 | €7,000 | 9.4% | €39,000 |
| Algarve | €500,000 | €37,500 | €4,000 | €7,000 | 9.7% | €27,299 |
| Porto | €450,000 | €33,750 | €3,600 | €6,550 | 9.8% | €23,299 |
| Madeira | €400,000 | €30,000 | €3,200 | €6,200 | 9.8% | €19,299 |
| Silver Coast | €375,000 | €28,125 | €3,000 | €6,050 | 9.9% | €17,299 |
*All-in is the flat 7.5% non-resident IMT plus stamp duty and fees as a percentage on top of the price, excluding the mortgage and the FX spread (both shown separately). The non-resident flat 7.5% IMT is set by Decreto-Lei n.º 97/2026, in force 25 May 2026. The resident figure uses the progressive secondary-home schedule. Source: Portugal Property Invest, Portugal Foreign Buyer Cost Index 2026.
What are the line items a foreign buyer pays?
The cost to buy property in Portugal as a foreigner breaks into four closing items everyone pays, two optional items, and one cost most guides leave out. The four everyone pays are IMT transfer tax, the 0.8% Imposto do Selo stamp duty, combined notary and land-registry fees, and an independent buyer-side lawyer. The two optional items are a non-resident mortgage and, where it applies, the first AIMI bill. The cost most guides skip is the currency-exchange spread, which is not published and depends entirely on who moves your money.
How much is IMT, the biggest single cost?
IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) is the property transfer tax, paid by the buyer before the deed, and it is now the line that separates non-residents from residents. Since 25 May 2026, under Decreto-Lei n.º 97/2026 (implementing Lei n.º 9-A/2026, the Build Portugal housing package), a non-resident buying urban residential property pays a flat 7.5% IMT, replacing the progressive scale. On a €500,000 home that is €37,500, and on a €650,000 Lisbon home it is €48,750. Residents keep the progressive secondary-home scale, where the same €650,000 home carries about €39,000, and a primary and permanent residence has an exempt first band up to roughly €106,346.
The trigger is tax residency, not nationality, and there are three ways back to the progressive rates or a refund of the difference. You qualify if you are already a Portuguese tax resident on the acquisition date, if you become a Portuguese tax resident within two years of the purchase, or if you commit the home to a moderate-rent residential lease and keep it leased for at least 36 months within the first five years. For a buyer planning to move to Portugal soon, the two-year window often turns the flat rate back into the progressive one. Confirm your own position with a Portuguese lawyer or accountant, because the refund mechanics matter.
Since May, a non-resident pays a flat 7.5 percent IMT, so budget nine to ten percent all-in. If you plan to become resident within two years, you can claim the progressive rate back. That single fact can be worth tens of thousands of euros.
What about stamp duty, notary and the lawyer?
Imposto do Selo, the stamp duty on a property acquisition, is a flat 0.8% of the price and is fixed by law. Notary and land-registry fees together run about 1% to 1.5%, paid when the deed (escritura) is signed and registered. An independent buyer-side lawyer typically charges 1% to 1.5%, or a flat €1,800 to €4,500 depending on the complexity of the purchase. The lawyer is the one cost worth never cutting: this is the person who runs due diligence, checks the title, and protects your deposit at the promissory-contract stage. Portugal Property Invest introduces buyers to independent Portuguese lawyers rather than acting as one.
How much does a non-resident mortgage add?
A non-resident buyer can usually borrow up to 60% to 70% of the price. The up-front cost is a bank arrangement fee plus a valuation, together roughly €3,000 to €4,500, about 1% of a mid-priced purchase. The interest rate is quoted as a spread over 6-month Euribor; the average non-resident spread sat near 1.78% over Euribor in March 2026, according to Banco de Portugal. Mortgage costs sit outside the headline all-in figure because they only apply if you borrow.
Why is the currency-exchange spread the cost to remove first?
Of every cost on this page, the currency-exchange spread is the one most worth your attention, because it is the largest you can actually change. Moving €500,000 through a high-street bank at a 3% to 4% markup quietly costs €15,000 to €20,000 more than the same transfer through a specialist broker. The taxes are fixed and the legal fees are close to fixed, but the spread is pure friction. Lock a rate with a broker before you sign the deed, and that is the cleanest five-figure saving available to a foreign buyer.
about €48,500
taxes and fees for a non-resident on a €500,000 home (flat 7.5% IMT plus stamp, notary and lawyer), before the currency-exchange spread, which can add another five figures through the wrong bank
How does this fit the full purchase?
