What are the costs and expenses associated with owning real estate in Portugal?

Portugal has some of the most onerous real estate taxes in the world. The most important tax is known as transfer tax (or IMT), which must be paid when you execute the purchase contract and sign the deed. Transfer tax is usually 6.5% of the property’s value, but it varies depending on the band to which it belongs. There’s also an ongoing annual municipal charge of 0.8%. Portugal assesses income from rentals regardless of your residency status.