Purchase costs in Portugal, worked through on a €1.45M Lisbon flat

Buyers usually budget for the price and forget that taxes and fees add 8 to 10% on top. Here is the calculation for the Rua do Século flat in Príncipe Real, listed at €1,450,000. Check the current IMT tables with your lawyer, as rates and bands change.

IMT: €108,750

IMT is the property transfer tax. Above about €1.15M it is a flat 7.5% of the price for homes, whether or not you live in them. On €1,450,000 that is €108,750. Below that band, a progressive scale applies, and buyers of a permanent home may pay less.

Stamp duty: €11,600

Imposto do Selo is 0.8% of the price. It is paid together with the IMT before the deed.

Notary and land registry: about €1,500

This covers the deed and registering the property in your name. A Casa Pronta desk is often a little cheaper than a private notary.

Lawyer: about €17,850

Around 1% of the price plus 23% VAT. Some lawyers quote a fixed fee for simple flat purchases.

Total: about €139,700, or 9.6%

If you take a mortgage, add bank fees, a valuation and stamp duty on the loan itself (0.6% of the amount borrowed).

Every year after: IMI

IMI is the annual property tax. Lisbon charges 0.3% of the tax value (VPT), which is set by the tax office and is usually far below the price. For this flat, the current owner pays about €1,900 a year.