These are the costs; the order in which you pay them follows the process from getting a NIF, opening a bank account, signing the promissory contract (CPCV), and completing at the deed. To see your own number on a specific price, run the Cost-to-Keys calculator, and to see how the costs sit inside the whole journey, read the complete Portugal buyer guide. Portugal Property Invest is an independent advisory and referrer: we connect foreign buyers to licensed Portuguese lawyers and lenders, and we do not provide legal services or hold an AMI agency licence ourselves.
Sources
- Decreto-Lei n.º 97/2026, of 20 May 2026, and Lei n.º 9-A/2026, of 6 March 2026 (Build Portugal housing package), flat 7.5% IMT for non-resident buyers of residential property, in force 25 May 2026, with carve-outs for tax residents and moderate-rent leases.
- Portugal Property Invest, Portugal Foreign Buyer Cost Index 2026, regional prices and resident-case figures. cost index.
- Autoridade Tributária / Portal das Finanças, Código do IMT 2026 progressive schedule (resident case). portaldasfinancas.gov.pt
- Código do Imposto do Selo, verba 1.1, 0.8% on property acquisition.
- Instituto dos Registos e do Notariado (IRN), notary and land-registry fees. irn.mj.pt
- Banco de Portugal, non-resident mortgage spread (1.78% over 6-month Euribor, March 2026).
Full provenance is on the methodology page. Fixed statutory items (IMT, stamp duty) are exact; notary, lawyer, FX and IMI figures are market-range estimates and are marked as modeled in the Cost Index CSV.
Frequently asked questions
- How much does it really cost a foreigner to buy property in Portugal in 2026?
- Since 25 May 2026 a non-resident buyer pays a flat 7.5% IMT transfer tax, which brings the all-in cost to roughly 9% to 10% of the price in taxes and fees, before the currency-exchange spread. The components are the flat 7.5% IMT (under Decreto-Lei n.º 97/2026), 0.8% Imposto do Selo stamp duty, 1% to 1.5% combined notary and land-registry fees, and a typical independent lawyer fee of 1% to 1.5% or €1,800 to €4,500. On a €500,000 home the IMT alone is €37,500. A non-resident mortgage adds roughly another 1% in arrangement and valuation fees, and the currency-exchange spread is separate and can cost €15,000 more through a high-street bank than a specialist broker. Residents who buy use the progressive scale and pay closer to 7% to 8% all-in.
- Do non-residents pay a higher property transfer tax in Portugal now?
- Yes, since 25 May 2026. Under Decreto-Lei n.º 97/2026 (implementing Lei n.º 9-A/2026, the Build Portugal housing package), a non-resident buying urban residential property pays a flat 7.5% IMT, replacing the progressive scale. The trigger is tax residency, not nationality: a buyer who is already a Portuguese tax resident, becomes one within two years of the purchase, or commits the home to a moderate-rent lease for at least 36 months within the first five years can apply the normal progressive rates or claim a refund of the difference. A non-resident buying a €250,000 home now pays about €18,750 in IMT, against roughly €8,000 under the old progressive scale. Portugal Property Invest is an independent advisory, not a tax adviser; confirm your own position with a Portuguese lawyer or accountant.
- What are the one-off closing costs versus the recurring costs?
- The one-off closing costs are IMT, 0.8% stamp duty, notary and land-registry fees, and the lawyer, paid at or before the deed. The recurring cost is IMI, the annual municipal property tax, set at roughly 0.3% to 0.45% of the taxable value, plus AIMI on the share of total Portuguese property taxable value (VPT) above €600,000 per owner. A non-resident mortgage adds one-off arrangement and valuation fees of about €3,000 to €4,500.
- What is the currency-exchange spread and why does it matter so much?
- When you fund a euro purchase from a foreign-currency account, someone converts your money, and the rate is not the mid-market rate you see online. A high-street bank typically builds in a 3% to 4% markup; a specialist currency broker charges around 0.4% to 0.6%. On a €500,000 purchase that gap is roughly €15,000, which can be larger than your entire stamp-duty and notary bill combined. It is the single cost foreign buyers overpay most often, and the easiest to remove by locking a rate with a broker before the deed.
- How much should I budget in total before I start?
- If you are a non-resident, budget 9% to 10% of the price for taxes and fees, because the flat 7.5% IMT now sits on top of stamp duty, notary, registry and the lawyer. Add about 1% if you take a non-resident mortgage, and treat the currency-exchange spread as a separate line worth several thousand euros that good planning can mostly erase. On a €500,000 home in the Algarve that is roughly €48,500 in taxes and fees plus a potential five-figure FX saving. A buyer who becomes a Portuguese tax resident within two years can fall back to the progressive scale of about 7% to 8%. Run the exact figure for your price on the Cost-to-Keys calculator.
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