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Real Estate Portugal – Information on Costs of Purchase – Lucas Fox
IMT (Imposto Municipal Sobre as Tranmissões) – This is the main tax payable on property in Portugal. There has been a recent change to the legislation in how the property transfer tax is now paid. The maximum rate for SISA tax was 10%. This has now been lowered to 6% on any property sold with a declared value of €500,000 and above. There are substantial deductions for properties below that value.
Below is a table showing how the new taxes will be applied:
|
Purchase price from (€) |
To purchase price (€) |
% to apply |
Amount deducted |
|
0 |
85.000 |
0 |
0 |
|
85.000 |
117.200 |
2 |
1.710 |
|
117.200 |
159.800 |
5 |
5.226 |
|
159.800 |
266.400 |
7 |
8.422 |
|
266.400 |
532.700 |
8 |
11.086 |
|
532.700 |
Above |
6 |
0 |
For example:
Suppose a property costs €175,000
Multiply this figure by 7% = €12,250.
Then deduct €7,900.
Total tax to be paid: €4,350.
|
|
Notary’s & Land Registration Fees - These will have to be paid by you on completion. As a general rule these will be approximately 1 to 2% of the purchase price.
Solicitor’s Fees - Legal fees represent no more than 1% of the agreed purchase price.
