For those considering a move to Portugal and planning property purchases in 2026, understanding the economic landscape is essential. Proper preparation can help avoid unexpected expenses and establish a realistic budget. This guide provides an in-depth look at various costs associated with acquiring a property, beyond just the
sale price.
The real estate price landscape in Portugal
As of 2026, the Portuguese real estate market remains an attractive option, particularly for foreign buyers seeking a high quality of life and a temperate climate. However, property prices vary significantly depending on the region. The following ranges illustrate these disparities:
- Lisbon and Cascais:€4,000 to €8,000 per square meter
- Porto:€3,000 to €5,500 per square meter
- Algarve:€2,500 to €6,000
per square meter
- Silver Coast and inland areas:€1,000 to €3,000 per square meter
Luxury properties and new developments are typically priced higher, especially in regions favored by expatriates.
Taxes and additional costs when purchasing a home
After identifying the perfect home, buyers must factor in additional expenses. One of the first taxes to consider is the IMT, or the Property Transfer Tax. This one-time fee varies based
on factors such as the purchase price and type of property. Starting in 2026, the rates for permanent residences are as follows:
IMT rates for permanent residences
The following pricing brackets apply:
- Up to €101,917:exempt
- €101,917.01 to €139,412:2% plus a deduction of €2,038.35
- €139,412.01 to €203,168:5% plus a deduction of €6,505.18
- €203,168.01 to €282,110:7% plus a deduction of €10,799.10
- €282,110.01 to €633,453:8% plus a deduction of €14,936.41
- Over €633,453:fixed at 7.5%
It’s important to note that non-resident buyers may face higher rates and fewer exemptions.
Other expenses to take into account
In addition to the IMT, buyers should prepare for a stamp duty, set at 0.8% of the property’s declared value. Engaging a lawyer to review contracts is strongly recommended, with fees generally ranging from 1% to 2% of the property price. Registration costs for the property typically range between €500 and €1,000. While real estate agent fees are usually covered by sellers, buyers may opt to hire an agent for assistance.
Financing your purchase: costs and conditions
If financing is needed, Portuguese banks offer various mortgage options, even for non-residents. In 2026, residents can secure loans covering up to 80% of the property’s value, while non-residents usually receive between 60% and 70%. Interest rates fluctuate between 3.5% and 5.5%, and there may be one-time fees ranging from 1% to 1.5% of the loan amount.
Ongoing costs after purchase
Owning property in Portugal comes with recurring expenses, including the IMI (municipal property tax), which ranges from 0.3% to 0.45% annually. Additionally, if applicable, condominium fees can vary from €20 to €300 per month. It’s also wise to budget for utilities and insurance, estimated to cost between €100 and €200 monthly.
The Portuguese real estate market in 2026 continues to be appealing, particularly for foreign buyers attracted by an exceptional quality of life. However, understanding the varied costs across regions and preparing for taxes, fees, and ongoing expenses is vital for prospective property owners.