Maio 09, 2023
Expenses When Buying a House
The bureaucracy associated with buying a house includes some expenses related to IMT, such as stamp duty on acquisition; stamp duty on financing; bank expenses and deed. Learn more about each one.
1. IMT – Municipal Property Transfer Tax
There is a difference in the value, depending on whether the property is for permanent or secondary residence (housing). To find the value of IMT, you have to multiply the value of the property by the percentage (marginal rate) and deduct the amount indicated in the “deductible amount”. Note that for high values there is a single rate.
1.1. EXPENSES WITH IMT
1.1.2. Stamp duty on acquisition;
1.1.3. Stamp duty on financing, when the acquisition is made using credit;
1.1.4. Bank expenses, if there is credit recourse;
1.1.5. Deed;
1.1.2. Stamp duty on acquisition – 0.8% on the value of the property
Example – Property worth €300,000 pays €2,400;
1.1.3. Stamp duty on financing – 0.6% on the loan value
Example – Loan of €300,000 pays €1,800;
1.1.4. Bank expenses
The amount to be paid depends on the Bank, but is usually around €700 (analysis and study of the process + property valuation);
1.1.5. Deed
The amount to be paid depends on the Notary and the Bank, but can range from €600 (cash purchase) to €950 (purchase with financing).
In Portugal, Banks finance foreign clients between 60% and 75% of the property value.
Author: Rui da Nova, Broker @Coldwell Banker City
