What fees/taxes can be expected during the buying process?
There are 2 taxes that relate directly to the property: • IMT rate – a one off tax that is payable when the property is deemed to have changed hands. The tax is related to the transaction value of the property or if this is deemed to be too low the evaluated value given by the local tax office. The tax is around 6% but as stated earlier is directly related to the value of the property. • IMI annual tax that is paid in two payments over the year. The local authorities calculate this tax annually. As an example though this year the Loule council have set their local tax at 0.45% of the property’s value. Notary and registration fees are in addition and payable upon signing of the title deed. The notary fees are around the 200 euros mark and the stamp duty 0.8% of the property value. With lawyers fee of 1%, you should budget for around 8% overall for the purchase of a property.
