Vale do Lobo Resort 8135-034,
Algarve, Portugal
Tel: (+351) 289 353 000
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© VALE DO LOBO – All rights reserved
Becoming a property owner in Portugal can be an exciting adventure, but it comes with its complexities. To help make the process of buying, moving, and ownership as efficient and effortless as possible, we have created a downloadable Buyer’s Guide that contains a wealth of useful information.
While this guide is an invaluable starting point, we strongly recommend that you seek specific and personalized advice from a local lawyer or tax advisor. Additionally, our friendly and knowledgeable Vale do Lobo Real Estate team is always available to answer your questions.
Initial Steps:
• Determine what type of property suits your needs and budget (apartment, linked villa, detached villa, plot of land for construction).
• Define the primary use of the property: as a residence, a holiday home or to rent.
• Seek advice from an accountant or financial advisor.
• Always hire a lawyer or solicitor to finalize the contract and required paperwork for the purchase of the property.
• If you are considering buying through a foreign company for tax reasons, carefully analyse the pros and cons.
• Never buy shares in a property-owning company without instructing your lawyer to conduct a thorough due diligence of the company, its assets, and its respective legal situation.
• Finally, remember that the legal title to transfer the property is the Notarial Deed (Escritura), which needs to be signed in an official Notary’s Office.
There are several options available for owning a property. It is essential to examine these choices and seek tax advice on them. By setting it up correctly at this stage, you could make significant tax savings in the future. There are three main options for purchasing a property:
• Buying the property in the name of the prospective buyer(s).
• Buying in the name of a company, national or international. However, it is not advisable to do so in the name of a “blacklisted offshore entity” (list issued by the Portuguese tax authorities), given current property tax provisions.
• Buying the property freehold or the leasehold.
It is highly recommended that you discuss these options with your lawyer before proceeding with the purchase.
When you purchase a property, you will incur various costs related to the transfer of ownership. These costs can be offset against any future capital gains tax liabilities, but it is important to keep and file records carefully.
The fees for notaries and registration are fixed, but they may vary depending on the type, number, or complexity of the acts to be done or registered. On the other hand, the Purchase Transfer Tax (IMT) and Stamp Duty are based on the declared price of the property.
Stamp duty is charged at a fixed rate of 0.8%. The purchase transfer tax for villas and apartments is calculated based on a sliding scale that varies each year, ranging from 1% to 8% (e.g. 6% for non-permanent habitation over €550,836) of the declared value of the sale. For urban plots for construction, the tax rate is 6.5% of the declared value of the sale.
Annual property tax IMI (Imposto Municipal sobre Imóvel)Â
The IMI tax is due annually and can be paid up to 3 instalments, depending on the value. The tax is calculated upon the taxable value (VPT – Valor Patrimonial Tributário) of the real estate property. The IMI rate is determined by the competent Municipality Assembly for the next year. The applicable rate ranges between 0,3% and 0,5% for urban buildings.Â
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Stamp Duty (IS)Â
Residential properties and plots of land for construction with a taxable value of at least 1 million euros are subject annually to stamp duty of 1% over the taxable value.Â
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Notarial and registration fees           | Approx. €2.000                            |
Stamp Duty | Calculated at 0,8% of the declared value of the deal. |
Legal Fees | Depending on the lawyers – can usually be calculated at 1% or 2% of the value of the deal of the deal. |
Off-plan properties are an effective way to invest in real estate with minimum capital.
It is a popular option for investment purposes since it allows buyers to see their capital grow while giving them enough time to prepare for moving in.
The development cycle for such properties usually takes between 12 to 24 months.
Before a final purchase is made, every off-plan property undergoes a strict approval process to ensure transparency at every stage of the project.
At Vale do Lobo, we adhere to these strict criteria in all our off-plan developments.
Vale do Lobo Resort 8135-034,
Algarve, Portugal
Tel: (+351) 289 353 000
Price of a call to national network
Go to
© VALE DO LOBO – All rights reserved