One of the biggest costs associated with the acquisition of a permanent home is the execution of the deed. The last step of acquiring a property, find out how much this process could cost you and who are the parties involved in it.
The deed itself is not too expensive, but there are a series of taxes that the buyer has to pay, in addition to the expenses associated with the housing loan:
Stamp duty on the transaction = 0.8%
Stamp duty on credit (above 5 thousand euros) = 0.6%
deed registration
Payment of IMT = Deed Value or Tax Asset Value (the greater of these two) x Rate to be applied – Installment to be discounted
A practical example:
Tiago and Inês will acquire a property for their own permanent housing, which costs 190 thousand euros. They applied for a loan to the bank, which financed 80% – which means that the loan amount is 152 thousand euros.
For these amounts, at the time of the deed, these amounts will have to be settled:
Stamp Duty on the transaction: 1,520 euros
Stamp Duty on home loans: 912 euros
Paper deed records: 650 euros
IMT: (€190,000 x 0.05) – €5,640.23 = €14,852.78
Therefore, the total cost that Tiago and Inês will have to pay on the day of the deed is 17,934.78 euros.
If you wish to request an exemption from IMI, you must do so within 60 days after the deed is carried out at the Tax Office in the area where the property is located.
Table used to calculate own and permanent housing acquisition
Taxable income Marginal rate to be applied Portion to be written off
Up to €92,407.00 0% 0€
More than €92,407.00 up to €126,403.00 2% €1,848.14
More than €126,403.00 up to €172,348.00 5% €5,640.23
More than €172,348.00 up to €287,213.00 7% €9,087.22
More than €287,213.00 up to €574,323.00 8% €11,959.26
More than €574,323.00 up to €1,000,000 One-time fee of 6%
More than €1,000,000 One-time fee of 7.5%