Taxes and Costs Associated with Buying and Selling Real Estate

The acquisition and sale of real estate involve costs that go beyond the value of the transaction. Detailed knowledge of these charges is essential to avoid unforeseen financial events and maximize the profitability of the investment.

At PRIVESTO, we guide buyers and sellers to ensure efficient planning of taxes and transaction costs, ensuring transparency and security in all real estate operations.

Find out what taxes and costs are involved in buying and selling real estate and how you can optimize your investments.

Costs Associated with Buying Real Estate

^{The purchase of a property involves mandatory taxes and administrative expenses, which must be considered in the calculation of the investment.}

^{IMT – Municipal Tax on Real Estate Transfer}

^{✔ Incidence: Applicable whenever the transfer of a property occurs.
✔ Value: Calculated based on the value of the property or the taxable patrimonial value (VPT), whichever is higher.
✔ Fees: They vary between 0% and 8%, depending on the type of property and its value.}

^{Stamp Duty}

^{✔ Incidence: Applied to the purchase of a property and to mortgage contracts.
✔ Fee: 0.8% on the purchase price of the property and 0.6% on the value of the bank financing, if applicable.}

^{Notarial Costs and Property Registration}

^{✔ Public Deed of Purchase and Sale: Costs associated with the official registration of the transaction.
✔ Land Registry: Formalization of the new ownership of the property.
✔ Estimated value: Between €500 and €1,200, depending on the complexity of the operation.}

Costs and Taxes in the Sale of Real Estate

^{The sale of a property may imply taxation on capital gains, depending on the seller's profile and the nature of the property.}

^{Real Estate Capital Gains}

^{✔ Incidence: Applies whenever a property is sold for a value higher than the purchase price.
✔ Calculation: This is based on the difference between the purchase price and the sale price, deducting appreciation expenses and taxes paid.
✔ Taxation: Individuals residing in Portugal: 50% of the capital gain is taxed at the progressive IRS rate. 
Non-residents: Fixed taxation of 28% on the total capital gain.}

^{It is possible to benefit from capital gains exemptions if the amount is reinvested in the purchase of a new permanent home.}

^{Investor and Leasehold Taxes}

^{✔ IRS on Rental Income: Fixed taxation of 28% on property income, with the possibility of reduction for long-term contracts.
✔ Corporate Income Tax: If the property is owned by a company, income and capital gains are subject to corporate income tax (21%).}

^{PRIVESTO assists investors in the most advantageous tax structuring for their real estate assets.}

Tax Benefits and Incentives in the Real Estate Sector

^{There are some tax exemption or reduction regimes applicable to certain real estate transactions:}

^{✔ Exemption from IMT in cases of Urban Rehabilitation and for young people up to 35 years old when buying their first home.
✔ Tax benefits for real estate acquired by real estate investment funds.
✔ Special IRS regime for non-habitual residents (NHR).
✔ Tax incentives for affordable rent.}

Why Choose PRIVESTO for Tax Support and Financial Planning?

^{✔ Specialized advice on real estate taxation.
✔ Strategic analysis to minimize tax burdens.
✔ Support in document regularization and tax calculation.
✔ Financial planning for investors and buyers.}

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