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Portugal – Property Taxes

  • Property Transfer Tax: This tax is paid by the buyer and is based on the value of the property. It ranges from 0.5% to 6% of the property’s value, depending on the location and value of the property.

  • Notary Fees: Notary fees are also paid by the buyer and are typically around 0.5% of the value of the property.

  • Legal Fees: Legal fees for purchasing a property in Portugal can range from 0.5% to 2% of the property’s value.

  • Property Registration Fees: These fees are paid to register the property in the buyer’s name and are typically around 0.5% of the value of the property.

  • Annual Property Tax: Property owners are required to pay an annual property tax based on the value of the property.

Describe the property tax, CGT, inheritance tax, gift tax, tax on property income in Portugal. Give examples.

  • Property Tax: The property tax in Portugal is based on the value of the property and ranges from 0.3% to 0.8% per year.

  • Capital Gains Tax (CGT): If the property is sold within 5 years of purchase, the seller is subject to CGT, which is taxed at a rate of 28%. If the property is sold after 5 years, the CGT rate is reduced to 20%.

  • Inheritance Tax: Inheritance tax in Portugal is based on the value of the property and ranges from 5% to 10%.

  • Gift Tax: Gift tax in Portugal is based on the value of the property and ranges from 5% to 10%.

  • Tax on Property Income

    : If the property is rented out, the owner is required to pay tax on the rental income. The tax rate depends on the owner’s tax bracket.

Tax Advantages in Buying a House in Portugal

  • Non-Habitual Resident (NHR) Tax Regime: Portugal has a special tax regime for individuals who are considered non-habitual residents. This regime allows individuals to benefit from tax exemptions on their foreign income for a period of 10 years.

  • Golden Visa Program: Portugal’s Golden Visa Program allows individuals to obtain a Portuguese residency permit by investing in Portuguese property. The program offers several tax benefits, including a reduced CGT rate of 6.5% for the first 5 years of ownership.


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