Upcoming Visit to Porto

Member since 23 February 2026

dfrankel1New memberYesterday 15:45:40

Greetings:

We are planning to visit Porto in April. We would appreciate recommendations for reputable real estate agents who can assist us in finding a condominium in an area popular with expatriates. Please provide the names and contact information of agents you would recommend. Additionally, could you confirm whether there are any fees associated with property showings, or if the seller typically covers agents’ commissions?

I have also heard and read differing information regarding the tax structure for expatriates. Could someone please explain, in plain English, what the tax responsibilities are for expats living in Portugal?

Thank you in advance for your guidance.

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JohnnyPT Portugal Expert

Member since 23 May 2020

JohnnyPTPortugal ExpertYesterday 18:02:19

5183

Hi and Welcome.

For a condominium in an area popular with the expatriate community, I recommend focusing on these main districts: Foz do Douro, Boavista/Nevogilde, Cedofeita and Matosinhos.

Fees and Commissions

In Portugal, the property viewing and buying process works as follows:

Viewings: These are free of charge. You don't need to pay anything to an agent to see a property.

Commissions: The real estate agent's commission (usually 5% + VAT) is almost exclusively paid by the seller. As a buyer, you do not have this direct cost.

Acquisition Costs: Be prepared to pay IMT (Property Transfer Tax), Stamp Duty (0.8%), and notary fees. In total, you should set aside approximately 5% to 8% of the purchase price for these expenses.

Tax Structure

Tax Residency: If you live in Portugal for more than 183 days a year, you are considered a tax resident and must declare your worldwide income here.

The "New NHR" (IFICI, Incentivo Fiscal à Investigação Científica e Inovação): The old Non-Habitual Resident (NHR) regime has ended for most new applicants. it has been replaced by a more restricted incentive (IFICI or "NHR 2.0"), focused on high-value-added professions (scientists, researchers, tech), with a tax flat rate 20%. If you do not fit these specific roles, you will be subject to standard / progressive tax rates.

Progressive Rates: Income tax (IRS) in Portugal is progressive. Rates range from 12.5% up to 48%, depending on your income bracket.

Capital Gains/Investment Income: Interest and dividends are generally taxed at a flat rate of 28%.

Municipal Tax (IMI): As a homeowner, you will pay an annual property tax (IMI) to the local council, which varies between 0.3% and 0.45% of the property’s registered value at Portuguese Tax Authority (this is not the purchase price, it is most of the times lower than the purchase value ).

I strongly recommend hiring a certified accountant in Portugal to analyze your specific case, especially if you have income sourced from outside the country.

Regards