Antonio Evans Staff asked 4 years ago Antonio Evans Staff answered 4 years ago Hey Chang,
Congrads on your decision to move to Portugal. You're taking the right steps into buying a place here in Lisbon. Since the economic crisis and the recent Covid-19 tragedy we are really dealing with a fluxuating market. As more housing stocks are brought into the market, prices have dropped countrywide. This is definitly and unprecidented event creating opportunities everywhere. Everything will return to a semi-normal over the course of the years but Portugal still is still a unique place that is very friendly to expats.
Now to answer your question. The current IMI (Imposto Municipal sobre Imóveis) rates are .3 %to .8% which ranges. When they factor the tax they look at a few things such as if it will be your first or second home, your age, the location and also the size/type of home. They plug it into their chart and send your a bill.
So a "rough back of the envelop" calculation on the purcahse of a 200,000 Euro home would be 1,600 at the high end. I do everything in my head as a monthly payment. So somewhere around 133 euro a month. So for every 100k of the value of the house you would pay 800 max a year.
Not bad compared to New Jersey's pricing. I think last time I checked it was 2.44% or 2400 a year.
Another thing to consider is that it's the book value of the house. That gets set when you purchase it. It may or may not be the amount you initially paid. All depends on that particular house and it's history.
I hope this helps and again congrats on your potential purchase.
Please login or Register to submit your answer