Are you going to buy a house? Know all the costs involved.
Are you thinking about buying a house and want to know exactly what expenses you can expect? Before proceeding, find out all the taxes, fees and charges you will have to pay throughout the process.

Purchase with own capital (without recourse to real estate credit)
If you have the capital to purchase the property without the need for bank financing, you will essentially have two types of costs to consider:

1. Taxes
2. Registration and formalization of the deed

Taxes are tabulated by law, as explained below. Registration and deed costs may vary depending on where you formalize the transaction (notary's office, Casa Pronta, notary's office, etc.).

What taxes will I have to pay?

Whenever there is a purchase and sale transaction of a property, payment of IMT (Municipal Tax on Onerous Property Transfers) is mandatory. The amount to be paid depends on several factors, such as:

* Type of property (urban or rural);
* Location (Mainland or Autonomous Regions);
* Purpose of acquisition (own permanent home or investment).
Additionally, you will still have to pay Stamp Duty (IS).

How to calculate ITBI?

IMT is calculated using the following formula:
ITBI = (Property Value × Applicable Rate) - Installment to be Deducted

The value considered will be the highest between:
1. The Taxable Property Value (VPT) of the property;
2. The Value of Scripture.

The rates and installments to be deducted are available in the official tables on the Finance Portal, and are updated annually with the Federal Budget.

Is there an ITBI exemption?

Yes, it is possible to obtain an ITBI exemption, but only for permanent housing and within certain value limits. At the moment:

* On the mainland, the exemption applies to properties worth up to R$92,407;
* In the Autonomous Regions, the limit rises to €115,509.

How much does Stamp Duty (IS) cost?

The IOF on the purchase of a property has a fixed rate of 0.8% on the acquisition value. So the calculation formula is simple:
IS = Property Value × 0.8%

Registration and deed costs

The purchase of a house requires its legal formalization through a public deed of purchase and sale, which can be carried out in several places:
* Real Estate Registry Offices;
* Notary offices;
* Casa Pronta (service that centralizes all actions in one place, including tax payments).
Costs vary depending on the chosen entity:
* Deed at Casa Pronta: R$ 375 (for cash purchases);
* Notary deed: may be higher, depending on the tables used.

IPTU (Urban Property and Land Tax)

IPTU is an annual tax paid by all property owners. The applicable rate varies between 0.3% and 0.8% of the Taxable Property Value (VPT), ​​and is set by each municipality.

You can check the property value of your property on the Finance Portal and use an IMI simulator to find out how much you will have to pay annually and how many installments you can divide the payment into (e.g.: https://www.doutorfinancas.pt/simulador- imi/ ).

Other costs to consider

In addition to taxes and registrations, purchasing a property may involve other expenses, such as:

* Mandatory insurance (e.g.: residential multi-risk insurance);
* Condominium fees (if applicable);
* Municipal taxes or other contributions;
* Property maintenance costs.

Buying with a Mortgage: What Additional Costs Are There?

If you intend to purchase a house using bank financing, the charges are higher. In addition to the costs already mentioned, you will also have to pay:

1. Bank fees

Banks charge various fees, such as:

* Property evaluation commission;
* Study committee and opening of the process.

On average, these expenses can reach around R$1,000, but there are banks that apply discounts or exemptions, depending on existing partnerships.

2. Stamp Duty on financing

When taking out a loan, you will have to pay 0.6% on the financed amount.

3. Additional records

The purchase and sale deed will have a higher cost, as it will be necessary to register the mortgage in favor of the bank. In this case, the registration cost increases from R$375 to R$700.

4. Home Loan Life Insurance

Banks require life insurance associated with the mortgage, which covers payment of the debt in the event of the holder's death. The value of this insurance varies according to:

* The chosen insurance company;
* The capital in debt;
* The client's age and health status.

Example of costs for a purchase with a mortgage loan

For a property worth €120,000, intended for permanent housing, the estimated costs would be:
* ITBI: R$ 551.86
* Stamp Duty on purchase: R$ 960
* Stamp Duty on financing: €720
* Registration of a ready-made house with mortgage: €700
* Bank fees: €1,000

Estimated total: R$ 3,931.86

 
Buying a home involves significant costs, but given the rise in rental prices, mortgage lending continued to be, in most cases, the most advantageous option.

