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Costs Involved in Purchasing a Home in Algarve

Buying and selling a property can represent an important decision in any family. In this video, Suzana discusses the 4 key ingredients to the perfect purchasing recipe. 

1st Cost: Professional Services

This will include a lawyer, a surveyor, a tax consultant or a wealth management company whose fees will be determined by the scale of the service provided

2nd Cost: Purchase Tax - IMT

This is the principal cost of the acquisition. If you're property is > €1M you will pay a flat rate of 7.5%.

Between €550.836 and €1M that % will decrease to 6%

<550.836 it will work on a sliding scale between 2% and 8% with a fixed deductable value.

Urban plots pay 6.5% on IMT

Rustic plots pay 5% on IMT

3rd Cost: Stamp Duty

This is 0.8% of the purchase price

4th Cost: Deed

Cost of deed varies between €400 and €750 if the price of the property is less than €800.000. In excess of this, it could go up to €3500

The IMI and AIMI also need to be considered which are the local municipality tax involved once you own your property.

For detailed information please download our Buyer's handbooks available on our website or contact us directly on +351 289 390 880.

 

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