Essential Financial Aspects of Property in Portugal

When buying a property in Portugal, it is quite advisable that you need to establish a good working relationship with a credible lawyer who will show you the rounds and talk to you about other information in buying a property in this country. In Portugal, you should expect to pay around 4 percent to 5 percent of a property’s purchase price in legal fees which would include not only your lawyer’s fees but also those of the land registry fees and the notano.

Once you have purchase a property in Portugal, you will be responsible for the transfer tax as well which is known as imposto municipal sobre as transmissoes and which is computed through the sliding scale which is dependent on the market value of the property that you have purchased. The value would be around 0 – 8 percent and if your budget is at the most high, then there is no reason for you not to have any shock!

If you plan to buy a property in Portugal in which you decided to put up your home, then the transfer tax would be around 6.5 percent.

It is not really good to have your own property in Portugal through an offshore company as anything with this transaction might require you to pay a fee of 15 percent transfer tax.

And this is the scary part If you decide to give up your home in Portugal and decide to resell it to potential buyers, then the damage would be between 5 and 10 percent of the commission of the property. So it is quite best if you negotiate regarding this one.

Capital tax gain is another concern in this country – you will be responsible to pay an income tax of 50 percent if you decide to resell you property in Portugal, considering that you already live in the country, and then you reinvest your money in another property.

Posted on: Portugal

News by country

Essential Financial Aspects of Property in Portugal

Related articles

Recent Posts

News archive