The cost of buying property in Lisbon changed on 1 September 2026. From that date, a non-resident buying a home in Portugal pays property transfer tax (IMT) at a flat 7.5%, under Decree-Law 97/2026. If you are not tax-resident in Portugal, that single rule now shapes your budget more than any other number, and it is the first thing to settle before you make an offer.
Disclaimer: This article is general information, not legal or tax advice. Your exact IMT and total buying costs depend on the property type, the taxable base, your tax-residency status, the transaction date, and whether any statutory exception applies.
Key takeaways
- From 1 September 2026, non-residents pay a flat 7.5% IMT on Portuguese residential property, unless a statutory exception applies.
- IMT is charged on the higher of the purchase price or the tax-office value (VPT).
- Total buying costs typically run about 9% to 11% of the price for a non-resident, or 8% to 9% if an exception applies.
- Stamp duty is 0.8% of the price or VPT, with an extra 0.6% on qualifying mortgage loans of five years or more.
- The 7.5% rule is based on Portuguese tax residency, not nationality.
Cost of buying property in Lisbon: the overview
For a non-resident in 2026, budget roughly 9% to 11% of the purchase price in taxes and fees, on top of what you pay the seller. If one of the statutory exceptions applies to you, that figure falls to about 8% to 9%. These are planning ranges, not fixed totals: the exact number depends on the price, whether you borrow, and the property’s tax value.
The largest single item is IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis, the tax you pay to transfer ownership). After that come stamp duty, legal fees, and the smaller notary and registration costs. You can see how we support buyers through each of these costs, but the numbers below build up to a worked example at the end.
The new non-resident IMT rule
From 1 September 2026, a non-resident buying a home in Portugal pays IMT at a flat 7.5% of the price or the property’s tax value, whichever is higher, under Decree-Law 97/2026. There is no tax-free band and no rising scale. The rule targets tax residency, not nationality: a Portuguese citizen living and taxed abroad is treated as a non-resident, while a foreign national already tax-resident in Portugal is not.
This is new law, and your own position decides the rate, so confirm it with a lawyer before you budget. In practice, the residency question is the one worth settling first. On a €500,000 flat, the gap between the flat 7.5% and the ordinary housing table is tens of thousands of euros, which is exactly the kind of figure a buyer’s agent working only for you will pressure-test before you commit.
The three exceptions to the flat rate
Three situations put a non-resident back on the ordinary housing IMT table instead of the flat 7.5%. Where one of them applies, the banded scale below replaces the flat rate.
- You are already tax-resident in Portugal at the time of purchase, under Portuguese tax-residence rules.
- You become tax-resident in Portugal within two years of buying. You pay the 7.5% upfront and can reclaim the difference by written request to the tax authority (AT) within six months of becoming resident.
- The property is allocated to residential letting within six months of purchase, under a lease that runs at least 36 months (consecutive or not) during the first five years, at a monthly rent no higher than the statutory limit set under Decree-Law 97/2026.
Note on the rent ceiling: the rental exception does not use a fixed euro figure. The limit is set at 2.5 times the 2026 minimum monthly wage and may be updated by ministerial regulation, so check the current official figure before you rely on this exception.
How IMT is calculated
IMT is charged on the higher of the purchase price or the VPT (valor patrimonial tributário, the value the tax office assigns to a property). For most Lisbon purchases the price is higher, so that is the figure that counts.
When an exception puts you on the ordinary housing table, IMT is worked out in bands rather than at a single rate, with a deduction applied at the end. The bands for mainland Portugal in 2026 are set out below.
| Portion of price or VPT | Rate |
| Up to €106,346 | 1% |
| €106,346 to €145,470 | 2% |
| €145,470 to €198,347 | 5% |
| €198,347 to €330,539 | 7% |
| €330,539 to €660,982 | 8% |
| €660,982 to €1,150,853 | 6% (flat) |
| Above €1,150,853 | 7.5% (flat) |
A worked figure: on a €500,000 property, IMT on the ordinary housing table is €27,300 (the 8% band applies, with a deduction of €12,699.89, per AT Circular 40129/2026). Buyers who meet the statutory requirements for a primary residence use a separate table that applies a 0% marginal rate to the first €106,346, but that only applies if the primary-residence conditions are met.
Stamp duty and smaller taxes
Stamp duty (Imposto do Selo) is a flat 0.8% of the price or VPT, whichever is higher, paid at the same time as IMT. If you borrow to buy, an additional stamp duty charge applies to the mortgage itself: 0.6% on qualifying loans of five years or more, calculated on the loan amount rather than the purchase price. A cash buyer pays only the 0.8% property stamp duty and no mortgage stamp duty.
