´ó¿§¸£ÀûÓ°Ôº

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:

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

1. 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.

1. 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

1. 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.

1. 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 it has been replaced by a more restricted incentive (IFICI or "NHR 2.0"), focused on high-value-added professions (scientists, researchers, tech), with a tax flat rate 20%.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.

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

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

1. 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

Thank you for the valuable information.

David