1.  Due diligence costs for the purchase of real estate
    1. Municipal search
    2. Cost
    3. VAT
    4. Utility search (each service)
    5. Cost
    6. VAT
    7. Land registry search (per search)
    8. VAT
    9.  Company search, per company
    10. VAT
    11.  Survey/Valuation fee, approx
    12. VAT
    13.  Phase 1 Environmental survey
    14. VAT
  2. Costs associated with a contract for purchase of real estate and registering title
    1.  VAT on price
    2. Cost
    3. VAT
    4.  Transfer duty
  3. Tax or duty on the acquisition of shares in a company owning real estate
  4.  Capital gain taxation on future disposal of real estate or shares in a company owning real estate
    1.  Tax on capital gains on the disposal of the real estate itself
    2.  Tax on capital gains on the disposal of shares in a company owning real estate

jurisdiction

Portugal

1. Due diligence costs for the purchase of real estate

Cost

For due diligences: certified copies are paid according to the document or to the number of pages (varied). For transactions and with the exception of the preference right of the municipality in certain zones or classified buildings, no document from the municipality is necessary to instruct the public deed.

VAT

Nil

1.2 Utility search (each service)

Cost

Negotiable

VAT

N/A

VAT

Nil

1.4 Company search, per company

VAT

Nil

1.5 Survey/Valuation fee, approx

VAT

23%

1.6 Phase 1 Environmental survey

VAT

23%

2. Costs associated with a contract for purchase of real estate and registering title

2.1 VAT on price

Cost

Transfer duty is named IMT

  • General rule: Urban Buildings for residential ends: up to 6% of purchase price
  • Urban buildings not for residential ends: 6.5% of purchase price
  • Rural properties: 5% of purchase price
  • In all cases should the purchase price be lower than the tax registered value of the asset, IMT is assessed on the latter
VAT

Nil

2.2 Transfer duty

3. Tax or duty on the acquisition of shares in a company owning real estate

Stamp duty of 0.8% applied to the highest value: tax value or the price of the transaction.

4. Capital gain taxation on future disposal of real estate or shares in a company owning real estate

4.1 Tax on capital gains on the disposal of the real estate itself

Individual persons: Capital Gains are liable to Personal Income Tax (“IRS”), being considered for taxation purpose in 50%, and taxed at progressive rates of up to 48%.

Companies: Capital Gains realized on the disposal of real estate are computed for Corporate Income Tax (“IRC”) purposes, being the taxable profit taxed at an aggregated tax burden of up to 29.5%.

4.2 Tax on capital gains on the disposal of shares in a company owning real estate

Portuguese Companies are exempt from taxation regarding capital gains realized on the disposal of shares, even if these shares are held in companies owning Portuguese real estate. Non-resident entities, are exempt from taxation regarding capital gains realized on the disposal of shares held in Portuguese companies, except if one the following conditions applies:

  1. The non-resident entity is a black listed entity;
  2. The non-resident entity is held by more than 25 % by a Portuguese resident entity;
  3. More than 50 % of the balance sheet of the Portuguese company regards Portuguese real estate.