What does it really cost to buy a home in Lisbon?
If you’re planning to move to Portugal’s capital and purchase property, it’s essential to understand the complete financial picture. The list price of the apartment or villa is just the starting point — between taxes, legal fees, and annual expenses, the total cost of ownership includes several layers many buyers overlook.
The good news? With a bit of foresight and professional guidance, you can plan for all of it and avoid surprises later.
Whether you’re relocating in 9 days or 9 months, our team can help you navigate the process from start to finish.
👉 Contact us to start your Lisbon property journey with clarity and confidence.
💰 Upfront Costs When Buying Property in Lisbon
Once you agree on a purchase price, there are several additional costs to account for before your new home officially becomes yours. These include taxes, legal fees, and administrative expenses — all of which can add up to 5–10% of the purchase price.
1. Property Transfer Tax (IMT)
The biggest one is the IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis) — the property transfer tax paid before signing the final deed.
IMT rates depend on:
- Whether the property will be your primary or secondary residence
- The total purchase price
Most residential properties fall between 1% and 8%, with primary homes benefiting from slightly lower rates.
Example: For a €500,000 primary residence, IMT typically lands between €14,000–€16,000.
💡 Tip: The Portuguese tax authority provides an online IMT calculator to estimate your exact rate.
2. Stamp Duty
This one’s straightforward: 0.8% of the property’s purchase price, due when the deed is finalized.
For a €500,000 property, expect around €4,000 in stamp duty.
3. Notary, Registry & Legal Fees
You’ll need a notary to formalize the deed (between €600–€1,200) and a land registry to record your ownership (€250–€500).
While hiring a lawyer isn’t legally required, it’s highly recommended — especially for international buyers.
Most charge 1–2% of the purchase price, depending on transaction complexity and whether you’re buying remotely.
4. Mortgage & Bank Fees
If financing through a Portuguese bank, factor in:
- Loan setup and appraisal fees (€1,000–€2,000)
- Mandatory property insurance and life insurance
- Possible bank commission charges
🧾 Example Breakdown: What a €500,000 Lisbon Property Really Costs
| Expense | Estimated Range |
|---|---|
| IMT (Property Transfer Tax) | €14,000–€16,000 |
| Stamp Duty | €4,000 |
| Notary & Registry Fees | €1,000–€1,700 |
| Legal Fees | €5,000–€10,000 |
| Estimated Total Extra Costs | €24,000–€31,700 |
That’s roughly 5–6% of your purchase price in upfront costs — a realistic baseline for most foreign buyers in Lisbon.
🏡 Long-Term Costs of Owning Property in Lisbon
Once you’ve settled into your new home, you’ll face a few ongoing costs. These are predictable but important to budget for annually.
1. Municipal Property Tax (IMI)
Every homeowner in Portugal pays IMI (Imposto Municipal sobre Imóveis). It’s based on the property’s tax-assessed value (not the market value).
- Lisbon IMI rate: 0.3%–0.45%
- Example: For a property valued at €300,000, annual IMI will be roughly €900–€1,350
2. Condominium Fees
If you buy an apartment or live in a gated community, you’ll pay monthly building maintenance fees. These cover:
- Cleaning and security
- Shared areas (gardens, pools, gyms)
- General repairs
Average range: €30–€300/month, depending on amenities and property type.
3. Utilities & Internet
Expect €100–€200 per month for electricity, gas, water, and broadband. Many modern Lisbon apartments are energy efficient, which helps keep bills manageable.
4. Home Insurance
Required if you have a mortgage and strongly advised even if you don’t.
Cost: €150–€300 per year, depending on coverage and property value.
5. Maintenance & Repairs
Set aside 0.5–1% of your property’s value annually for routine upkeep and unexpected repairs — especially if you buy an older Lisbon building (where charm often comes with maintenance).
⚠️ Hidden or Occasional Costs Worth Knowing
Capital Gains Tax
If you sell your Lisbon property later at a profit, capital gains tax may apply. The exact rate depends on your residency status and whether you reinvest in another home. Always consult a Portuguese tax specialist before selling.
Wealth Tax (AIMI)
Known as AIMI (Adicional ao IMI), this applies to high-value properties.
- It’s charged on the portion above €600,000 per owner
- Rates range from 0.7% to 1.5%
Short-Term Rental Restrictions
If you’re buying with Airbnb or short-term rentals in mind, note that Lisbon has strict Alojamento Local (A.L.) regulations.
⚠️ As of now, new A.L. licenses are no longer being issued in central Lisbon — so this route is closed to most new investors.
🧭 Planning Ahead: How to Budget Wisely
The smartest buyers don’t just calculate the purchase price — they plan for everything around it.
Before signing:
- Get a written breakdown of taxes, legal fees, and bank costs
- Request condo fee records and annual maintenance estimates
- Have your lawyer confirm all documentation, licenses, and ownership status
If buying a fixer-upper:
- Ask for detailed renovation quotes in advance
- Confirm who’s responsible for repairs in shared buildings
Transparency upfront is the best protection against surprise costs later.
✅ In Summary: Know the Real Numbers Before You Buy
Lisbon remains one of Europe’s best-value capital cities for property buyers — but only if you go in with open eyes.
When you understand the true cost of buying and owning property in Lisbon, you make smarter, more confident decisions — and your investment pays off in both lifestyle and long-term security.
At Move to Portugal Now, we specialize in helping international buyers purchase in Lisbon with total transparency. From calculating IMT and IMI to comparing neighborhoods and mortgage options, we’ll guide you through every financial detail.
👉 Contact us today for a personalized breakdown of your Lisbon property costs and a clear, stress-free buying plan.
Your Lisbon home is waiting — and we’ll help you reach it the smart way.
Contact Us:
Email: info@PortugalDreamRealEstate.com
WhatsApp or Phone: +351 916 674 780
We genuinely look forward to helping you find the perfect place to call home in Portugal.