Legal and professional fees
Beyond tax, budget for the people who handle the transaction. These are indicative market estimates, not fixed tariffs, and they vary by firm and by how complex the deal is.
- Lawyer: commonly around 1% to 2% of the price, plus VAT at 23%. Some firms charge fixed fees or hourly rates.
- Notary: typically in the region of €800 to €1,500 for the escritura (the final deed of sale, signed before a notary). Not fixed by law.
- Land registry: usually a few hundred euros, often bundled with the notary and registration package.
- Bank valuation: a few hundred euros if you are borrowing.
- Building survey: optional and not standard in Portugal, priced by the size and type of property.
The promissory contract (CPCV, contrato de promessa de compra e venda) is signed well before the deed, and it is where a good lawyer earns the fee. Independent legal review is the one cost worth protecting.
Mortgage considerations for non-residents
Portuguese banks may lend to non-residents, usually at a lower loan-to-value than for residents. Terms vary by lender, nationality, income, property type and loan structure, so treat any published ranges as illustrative only. On top of the deposit, factor in the bank valuation fee and the 0.6% mortgage stamp duty noted above. A NIF (número de identificação fiscal, the Portuguese tax number) is normally required for a Portuguese property purchase and is commonly requested by lenders. It can often be obtained remotely through a lawyer or authorised representative.
Ongoing costs after you buy
The purchase is not the end of the tax. IMI (Imposto Municipal sobre Imóveis, the annual municipal property tax) runs 0.3% to 0.45% of the VPT each year for urban homes, set by the local council and reaching 0.5% in some cases. Higher-value property also attracts AIMI (the additional levy): 0.7% on the portion of tax value above €600,000 per owner, 1% above €1 million and 1.5% above €2 million. A couple can opt to be assessed jointly, with a combined €1.2 million threshold before AIMI starts.
A worked example: a €500,000 flat
Put together, here is a non-resident buying a €500,000 Lisbon flat with the flat rate applying and no exception.
- IMT at 7.5%: €37,500
- Stamp duty at 0.8%: €4,000
- Legal fees (about 1.5% plus VAT): roughly €9,225
- Notary, registry and valuation: around €2,000
That comes to about €52,725, or close to 10.5% on top of the price. If an exception put the same buyer on the ordinary housing table, the IMT would be €27,300 rather than €37,500, and the total would land nearer 8.5%. Your own figure depends on the exact price, the VPT, and whether you borrow.
Frequently asked questions
How much does it cost to buy property in Lisbon?
For a non-resident in 2026, budget roughly 9% to 11% of the purchase price in taxes and fees, on top of the price itself. That covers IMT at the flat 7.5% rate, 0.8% stamp duty, and legal, notary and registration costs. If an exception to the non-resident rule applies, the total falls to about 8% to 9%.
Do non-residents pay more property tax in Portugal than residents?
Yes, since 1 September 2026. A non-resident buying a home pays IMT at a flat 7.5%, while a resident buying a main home uses a table that exempts the first €106,346 and rises in bands. The charge is based on tax residency, not nationality, and three exceptions can move a non-resident onto the ordinary housing table.
What is IMT and how is it calculated?
IMT is Portugal’s property transfer tax, paid by the buyer when ownership changes. It is charged on the higher of the purchase price or the tax-office value (VPT). For non-residents it is now a flat 7.5% on homes. On the ordinary housing table it is worked out in bands from 1% up to 8%, with a deduction applied at the end.
Do I pay stamp duty when buying property in Portugal?
Yes. Stamp duty (Imposto do Selo) is a flat 0.8% of the purchase price or tax value, whichever is higher, paid alongside IMT. If you take a Portuguese mortgage of five years or more, a further 0.6% stamp duty applies to the loan amount. A cash buyer pays only the 0.8%.
How much are lawyer and notary fees in Lisbon?
As indicative market estimates, a lawyer charges about 1% to 2% of the price plus 23% VAT, and the notary around €800 to €1,500 for the deed. Land registry adds a few hundred euros. These are not fixed by law and vary by firm and deal complexity, so confirm the quote in writing before you commit.
Can foreigners get a mortgage to buy property in Lisbon?
Yes. Portuguese banks may lend to non-residents, usually at a lower loan-to-value than for residents. Terms vary by lender and buyer profile. You normally need a NIF (Portuguese tax number) first, which a lawyer can arrange remotely, and you should budget for a 0.6% mortgage stamp duty where it applies.
Where to go from here
The tax residency question is the one worth settling before you make an offer, because it decides whether your transfer tax is 7.5% or the ordinary housing table, and on a Lisbon flat that gap is tens of thousands of euros. To work through your own numbers with someone who has handled these purchases before, book a private consultation at lisbonba.com/contact.
