Buying property in Lisbon: the CPCV, IMT, stamp duty and IMI explained

Anyone can buy a home in Portugal, British passport or not. The process is orderly, but it front-loads the commitment: once you've signed the promissory contract, backing out costs real money.

The short version

• Lisbon is Portugal's priciest place to buy: a median EUR 4,875 per m² in 2025, against EUR 2,076 nationally [5].
• Most purchases go in two steps: the CPCV (promissory contract) with a deposit, then the deed (escritura) when the rest is paid.
• You pay IMT (property transfer tax) on a sliding scale, plus stamp duty of about 0.8% of the price (your lawyer or notary confirms the exact sum). The 2026 bands are lower for a main home than a second home [3].
• Every year after that you pay IMI (municipal property tax). Lisbon council voted to keep the legal minimum rate for 2026, which is 0.3% of the property's tax value [4][6]. Check the figure on your first bill.
• Since 2023 buying property no longer gets you a golden visa, so a flat in Lisbon isn't a residence route on its own.

Before you start

You'll need a Portuguese tax number (NIF) to make an offer, sign anything or pay tax. If you aren't yet resident, you can get one through a tax representative. A Portuguese bank account makes the money side much easier; see banking in Portugal as a Brit.

Then get your own lawyer. The FCDO advises buyers to use an English-speaking lawyer and check they're registered with the Ordem dos Advogados, the Portuguese bar [1]. Your lawyer (advogado) or a solicitor (solicitador) does the due diligence that a conveyancer does back home in Blighty:

• Land registry certificate (certidão permanente): who owns it and whether there's a mortgage, lien or seizure on it.
• Tax record (caderneta predial): the property's tax value (VPT) and its description.
• Licence of use (licença de utilização): that the flat is legal for living in, and matches what's built. Unlicensed extensions and roof terraces are common.
• Energy certificate: the seller must have one.
• Condominium position: that there are no unpaid fees or big works already approved.

The FCDO also notes that some notaries offer an independent property purchase service called "Casa Simples, Casa Segura" [1].

Step by step

1. Agree a price. Through an estate agent (imobiliária) or the owner. Agents' commission is normally paid by the seller.
2. Lawyer's checks. Done before you sign anything binding.
3. Sign the CPCV. The contrato-promessa de compra e venda sets the price, the deed date and the deposit (sinal). The deposit is negotiated and is usually a significant slice of the price, not a token sum.
4. Arrange the mortgage, if you need one. Portuguese banks lend to non-residents, usually at a lower loan-to-value than to residents.
5. Pay IMT and stamp duty before the deed. Your lawyer or the notary generates the tax forms.
6. Sign the deed (escritura) at a notary or a Casa Pronta desk, pay the balance and get the keys.
7. Register the property in your name at the land registry. This is usually done straight after the deed.

What the deposit means

The CPCV deposit has teeth. Under the Portuguese Civil Code, if the buyer walks away, the seller keeps the deposit. If the seller walks away, they must pay back double. That's very different from England, where nobody is bound until exchange. Make sure the CPCV includes any conditions you need, such as getting a mortgage, and that your lawyer has finished the checks first.

IMT and stamp duty in 2026

IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis) is charged on the higher of the price and the tax value. The 2026 bands for mainland Portugal were published by the tax authority on 8 January 2026 [3]. Below EUR 660,982 (main home) or EUR 633,931 (other homes), you multiply by the marginal rate and take off a fixed deduction. Above that, a single flat rate applies to the whole price.

Source: Ofício Circulado 40129/2026, Portuguese Tax and Customs Authority [3]. Pound conversions in this guide use the Bank of England spot rate of 5 November 2026 (£1 = EUR 1.2002).

A worked example. On a EUR 500,000 flat (about £416,600):

• As your main home, IMT is 8% minus EUR 13,763.35, which is about EUR 26,240 (about £21,860) [3].
• As a second home, IMT is 8% minus EUR 12,699.89, which is about EUR 27,300 (about £22,750) [3].
• Stamp duty (Imposto do Selo), at about 0.8%, adds roughly EUR 4,000 (about £3,330). Your lawyer or notary will confirm the exact amount.

Add notary and registration fees, your lawyer's fee and, if you borrow, stamp duty on the mortgage and bank charges. A budget of roughly 7% to 8% on top of the price is a sensible starting point for a home of that size. A tax adviser who knows both countries can check your case.

IMI: the yearly property tax

IMI (Imposto Municipal sobre Imóveis) is Portugal's answer to council tax, but it's charged on the property's tax value (VPT), which is usually well below the market price. Each council sets a rate between 0.3% and 0.45% for urban property [6]. Lisbon's council voted to keep the minimum, 0.3%, for 2026, according to press reports of the vote [4].

So a flat with a tax value of EUR 200,000 pays about EUR 600 a year (about £500). The tax office sends the bill in April. Under EUR 100 you pay once in May; between EUR 100 and EUR 500 it's split between May and November; over EUR 500 it's three instalments in May, August and November [4]. Lisbon also gives a family discount for a main home: EUR 30 off with one dependant, EUR 70 with two and EUR 140 with three or more [4].

Owners of very valuable portfolios may also pay AIMI, an additional charge on the combined tax value of residential property above a high threshold. Most single-flat buyers won't reach it.

Lisbon vs the coast

INE's 2025 figures show how steep the city premium is [5]:

Cascais and Estoril give you the sea and the school run for nearly Lisbon prices. Across the river, Almada and the Setúbal peninsula are cheaper and a ferry ride from the centre. If you're retiring, our guide to the Algarve as the retiree alternative to Lisbon compares the two. Planning to let it out as a holiday let? Lisbon has restricted new short-let (alojamento local) registrations in much of the centre, so check with the Câmara Municipal before you buy on that basis.

The FCDO also flags two rules outside the city: coastal, river and lakeside properties are subject to Portugal's 2005 water resources law, and rural properties must meet forest fire prevention rules [1]. The FCDO travel advice warns of a high wildfire risk from April to October [2].

The UK side

Buying in Portugal doesn't change your UK tax position by itself, but moving here does. If you're selling a UK home to fund the purchase, check the timing against the Statutory Residence Test, and remember non-residents report UK property disposals to HMRC within 60 days. Portuguese property can also matter for UK inheritance tax, depending on your long-term residence; see our inheritance tax guide. If you're tempted to release cash from a UK pension for a deposit, get regulated financial advice first; never move a pension on the back of a sales pitch.

Want to compare notes with people who've just bought? Our community group for Brits in Portugal has plenty of them.

Sources

1. GOV.UK (FCDO): Living in Portugal (last updated 10 July 2026)
2. GOV.UK (FCDO): Portugal travel advice (still current at 7 November 2026 when we checked on 8 November 2026, updated 11 August 2026)
3. Autoridade Tributária e Aduaneira: Ofício Circulado 40129/2026, IMT tables for 2026 (8 January 2026)
4. ECO: Câmara de Lisboa aprova manutenção da taxa mínima de IMI (10 December 2025), and e-konomista: IMI em 2026
5. Renascença: Preço mediano da habitação sobe 16,8% em 2025 (INE) (17 July 2026)
6. Portal das Finanças: Código do IMI, Article 112 (rates) (read 11 November 2026)

Keep reading

• Renting in Lisbon
• The Algarve as the retiree alternative to Lisbon
• Portuguese taxes for Brits: the UK link and your State Pension
• UK income while you live abroad: rent, pensions and savings