How much money do I need to buy a house in Portugal?

The purchase of a house does not only constitute the value of the property. The initial down payment, taxes, and costs associated with the process are also relevant expenses that must be considered from the first moment.

Knowing these charges allows you to plan your purchase with greater peace of mind and make more informed and safer decisions.

• Initial Entry

As a general rule, banking institutions finance only a part of the value of the property. This means that the buyer must have equity capital to support the initial entry, which usually corresponds to 10% to 20% of the acquisition price.

Example:

• Property from 250.000€
  → Admission: €25,000 to €50,000

• Taxes associated with the purchase

The acquisition of a property also implies the payment of taxes, namely IMT and Stamp Duty. The amount of taxes varies depending on the price of the property, its location and the purpose of the purchase, so it should be considered in the budget from the beginning.

Example:

• Property from 250.000€ 

→ ~6,000€ to 8,000€

• Deed and registrations

In the final stage of the process, there are also the costs related to the deed and the respective registrations. Although they represent a lower portion of the investment, they are part of the mandatory acquisition expenses that must be considered.

Example:

→ around €700 to €1,500

• Financing costs

If there is recourse to home loans, additional charges may arise, such as the bank appraisal of the property, formalization fees or other costs associated with financing.

Thus, considering a property with a value of €250,000, the amount needed to proceed with the purchase may exceed €38,000, considering the initial down payment, taxes and other costs of the process.

Therefore, a well-planned purchase reduces unforeseen events and allows you to move forward with greater security in the business. At Mulberry Real Estate we accompany each client in a personalized way, helping to plan each stage of the purchase with transparency, rigor and knowledge of the necessary investment.