Buying a house in Portugal: first pay the tax yourself, then everything in one go at Casa Pronta

First the order that's fixed on this site: in your first year you don't buy — you rent, you get to know the region, and only then do you decide. This article is for the moment you are that far. Portugal then does it just a little differently from its neighbours: the tax side lies with you, but for the deed and the register the government has built something the Netherlands may be jealous of.

First pay, then sign

In the Netherlands the notary settles the transfer tax; in Portugal the order is reversed. Before the transfer you as buyer pay two taxes, and the proofs of those go along to the deed:

1. The IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) — calculated on the purchase price or the fiscal value of the property (the VPT), whichever is higher. The rates are progressive and depend on where the property is and whether it will be your main residence; for a second home or as a non-resident other (flat) rates apply. Work it out in advance with the tax authority's simulator — for more expensive homes this is by far the largest additional item.
2. The imposto do selo, the stamp duty: 0.8% on the same base as the IMT. If you take out a mortgage, stamp duty is also levied separately on the loan.

Then the finest counter of the process: Casa Pronta

For the step that in Spain costs three separate counters, Portugal has the Balcão Casa Pronta: one government counter (by appointment) where you sign the deed of sale and the entry in the property register is arranged straight away — a simultaneous mortgage can go into the same appointment too. The fees are fixed amounts: € 375 for a purchase with one registration, € 700 for purchase plus mortgage in one go. The classic route — escritura at a notário and then yourself (or through a lawyer) to the conservatória do registo predial — still exists too; Casa Pronta is the shorter way.

What you need to have in order beforehand, whichever counter you choose: your NIF — without a Portuguese tax number you sign nothing — and the proofs of payment of the IMT and the stamp duty. A preliminary contract (contrato-promessa de compra e venda) with a deposit is also customary; have it checked before you sign, because unlike France, Portugal has no statutory cooling-off period you can fall back on.

And afterwards: the IMI, every year

Being an owner in Portugal costs a fixed annual charge: the IMI (Imposto Municipal sobre Imóveis), levied by the municipality on the fiscal value (VPT). The law sets the band — for urban properties between 0.3% and 0.45%, for rústicos 0.8% — and every municipality chooses its own rate within it, every year anew. Most municipalities sit at the bottom of the band, but check yours. And whoever is thinking of letting: in high-pressure areas the municipality may double the rate for short-term lets — so don't work out a letting plan on the standard rate.

In Vertrekklaar this is phase 5 of 5 of the process: the same steps, but applied to your situation — in your order, tickable, and with the deadlines watched. See the whole process to Portugal.