Notes for international buyers
The Price Tag Is Not the Final Cost: Let's Talk About Taxes
So, you found a property in the Algarve for €400,000. Is that what you will pay? No. You must budget for the state taxes, which are paid at the time of the Deed (Escritura).
There are two main taxes you cannot escape:
IMT (Property Transfer Tax): This is the big one. It is calculated based on the purchase price and whether the property is for permanent living or a holiday home ("Habitação Secundária"). The rates are progressive. For a €400k holiday home bought by a Portuguese tax resident, IMT is roughly €19,300 (2026 table).
NEW RULE FOR NON-RESIDENTS (since 25 May 2026): If you are not tax resident in Portugal, IMT on residential property is a flat 7.5%, with no exemptions or reductions. On €400k that is €30,000. The difference can be refunded, on request, if you become tax resident within 2 years or let the property at a capped rent.
STAMP DUTY (Imposto de Selo): This is a fixed rate of 0.8% of the purchase price (or of the property's tax value, if higher).
THE MISTAKE TO AVOID: Many buyers rely on online calculators that are outdated. If you don't calculate this precisely, you might find yourself short of funds on the day of the deed.
WE DO THE MATH FOR YOU: Part of our service involves providing a precise breakdown of all costs (Taxes + Notary fees + Registration) before you sign the CPCV, so there are no surprises.
Written on the date shown and updated in September 2026. The law and tax figures may have changed since. This article is general information, not advice on your particular case. For questions: info@pedrotabuada.com · +351 923 337 076.