Costs
Costs: (and charges when buying a property)
- IMT - "Imposto Municipal sobre Transmissões" (Municipal Property Transfer Tax)
Not applicable - paid by the buyer
- Direct Debits:
All direct debits regarding the property should be cancelled.
- IMI - Imposto Municipal sobre Imóveis (Council tax on Properties)
This tax is paid at the "Finanças" (Tax Department) of the area where the property is located. Whoever is the owner as at 31st December, is liable for the IMI of the year.
- Lawyer's fees
The vendor's lawyer fees will depend on the agreement they may have with an existing local lawyer. Fees relating to the selling representation may differ between lawyers. It is best to confirm directly with your own lawyer, but we are happy to recommend a lawyer. On occasion, both parties agree to complete the transaction using the same lawyer, thereby, sharing costs. This is not a common practise and not recommended as there may be a conflict of interest, nevertheless it still remains an option.
- IRS/IRC - Imposto sobre o rendimentos-renidmentos de mais-valias
(Capital Gains Tax) “Capital Gain” is a profit obtained from the sale of a property that was previously purchased at a lower price. Your Fiscal Representative will need to report within a specific period, all Capital Gains (and losses) to the Tax Department. The costs differ for residents and non-residents. We recommends you consult with your Tax Advisor or Accountant.
Please note: These are for guidance only and we cannot accept responsibility for any mistakes or misinformation. We strongly recommend Legal and Fiscal Consultations at all times prior to any transaction as the laws are constantly changing.
