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    July 8, 2025

    Tax and Estate Planning in Portugal

    Join our upcoming webinar and find out more about Portugal's inheritance and gift tax laws. This webinar will provide guidance on structuring your estate efficiently, addressing legal obligations, minimising tax liabilities, and ensuring smooth succession both within Portugal and internationally.
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August 20, 2024 4:00 PM

Buying or Building a New Home in Portugal

Webinar - Lisbon Time

This webinar was tailored for affluent families interested in building or buying a custom built home in Portugal. Whether for personal use or investment, this event offered a unique opportunity to connect with expert architects, specialised developers, and leading new home developments across Portugal.

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Buying or Building a New Home in Portugal

Watch back this webinar

This exclusive webinar uncovered the advantages of owning a new home in Portugal, guided by an panel of experts. This event delved into the process of creating a home that perfectly fits individual lifestyle or investment objectives. The webinar offered valuable insights into the latest real estate trends, top architectural trends, luxury new homes developers, and premier developments in Portugal.

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Our expert panellists provided an in-depth look at the top hotspots for property in Portugal, offering trends and insights into the country’s thriving property market.

Quinta Heights Development in Central Algarve

This webinar was a unique opportunity to gain expert advice from professionals deeply familiar with Portugal's real estate market.

Hosting this webinar was Steve Philp, Partnership Director at Portugal Pathways. Joining him as expert panellists were:

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  • ‍Joana Branquinho, CEO and Founder of Oria Real Estate Advisors: Joana has over a decade of experience in the luxury real estate industry. Supporting high net worth clients and private individuals in their navigation of the Portuguese real estate market, Joana guides them in their investment strategy and real estate portfolio management.

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  • Philip Button, Managing Director at Brookes Property Group: Philip Button, who has over 30 years of experience as a Chartered Certified Accountant, and held central management and strategic planning roles in the leisure industry before joining Brookes & Co 1998. Since founding their international luxury real estate business in 2004, he has facilitated over half a billion dollars in property transactions. They have built major luxury developments in Florida, Antigua and the Bahamas and are about to launch their luxury Quinta Heights development in the Central Algarve area in Portugal.

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  • Paul Stannard,  Chairman at Portugal Pathways: Paul is also an international entrepreneur who has developed media and innovation platforms as well as indexes for international real estate and he will share some of the findings from the latest independent report from Property Market-Index on Portugal’s luxury real estate market and how it compares with other international markets. He also has a background in alternative investment funds and will share with the audience Portugal Pathways latest initiative related to Golden Visa residency by investment.

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Answers to key webinar questions from attendees

Disclaimer: The guidance below and Q&As should not be fully relied upon and does not constitute formal instructed professional advice. In relation to tax advice in Portugal, please engage and instruct a regulated professional for all tax advice and structured financial planning. Please contact Portugal Pathways if you would like an introduction to one of our professional advisors.

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Olivia is asking:
Can any of the panellists tell us the typical costs associated with buying a property in Portugal? In addition to the actual price of the property, like what's the process? What do we need to know?
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Typical Costs

When purchasing a property in Portugal, you can expect to incur additional costs beyond the purchase price. These typically include:

  • Transfer Tax (IMT): This varies based on the property's value and use. It's typically between 1% and 8% of the purchase price.
  • Stamp Duty (Imposto de Selo): This is usually 0.8% of the purchase price.
  • Notary Fees: These cover the legal formalities associated with the purchase and are typically around 1.5% to 2.5% of the purchase price.
  • Land Registry Fees: These are charged for registering the property in your name and are usually around 1% of the purchase price.
  • Legal Fees: You'll need a lawyer to guide you through the process. Fees vary, but you can expect to pay around 1% to 2% of the purchase price.
  • Mortgage Fees: If you're taking out a mortgage, there will be additional fees associated with the loan.
The Process
  1. Research: Identify your desired location and property type. Consider factors like budget, lifestyle, and future plans.
  2. Find a Real Estate Agent: A local agent can provide valuable insights and assist with the buying process.
  3. View Properties: Arrange viewings of potential properties that meet your criteria.
  4. Make an Offer: Once you've found a property you like, make an offer.
  5. Negotiation: The seller may negotiate the price.
  6. Due Diligence: Conduct due diligence to ensure the property has no legal issues or encumbrances.
  7. Obtain a Mortgage: If necessary, secure a mortgage from a Portuguese bank.
  8. Sign the Purchase Agreement: Once the terms are agreed upon, sign the purchase agreement.
  9. Pay the Stamp Duty: Pay the stamp duty to the local tax office.
  10. Complete the Purchase: Attend the closing ceremony at the notary's office to sign the final deeds.
  11. Register the Property: The property will be registered in your name at the land registry.
Key Things to Know
  • Golden Visa: If you're non-EU, consider investing in a property worth at least €500,000 to obtain a Golden Visa, which grants residency and potential citizenship.
  • Property Taxes: Be aware of ongoing property taxes, including municipal property tax (IMI) and wealth tax (AIMI).
  • Legal Advice: It's crucial to have a local lawyer to guide you through the process and protect your interests.
  • Currency Exchange: If you're purchasing from outside Portugal, be mindful of currency exchange rates and fees.

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Nigel is asking:
What are the taxation levels on real estate profits

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Taxation Levels on Real Estate Profits in Portugal

Capital Gains Tax is the primary tax levied on real estate profits in Portugal. It's calculated based on the difference between the property's selling price and its acquisition cost.

Key Points:
  • Taxable Gain: Only 50% of the capital gain is considered taxable.
  • Tax Rate: The taxable gain is added to your overall income and taxed according to the progressive income tax rates, which range from 14.5% to 48% for residents.
  • Inflation Relief: If you've owned the property for at least two years, you may be eligible for inflation relief, which reduces the taxable gain.
  • Non-Residents: Non-residents are generally taxed at a flat rate of 28% on the entire capital gain. However, if you're a non-resident from an EU country, you may be able to choose to be taxed as a resident.
Additional Considerations:
  • Rental Income: Rental income from real estate is also subject to taxation. The tax rate varies depending on the type of property and the rental contract.
  • Municipal Property Tax (IMI): This is a local tax levied on property ownership. The rate varies by municipality.
  • Wealth Tax (AIMI): If you own high-value properties, you may be subject to a wealth tax.

Note: Tax laws can change, so it's always advisable to consult with a tax professional or accountant for the most accurate and up-to-date information.

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Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice.