A non-resident buying in Lagos pays about 9.6% on top of the price. On a cash purchase in 2026 that is the flat 7.5% IMT, 0.8% stamp duty, roughly 1% plus VAT for a lawyer, and €375 for the deed and registration through Casa Pronta. On a €400,000 home that comes to about €38,500. A mortgage adds a little more.
Take a Dutch couple, neither of them yet tax resident in Portugal, who find a €750,000 villa just outside Lagos. On top of the price they should budget about €71,850, and €56,250 of that is one tax. Many of the international buyers I work with in Lagos and the Western Algarve are in the same position when they sign.
Decreto-Lei 97/2026 made tax residency the single biggest factor in what a buyer pays. Below are three worked purchases, at €400,000, €750,000 and €1.5 million, with every line shown, so you can see where the money goes before you make an offer. All rates were checked on 3 November 2026.
How much are the buying costs when you purchase property in Portugal in 2026?
For a non-resident buying a home with cash, plan on about 9.6% of the price. For a buyer who is already a Portuguese tax resident buying a second home, it is lower at most prices: about 6.9% at €400,000 and 8.1% at €750,000. Above €1,150,853 both pay the same, because 7.5% is the top IMT rate for everyone.
Four costs make up almost all of it:
- IMT, the transfer tax. Under Decreto-Lei 97/2026, published in May, a buyer who is not a Portuguese tax resident pays a flat 7.5% on homes, with no progressive scale. Residents use the normal 2026 scale, and so, under the law’s exceptions, do buyers who have been Portuguese tax residents before: check your own history with your lawyer. For a married couple, both spouses’ history counts.
- Stamp duty (Imposto do Selo). 0.8% of the price, for everyone.
- Deed and registration. Through the state’s Casa Pronta counter, €375 for a cash purchase or €700 when a mortgage is registered at the same time, according to gov.pt.
- Your lawyer. Not a fixed fee. In my experience most buyers here pay around 1% of the price plus 23% VAT, and it is worth asking for a fixed quote on bigger purchases.
Unlike in the UK or the US, the buyer does not normally pay an agency fee in Portugal: the listing agent is paid by the seller. If you are selling as well as buying, the other side of the sum is in my guide to what it costs to sell a property in Portugal in 2026.
Three worked purchases: €400k, €750k and €1.5m
These are cash purchases of a home by a non-resident, a common case for international buyers in Lagos.
| Cost (non-resident, cash) | €400,000 home | €750,000 home | €1,500,000 home |
|---|---|---|---|
| IMT at the flat 7.5% | €30,000 | €56,250 | €112,500 |
| Stamp duty at 0.8% | €3,200 | €6,000 | €12,000 |
| Casa Pronta deed and registration | €375 | €375 | €375 |
| Lawyer, about 1% plus 23% VAT | €4,920 | €9,225 | €18,450 |
| Total on top of the price | €38,495 (9.6%) | €71,850 (9.6%) | €143,325 (9.6%) |
To see what the same purchase costs in your own situation, run it through my Portugal property purchase cost calculator, which takes two minutes. And if you already own here and want to know what your current home would put towards the next one, see what it is worth today with the SunnySteve estimate.
Resident or non-resident: what the difference is worth
A buyer who is already a Portuguese tax resident pays IMT on the 2026 scale instead. For a second home, the rate between €330,539 and €633,931 is 8% minus a fixed deduction, then a single 6% up to €1,150,853, and 7.5% above that. For a permanent home the scale is gentler again at lower prices.
| IMT on a second home, 2026 | €400,000 | €750,000 | €1,500,000 |
|---|---|---|---|
| Non-resident (flat 7.5%) | €30,000 | €56,250 | €112,500 |
| Portuguese tax resident (normal scale) | €19,300 | €45,000 | €112,500 |
| Difference | €10,700 | €11,250 | €0 |
| Total costs for a resident | €27,795 (6.9%) | €60,600 (8.1%) | €143,325 (9.6%) |
The difference is not always lost, but you pay the full 7.5% at the deed and claim the difference back afterwards. The tax office cancels it if you become a Portuguese tax resident within two years of the deed, or if you let the home long term at €2,300 a month or less, with the lease signed within six months and the home let for at least 36 months in the first five years. It is not automatic: you have to apply within six months of becoming resident or of signing the lease. I set out both routes in do foreigners pay more for property in the Algarve. The 2027 budget proposal does not change the 7.5% either, as I explained in what Portugal’s 2027 State Budget changes for property buyers.
What a mortgage adds
Borrowing adds stamp duty of 0.6% on the amount of a loan of five years or more, so €1,800 on a €300,000 mortgage. Casa Pronta charges €700 instead of €375 because the mortgage is registered too. On top come the bank’s own valuation and processing fees, which vary by bank, so ask for its price list before you choose a lender.
The costs that come after the keys
IMI, the annual municipal property tax, is billed the year after you buy, on the property’s rateable value (the VPT) rather than the price you paid. Lagos charges the legal minimum rate of 0.3% on urban property, and the council has kept it there for 2027. My IMI guide shows how to simulate it and when to pay. If the combined rateable value of the residential property and building land you own in Portugal passes €600,000 per owner, an additional tax called AIMI applies on the excess.
For the full sequence, from tax number to keys, and when each of these payments falls due, see my guide to buying property in Lagos as a foreigner. If you are paying in sterling, the timing of the transfer can move your budget by more than the lawyer’s fee, which I covered in should you move your sterling before the Bank of England decides.
Frequently Asked Questions
How much are the buying costs when you purchase property in Portugal in 2026?
For a non-resident buying a home with cash, about 9.6% of the price: 7.5% IMT, 0.8% stamp duty, around 1% plus VAT for a lawyer and €375 for Casa Pronta. A Portuguese tax resident buying a second home pays less at most prices, about 6.9% at €400,000 and 8.1% at €750,000.
What is the IMT on a €400,000 house in Portugal for a non-resident?
€30,000, the flat 7.5% rate that has applied to non-resident buyers of homes under Decreto-Lei 97/2026, published in May 2026. A tax resident buying the same house as a second home would pay about €19,300 on the 2026 scale.
Does the buyer pay the estate agent’s fee in Portugal?
Normally no. In Portugal the listing agent is paid by the seller, so a buyer’s costs are taxes, the deed and registration, and their own lawyer. If you hire a buyer’s agent, that fee is agreed separately with them.
How much does a mortgage add to the buying costs in Portugal?
Stamp duty of 0.6% on the loan amount, so €1,800 on a €300,000 mortgage, plus €700 instead of €375 at Casa Pronta, plus the bank’s valuation and processing fees. Ask each bank for its price list before you choose.
Can a non-resident get the extra IMT back?
Sometimes, if you meet one of two conditions. You pay the full 7.5% at the deed, then the tax office cancels the difference if you become a Portuguese tax resident within two years of the deed, or let the home long term at €2,300 a month or less, with the lease signed within six months and at least 36 months let in the first five years. You must apply within six months of becoming resident or signing the lease, so plan it with your lawyer before you sign.
Want the same breakdown for the home you are looking at? Tell me what you are looking for, or book a call, and I will send you a personalised cost sheet.
