✅ Understand the real price of buying with a mortgage in the Algarve
📋 Overview: What Costs to Expect
When buying property in Portugal with a mortgage, it’s essential to understand the full financial picture — not just the price tag on the listing. Costs include:
• ✅ Government taxes
• ✅ Bank and legal fees
• ✅ Stamp duty
• ✅ Deposit requirements
• ✅ Registry and notary costs
Even small changes in rates or buyer type (resident vs. non-resident) can impact your final bill by thousands of euros.
💶 Typical Property Buying Costs
Cost Item | Approximate Amount | Notes |
|---|---|---|
IMT Property Tax | 2% to 8% | Depends on purchase price |
Stamp Duty | 0.8% of price | Paid at signing |
Notary, Registry & Deeds | €1,200 | Fixed fees |
Legal Fees | €1,800 | Varies by lawyer |
🏦 Mortgage-Related Fees (2025)
Mortgage Fee | Typical Cost | Notes |
|---|---|---|
Application Fee | €290 | Set by lender |
Bank Valuation | €280 | Property inspection |
Stamp Duty on Mortgage | 0.6% | Of mortgage value |
Mortgage Deed Fees | €1,200 | Notary + registry costs |
💡 Note: These figures are averages. Final costs depend on the bank, property, and residency status.
🔢 2025 Mortgage Cost Estimator Tool
🎯 Want a quick estimate of your total costs?
👉 Try Our Interactive Mortgage Calculator Here
Estimate:
•Deposit required (10–30%)
•IMT tax
•Stamp duties
•Mortgage setup fees
•Legal costs
📊 Real-World Simulations
🏠 Example: Buying a €200,000 Algarve Property (2025)
Cost Breakdown | Amount |
|---|---|
IMT Tax | €5,000 |
Stamp Duty | €1,600 |
Legal Fees | €1,800 |
Property Deeds | €1,200 |
Application Fee | €300 |
Valuation Fee | €300 |
Mortgage Stamp Duty | €1,200 |
Mortgage Deed | €1,200 |
Total | €12,600 |
💳 Deposit:
•Non-resident (30%) = €60,000
•Resident (10%) = €20,000
🏠 Example: Buying a €400,000 Property
Cost Breakdown | Amount |
|---|---|
IMT Tax | €20,000 |
Stamp Duty | €3,200 |
Legal Fees | €1,800 |
Property Deeds | €1,200 |
Application Fee | €300 |
Valuation Fee | €300 |
Mortgage Stamp Duty | €1,700 |
Mortgage Deed | €1,200 |
Total | €29,700 |
💳 Deposit:
•Non-resident = €120,000
•Resident = €40,000
🔎 Banks use their own property valuations to determine deposit amounts. If the bank’s value is lower than the sale price, you’ll need to cover the shortfall.
🧾 Who Pays What?
In Portugal, most of the fees and taxes involved in property purchases are paid by the buyer — including IMT, stamp duty, notary and mortgage charges.
The seller typically only pays their own legal and agent fees.
📥 Download Our 2025 Mortgage Cost Checklist
❓ FAQs
📌 What are the typical closing costs for a mortgage in Portugal?
Expect 6–8% of the purchase price in taxes and fees, not including your deposit.
📌 Who pays IMT tax in Portugal?
The buyer pays IMT when purchasing property.
📌 Do residents pay less in mortgage fees?
While base fees are the same, residents may access lower deposit rates and better bank offers.
🔗 Related Reading:
Mark McLoughlin: A Passionate Explorer of Algarve’s Rich Heritage
For over 20 years, I’ve called the Algarve my home, immersing myself in its stunning landscapes, vibrant culture, and deep-rooted history. My passion lies in sharing this remarkable region’s unique beauty and stories through writing, photography, and helpful guides for those who live here or dream of making the Algarve their home.
As a Level 10 Google Local Guide, I’ve contributed extensively to showcasing the Algarve’s gems, from hidden beaches to historical landmarks, helping locals and travellers alike discover the best of what this southern paradise offers.