Property Transfer Tax (IMT – Imposto Municipal sobre Transmissões Onerosas de Imóveis)
• Villas and Apartments (Permanent Residence): Calculated on a progressive scale up to a maximum of 7.5%.
• Villas and Apartments (Secondary Residence): Also calculated on a progressive scale up to a maximum of 7.5%.
• Urban Land and Offices: 6.5%.
• Rustic Land: 5%.

Tranfer Tax

Stamp Duty (Imposto do Selo)
• A flat rate of 0.8% of the purchase price.

Notary and Registration Fees
• Notary Fees: Typically range between €700 and €1,000.
• Land Registry Fee: €250.

Annual Property Tax (IMI – Imposto Municipal sobre Imóveis)
• Villas and Apartments: Between 0.3% and 0.4% of the property’s taxable value.
• Rustic Land: 0.8%.

Other Costs to Consider
• Tax Representation: Approximately €350.
• Home Insurance: Around €700 per year.

By understanding these costs and steps, you can better prepare for your property investment in Portugal. If you have any questions or need assistance, feel free to reach out to our team at DG Algarve Properties!

Once the due diligence process is complete and everything is in order, the next step is signing the Promissory Purchase and Sale Agreement (Contrato de Promessa de Compra e Venda). This usually takes place one to two weeks after the reservation deposit is signed. At this stage, both parties agree on the terms, and a deposit—typically 10% to 20% of the purchase price—is made.

This contract is a crucial step in the buying process, as it clearly defines the conditions of the purchase for both the buyer and the seller. Our team ensures that all negotiations are handled carefully so that both parties’ interests are fairly represented and the process moves forward smoothly.

After the signing of the promissory agreement, there is typically a period of 4-6 weeks before the Public Deed of Purchase (Escritura Pública de Compra e Venda) is signed. This period may vary depending on the conditions agreed upon between the buyer and the seller. On the day of the public deed signing, both parties (or their representatives with power of attorney) will meet before a notary to formalize the purchase. At this point, the balance of the purchase price must be paid to the seller, and the buyer will take possession of the property.

The signing of the Public Deed marks the official transfer of ownership, and from that moment, the buyer becomes the legal owner of the property.

Power of Attorney – Simplifying the Process

If you are unable to be in Portugal for every step of the purchase, you can grant Power of Attorney to a trusted representative. This allows them to sign necessary documents on your behalf, including those related to the purchase and mortgage (if applicable).

The Power of Attorney can be arranged in Portugal or in your home country:

• If issued abroad, it must be legalized through either the Apostille of The Hague Convention or consular authentication.

• If issued in Portugal, we can guide you through the process to ensure everything is handled smoothly.


We are here to assist both buyers and sellers at every step, making the process transparent and straightforward.