Are you going to buy a house? Know all the costs involved.
Are you thinking about buying a house and want to know exactly what expenses you can expect? Before proceeding, find out all the taxes, fees and charges you will have to pay throughout the process.

Purchase with own capital (without recourse to real estate credit)
If you have the capital to purchase the property without the need for bank financing, you will essentially have two types of costs to consider:

1. Taxes
2. Registration and formalization of the deed

Taxes are tabulated by law, as explained below. Registration and deed costs may vary depending on where you formalize the transaction (notary's office, Casa Pronta, notary's office, etc.).

What taxes will I have to pay?

Whenever there is a purchase and sale transaction of a property, payment of IMT (Municipal Tax on Onerous Property Transfers) is mandatory. The amount to be paid depends on several factors, such as:

* Type of property (urban or rural);
* Location (Mainland or Autonomous Regions);
* Purpose of acquisition (own permanent home or investment).
Additionally, you will still have to pay Stamp Duty (IS).

How to calculate ITBI?

IMT is calculated using the following formula:
ITBI = (Property Value × Applicable Rate) - Installment to be Deducted

The value considered will be the highest between:
1. The Taxable Property Value (VPT) of the property;
2. The Value of Scripture.

The rates and installments to be deducted are available in the official tables on the Finance Portal, and are updated annually with the Federal Budget.

Is there an ITBI exemption?

Yes, it is possible to obtain an ITBI exemption, but only for permanent housing and within certain value limits. At the moment:

* On the mainland, the exemption applies to properties worth up to R$92,407;
* In the Autonomous Regions, the limit rises to €115,509.

How much does Stamp Duty (IS) cost?

The IOF on the purchase of a property has a fixed rate of 0.8% on the acquisition value. So the calculation formula is simple:
IS = Property Value × 0.8%

Registration and deed costs

The purchase of a house requires its legal formalization through a public deed of purchase and sale, which can be carried out in several places:
* Real Estate Registry Offices;
* Notary offices;
* Casa Pronta (service that centralizes all actions in one place, including tax payments).
Costs vary depending on the chosen entity:
* Deed at Casa Pronta: R$ 375 (for cash purchases);
* Notary deed: may be higher, depending on the tables used.

IPTU (Urban Property and Land Tax)

IPTU is an annual tax paid by all property owners. The applicable rate varies between 0.3% and 0.8% of the Taxable Property Value (VPT), ​​and is set by each municipality.

You can check the property value of your property on the Finance Portal and use an IMI simulator to find out how much you will have to pay annually and how many installments you can divide the payment into (e.g.: https://www.doutorfinancas.pt/simulador- imi/ ).

Other costs to consider

In addition to taxes and registrations, purchasing a property may involve other expenses, such as:

* Mandatory insurance (e.g.: residential multi-risk insurance);
* Condominium fees (if applicable);
* Municipal taxes or other contributions;
* Property maintenance costs.

Buying with a Mortgage: What Additional Costs Are There?

If you intend to purchase a house using bank financing, the charges are higher. In addition to the costs already mentioned, you will also have to pay:

1. Bank fees

Banks charge various fees, such as:

* Property evaluation commission;
* Study committee and opening of the process.

On average, these expenses can reach around R$1,000, but there are banks that apply discounts or exemptions, depending on existing partnerships.

2. Stamp Duty on financing

When taking out a loan, you will have to pay 0.6% on the financed amount.

3. Additional records

The purchase and sale deed will have a higher cost, as it will be necessary to register the mortgage in favor of the bank. In this case, the registration cost increases from R$375 to R$700.

4. Home Loan Life Insurance

Banks require life insurance associated with the mortgage, which covers payment of the debt in the event of the holder's death. The value of this insurance varies according to:

* The chosen insurance company;
* The capital in debt;
* The client's age and health status.

Example of costs for a purchase with a mortgage loan

For a property worth €120,000, intended for permanent housing, the estimated costs would be:
* ITBI: R$ 551.86
* Stamp Duty on purchase: R$ 960
* Stamp Duty on financing: €720
* Registration of a ready-made house with mortgage: €700
* Bank fees: €1,000

Estimated total: R$ 3,931.86

 
Buying a home involves significant costs, but given the rise in rental prices, mortgage lending continued to be, in most cases, the most advantageous option.

February 4, 2025