Imposto do Selo na compra de casa: O que é e quando pago?

Stamp Duty on home purchase: What is it and when is it paid?

The Stamp Duty is the oldest in the Portuguese tax system. It is paid at various moments, but with a greater impact on the purchase of a property. Find out how it works and what are the rates at the following URL.

25 Mar 20243 min

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What is Stamp Duty, when is it applied, and how much do I pay?

Stamp Duty is one of the taxes due when buying a house, but what is its value and when should it be paid?

According to the Official Gazette, General Stamp Duty Table, this tax applies "to all acts, contracts, documents, titles, papers and other legal situations provided for." It includes in these acts the "acquisition for consideration or by donation of the right of ownership or of partial figures of that right over real estate, as well as the resolution, invalidity or extinction, by mutual consent, of the respective contracts" - no. 1.1 of the General Stamp Duty Table.  

In addition, fees are charged to entities that authorize credits, notaries, conservators, contracts for games of Santa Casa da Misericórdia, and entities that award prizes for bingo, raffles, and other draws/contests.

This is actually the oldest tax in Portugal, created on December 24, 1660, having survived for centuries on the national tax map as a form of revenue for the State. It has adapted to new realities and reformed in 2000, with the abolition of the corresponding fiscal stamp. Although the stamp was abolished, the tax payment remained.

When buying a house

You will have to pay the Stamp Duty when buying a property, with the tax rate varying depending on the type of deed/contract. Usually, it represents 0.8% in the acquisition or free transfer of real estate, levied on the acquisition value of the property, or the Taxable Asset Value (VPT), whichever is higher.

Home loan not available at this time

If you resort to hiring mortgage credit to buy the house, you also have to pay Stamp Duty on the loan amount.  

The fee amount depends on the duration of the contract: for credits with a term of five years or more, it is 0.6%, for credits with a term of one year or more but less than five years, it is 0.5%, and for credits with a term of less than one year, 0.04% per each month or fraction.  

But a 4% Stamp Duty tax also applies to the commissions associated with the hiring of a home loan, such as study, evaluation, and formalization commissions.  

In addition, Stamp Duty is also paid on interest on home loans, other mortgage loans, and personal loans (on the interest of each installment).

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