Acquiring a mortgage involves more than just repaying the loan; there are several fees and taxes to consider as well.
When acquiring a mortgage in Portugal, you can expect to encounter mortgage-related fees, including the property tax, Imposto Municipal sobre Transmissôes Onerosas de Imóveis (IMT), which is levied when obtaining a mortgage in Portugal.
The rates are determined by whether the property is used as a main residence or not and can range up to 8% in progressive rates. In addition, there is an 8% stamp duty called Imposto de Selo that is also imposed. It’s essential to be aware of the tax office fees when planning your budget for a mortgage in Portugal.
Unfortunately, the IMT tax cannot be added to the total mortgage sum and must be paid separately.
It’s crucial to factor in these additional expenses when calculating the total cost of your mortgage.