What are the total closing costs when buying a house in Portugal?

Closing costs in Portugal are dominated by one line, the transfer tax, so the honest answer depends on whether you will be a Portuguese tax resident.

The lines you always pay

Add mortgage stamp duty of 0.6 percent of the loan if you borrow for five years or more (0.5 percent for one to five years), plus the bank's valuation and arrangement fees.

A worked example at 300,000 euros

A Portuguese tax resident buying a permanent home pays about 10,542 euros of IMT and 2,400 euros of stamp duty. With a notary, registry, a lawyer at around 1.2 percent and translations, the total lands near 17,000 to 19,000 euros, roughly 6 percent.

The same flat bought by a non tax resident attracts 22,500 euros of IMT instead, pushing the total towards 29,000 euros, close to 10 percent. That difference is refundable if you become a Portuguese tax resident within two years of the deed, or let the home under the long term moderate rent scheme, with a six month claim window.

Money you commit earlier

The CPCV promissory contract normally carries a deposit of 10 to 20 percent. It is not a closing cost, it is part of the price, but it is at risk: withdraw and you forfeit it, while a seller who withdraws owes you double.

The costs that start after the deed

IMI arrives the following year: 0.3 percent of VPT in Lisbon, 0.324 percent in Porto, paid in one instalment in May under 100 euros, two over 100 and three over 500. A permanent home with a VPT of 125,000 euros or less can be exempt for three years if household taxable income was under 153,300 euros.

Full breakdown in our buying property guide.